These are some important things you may want to consider.
When thinking about where to begin to start planning an expansion of manufacturing operations, there are a lot of things that need to be analyzed and considered to make a final decision.
Here we can help you with the TOP 5 MOST IMPORTANT THINGS IN THE MANUFACTURING INDUSTRY to begin your analysis.
First, analyze how much does it cost to open a new manufacturing facility. These are some costs we recommend to be considered in the decision making.
- Labor – The sum of all wages paid to employees, employee benefits and payroll taxes paid by an employer.
- Logistics – Supply chain, transportation, tariffs, and other costs.
- Infrastructure – land, building.
- Services – Fixed costs, variable costs, operating costs, maintenance.
- Taxes – Taxes are involuntary fees levied on individuals or corporations and enforced by a government entity — whether local, regional or national — in order to finance government activities. For example, income tax, corporate tax, sales tax, property tax, tariff, estate tax.
- Government Incentives. Governments can offer financial assistance to private businesses making investments using economic incentives. Incentives can include tax abatements, tax revenue sharing, grants, infrastructure assistance, no or low-interest financing, free land, tax credits and other financial resources.
Prodensa Group can help you analyze all the costs and advise which is the best decision for your operation with a feasibility study.
For more information you can click the following link: https://www.prodensa.com/2020/services/start-up-and-shelter-soflanding-mexico/
2. HUMAN RESOURCE & TRAINING
Are the people ready for your operation? This is another factor you may want to consider.
- Technical Skills
- Training & Promotion Programs
- Educational Infrastructure
- Employer of Choice Cultural Program
3. ROAD INFRASTRUCTURE
Consider all the transportation systems you need for the operation:
- International Borders
Review industrial zones that are adequate to your future operation.
WE CAN HELP YOU DEFINE THE BEST SOLUTION AND LOCATION FOR YOUR PROJECT.
Check our Industrial Real Estate Services for further information: https://www.prodensa.com/2020/services/industrial-real-estate-expansion-relocation-mexico/
5. LEGAL FRAMEWORK
Are you familiar with the legal compliance of your set up location?
Analyze the following topics to begin with:
- Legal structure
- Intellectual property protection