News, Insights and Best Practices for Manufacturing in Mexico

Mexico Manufacturing Plant is Top Performer for Intec

12 Sep 2012

Category: Automotive Manufacturing, Manufacturing in Mexico

The Intec Group of Palatine, Illinois is global supplier of automotive parts and systems. Specifically, the company is a manufacturer of switches, sensors, control modules, door and fuel systems, and engine electronics.

The company employs three hundred and seventy-five people at its Guaymas manufacturing plant, which accounts for $33 million in annual U.S. sales. In addition to U.S. customers, the plant serves customers in Mexico, Canada and China. The plant is located in The Offshore Group’s Roca Fuerte Industrial Park.

According to Intec President and CEO Steven M. Perlman, having a Mexican location improves Intec’s performance both directly and indirectly.

“Directly, it is the highest performing of all our global facilities, including those in Asia,” Perlman said. “The skills and work ethic of the staff there have resulted in Intec Mexico delivering our companies highest margins and the best quality and service to our customers.

“Indirectly, Intec Mexico’s performance has motivated our customers in sourcing more business with Intec’s U.S. and Asia facilities. Intec Mexico is also developing technology that will be used by our other factories.”

Intec has been manufacturing in Mexico since 2002. It has operated under the “manufacturing shelter” business model administered by the Tucson, based- Offshore Group. The company provides outsourced manufacturing support or “shelter” services to Intec, as well as to a diversity of other manufacturers in major industries. Fundamentally, the shelter business model mimics outsourcing, but, under its auspices, manufacturers maintain control of critical core value-added functions such as production and manufacturing processes, strategy planning, hiring decisions and product-specific parts and materials procurement. The shelter company handles the administrative side of setting up and managing a plant: permitting and regulation, recruiting both direct and indirect labor, the importing and set-up of production machinery and raw materials, utilities relationships, and the payment of salary and benefits to the workforce.

Our partner in Mexico handles “essential, but not necessarily value-added activities” that have an impact on our manufacturing, Perlman stated.

“Those are many of our ‘back office’ or administration requirements, including payroll and benefits administration, tax administration, non-direct material purchasing, recruiting and employment screening. This frees up the top-level people in our organization to work on strategies that provide a better value proposition for our clients.”

Perlman said Intec Mexico is an important part of the company’s growth strategy. Because the plant is so efficient, the company has been able to “reclaim” factory floor space for additional growth.

“This has delayed our need to expand beyond the current facility, but we believe we will be expanding our capacity beyond our current industrial building within five years. In the meantime, the current plan is to increase output and revenues at the existing Mexico facility by at least 20 percent and as much as 50 percent.”


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