Far and away, the easiest and quickest way to get an answer to a question that you have about manufacturing in Mexico is to simply give us a call and ask – we will be more then happy to help. You may also use our contact form to email us, and someone will get back to you within 48 hours.
Simply put, a maquiladora is a production facility (factory) located in Mexico that has permission from the Mexican government to temporarily import raw materials (usually without the payment of taxes and duties) into Mexico to produce finished goods that will ultimately be exported out of Mexico.
Maquiladoras are located mainly along the US-Mexico border and produce an incredible diversity of products. One thing to keep in mind when looking for a maquiladora that can make your product is that “maquiladora” is NOT synonymous with “contract manufacturing” – most maquiladoras are wholly owned and controlled by foreign parent companies that do not have an interest in manufacturing product for anyone other than themselves.
The potential for savings is huge! In fact, we estimate a bare minimum (5 operators) labor savings of around $100,000 annually!
Safety in Mexico has been a very hot topic in American media over the last decade, and while there is no doubt that the legitimate increase in drug-related violence in certain parts of Mexico of a few years ago focused the world’s attention on the general safety of Mexico, it is important to understand that this was isolated problem located within very specific parts of the country. If you pay attention to the location of the incidents that the media is quick to point out as a problem of “Mexico”, you will quickly realize that these problems are not just coincidentally occurring in the same cities time after time. Experts have repeatedly pointed out that the bulk of the violence in Mexico takes place in Tijuana, Ciudad Juarez, Chihuahua and Mexico City. The country of Mexico is not necessarily an unsafe place, however like any country there are particular locations that are dangerous – none of which we are located in!
We’re proud to say that during our entire history of manufacturing in Mexico, none of our employees or customers have ever encountered the violence that unfortunately too often defines the country of Mexico. This is largely because of our location in the city of Mexicali. Mexicali remains one of the safest cities in Mexico due to it’s:
Lack of proximity to major drug markets in the US – drug traffickers are located close to their markets.
Harsh desert climate – this deters transients from southern Mexico as people generally come to Mexicali to either educate themselves or to find employment in the maquiladoras – not to traffic drugs.
The local government is determined to proactively protect the manufacturing based economy – Mexicali’s economy is strongly based on manufacturing and thus it is in everyone’s interest to protect it.
When outsourcing your manufacturing in Mexico, the ownership structure of the company you are outsourcing your manufacturing to is of utmost importance for the following reasons:
Same legal system – business transactions are conducted in exactly the same way as if you were dealing with any other supplier in the US.
Proprietary rights protection – you have the exact same proprietary rights protection as you have with any of your other US based suppliers with a standard NDA.
Enforceability of contracts – all contracts are governed by familiar US jurisdiction.
Political stability – it is highly unlikely that the US government will initiate any corporate restrictions that will grossly affect the way we do business.
This is obviously one of the most common questions that we receive. However, it is also one of the most difficult ones to answer as it varies drastically from product to product. The best way to get an answer to this question is to simply give us a call and speak with one of our Mexico manufacturing experts. We will be able to very quickly define what will be required as far as a minimum order quantity.
Turn-key contract manufacturing is when we handle every step of the entire production process, from the initial material purchasing and inspection through production to the final shipping of the finished product. Basically, you tell us what you want and we make it for you for an agreed upon price per piece- often significantly less expensive than if you were making it for yourself!
This question is of utmost importance when choosing a contract manufacturing partner. The answer to this question is completely dependent on whether or not you are dealing with a US-based company and what jurisdiction the contract falls under. With CaliBaja you can be assured that you will enjoy all of the protection available under United States law as all of your contracts would be with the US side of our business.
Obviously, the larger the operation you outsource, the more money you stand to save. However, we know that the size and scope of every businesses’ manufacturing needs vary and that in order for a small business to grow, it need a competitive edge. We are willing to provide that competitive edge to very small operations if there is adequate potential for growth. Please contact us to discuss in more detail the various options available for small businesses.
An FMN is a 30-day temporary visa is usually sufficient, while a more permanent FM3 visa may required if a person intends to work in Mexico for a prolonged period. At CaliBaja, we are experts in Mexican government requirements and will handle all the complexities of the Mexican legal system for you.
With CaliBaja, language barriers don’t exist. Our management is 100% bilingual in English and Spanish so as long as you speak English you will be fine. It is our policy that all customer communications are handled in English and that all our contracts and other binding documentation are in English as well.
All of our top management is fluent in both Spanish and English – which enables you to communicate directly with the people who are responsible for your production.
It is our policy that all customer communication is in English (unless of course you want to brush up on your Spanish).
All contracts, quotes, and other binding documentation is written in English – no need for translation.
Let CaliBaja bridge the language barrier between you and Mexico’s low-cost workforce. You tell us what you need (in English) and we will get it done – much faster than learning a brand-new language.
CaliBaja will take care of each and every step of the staffing process to accommodate your needs. CaliBaja will handle the recruiting and preliminary interviewing, then upon your approval we will either hire the employee or continue looking for a better fit. You can bring in whatever of your own specialized support that you need, however it is CaliBaja that will take care of the day to day management of the Mexican workers.
Arrangements under the Maquiladora agreement with the Mexican government, as well as trade pacts such as the North American Free Trade Agreement, eliminate the large majority taxes and tariffs normally associated with the importation and exportation of goods across international borders. CaliBaja has extensive experience in working with the complicated custom laws between the United States and Mexico, so contact us today for an in-depth analysis of whether or not tariffs and taxes will affect your business.
