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Implement Site Strategy
Identifying the optimal site and production network strategy in Mexico.
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Turnkey Operations Models
Leverage our 39+ years of experience and partner with us on your Mexico project.
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What is IMMEX?
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Doing Business in Mexico
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Our 5-step methodology to launch or expand your operations in Mexico, and thrive in a booming market.
FREE EBOOK

Manufacture in Mexico without building the plant.

Prodensa finds, vets, and manages the manufacturing partner in Mexico.

  • Supplier vetting, contracts, quality oversight and logistics, end-to-end.

  • +40 years, 1,000+ projects, 70+ IMMEX operations under management.

  • A straight answer on whether your product fits Mexico, and when it doesn't.

+40 Years in Mexico
1,000+ Projects Delivered
90+ Client Operations
$981M Annual Client Exports (USD)

How it works.

Four stages from first conversation to running production.

1
Feasibility & product fit.
Volumes, bill of materials and target cost against what Mexico can actually deliver.
2
Supplier identification.
Corridor search, capability screening and shortlist against your specification, e-bidding.
3
Audit, contract & pilot.
On-site audit, commercial terms, quality plan and a pilot production run.
4
Production & management.
Ongoing quality oversight, logistics and compliance under Prodensa management.

Client operations certified to:

Sourcing and supplier identification solutions to the standards of your customers audit.

Before you download:

How is this different from finding a manufacturer myself?

You can find manufacturers yourself. 

What's hard from outside Mexico is everything after the list: auditing a plant you can't visit, holding a supplier to a quality standard across a border and a language, structuring the customs treatment so you aren't paying duty you didn't need to, and having someone physically on site the week a line goes down. That's the part we do — and it's the part that decides whether the cost saving you modelled actually reaches your P&L.

Read: How to Find Suppliers in Mexico

Who owns the relationship with the manufacturer.

You do. Prodensa can manage it day to day — quality, delivery, corrective actions, commercial terms — but the manufacturing agreement is yours, and so is the right to end it.

We're deliberately not a broker sitting between you and your own supply. If you ever want to bring management in-house, the relationship survives our exit. We can also help you hire your own employee in Mexico to oversee the relationship yourself.

That cuts both ways, and it should: because we don't hold a markup on the manufacturer, we have nothing to gain from hiding a bad one. If a supplier is underperforming, you see it in the same reports we do.

How is our intellectual property protected?

Four layers, and the first one does most of the work: supplier selection. We don't place your product with a manufacturer serving a direct competitor in your category. That single screen removes most of the risk people are actually worried about when they ask this.

On top of it: NDAs and IP assignment executed under Mexican law rather than a home-country agreement that's expensive to enforce here; tooling ownership registered to you, not to the manufacturer; and segregated production areas where the product warrants it.

Worth knowing if you're weighing Mexico against Asia: Mexico is bound by the USMCA intellectual property chapter, and enforcement through Mexican courts is materially more accessible than the alternative most companies are comparing this against.

What annual volumes make this viable?

Volume is the wrong unit. What decides viability is annual spend and labour content.

A product with high manual assembly content works in Mexico at surprisingly modest volumes, because the labour arbitrage starts paying immediately. A highly automated product with low labour content needs far larger volumes before freight, duty and management overhead are covered — and some never get there at all.

If you're not sure where you land, that's what the brief's cost model is for.

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CONTRACT MANUFACTURING IN MEXICO

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Looking to Reduce Operations Costs without Sacrificing Quality? I can help.

Carlos Loyola, Sr. Advisor

      Located in Mexicali, Baja California

   Over 15 years helping foreign companies manufacture in Mexico

   Supported over 50 sourcing projects in Mexico for different industries

     Experienced with high quality standards specific to aerospace and medical devices

Get the numbers before you build the business case.

Explore our Supply Chain eBook before you start calculating costs.

Why choose contract manufacturing in Mexico?

