Where should you locate your plant?
The industrialized area in Mexico is huge – it extends from the U.S. border to south of Mexico City. There are large and small urban regions, multiple industry clusters, and varying distances from suppliers and markets. With all of these factors to consider, selecting the location that will be right for your business can be challenging, and the best decision can only be made with reliable data and fact-based analysis.
What do you need to know to make an informed choice?
Labor: Labor markets are very localized in Mexico. Pay rates are important but there is so much more to consider. You need to know what benefits to offer, what the local union environment will be and the turnover you can expect for each market you are considering. You also need to know if the skills you require are available now and to support growth in the future.
Real Estate: Everyone knows that location matters when it comes to real estate. Leasing, purchasing, and availability vary from region to region and within urban areas in Mexico. But there are many other questions. Is the type of building you need available now or will it need to be built? Should you lease a building or purchase one? The answers will depend on the location you select.
Logistics: You want your location to optimize inbound and outbound logistics, but you also want to choose a site that gives you the best opportunity to add new customers. You probably want goods and personnel to travel easily between your facilities. You may also need local services nearby. The best location needs to balance all of these factors.
Security: Will my operation and personnel be safe in Mexico? The answer is yes, but safety and security vary widely in Mexico as they do in most countries. Some locations offer a safer environment than most American cities while others are less secure for certain factors. You want to be sure your assets and employees will be safe no matter where you decide to locate. You need to know the specific risks for each location the steps you will need to take to maintain a safe operating environment in that region.
How do you get reliable answers to your location questions?
Tetakawi advisors are experts at helping foreign companies select the right location in Mexico. We can provide you with the data you need to make an informed decision on location. We create a customized comparison of operating costs, risks and benefits for each location you are considering using the factors that are important for your business. If you do not have locations in mind, we can recommend a short list for comparison. Our analysis is based on:
- Daily statistics from companies employing more than 24,000 people
- Real-time data on wages, benefits, salaries, utilities, logistics, expenses and more
- Surveys, published data, and field studies for each location
Working with a trusted advisor can make the site selection process easier. Does your organization need to:
- Choose a location with the lowest operating cost?
- Optimize logistics?
- Find a sustainable supply of skilled employees?
- Minimize turnover?
- Optimize lifestyle for expatriate employees?
- Maximize local market growth?
- Access special processes near your factory?
How can Tetakawi help you find the right manufacturing venue in Mexico?
The Tetakawi Site Selection Service begins with a needs analysis. We work together to develop a short list of potential locations based on the critical selection criteria for your operation. Using our research and data mining resources we identify, collect and analyze the criteria for each location. Based on the information we extract, we calculate an estimated operating cost for each location and generate an in-depth report. Our report includes a comparison for each critical factor, the estimated operating cost for your business in each location and our recommendations. We can simply provide you with the report or, if you prefer, we can include a presentation and discussion at your facility. Either way, you will be able to maximize your chance of success by choosing the best location in Mexico for your business.