The Location Guide to Manufacturing in Mexico: Monterrey
March 09, 2020
In part four of our guide to manufacturing locations in Mexico, we explore Monterrey’s booming manufacturing industry and how to get started with your own operation the easy way: using a shelter services provider.
Quick facts about manufacturing in Monterrey
The third-largest city in Mexico, Monterrey is the capital of the state of Nuevo Leon. A sprawling metropolis with a city population of over 1 million and a regional population of over 4.5 million, Monterrey is a hub for commerce, industry, and transportation in northern Mexico. A home to nearly every major industry and a labor market of skilled workers, household names like IKEA, Kia, and Whirlpool call Monterrey their manufacturing home.
Population: Approx. 1,135,550
Distance to U.S. Border: 140 mi from Laredo, TX
Labor Market: Educated and skilled; compensation is competitive in the area
Infrastructure: Two international airports (General Mariano Escobedo and Del Norte), an international railway network, access to major regional and international highways, and an inland port
Major Industries: Aerospace, automotive, electronics, medical devices
The shelter services model: Mexico manufacturing made easy
The “shelter” model of manufacturing in Mexico allows foreign companies to work with a locally-based provider to establish manufacturing operations in the country. In Monterrey, many companies opt to work with a shelter services provider to minimize many of the risks of developing operations on their own. In a highly nuanced location like Monterrey, there are many benefits to working with a provider that is experienced with setup and maintenance of an offshore manufacturing operation. These include:
Gaining protection from exposure to the potential pitfalls establishing an operation alone, especially when working through complicated labor, tax, and trade laws.
Reducing the administrative burden of operations; the shelter services provider is the legal entity acting on the establishing company’s behalf and acts as the main point of contact, allowing more focus specifically on production.
How do shelter companies make manufacturing in Monterrey easier?
For businesses new to manufacturing in Mexico, there are many hurdles to overcome to getting operations up and running quickly. By choosing to use a shelter services provider in Monterrey, companies can drastically reduce the learning curve associated with building out an operation alone. With easy access to typically scarce information, more flexibility, comfortable scaling options, direct access to local labor, as well as many other advantages in the tax and legal arenas, the benefits of working with a shelter services provider are clear.
When working with a shelter services provider in Monterrey, you are free of many administrative, legal, and tax headaches. The Mexican government views foreign investment in manufacturing favorably and, in turn, offers consumption, income, and import/export tax benefits. With this increased bandwidth, you can focus on big picture goals: executing and refining production operations.
What shelter services in Monterrey does Tetakawi offer?
A trusted shelter services provider for over 33 years, Tetakawi offers a variety of cost-effective services that help reduce the financial, regulatory, and operational risks often associated with setting up manufacturing in Mexico. Whether your company is locating in Monterrey for its proximity to a network of manufacturing cities (notably Saltillo) or access to nearly every manufacturing industry, working with us is very straightforward.
At Tetakawi, we act as the employer and manufacturer of record in Mexico and provide a comprehensive legal framework. Additionally, we use our extensive knowledge of the manufacturing landscape in the region to address the administrative, labor market, and financial aspects of operation. This includes recruitment and payroll, regulatory and legal compliance, supply chain management, import/export services, and several other functions. This ultimately means fast start-up, reduced costs, more flexibility, and improved productivity.
Where to go for more information on shelter services in Monterrey
If you’re ready to get your products to market at the right time and cost, you’re prepared to work with Tetakawi as your shelter services provider. To learn more about our offerings for shelter services in Monterrey, contact usto speak with an expert, get your questions answered, and begin your expansion into Mexico.
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