Mexico has become a manufacturing hotspot that continues to increase in popularity due to its skilled workforce, low labor costs, and proximity to large consumer markets. But Mexico offers another significant advantage that has been a major deciding factor for many foreign manufacturers considering nearshoring to Mexico: the IMMEX program. IMMEX Overview Formerly known as the maquiladora program, Mexico’s IMMEX program provides foreign manufacturers with tax exemption opportunities, enabling them [...]

Sourcing Labor for YOUR Mexico Operation: Options in Human Resources Consulting Services Foreign companies with little experience in Mexico’s labor laws or manufacturing industry may run into various human resource challenges. From understanding the labor market to attracting the top available candidates, manufacturers have many different hurdles to overcome while remaining compliant with Mexican law. As a result, many companies choose to enlist the assistance of a business that offers [...]

While the United States emerges from the pandemic, the economy is still feeling its effects. Luckily, the recently passed United States-Mexico-Canada Agreement (USMCA) is likely to play a big role in facilitating the recovery of not just the United States’ economy, but that of North America as a whole. The USMCA The USMCA, the United States-Mexico-Canada Agreement, took effect July 1, 2020, as an update to the North American Free [...]

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 [...]