Shelter Solutions: Successful Business Cases
Our Shelter blog series has provided a Shelter overview, clarifying some changes and highlighting the importance of having an Exit strategy for your operation in Mexico. This third chapter will share some successful business cases of our shelter solutions in which we have worked on, supporting companies that had ongoing operations in Mexico and were facing different challenges. As Prodensa, we supported them to analyze their options moving forward to achieve business continuity.
We will be talking about three different scenarios that we have encountered and that are very common: Relocation Strategy, Exit Strategy, and Due Diligence. In these business cases, Prodensa also supported during these important transitions with the following:
• Project Management
• Dedicated Shelter Set up
• Wholly owned Maquila set up
• Administrative Support
Relocation Strategy Success Case
When a manufacturer of automotive electronic components decided to expand its Mexico operation due to new contracts and increasing demand, the location in which they had been operating for some time was saturated, which limited their ability to grow and hire new employees. The Multitenant shelter operator was also the owner of the industrial development where the facility was. They presented no additional option to grow, obligating the company to look for other options. After a City Evaluation process, in which different locations competed with incentives, the company decided to establish in a new location under a new dedicated shelter structure, which they plan to take ownership off once they feel comfortable operating in the new location. Prodensa supported this company with the proper Analysis, Relocation Strategy, Project Management, new Dedicated Shelter Set up, and administrative support.
Exit Strategy Success Case
A packaging materials manufacturer decided to start a new operation in Mexico under a Multitenant shelter structure in order to have a faster setup process due to demand from its customers. During the first year of operation and with the objective of adjusting to a new strategy, more financial information and transparency from the Mexican operation was required, which was not achievable by the Multitenant shelter operator due to the shared bank accounts, accounting, and tax declarations with the other customers. This situation forced the company to look for other options, which resulted in the takeover of the operation by a new Wholly owned Maquila; Prodensa supported with the Evaluation, the design of a safe Exit Strategy, Project Management, the incorporation of the Wholly owned Maquila and its Administrative Support.
Due Diligence Success Case
With its shelter service contract getting close to the expiration date, a French electronic components manufacturer wanted to analyze the different options and scenarios available to achieve business continuity and in accordance with its corporate strategy. After a thorough analysis and assessment, the different scenarios were presented, with a detailed cost analysis and implications for each scenario, which was critical in the decision-making process and allowed the executive team to have all the information available to choose the right path while making the most out of their Mexican operation and resources.
About Prodensa’s Shelter Solutions
Prodensa is a professional services firm with 35 years of experience. Our expertise in this field shows our attention to detail. We have been part of more than 600 projects of start up operations and shelter in Mexico from different countries of origin. We guide you with awareness, simplicity, and tested know-how through this process using our signature strategy, which helps you on a broad spectrum of needs. We advise you on everything you might encounter, from finding the perfect site selection to supporting you in making the most out of government trade incentives.
With recognized best practices on start up operations and shelter in Mexico, we create new industrial realities. We guide you to ensure the best experience and peace of mind for your manufacturing project in Mexico.