Mexico Industrial real estate boosts the competitiveness of the manufacturing sector

 

Today, manufacturing is not just about making physical products. Changes in demand, the nature of the products themselves, new manufacturing technologies, and digital and networked supply chains generate fundamental changes in the business models of traditional manufacturers.

According to the Deloitte study, “The Future of Manufacturing; making things in a changing world ”, customers demand customization and adaptation as the line between consumer and manufacturer is blurred.

The addition of sensors and connectivity turn “dumb” products into “smart” and, increasingly, into platforms and even into the field of services. As technology advances exponentially, barriers to entry, commercialization, and learning erode. Meanwhile, the border between manufacturers and consumers is increasingly blurred.

Current technology begins to allow production in small quantities to be feasible, on request, according to the explicit need of the client. In this context, intermediaries that create value through the maintenance and movement of inventories are less and less necessary.

In addition, the fourth industrial revolution or Industry 4.0, is here to stay. The convergence of the physical world and the digital world, together with the application of advanced technology in the production line, is going to substantially change the playing field of the manufacturing industry.

At Deloitte, they help capture value in this new competitive environment. This new window offers opportunities, but also challenges that strain the ability of companies to survive in a digital, technologically intense and connected world.

Manufacturing in Mexico:  at the forefront in manufacturing competitiveness

It is expected that by 2020, Mexico will occupy the seventh position in terms of manufacturing, surpassing the United Kingdom and Taiwan, and being preceded by South Korea.

Our country is part of the North American Cluster, led by the United States and also made up of Canada. The cluster receives the highest levels of investment and has a strong energy profile, as well as top-notch talent, infrastructure and strong clusters dedicated to innovation, anchored in the United States. Mexico complements this group with more than 46 commercial agreements, competitive labor costs and its proximity to the United States; all together makes Mexico the ideal destination to establish its production centers.

All this has made Mexico one of the largest producers of electronics and their parts, machinery and accessories, ships, and an automotive powerhouse.

Bruno Juanes, Head of Innovation and Manufacturing, commented that the manufacturing world is facing its fourth industrial revolution, which will merge the physical world with the digital one. As a result of this, innumerable opportunities and threats will be generated for traditional business models. "The role of the incumbent manufacturer will be questioned by new technology-based players and will have to adapt to go from generating value through the production of objects, to capturing value from increasingly complex ecosystems and further away from their current role."

Such is the case of the Bic company, located in Cuautitlán Izcalli, State of Mexico, which produces 2 billion writing instruments per year, of which 80% are exported to 47 countries. Mario Berra, VP of Manufacturing for Mexico and Latam, and responsible for the Edoméx plant, said that His investment plans in manufacturing are to continue growing the plant in the Mexican territory. “The export rate is above 50% of what is produced to the 46 countries and just under 50% of the product is what remains in Mexico. The investment does not necessarily have to be reflected in new openings, but in terms of innovation, machine efficiency and optimization of operations ”.

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Start up manufacturing services in Mexico: Do you want to create a company in Mexico and you don't know what requirements you need?

Here we will share the 5 basic steps for creating your company anywhere in Mexico. It is easy and simple.

If you have been thinking about creating a company for a long time; you want to undertake a new project; or you want to formalize the business you already have, you must know how to do it legally.

In this regard, we advise you to review our article on the requirements to create a company in Mexico, and thus get out of any doubt. Or if not, schedule a free consultation with our advisors to define the society you need.

Next, we will present the 5 steps to follow to establish a company in Mexico:

Step # 01: Request the denominations from the Ministry of Economy.

The Ministry of Economy (S.E.) is the public entity in charge of approving or rejecting the denominations (name) with which it is desired to establish a company. Therefore, you must approach a notary public who under his signature requests the name with which you want your company to be registered, or otherwise, if you have your electronic signature or e-signature, request it personally in the S.E. and select with which notary you will sign it.

Keep in mind that if there are other companies with a name similar to yours, the success rate decreases, so we recommend requesting 3 to 5 different names to increase the chances of authorization.

Step # 02: Prepare the charter of your company

If you have doubts about which parties are part of this document, we invite you to watch our video tutorial on the charter of a corporation.

Similarly, you should know that preparing these documents should not be done lightly. Therefore, we recommend that the charter be tailored to your business and the needs of the partners that will integrate it. Seeks legal advice from experts in the constitution of various commercial or civil societies.

Step # 03 Obtain your Federal Taxpayers Registry (RFC) before the Tax Administration Service (SAT)

Only in the case of the S.A.S. (simplified joint stock company) where this procedure is carried out on the portal of the Ministry of Economy, the application process for other commercial, civil or special companies, must be carried out at the SAT offices of the town where the company.

If you want to know how to carry out this process and the requirements, read our article "How to register my company.


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Mexico manufacturing: Steps to invest in Mexico.

Basic considerations for Star up operations Mexico  

Obtain a VISA:

Responsible authority: National Institute of Migration. Ministry of the Interior.

It requires a visa to conduct business activities in Mexico that foreigner who enters the national territory in order to learn about different investment alternatives, make a direct investment or supervise it, represent a foreign company, or make business transactions. The General Population Law and its Regulation are the ones that regulate in Mexico in this matter.

The General requirements:

Official Format of Immigration Procedure Application, duly answered and signed in original and copy.

Copy and, where appropriate, original for collation of all the pages of the valid passport of the foreigner.

In the event that the interested party carries out the procedure through a proxy or a legal representative, he / she must prove such character with power in his / her favor granted by the foreigner, and a copy of a valid official identification that contains a photograph and signature of the attorney-in-fact or legal representative, as appropriate. procedure must be done before the National Institute of Migration. The maximum resolution time is 35 calendar days.

