If you’re moving your operations to Mexico, you’ll need to consider how you’ll be recruiting new employees. One option would be to set up a subsidiary and do the recruitment yourself; however, this can be a complicated and costly process. Another option would be to outsource recruitment to a Mexico recruitment agency, but this too comes with numerous disadvantages such as a loss of control over the process and the [...]

Mexico is well known for its thriving automotive and aerospace manufacturing industry, but it is also ideal for manufacturing a wide range of other products. The country has become the eighth largest exporter of medical devices, with exports totaling $17 billion in 2018, and is the United States' most prominent source of imported medical equipment. It's no surprise that this segment of Mexican manufacturing continues to see significant growth. Compared [...]

There are many great reasons for moving one’s manufacturing operations to Mexico, but quickly and successfully establishing your presence there can be a complicated and confusing process if you aren’t familiar with Mexico’s laws and culture. To ensure they can fully reap the benefits of manufacturing in Mexico while remaining fully compliant, many companies decide to operate under a shelter company. Shelter companies are service providers that enable foreign companies [...]

Before the pandemic, long supply chains (often coming from China) did not pose much of an issue. However, as the COVID-19 pandemic erupted and cities everywhere went into lockdown, companies across the world saw a significant supply chain disruption. Although the world is slowly recovering from the worst of the pandemic, and businesses may no longer be dealing with continuous crisis management, many are rethinking how they construct and manage [...]

More and more companies are outsourcing their manufacturing processes to Mexico, and for good reason. Mexico offers lower labor costs, a skilled workforce, and logistical advantages due to its proximity to the United States. One key to successfully moving your operations to Mexico is a strategically sourced manufacturing facility. There are several factors you’ll need to consider in light of your financial needs, product type, and business objectives. Here are [...]

If you're considering expanding or relocating your manufacturing operations to Mexico, you're probably already aware of the affordable labor costs. Now you'll need to familiarize yourself with the Mexican Federal Labor Law (FLL). While there are some commonalities, such as the establishment of overtime pay, Mexico's labor laws generally offer different types of protection for workers than the laws in the United States. Here's our short guide to some of [...]

When we think of the leading names in the auto industry, it’s easy to assume that the most reliable, desirable commercial vehicles are made in Europe, the U.S., and Asia. But the past few decades have seen many leading brands move substantial parts of their car manufacturing to Mexico, which is now the #3 global leader in automotive manufacturing. What cars are made in Mexico? Toyota, Volkswagen, Nissan, and Kia [...]

When establishing a business presence in Mexico, it’s important to implement accurate, legal payroll procedures for your employees. In some ways, this compensation process mirrors U.S. regulations, like how an employer must contribute to social security (the Mexican Institute of Social Security or IMSS) and withhold appropriate taxes. However, there are also some noticeable differences. For example, in Mexico, most employers are required to redistribute 10% of the company’s profits [...]

If your operating company has chosen to move some or all of its manufacturing to Mexico, you already know the benefits of nearshoring—lowering your production costs, improving the efficiency of your supply chains, among others.  With the benefits of doing business in Mexico, however, come some potential challenges. As you begin to employ and pay an international workforce, you’ll need accountants and lawyers who are well-versed in Mexican payroll laws [...]