Outsourcing Administration when Manufacturing in Mexico
November 2, 2012
Manufacturing in Mexico is an endeavor with plenty of internal hurdles for companies new to the country. Moving raw materials and finished goods into and out of Mexico means dealing with complex customs protocols and diligent record keeping. Mexico, similar to the United States, has strict environmental standards that demand compliance. How can a company seeking to move to another country like Mexico handle these tasks efficiently? Outsource them to a professional, experienced company. In Mexico, it is common for manufacturers to use outsourcing companies called “shelters” for all their administrative activities in the plant, including Human Resources, Mexican Payroll Services , Accounting, Customs and Environmental Health & Safety. The term “shelter” comes from the business practice of operating under the outsourcing firm’s Mexican corporation, which limits (or shelters) the manufacturer from liability in Mexico.
“Regardless of the corporate structure, a good shelter company can make the difference between succeeding and failing when manufacturing in Mexico,” said Scott Stanley, Sr. VP of Sales and Marketing with North American Production Sharing, Inc. (NAPS), one of Mexico’s largest and most successful shelter companies. “Outsourcing the administration of a manufacturing plant in Mexico allows companies to focus on production and quality control without the headache of adhering to strict compliance requirements.”
Mexico is a relatively underdeveloped country when compared to the United States and Canada. The country, however, is home to thriving manufacturing industries, such as Electronics, Automobiles, Medical Device, Solar and Aerospace.
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