News, Insights and Best Practices for Manufacturing in Mexico

Why using a shelter company should be part of your company's offshoring vision

29 Oct 2013

Category: Labor & Economics, Manufacturing in Mexico

Each manufacturer has a vision for their company's future. Whether it's to increase their market share, reduce operational costs or reach a specific sales goal, the majority of manufacturers have the long-term interest of the company in mind. Yet, manufacturing as a whole continues to change and evolve in ways that can be hard to keep up with, making it difficult for businesses to achieve their goals and production objectives. Manufacturers that have offshored their production processes to Mexico have been able to take advantage of the country's competitive manufacturing environment while seeing lower costs. For those businesses looking to achieve their long-term goals, offshoring to Mexico can be a significant boon - in ways they may not expect.

Achieving goals relies on strategic management
Many businesses offshore to Mexico for lower production costs and flexible supply chains, but some manufacturers may not know that expanding to Mexico also gives them the opportunity to extend their innovative goals and management objectives. In an article for Inc. magazine, Srikumar Rao, a former business school professor, wrote about a friend of his who owns a manufacturing company focused on creating a culture where each worker felt valued by the company as a way to boost employee performance and improve worker satisfaction. 

Rao wrote his friend's strategy worked, because it allowed the company to achieve its goals by helping all of its employees' make the most of their professional opportunities. 

Yet it takes a lot of time and planning to create those objectives in the first place. According to Forbes, even the smallest companies develop big goals for their futures as a way to energize and inspire the entire workforce to push themselves for success.

While this may not seem to be applicable to a remote Mexican workforce - it most certainly is. Employees in Mexico have cultural differences with U.S. workers, but every staff member hopes to be valued by his or her employer. When manufacturers offshore to Mexico in order to reap the benefits of its experienced workforce, they often forget to ensure they have someone on the ground who understands how to manage employees in the country. Shelter companies are able to help manufacturers achieve their visions by helping to administer and supervise the workforce for manufacturers, so businesses can focus on producing high-quality goods while still employing a happy - and thus productive - workforce. Expanding to Mexico independently puts a manufacturer at risk of not achieving its long-term objectives, but partnering with a shelter company ensures that doesn't happen. 

 

Related posts