Mexico Manufacturing Driving Employment in Mexico

July 21, 2014

Formerly one of the world’s poorest nations, times are changing quickly in Mexico. Employment rates are rising substantially across the country, with high quality jobs to be found in industrialized areas from Juarez to Guanajuato. These highly skilled production jobs are boosting the Mexican industrial economy and may turn the previously ailing nation into one of the world’s biggest production capitals in coming years. The reasons for this growth are vast and include everything from anti-crime measures taken by the Mexican government to an improving educational system. One of the biggest, though, is the rise of manufacturing in Mexico.

Supporting the Mexico manufacturing renaissance is a niche industry of administration and compliance management firms, more commonly referred to as “Shelter Companies.”

How Shelter Companies Work

Shelter companies, such as North American Production Sharing, Inc. (NAPS, Inc.), are outsourced administration and compliance management firms, which seek to mitigate risk and streamline the process of foreign manufacturing firms expanding into Mexico. From feasibility to on-going administration management, shelter services in Mexico enable their partner clients to focus on production and quality control, leaving the day-to-day administration of the facility in the hands of experts. The best of these companies work closely with their partners in the United States, Europe, Japan and elsewhere, providing the necessary tools to monitor the day-to-day operations of their business. “It truly is a win/win partnership for companies looking to expand into Mexico,” says Scott Stanley, Sr. Vice President of NAPS, Inc. “Our partner clients control their manufacturing and quality control processes to ensure their products are properly manufactured. NAPS handles virtually everything else, including their human resources, Mexico accounting, import/export activities, environmental health and safety and the government compliance of the entire operation.” With over 60 factories and 8,000 employees under management, NAPS is a leader in the industry. 

Community Effects
Increased employment, especially for “direct workers,” is excellent for Mexican families all over the country, and the work that these companies make possible have many benefits. For one, many native Mexican manufacturing industries are somewhat hazardous and maintain fairly lax safety standards, whereas foreign companies must adhere to fairly rigorous environmental and safety requirements. This means that foreign companies moving into Mexico will result in an overall lessening in the national number of workplace injuries, as well as bettering the environmental situation in smog-ridden areas like Mexico City. This in turn will result in lower levels of pollution, raising the health and happiness of every individual in the country.

Economic Benefits

Even this, however, pales in magnitude to the effect these jobs have on Mexico manufacturing. The construction and service sectors in particular have expanded significantly since the first wave of offshore business came to Mexico, but the effects may stretch to other areas. In fact, the expansion of manufacturing in Mexico is beginning to contribute to a need for the very same manufactures to supply their product to the local (Mexican) market. This unforeseen turn of events requires a sophisticated structure, which companies like NAPS is able to provide.

The world is beginning to focus on Mexico as the next China for manufacturing.  The citizens of Mexico, as well as their government, are well prepared to accommodate the needs of foreign companies, which will ultimately result in a bright future for the country and companies manufacturing in Mexico.