What does it take to set up manufacturing shop in Mexico?

Ally-shoring webinar to examine advantages of Mexico as a manufacturing destination

The webinar, “Ally-shoring Mexico: Operating in one of the Most Competitive Trade Regions,” will be 10 a.m. CT on Thursday. (Photo: CBP)

Some global manufacturers could be feeling a cost crunch, and Mexico might be the solution they’re looking for, according to Joshua Rubin, vice president of business development at Javid LLC.

“We’re pushing this initiative for ally-shoring, to get manufacturers involved into wanting to come back into Mexico — and bring their products that are coming from China right now — into Mexico and provide companies the framework of how you can do it,” Rubin said. 

The webinar, “Ally-shoring Mexico: Operating in one of the Most Competitive Trade Regions,” is being hosted by Mexico’s National Council of the Maquiladora and Export Manufacturing Industry (INDEX) at 10 a.m. CT on Thursday.

Nogales, Mexico-based Javid LLC is participating in the webinar along with seven other of the largest Mexico-based shelter firms, including Tetakawi, Entrada Group, Grupo Prodensa, InterMex, Ivemsa, American Industries and Onilog. 

Shelter firms help facilitate foreign manufacturers who want to move operations to Mexico. Ally-shoring is a term that loosely means rethinking critical supply chains and working with other nearby democratic countries to create economic partnerships.

“INDEX created a shelter committee at the national level, which is where all of us shelter companies are coming together to sell Mexico,” Rubin said.

During the webinar, officials from each shelter company will discuss topics such as:

— Mexico competitive advantages.

— What is ally-shoring?

— Shelter model, the easiest way to start your business. 

— Is it possible to set up during the pandemic?

— Supply chain business opportunities for North American companies.

— Main cost drivers.

Mexico in February regained its position as the No. 1 U.S. trading partner, followed by Canada and China.

“In Mexico, you can manufacture anything you want,” Rubin said. “I have one of the largest customers that does Starbucks furniture. Almost every Starbucks you go to from Texas to the West Coast, that’s probably my customer that’s made that furniture.”

Rubin said other major manufacturing industries in Mexico include automotive vehicles and parts, aerospace supplies, medical equipment, electronics, and even sporting equipment, such as locker room supplies.

“You name it, we’ll probably find someone that makes something for that industry,” Rubin said.

To register for the webinar, click here.  

Click for more FreightWaves articles by Noi Mahoney.

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Noi Mahoney

Noi Mahoney is a Texas-based journalist who covers cross-border trade, logistics and supply chains for FreightWaves. He graduated from the University of Texas at Austin with a degree in English in 1998. Mahoney has more than 20 years experience as a journalist, working for newspapers in Maryland and Texas. Contact nmahoney@freightwaves.com