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CONTRACT MANUFACTURER

Contract Manufacturer, Juarez, MX

"Shelter," "sub-contract," and "turnkey" operations represent viable alternatives to full-fledged maquiladora operations.

A sub-contract maquiladora operation involves the least commitment and / or activity on the part of the non-Mexican investor.

Defined, a shelter is a company that charges a fee for providing all basic services for a foreign manufacturer with operations in Mexico. The Shelter assumes the vast majority of the risk associated with establishing operations in Mexico, thus allowing the foreign manufacturers to focus on quality control and meetings production schedules.

The use of a contract manufacturer is the option that exposes the foreign company to the least amount of risk and is used for relatively small operations. Businesses that are unwilling to cross into Mexican territory tend to prefer taking this path, though the lack of contact with operations has the obvious effect of limiting oversight.


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