| Frequent Asked Questions
Q: Should I
consider transferring my operation to Mexico?
A: Yes. Mexico is the lower cost destination closest to the U.S.
market. Moving operations there will enable you to reduce your costs
and increase your competitiveness!
Mexico’s privileged geographical position makes it an ideal place
from which to supply the North American market "just in time” with
access to potential world-class inputs, infrastructure, labor force
and state of the art technologies.
Manufacturing in Mexico enables manufacturers to:
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Reduce cycle and lead times
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Enhance flexibility
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Manufacture at a low cost
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Access an experienced labor force
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Ensure economic stability and investment security
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Operate in a North American business culture
-
Take advantage of a network of extensive free trade agreements
worldwide that includes 44 countries (NAFTA and European Union,
amongst others)
Learn more about Manufacturing in Mexico
Q: Why should
I consider the U.S. Mexico Border?
A: Transferring your operation to a border state allows you to have
Just in Time processes. Proximity enables you to have flexibility
and control over your production while enjoying the lower cost labor
benefits of Manufacturing in Mexico.
The U.S. Mexico Border is a perfect fit for products that need quick
turn around and that are freight intensive. Is also the location to
find high quality labor force: skilled and bi-lingual and well
educated.
Q: Why should
I consider Ciudad Juarez Chihuahua?
A: Ciudad Juarez is the major manufacturing hub in North America. Therefore its
workforce is highly trained, educated and ready to serve industry.
It's also the largest maquiladora employer in Mexico.
The area has young and skilled workforce that is used to do
business “the American way”.
Ciudad Juarez is home to over 350 maquiladoras such as: Delphi, Foxconn,
Cardinal Health, Electrolux, Lexmark, and Flextronics
amongst other top fortune 500 companies. A large
number of smaller companies are well represented in the region
as well. Some might be operating under a
shelter program in
Juarez, with companies like MFI International,
American Industries, Intermex or Tecma.
The top industries in the Ciudad Juarez/El Paso border
region are: automotive, aerospace, electronics, medical, appliances,
made to order and industrial textile assemblies.
View video "Ciudad Juarez, The
Best Kept Secret of North America"
Q: What about
turnover in Ciudad Juarez border region?
A: In 2002 the turnover rate was 7%. The situation has improved, and
today turnover is under 2%, which is equal to or less than every
other city in Mexico. Turnover has been considered a non-issue in recent years.
Q: How to do I
begin operations in Mexico?
A: The
most common ways of beginning operations in Mexico are through:
- Contract
Manufacturing
- Shelter "Manufacturing or/ Maquiladora Support" for
companies that want to set up an operation in Mexico.
- Wholly Owned
Subsidiary
MFI International Competitive Crossborder Solutions offers you Contract Manufacturing and Shelter
Operations Managment *Shelter Services* to ensure you a low cost and low risk
solution while securing your foreign operation project in Mexico.
Q: Why you should trust MFI’s team?
A: MFI International
started manufacturing activities in Mexico since 1982. Our CEO Lance
Levine opened his first subsidiary called Manufacturas y Servicios
Internacionales S. de R.L. He then transferred labor intensive
operations from the U.S. to Ciudad Juarez, Chihuahua Mexico (along
the U.S. Mexico border). Our team has remained strong in
establishing Maquiladora operations in Mexico. These include contract manufacturing and shelter
operations managment, or “shelter
services".
Because MFI’s background is manufacturing, we understand the importance of
having the right Maquiladora Program, permits and licenses to make
your operation efficient and viable in Mexico.
We have the
knowledge of NAFTA, which equips us to handle all matters
related to Mexican Customs and U.S. Customs, as well as Mexico’s to
take advantage of Mexico’ extensive network of free trade.
Additionally, our
team’s expert knowledge of the US Harmonized Tariff Schedule will enable you to deal with U.S. Customs rules and
regulations at a greatly decreased level of risk.
The logistics of
handling JIT processes will be a key element for your Mexican
operation. MFI’s team has the organizational infrastructure to
provide for your needs. Our warehousing and distribution
capabilities, as well as freight services providers to will make
sure your operation is efficient, timely and cost-effective
manner.
Our experienced
Mexican labor will enable you to significantly cut your costs. Our
human resources experts have a combined experience of more than 30
years in hiring the appropriately workers for a diversity of Mexican maquiladora operations. MFI executes and oversees all human
resources related activities on your behalf.
Our business model enables companies to outsource their critical
support functions, while you concentrate on production and strategy.
A solid support
structure: legal, human resources, customs, accounting and
environmental are the key elements in making your Mexican project a
success.
Q: Benefits of a Shelter Business Model?
A: Shelter is often
called in many different ways. Shelter Operations Management
or Shelter Services means “manufacturing support for
companies that want to establish their own operations in Mexico”
or "Outsourced maquiladora (manufacturing) support. Those
support services are in the following management areas of:
Legal, HR, Accounting, Facilities, Environmental, Customs (Import/
Export).
Q: How does
MFI International Shelter "Manufacturing or/ Maquiladora Support" services
work?
A:
Legal Services:
- Client uses
MFI's Maquiladora permit
- Client uses
Mexican subsidiary import license for Mexican Customs
- Client uses
MFI's importer of record for U.S. Customs (optional)
- MFI oversees
environmental regulations for each clients needs
Human Resources:
A
thoroughly experienced team in Human Resources management handles all
aspects, including staffing services. (MFI has had a spotless labor
track record for 27 years).
Facilities:
- MFI works with
all Real Estate entities in Mexico, not confined to any specific
group
- MFI negotiates
for you: location, space requirements, leases cost, terms.
- Lease costs
are pass-thru expenses
- Works with all
types of buildings
Other unique benefits in MFI’s Shelter Program:
- Our program
allows you to start your operation in 30 days.
- Flexibility:
In addition to the Shelter program, MFI's Contract Manufacturing
division allows you to analyze two possible business models for your
Mexican operation.
- With over 30
years of experience in Mexico we have developed outstanding
relationships with local, state and federal governments.
Q: What’s the cost
of MFI’s Shelter Program?
A: Our cost structure is
a gradual fee based on headcount. As you grow your operation (Increase
the number of people) our service fee decreases.
Q:
How is Manufacturing in Mexico going to impact my bottom line?
A: By transferring your
most labor-intensive projects to Mexico you will reduce your labor costs
by approximately 30%.
You quickly begin to
operate in a Mexico by utilizing an established Maquiladora
structure. That translates into NO RISK, LOW COST versus having
to set up your own legal entity and costly support structure in Mexico.
By utilizing an
established and experienced team in doing business in Mexico you don’t
have to worry about staffing your operation, finding the right skill
sets, setting up your accounting department and managing your own
customs and logistics department. We do it for you. We provide an added
value that has its source in 30 years of experience performing these
functions in Mexico.
Q: How is my company legally protected when doing business with
MFI International in Mexico?
A: MFI International is a U.S. corporation with a subsidiary in
Mexico. The agreement is protected under U.S. law, and our team provides
the service of managing your Mexican operation utilizing our long
established maquiladora infrastructure.
To start manufacturing in Mexico,
Contact us
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