Mexico has a few unique property laws. The Constitution of Mexico prevents foreign land ownership of any property within 100 kilometers of the border or 50 kilometers of the coast, although the Mexican Foreign Investment Law of 1993 states that a foreigner or foreign corporation may acquire property ownership rights through a bank trust called a “fidelicomiso”. Also, non-residential property can be purchased through a Mexican corporation which can be foreign owned, provided it meets the conditions that corporation is subject entirely to the laws of Mexico and not those of the parent country.
In the manufacturing outsource world, we are quite unique in this respect; we have not limited ourselves to any one particular type of manufacturing operation. A little research will quickly show that many manufacturing outsource companies are very limited in their scope of abilities. We are currently manufacturing a range of products as diverse as industrial wiring harnesses and high-tech resistive touch sensors.
For further quantification of our diverse competencies, take a look at our experience page and our customer list, or simply contact CaliBaja today and allow us to further explain how we are able to undertake such varied operations.
Our commitment to flexibility has allowed us to produce an incredibly diverse range of products from virtually all corners of the manufacturing world, which benefits our customers in a variety of ways:
Stability – not being dependent on one particular industry means we do not have all of our eggs in one basket, and therefore we are able to reduce the impact that a single, poorly performing industry has on our overall business.
We are probably already familiar with the demands of your project – we produce a very wide range of products and chances are we are currently performing the same processes needed to manufacture your product.
Access to best practices from other industries – being that we manufacture products from a diversity of industries, we are familiar with the best practices of those industries – often times we can utilize best practices from completely unrelated industries to achieve incredibly high efficiencies and correspondingly
In theory – yes / In practice – no
While the long list of products that we have manufactured over the years speak volumes as to our willingness and ability to manufacture an unprecedented diversity of products, that does not mean that we can just make whatever someone wants at any time.
There are many variables that go into the calculation of whether or not it makes sense for us to take on a new project – but the main deciding factor is always VOLUME. The higher the volume (or potential for volume) the more likely it is that we will be able to manufacture your product for you. While we also take into account other factors (lead times / availability of raw materials / equipment acquisition cost / etc..), if the volume is not there yet – there is a good chance that CaliBaja will not be able to manufacture your product for you.
However, that is not to say that we cannot help you. Over the years we have received many requests for items that did not make sense for us to manufacture in-house for one reason or another yet we were still able to get the customer pointed in the right direction.
We understand that this is a complex topic that cannot be adequately explained here. The best way to determine if we will be able to take on your project is to simply give us a call. After a few key questions, we will be able to very quickly determine if we will be able to help you.
Generally, the customer provides all equipment.
Generally, the customer provides all raw materials.
We have seen it be as quick as a few days to as long as a few years depending on the specifics of the project.
The overwhelming majority of businesses that will help you set up a manufacturing operation in Mexico are “shelter” companies. A “shelter” company, when you really boil it down, has a business model much like a standard real estate company. In a nutshell, a Mexico shelter company is responsible for providing you with: a facility, people, and some corresponding administrative support.
A SHELTER COMPANY IS NOT RESPONSIBLE FOR MANUFACTURING YOUR PRODUCT – YOU ARE!
CaliBaja differs in this respect as we do take responsibility for manufacturing your product (contract manufacturing).
As the differences between a contract manufacturer and a shelter company can be subtle and sometimes overlooked (if not purposely glossed over by shelter providers), the best way to dig into the details is to set up a call with us and we will walk you through it.
The importance of family ownership = continuity.
Some businesses are bought and sold faster than the dust can settle from the last transaction (which causes a myriad of issues). CaliBaja, on the other hand, is now in its second generation of family ownership (same family since 1994) – the people you will work with today are the same ones you will work with in the years to come.
CaliBaja has been 100% US-owned since its inception. US ownership is important as it affords our customers the peace of mind that all business transactions are governed by familiar U.S. jurisdiction. Essentially, business is conducted in exactly the same way as if you were dealing with any other supplier in the U.S. CaliBaja takes care of everything “Mexico” and you have another U.S. based supplier.
CaliBaja has been ISO 9001 certified since 1996 and ISO 13485 certified since 2015.
Yes.
Yes.
CaliBaja currently has a team of over 800 professionals with a few thousand years of collective manufacturing experience.
CaliBaja currently has 4 separate facilities. Click here for details.
CaliBaja operates a fleet of over 20 vehicles ranging in size from vans to 53’ trucks to move product, support operations, and bring our employees to and from work.
Step number one is to set up a call to discuss your project in detail. The best way to do this is to send us your contact information via our online form. Click here for a general overview of the steps.
This is the most common follow up question after we tell someone that we are a contract manufacturer. While the question is valid, as there are specific answers to the question at any given point in time, focusing on the products that we produce is most certainly not the best way to understand our capabilities. It is very important to understand that we are in no way limited to manufacturing the same type of products that we are currently producing or have produced in the past. Our business model is (and always has been) to set up a custom / dedicated manufacturing operation specific to our customer’s requirements. The easiest way by far to understand if we will be able to handle your contract manufacturing requirements is to simply speak with one of our Mexico manufacturing experts and discuss the details of your project.
No. CaliBaja is not a broker of anyone else’s services.
We manufacture 100% of our customer’s products in-house. Therefore, when dealing with CaliBaja, you are dealing directly with the company who is actually making your product.
