The Shelter Program Is the Gateway to Success for Manufacturers Coming to Tijuana
Mexico’s Shelter Program transcends a mere governmental initiative; it’s a gateway to success for foreign companies seeking to expand their horizons. Intensive manufacturing activities have turned Tijuana into an essential part of the global supply chain; therefore, more companies are establishing operations there to avoid the logistical hurdles, while the Shelter Program plays a pivotal role in this growing activity.
The Shelter Program aims to streamline the entry of foreign companies into Mexico by establishing a foreign subsidiary. This program facilitates the swift commencement of operations through a maquiladora program. Additionally, the Shelter Program allows foreign companies to manufacture in Mexico without the associated high start-up costs and delays, thanks to the support of a trusted partner such as Tecma.
The Shelter Program offers a suite of services and incentives to manufacturing companies, attracting a growing number of maquiladoras to Tijuana. As the program continues to evolve and adapt to the ever-changing global business landscape, Tijuana remains a promising destination for foreign companies seeking opportunities for prosperity and expansion.
Tijuana’s strategic location on the U.S.-Mexico border is a significant advantage for maquiladoras. This proximity provides easy access to the U.S. market, reducing shipping times and costs. Tijuana’s location is a strategic advantage for companies expanding into the North American market.
One of the primary advantages of the Shelter Program is the cost savings it offers to manufacturers. Companies participating in the program can access skilled labor and a strategic location without making significant upfront investments. This reduces operational costs, making Tijuana an attractive destination for manufacturers.
Tecma Shelter Services enables manufacturers to reduce production costs by 50% or more by relocating their manufacturing operations to Mexico using the Shelter Program. Foreign companies supply the necessary raw materials, machinery, and manufacturing expertise, while Tecma manages all other processes.
As more companies take advantage of the Shelter Program, Tijuana is witnessing substantial economic growth and job creation. The influx of manufacturing activity has led to a more diversified and resilient local economy, benefiting the manufacturing sector and other industries such as logistics, real estate, and services.
Tijuana boasts a skilled and dedicated workforce, which has long been a critical draw for manufacturers. The Shelter Program connects businesses with a readily available talent pool, and this skilled workforce ensures a smooth production process and faster time to market. The program also offers training and development opportunities to help workers further refine their skills, making them even more valuable to businesses.
Nowadays, Tijuana has 620 active manufacturing sites, the highest number of facilities in Mexico, while many companies seek to expand their operations there. The aerospace, electronics, and medical device industries account for over one-third of these manufacturing sites, taking advantage of the Shelter Program benefits. Moreover, 261,529 skilled employees work at these manufacturing sites.
The Shelter Program also provides companies with valuable tax incentives and trade benefits. These include duty-free imports and exports and access to Mexico’s extensive free trade agreements with other countries. These incentives help companies reduce costs and improve their competitive position in the global market.
Overall, the shelter program has been valuable in promoting economic development and creating a favorable business environment in Tijuana. With its strategic location, cost-effective operations, skilled workforce, and regulatory support, Tijuana offers a compelling package that continues attracting manufacturers worldwide. As a trusted Shelter Program partner in Tijuana, Tecma has helped foreign companies successfully set up manufacturing operations for more than 40 years. To explore the opportunities of setting up foreign operations in Tijuana, Mexico, get in touch with one of our Manufacturing Industry Experts.