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Expansion To Mexico Some Resources And More Info

May 31, 2008
Since the implementation of NAFTA, establishing free trade between Canada, the United States and Mexico, many companies have considered moving some of their operations to Mexico for the benefit of lower labor costs. Corporate relocation is never considered lightly, particularly when moving to a new country.

The local laws and regulations must be considered, along with the cost in relation to the benefit of the move. The cost of doing business in Mexico can be quite inexpensive, since labor costs are one of the greatest expenses in doing business. A number of businesses and manufacturing plants have taken advantage of these savings, undertaking corporate relocation to Mexico. So, when my company was considering relocating some its manufacturing and offices to Mexico, there was already a large amount of information available about Mexican laws, NAFTA and other factors a company needs to be aware of during such a move.

The first thing we did was hire a corporate relocation consultant with a lot of experience helping companies and manufacturing plants make the move south of the border. They were able to assist us in selecting good locations for our offices and factories, file the needed paperwork with the Mexican federal and state governments, and select a reputable moving company to handle the physical delivery of our equipment, paperwork and other office goods.

Their experience and expertise considerably eased the stress and difficulty of such a major move. Our vice-president of operations also found several good articles about corporate relocation in business journals, detailing the successes and failures of other corporations who have undertaken similar changes. Learning from the history of other companies and having assistance from an experienced professional were invaluable for a quick and smooth transition.

When we set up shop in Mexico, we found that the local officials had become used to corporate relocation to their region. They were very helpful in making sure we were plugged into the local coporate community and that our staffing needs were met. We found the local workers to be hard-working and dedicated for a fraction of the labor costs in the United States and Canada. The move allowed us to turn around our financial situation; we moved from struggling for a balanced budget to achieving a modest (but increasing) profit margin.

I am glad we made the move to Mexico. It has allowed us to become much more competitive in the global market and significantly reduced our costs. We will soon have our relocation and other debts paid off, allowing us to generate a healthy profit. Our credit rating has significantly improved and our investors are pleased with the future of our company. Quite simply, taking advantage of the reduced workforce costs has changed our business in ways that no other option can offer.
About the Author
Nir Dotan is a writer and promoter of
Omega Shipping services, and
Omega Shipping Local as well as International Moving.
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