Why Smart Manufacturers Choose NAPS for Nearshoring in Mexico

You’ve run the numbers. You know manufacturing in Mexico makes sense. But now you’re facing a bigger question: do you build from the ground up or plug into a proven system that’s already working?

The difference between a standalone operation and shelter manufacturing in Mexico is more than legal. It affects how quickly you enter the market, how much regulatory compliance risk you carry, and how well your company can adapt to Mexico’s evolving business and trade environment.

At NAPS, we’ve spent more than 30 years guiding global manufacturers, from aerospace to consumer products, through this decision. With deep expertise in customs, workforce management, environmental law, and Mexico’s IMMEX system, we help companies nearshore with clarity and confidence.

In this article, we’ll clarify the differences between shelter and standalone models, and show why NAPS continues to be a trusted partner for manufacturers expanding into Mexico’s industrial corridor.

Rethinking the Mexico Manufacturing Expansion Model

Mexico’s manufacturing sector has become a cornerstone of the country’s economy and a rising force in global production. In 2024, foreign direct investment (FDI) reached $19.9 billion, accounting for more than half of the total FDI and signaling strong global confidence in Mexico’s industrial capabilities. Companies across North America and beyond continue to establish or expand operations in Mexico to strengthen supply chains, lower costs, and serve the U.S. market more efficiently.

For companies entering this market, there are two main operational paths: build a standalone entity from the ground up or partner with a shelter services provider that already has the necessary infrastructure and certifications. Each model has its merits. Standalone operations allow for complete ownership of the local entity and direct control of all administrative functions. But for most manufacturers, the shelter model offers clear strategic advantages: faster launch times, reduced risk, established networks, and immediate access to proven systems that support long-term growth.

What Is Shelter Manufacturing in Mexico?

The shelter model is a unique legal and operational framework that allows foreign manufacturers to operate in Mexico without establishing a standalone Mexican entity. Instead, companies partner with a licensed Mexican shelter provider, such as NAPS, which handles a wide range of back-office, administrative, and compliance responsibilities under its own corporate structure.

This model, which has existed since the early 1980s, was originally designed to attract foreign investment and accelerate industrial development. It still does precisely that by lowering barriers to entry and minimizing exposure.

Shelter vs. Standalone Manufacturing: A Side-by-Side Look

Feature	Shelter Model	Standalone Operation
Legal Entity Setup	No need to form a Mexican entity	Requires local corporation or >subsidiary
Startup Timeline	As little as 90 days	6–12 months, depending on licensing
Administrative Burden	Handled by shelter provider (e.g., NAPS)	Fully managed in-house
Customs & Trade Compliance	Managed through existing shelter licenses	Requires registration and audits
Employment & HR	Employees hired via shelter’s legal entity	Employer of record responsibility
Risk & Liability	Contained under shelter’s structure	Fully borne by manufacturer
Cost Transparency	Predictable service fees	Variable and often higher internal cost

Why Do Leading Manufacturers Choose the Shelter Program?

1. Faster Entry into the Market

Standalone operations often spend several months securing licenses and navigating Mexico’s complex employment, environmental, and regulatory requirements, including the lengthy process of obtaining their own IMMEX permits. Shelter programs eliminate much of that delay.

Because NAPS is already IMMEX-certified, clients can launch in as little as 90 days, gaining immediate access to duty-free import/export privileges and streamlined customs procedures. By contrast, obtaining an individual IMMEX certification as a standalone entity can take six to nine months and involves a complex, multi-agency approval process.

2. Reduced Regulatory and Legal Risk

From labor audits to SAT (Mexico’s tax authority) inspections, compliance requirements can be complex, especially when they must be navigated in a second language. Experienced shelter providers shoulder the burden by managing licensing, environmental compliance, import/export documentation, and employment law under their corporate umbrella. For U.S. companies unfamiliar with the language or Mexico’s legal landscape, that layer of expertise and protection can be critical to avoiding costly missteps.

3. Seamless Workforce Management

Human resources in Mexico, from payroll processing to employee benefits, involves significant paperwork and local knowledge. NAPS handles this from end to end, aligning each step with Mexican labor laws and best practices. That means lower turnover, stronger compliance, and streamlined operations without the learning curve.

4. Simplified Trade and Customs

Importing raw materials and exporting finished goods through IMMEX requires strict adherence to customs and tariff regulations. Under a shelter program, manufacturers operate using pre-established licenses and permits. NAPS also manages every step of the customs process with proven, compliant workflows, reducing border delays and keeping supply chains moving.

5. Lower Overhead, Higher Focus

With NAPS managing administrative operations, HR, payroll, environmental law compliance, reporting, and more, your team can focus on what matters most: building product and growing market share.

What Are the Risks of a Standalone Operation in Mexico?

Some companies assume that setting up their own Mexican entity will give them greater control. In reality, standalone operations face higher risks and steeper learning curves, especially when it comes to taxes, labor disputes, real estate contracts, and cultural adaptation.

Without the insulation of a shelter, your organization bears full legal and financial responsibility for every compliance misstep. Errors in payroll calculations, permitting, or delayed registrations can result in costly fines or shutdowns. For most foreign companies, particularly small- to mid-sized manufacturers, those risks aren’t worth taking on solo.

Where Does NAPS Deliver Value for International Manufacturers in Mexico?

NAPS offers more than a basic shelter structure. It delivers a turnkey infrastructure that includes:

• Site selection and real estate leasing in key manufacturing hubs like Tijuana, Monterrey, Saltillo, and Ciudad Juárez
• Recruitment and workforce planning backed by deep labor market insights
• Full-service administrative and compliance management, including tax, audit, and licensing
• Daily bilingual communication and project management
• Ongoing support across the lifecycle of your Mexico manufacturing operation

Working under a shelter model does not mean giving up control of your production. You direct manufacturing processes and supply chain decisions while NAPS ensures the operational and legal framework keeps pace with your business goals.

Is a Shelter Model Right for You?

The shelter model is especially well-suited for:

• Companies new to international manufacturing
• Firms pursuing a nearshoring strategy to serve the North American market
• Manufacturers seeking to reduce exposure to legal and tax risk
• Businesses focused on scalability, flexibility, and long-term operational efficiency

Standalone models still work for some, but they come with higher investment, longer lead times, and more complexity. In contrast, shelter manufacturing in Mexico offers a streamlined path to productivity and a softer landing into international trade.

Grow With a Smarter Mexico Manufacturing Model

Manufacturing in Mexico doesn’t need to be a regulatory minefield or a bureaucratic drain. With the right partner, it becomes a fast, low-risk expansion into one of the most competitive industrial markets in the world.

With more than three decades of proven results, NAPS brings together a seasoned team of trade, HR, legal, and project management professionals who understand the nuances of Mexican manufacturing and U.S. compliance standards.

From Monterrey to Tijuana, from initial site selection to long-term operations, we offer the structure and support you need to move fast, manage risk, and maintain control without unnecessary red tape.

Considering nearshoring? Let NAPS show you how shelter manufacturing can give your operation a stronger foundation from day one. Contact our experts today.