How to open a business in Mexico?

Regulation and Registration of Foreign Investment:

Responsible authority: Directorate General of Foreign Investment (DGIE). Ministry of Economy.

The Foreign Investment Law establishes that foreign investment may participate in any proportion of the capital stock of Mexican companies, acquire fixed assets, enter new fields of economic activity or manufacture new lines of products, open and operate establishments, and expand or relocate those already existing, except for the exceptions expressly mentioned in said law.

Foreign Investment Law (LIE):

The National Registry of Foreign Investments (RNIE) is the area of ​​the Federal Government before which foreign investments that arrive in our country are registered.

The Foreign Investment Law establishes the various subjects of registration before the RNIE. On the other hand, the Regulation of the Law of Foreign Investment and of the National Registry of Foreign Investments indicates the procedure to carry out the corresponding procedures.

All these procedures can save them with American Industries since they take care of those bureaucratic paperwork and help you to promote the company that you want to make known to the world

Mexico manufacturing: How to make a small business to global.

The Mexican industry is impacting the local market in an important way, and today the challenge is how they leave Mexico and impact other latitudes, for example, Bimbo is one of the Mexican companies that has managed to place its brand in the eyes of the global consumer.

Here's the five keys that are part of a strategy to make a Mexican brand the world's favorite.

Become an Available Brand.

Designing a brand and launching a product to the market is not enough to conquer the heart of a consumer. Companies must think of a plan that allows their brands to be present in the distribution channels

It does not matter that the company is medium or large; your success formula should start by reaching all the outlets. Coca-Cola has shown that its presence and the presentations of its product result in its position in the throne of the marks.

Move with agility

Successful brands are distinguished by the continuous implementation of effective innovations in the brands, but it is not the matter of carrying out any innovation, but rather those with more reward for the value of the brand should be promoted.

In order to carry out these innovations it is important to take into account the tastes that the consumer has in their locality, as well as to remain attentive to the subject of the regulations.

Companies like Bimbo have had to make changes in their packaging and content of their products to cope with the effects of the tax on foods with high caloric content, derived from the tax reform approved last year.

 Work in team

Brands cannot be successfully maintained if they do not maintain contact with the consumer. Companies require feedback with their customers to understand their level of impact and adjust their offer to the extent demanded by the market.

These are some points that we must take into account so that the company you start becomes global, reach all types of public is very important but to meet that great goal American Industries can help you bring your business to Mexico for to be able to know you in more places, in mexico manufacturing.

We always help you to make it big.

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Startup operations Mexico: Why Mexico is a global destination for manufacturing.

A leading operator in providing services to international manufacturers in Mexico, has just published a technical document that explains why the credibility of the manufacturing sector of this country has risen in the world and why European manufacturers are increasingly Mexico as A manufacturing platform for North America.

Mexico has become an increasingly attractive destination for the aerospace, automotive, medical device, electronics and manufacturing industries.

In 1994, the North American Free Trade Agreement (FTA) between the United States, Mexico, and Canada eliminated most of the tariffs, customs duties, and import and export restrictions on the movement of goods traded between the three countries. On the other hand, the Mexican labor force is relatively inexpensive, and with great manufacturing experience.

As a result, hundreds of international companies have made large investments in Mexico. For example, the German Volkswagen produces the Jetta model exclusively at its plant in Mexico. Manufacturers of electronic products such as LG have established operations by raising wages in China, in Mexico. The latest trend in foreign investment has been in the aerospace industry, where 238 companies in the sector have taken advantage of the highly qualified workforce, establishing operations in the Aztec country.

The report also notes that Mexico's proximity to the US It is a significant and growing advantage for those supplying the North American market as they allow the immediate landing of a product and deliver just one time, a much more difficult system to implement in Europe, China or India. 

The production in Mexico companies of European companies set up amanufacturing company in North America, a lower cost, in a US dollar cost zone within a base of established local suppliers.

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International companies in Mexico: which are the strongest?

The first international companies arrived in Mexico at the end of the nineteenth century, including transportation companies, electrical lines and food. Some eventually transformed into large corporations and others disappeared. In fact, part of the industrialization of the country started from the hand of some of today's big global brands.

A study by the Northern Border College revealed that the transition of global companies by the countries in which they are established also generates investment, technological development, infrastructure, research and skilled labor. The automotive industry in Mexico is an example of this, today that Mexican industry is considered the eighth worldwide for the quality of its workforce.

Globalization has contributed to companies seeking new markets and today we can find corporations from any country in Mexico. According to figures from the Ministry of Economy (SE), from 1990 to 2014 60,499 foreign companies arrived in the country. Only during the 12 months of 2014, Mexico received $ 3.036 million (USD) in new investments. Companies from Yemen, Angola Belorussia, Chad, Mali and Croatia have come to the country, to name a few.

Of course, the main origin of the Global companies in Mexico is of the United States; The figures of the Ministry of Economy reveal that in the last year came from that country 2, 272 million dollars.  Companies like Evco Plastics, which have neither the big brands nor the reflectors, are also a major player in Mexico. Originally from the United States, it has three plants in the north of the country for the manufacture and injection of plastics. Evco's Mexican operations account for 35% of global revenue, which also operates from China. The company is already studying the possibility of installing the fourth plant in national territory.

In Mexico, more global companies are expected to arrive as a result of energy and telecommunications reforms, but if you want to know more information about Mexico's competitive advantages and the types of industries that have come to that country, you can visit the next website: http://americanindustriesgroup.com/ 

Source: Forbes