The art of finding the right the place to manufacturing in Mexico

Shippers looking to move cargo to, from, or through Mexico will likely face a challenge finding warehouse and logistics space, as vacancy rates in some areas is low even though stock increased by more than 6 percent in 2017 and rental rates rose. Both, clear signs of the heated demand for warehouse space in Mexico. All of this, is forcing manufacturers, logistics providers, and retailers to wait up to eight or more months for new space specially in hot cities like Guadalajara, Mexico City and Monterrey.

The ability to deliver product quickly is a critical component of selecting the site for a warehouse, they need to be located near transportation and have access to airports and seaports in addition to highways. This is why finding the right industrial warehouse in Mexico is key to success and getting it right has become an art. We’ve put together a quick check list of key factors you shouldn’t miss.

1. Availability of skilled labour
2. Labor cost
3. Highway accessibility
4. Occupancy or construction costs
5. Availability of advance IT Services
6. Available and cost of buildings
7. Availability and cost of land
8. Tax exemptions
9. Corporate tax rate
10. Expedited or “fast track” permiting
11. Proximity to major markets
12. Availability of long-term financing
13. Federal, State and local incentives
14. Low union profile
15. Utilities availability and costs
16. Environmental regulations
17. Inbound/outbound shipping costs
18. Proximity to suppliers
19. Raw materials availability
20. Accessibility to major airport and ports

Even though spaces might be limited in some areas, the same tightness has in turn attracted new development, specially newly built industrial parks and warehouses with modern capabilities. Take for example in 2017, American Industries opened the first phase of its planned San Jorge Industrial Park, that will have a capacity for more than 10,000 employees with a total extension of 247 acres, developed in four phases with a combined projection of 30 inventory and BTS buildings.

https://americanindustriessanjorge.com

Mexico manufacturing: Steps to invest in Mexico.

Basic considerations for investing

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

Expand your business in Mexico and make it known to the world, with american industries we assure you that you can do it

https://www.americanindustriesgroup.com/

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

Automotive industry Mexico 2019

The automotive sales ended with the negative streak that was registered in the previous months, in January 2019. The sales of light vehicles in the domestic market grew 1.78% in annual comparison. During the first month of the year, the industry sold 111,212 cars; Nissan continues to lead domestic sales.

The upturn in sales is explained by the significant growth of units sold by General Motors (106.9%), a figure that responds to an effect on the statistic resistance of the brand in January last year.

In addition to sales, production and export of automobiles in Mexico. In relation to January of last year, total production increased 9.85% and exports grew 4.85%, according to figures reported by the AMIA (Mexican Association of the Automotive Industry).

In the first month of 2019 there were 333,677 vehicles in the interior of the country and the trips abroad amounted to 242,299 units. The American General Motors, which has Chevrolet, GMC, Buick and Cadillac, led during this period the production and automotive exports.

The exceptions

Despite the positive result for the automotive industry on a national scale, some brands fail to recover in terms of their sales within the country. Nissan, the line that leads the Mexican market, once again recorded a drop in sales, compared to January this year sold 11.7% less.

The most pronounced fall was recorded by Smart (81.0%), followed by Alfa Romeo (46.2%), Audi (32.2%), Infiniti (30.7%), Lincoln (25.9%), Ford Motor (21.8%), Chrysler (17.0%). ), Volkswagen (12.5%), Fiat (5.0%), MINI and Toyota (3.3%) and Mercedes Benz (1.5%).

Regarding the production of automobiles in Mexico, only four companies registered negative results. Mazda topped the list with a level of cars produced 63.4% lower than that recorded in January last year. Nissan, Chrysler and KIA recorded falls of 9.9, 3.3 and 0.4% respectively in their production.

The effects on the production of these lines were reflected in their exports. The departures of Mazda vehicles decreased 53.8% in annual comparison, Chrysler's dropped by 43.5%, for Nissan the losses were 8.3% and for KIA by 3.1%, according to what was reported by the AMIA.

http://www.americanindustriesgroup.com/

Shelter services in Mexico to start up operations

How can I start a successful business in Mexico? This country has many competitive advantages and you can start your operations with a shelter services in Mexico program.

What's a shelter services program?

Basically a shelter program is a package that includes all the administrative services that will provide your company with everything you need to establish and run a productive manufacturing operation in Mexico:

• Human resources
• Accounting services and fiscal compliance
• Customs and duties optimization
• Legal, operational and environmental permits
• Purchasing of office supplies, consumables and services
• Labor management and union relationship
• Full Expatriate support for your employees and their families

What's the advantage of hiring shelter services?

A shelter services program can be delivered within Industrial Real Estate located in strategic locations in Mexico like Chihuahua, Queretaro, Jalisco depending on your manufacturing operations. For that, American Industries Group has a session to help you identify the best site selection in Mexico to start up your business.

American Industries’ Shelter expertise allows our clients to start and maintain a successful operation by avoiding unnecessary problems and costly mistakes.

Mexico is one of the most competitive countries in the world.

Due to its macroeconomic and political stability, low inflation, size and strength of its domestic market, economic growth rate and capacity to produce advanced manufacturing (high-tech products).

Also, Mexico offers significant savings on labor costs when compared to other investment options in the Americas, Europe and Asia.

Mexico is also an open economy that guarantees access to international markets through a network of free trade agreements. The country boasts a strategic geographic location and competitive costs to service global markets, as well as a highly–skilled, young workforce.

Another important reason is that shipping from Mexico often takes only one day, does not require ocean freight and is much cheaper to ship. When shipping items from Mexico, especially under NAFTA, there is generally little to no duties required, making it more cost effective. 

 

So, what's the first step to start up business in Mexico?

Whether you are planning to start automotive manufacturing, medical devices, aerospace, electronics... the first thing that you should do is contact American Industries Group to start up a shelter services program and start your operations within 9 weeks!

Here is their website so that you can know more about them and the expertise they have: http://www.americanindustriesgroup.com/