Shelter Assembly or Contract Manufacturing?

Shelter Assembly or Contract Manufacturing Analysis

Many U.S., Canadian, or European companies inquire about contract manufacturing options or for information on the shelter companies in Mexicali, Monterrey, Juarez, Chihuahua, Empalme and elsewhere in Mexico. The MSG Alliance advises American and European industries considering contract manufacturing options or those interested in contracting with a shelter manufacturing operator. We use the specifics of your home-country manufacturing processes and our very complete database of shelter operators and contract manufacturers throughout Mexico to identify logical candidates to work with your company.

Shelter operators become a company's “partner” in Mexico. The foreign company has no legal presence in the country, instead the shelter manufacturing firm uses their own legal entity to produce products under the name of the contracting company. The shelter entity provides all administrative services, the building, the permits, the employees, and manufacturing licenses while the home-company transfers the equipment and process knowledge. Some companies, particularly those with 30 employees or less find this to be a very cost effective option. Other larger companies make their decision on a variety of factors including weighing the increased operating cost vs. a lower initial capital investment, risks involved in turning control over to a third party, and shelter contract time commitments.

Our analysis delivers first-hand fact-based information to qualify every service provider that might make sense for your project and then we quantify your options for comparison. There are great shelter operators in Mexico and some no-so-great. We know them all. For some companies that need to manufacture in Mexico a shelter or contract manufacturing option is a sound business decision; for others, it can be a disaster. The MSG Alliance will quantify and qualify the shelter options, share the risks and rewards learned from interviewing scores of companies over the years, and then issue recommendations for the shelter-yes, shelter-no decision and a fact based report for your company's decision process.

We are the only independent source for comparative information on shelter operators in Mexico. In our opinion a company needs to know precise labor costs in Mexico (by position and region), real estate costs in Mexico (by city), typical administrative costs and legal processes with fees associated thereto as a foundation for making any decision on using a shelter manufacturing company in Mexicali, Chihuahua, Queretaro, or any other Mexican manufacturing city. Our group delivers that information and much more. We can also assist to negotiate your best possible shelter agreement if you decide that a shelter operator is a good option for your company. We can also deliver a no-shelter cost/investment model to compare with bottom line shelter costs/investments.

If you are considering contract manufacturing or shelter operator options in Mexico, contact us: [hidden email]