The Differences Between Shelter Manufacturing Companies and Contract Manufacturing

CaliBaja manufacturing

If you’re interested in manufacturing in Mexico, we’re here to help you however possible. Although our team at CaliBaja Manufacturing operates as a contract manufacturer, we often get questions about shelter companies in Mexico. We don’t offer shelter services, but we can help you understand the differences between these two business models. Here, we share more about shelter manufacturing companies in Mexico and offer tips to help you determine if it’s a good fit for your brand: 

What is a Shelter Company? 

Shelter companies are legal entities registered with the Mexican government through the IMMEX program. This program provides foreign companies with a quick, easy way to establish manufacturing operations in Mexico. Most shelter companies take on all legal risks and liabilities, and your business will likely be required to provide the raw materials and components (which can be imported duty-free). 

In addition to manufacturing your product(s), a shelter servicer can also offer other services, such as: 

  • Human resources
  • Cost analysis 
  • Legal assistance
  • Industrial real estate service 

How to Choose a Shelter Company 

Although shelter companies can provide many services, many are primarily concerned with filling their vacant space. You should proceed with caution if you’re choosing this type of manufacturer, as not all are invested in the success of your brand. 

If you decide to go with a shelter provider, conduct a thorough cost analysis to ensure you’re getting a fair deal. As with any manufacturer, you should prioritize proximity to key locations to streamline shipping. Regardless of which type of manufacturer you choose, industry expertise should be paramount. Your manufacturing partner should be well-versed in your niche and have a solid record of producing for your industry. 

When you’re ready to explore manufacturing solutions in Mexico, we’d love to help. CaliBaja Manufacturing isn’t a shelter company, so we focus 100% of our efforts on producing high-quality products for our clients. As a contract manufacturer, our business model is simple: if your operation doesn’t succeed here, we don’t get paid. As a family-owned and operated business, we strive to provide the highest customer service and quality. To best suit your needs, we have several locations with staff specializing in different sectors. If you’d like to learn more about contract manufacturing, please contact us. We’ll contact you soon, and look forward to learning more about your project. 

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