Q. What is the average fully burdened labor rate for a “direct” (unskilled / semi-skilled) employee in Mexico?
A. In 2017, the average fully burdened labor rate for a direct employee in Mexico was approximately $3.50 per hour. Contact NAPS to learn more about labor rates in Mexico.
Q. What is a “shelter” company?
A. A shelter company helps manufacturers expand to Mexico by offering administration and compliance management services so the manufacture can strictly focus on production and quality control.The term “shelter” comes from the most common organizational structure, which enables the manufacturer to operate in Mexico under the shelter company’s Mexican corporation, which limits the manufacturer’s liability and exposure in Mexico. Contact NAPS to learn more about the various organizational structures in Mexico.
Q. Where is the best location in Mexico to start a manufacturing operation?
A. For most companies exporting to the United States and Canada, the best location for manufacturing is along the U.S. / Mexico border, ideally in large cities with strong labor pools, such as Tijuana and Cd. Juarez. Some suppliers are required to be close to their customer’s facility, which will dictate the location of their operation. NAPS offers its services throughout Mexico and can help its client’s identify the best location for their operation through a comprehensive site selection process. Please contact NAPS for more information.
Q. How long does it take to open a manufacturing facility in Mexico?
A. The timeline for a company to expand to Mexico typically depends on the size and sophistication of the operation. For smaller and less complex operations, such as general assembly or light manufacturing, NAPS has successfully helped companies begin production in as few as 12 weeks. Conversely, it could take up to 6 months or more for operations that require a large facility with complex machinery and a skilled labor force. NAPS can help companies better understand a timeline through the development of a feasibility study. Please contact NAPS for more information.
Q. How much does it cost to expand to Mexico?
A. The cost to open a manufacturing facility in Mexico depends on the size and complexity of the operation. Most of the start-up costs will relate to building improvements to prepare the production floor and offices (tenant improvements), as well as any machinery and equipment. NAPS can help companies better understand the cost to expand their operations to Mexico through the development of a comprehensive financial pro forma. Please contact NAPS for more information.
Q. Is Mexico a safe place to visit and work?
A. Mexico is consistently being portrayed as unsafe by various media channels that focus on the violent drug trade. From a business and tourism perspective, most of Mexico is very safe to visit and work. Like any place in the world, the bigger cities in Mexico tend to attract more petty theft and crime, but the rate of such crime is no higher in Mexico than any other nation. Following common sense security protocols, such as not traveling alone to areas that are unfamiliar, is the most effective way to remain safe in Mexico. Contact NAPS to learn more about the security situation in Mexico.