Before you move your manufacturing business to Mexico, you need to identify the site where you can set up your factory. The initial site selection due diligence process is a key component for your project’s success.
Part of this process is understanding the criteria for selecting a manufacturing site. Although cost considerations can significantly influence decisions about the facility location, there are many other more important factors of the site selection process that are easily explained and should be considered when choosing your manufacturing site in Mexico–or any other part of the world, for that matter.
Factors to Consider When Identifying a Manufacturing Site
Site selection for manufacturers is quite complex because you have to comply with local and international laws, particularly those related to environmental and health issues. This is why it's best to have an experienced local service provider like Tetakawi by your side–we understand all legal regulations governing the area you are considering for a factory.
A local partner is aware of and can help you remain compliant with laws. That said, even as you partner with Tetakawi, there are other essential items to remember when evaluating a property for a manufacturing operation.
Available Sites Versus Existing Buildings
As you prepare to move your manufacturing operations to Mexico, the two main choices are to move into an existing facility or build your factory on a vacant site.
While both choices are viable, choosing an existing building is typically less expensive than setting up a new factory from the ground up. However, even with an existing manufacturing site, you have to consider the cost of upgrading obsolete infrastructure and machinery.
In some cases, the overall cost of upgrading an old manufacturing facility actually outweighs that of setting up a new facility. Only through the help of a knowledgeable local partner like Tetakawi can you understand the costs involved and the difference between the two options.
Tekatakawi acts as your independent local consultant, advising you on costs, obtaining licenses, leasing an existing manufacturing facility, buying land to set up your factory, construction costs, and other critical aspects of your new venture.
Overall Cost of the Project
Many factors determine the overall cost of setting up a manufacturing company overseas. Don’t fall into the trap of relying on outdated data when evaluating the cost of your project.
Instead, seek advice from an informed local partner who has handled many similar projects before. If you’re looking for a site in Mexico, talk to Tetakawi for accurate cost estimates and reliable advice related to cost.
As the global economy changes, the cost of construction materials continues to rise. Relying on old estimates will cause frustrations in the middle of the project when you realize you have an insufficient budget. With an experienced local consultant, you can avoid this situation and get accurate budget estimates that will save you the trouble of having to dig deeper into your pockets in the middle of the project.
These estimates will become the basis for planning a budget and projecting your facility’s needs. With the assistance of a local firm specializing in setting up manufacturing operations, you will have a detailed budget from the inception so that you can have a clear picture of the scope of your project. This is essential to managing overall costs and making well-formed decisions.
Local Codes and Guidelines
As you set up your factory, you need to abide by the existing local laws. For instance, you must adhere to the building, zoning, and fire codes set up by local governments. You also need to get a license to operate your factory–if your factory is likely to emit fumes and chemicals that pose environmental and health risks, you have to get permission from local environmental conservation authorities before you begin operations.
Failure to comply with these laws could land you into a serious legal predicament that might even force you to stop operations. With local assistance from a reputable organization like Tetakawi, you’ll be aware of all these codes and regulations, including any updates and changes to the laws.
You need to do a feasibility study of the area in which you plan to set up your factory before you start construction. This will show you if the area is prone to floods, if it’s within a seismic area, or if there is any existing contamination. You also must check if the area experiences high levels of humidity.
With a local partner like Tetakawi, you will learn everything you need to know about the environmental conditions in the area you are considering.
For nearly thirty-five years, Tetakawi has helped thousands of companies of all sizes realize their potential in Mexico with guidance related to site selections and other aspects of running an offshore or nearshore manufacturing facility. If you want to successfully move your factory to Mexico, reach out to the experts at Tetakawi today!
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