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FAQ's

What is contract manufacturing? Contract manufacturing is the process of outsourcing the production of goods to a third-party manufacturer. This means that a company hires another company, known as the contract manufacturer, to produce their products on their behalf. 
What are the benefits? One of the main benefits of using a contract manufacturer is cost savings. By outsourcing production, companies can reduce their overhead costs and take advantage of lower labor costs in countries like Mexico. This allows them to remain competitive in their industry without sacrificing quality.
What industries can benefit? Key sectors include automotive, aerospace, electronics, textiles, and medical devices, but virtually any industry that relies on labor-intensive manufacturing can benefit.
What certifications are available? Mexican manufacturers adhere to a wide range of international standards and certifications to ensure quality and compliance. Common certifications include:
  • ISO 9001: Quality management systems.
  • ISO 14001: Environmental management.
  • IATF 16949: Automotive sector-specific quality management.
  • AS9100: Aerospace industry-specific quality management.
  • GMP (Good Manufacturing Practices): For industries such as pharmaceuticals and medical devices. These certifications ensure that Mexican manufacturers can meet the demands of global clients.
How much does labor cost? Mexico’s labor costs are highly competitive compared to countries like China. Additionally, Mexico offers a highly skilled workforce, especially in industries like automotive, aerospace, and electronics.
Did you Know?

MANUFACTURING IN MEXICO

20% of Mexico's GDP is from Manufacturing
7th Largest Automobile Producer Worldwide
4th Largest Exporter of Vehicles to the US
+85% of Manufacturing Exports go to US
#1 Exporter of Medical Devices to the US
+50 Countries with Free Trade Agreements
2nd Largest Exporter of Electronics to the US
14% Annual Growth in Aerospace Industry

Types of Contract Manufacturing in Mexico

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Private Label Manufacturing
Private Label Manufacturing The contract manufacturer delivers a finished product to the client's warehouse, where it is sold under the client's brand. They will typically source materials and components as part of the process.
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Component Manufacturing
Component Manufacturing The contract manufacturer will be responsible for producing one component based on drawings and instructions utilizing their own materials, that the client will include in their production or assembly process.
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Sub-contracting
Sub-contracting The contract manufacturer will utilize the client's materials to produce a specific product or component based on drawings and instructions, that the client will include in their production or assembly process. 
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Contract Assembly
Contract Assembly The contract manufacturer sources and assembles all components of the product, but does not produce any parts. They may also provide services.
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IMMEX
IMMEX A company can form a wholly-owned foreign subsidiary in Mexico and register under the IMMEX program, which stands for "Manufacturing, Maquila and Export Services Industries Program".

Contract Manufacturing Solutions in Mexico

Contract Manufacturing Brokerage Services

A project management solution aimed at co-building your contract manufacturing capabilities in Mexico, negotiating contracts, and aligning providers to a common goal.

 

Benefits:

-   Local partner in Mexico working on your behalf
-   Bilingual communication and English translation
-   Focused management of multi-step, multi-provider manufacturing operations

Want to hire someone to oversee supplier quality in Mexico?

We provide specialized services with REPSE that is in full compliance with all Mexican outsourcing regulation.
Prodensa's Sourcing Experience

Types of Supplier Capabilities in Mexico

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Supplier Solutions in Mexico

Solutions for Supply Chain Diversification

     Vendor Identification - single or grouping of commodities to be identified, qualified and implemented in Mexico

     Mexico Visit Agenda - coordinated schedules, transport and translation for a group of vendors identified in Mexico


 

 

     Trusted Supplier Program - due diligence for new suppliers and audit report card for current Mexican suppliers

     Mexico Supplier Validation Portal - automated process for ensuring regulatory compliance and documentation of Mexican suppliers

Did you Know?

There are more than 10 operational models
for manufacturing in Mexico.

That's right. For companies looking to manufacturing or do business in Mexico, there are many models to choose from, depending on the business plan, tax strategy, and operational needs. Ready to explore your options in Mexico?

Turnkey Operations

Partners to manufacture and do business in Mexico.

FREE CONSULTATION

Let's discuss, and see what model is right for your business plan.

OUR VALUE PROPOSITION

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