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Due to increasing costs and regulatory problems imposed by ever intrusive condition regulators on small businesses, many company owners are again looking at ways they are able to reduce costs and lift some of the additional overhead requirements keeping up with ever-increasing rules. Shelter manufacturing in Mexico, the present incarnation of the old maquiladora system, is starting to look better and much better.

Mexico shelter means working with the Mexican owned company south from the border who performs some of the labor-intensive tasks of manufacturing or service companies. These can be as diverse as pc data entry or as complicated as complete manufacturing processes to show raw materials into finished goods.

Usually, though the "twin plant" concept is utilized where the capital-intensive manufacturing procedures remain in-place in the US, while the much more labor-intensive operations are moved the actual a lower cost facility in South America. For example in a film capacitor production operation based in Southern California, the automatic capacitor winding machines and business lead attach machines were left held in their original facility, while the reduced, more labor-intensive, wrapping, epoxy filling up, marking, and testing operations, needing minimal capital equipment but rather substantial labor was moved to South America. This resulted in a reduction of more than 50% of the labor content from the finished goods while retaining exactly the same or better quality level.

When gear, tooling, materials, or work-in-process tend to be shipped to Mexico to a refuge operation, ownership of the goods will not change hands from the American organization to the Mexican so concerns to your materials or tools disappearing tend to be unfounded. In order for the Mexican organization to import those items completely, they would have to pay import duties with them. By Mexican law, those products must be in Mexico only briefly.

The other main concern many American entrepreneurs have is the difficulties often most respected in crossing goods back and forth over the US/Mexican border. When you deal with a professional Mexican shelter provider, this is an additional nonissue. It is the Mexican business' obligation to provide cross-border transportation as well as paperwork. The US company need just supply accurate bills of lading for all the goods being shipped.

In the above capacitor manufacturing and production in mexico operation, the only thing the united states manufacturer had to do with the import/export as well as NAFTA requirements, was to unload the actual truck when it arrived every Fri, and reload it with the following week's work, along with a list of products being transferred to Mexico.

As for the expenses, the Mexican shelter operation indexed all expenses for the pick-up as well as delivery, import and export charges, and all aspects of the Mexican production operation and charged the US organization a single, per-man-hour fee that was regarding 2/3rds of the wages alone from the US workers. This doesn't even look at the benefits, insurance, supervision, utilities, along with other overhead expenses it takes to employ the factory worker north of the boundary. Overall, the job got done for less than 50 % of what it took to do exactly the same job in the US.

Just about any labor-intensive portion of the modern business is suitable for a refugee operation in Mexico. Of course, production processes from sophisticated chip-making procedures, to assembly operations, to product packaging, marking, second operations, and a sponsor of others can all be achieved in Mexico for about half of the required steps to get those jobs done in the united states. Also, things, like data access, sorting and other service related features not directly associated with manufacturing lend on their own well to being performed within Mexico.

Mexico does not have nearly the actual labor problems common in the US. The actual workforce is reliable, trainable, and usually very stable. Since jobs are fairly scarce, they've cherished so issues and high turnover, a close to cliché in the US low skill level work, is far more rare south of the boundary.

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