Precision Machining Operation to Initiate Mexican Production

Tolerance Masters, of Circle Pines, Minnesota has finalized an agreement for services with The Offshore Group that will enable it to commence operations in 18,000 square feet of manufacturing space at The Roca Fuerte Industrial Park in Guaymas, Sonora, Mexico.  The company will supply precision machined parts to its aerospace industry clientele.  When fully functional, the installation will employ a workforce of 20.

According to the Pat Beckfield, the firm’s Manager of International Logistics, “The initiation of activities in Mexico will enable us to serve our markets more efficiently, as well as to expand our workforce here in Minnesota .  Our ability to produce parts in Mexico will result in the subsequent need to expand our in-house engineering capabilities.


In addition to serving the aerospace customers, Tolerance Masters supplies precision parts to firms in the medical device industry. 

Aerospace Parts Manufacturer Poised for Expansion


Precision Aerospace of Phoenix, Arizona has signed an agreement that will enable it to expand the scope of its operations in Mexico.  The company will move from its present space within The Offshore Group’s Bellavista Industrial Park in Empalme, Sonora  to 18,000 feet of new construction in the Group’s Roca Fuerte Park in Guaymas.  Guaymas and Empalme are neighboring communities.  The company will add precision sheetmetal services its existing machining capabilities. 

Company President, Jesse Jones, Jr., states that, “by combining Precision Aerospace’s existing quick prototyping experience in Phoenix with the ability to transition hardware into an affordable production environment in Mexico, the company is well on its way to becoming a  “One Stop Shop” for existing and future clientele”.  

In addition to precision machining and sheetmetal work, additional services that Jones offers to his customers include: prototyping and production, anodizing, powder coating, silk screening and silk screening.

The Offshore Group Purchases New Tucson Facility

In early January, Offshore International, Inc. moved its cross dock operations to a newly acquired 132,000 square foot facility.  The structure is situated 11 miles east of its current South Tucson location.  Company administrative functions will be on site by June 2005.

According to company president, Luis Felipe Seldner, the decision to change domicile was predicated on “the desire to create the infrastructure that would result in the ability to move Offshore Group customer’s materials into Mexico quicker, as well as to accommodate present and future company growth”.  

As a whole, The Offshore Group moves $1.2 billion dollars of raw materials and finished products in cross border trade annually.  In calendar year 2004, seven manufacturing firms signed new agreements for the provision of manufacturing support, or “shelter” services.

In addition to streamlining the shipping of its customer’s materials and allowing for growth, the new structure will enable The Offshore Group to offer additional value-added supply chain management services through its ILS  (International Logistics Solutions) company.  

Problem Solved

The number of direct labor workers employed by Offshore Group client companies in Saltillo, Coahuila increased 53% between November 1, 2003 and November 4, 2004.  

This growth has resulted from the signing of additional manufacturers to shelter service agreements, as well as from the expansion of those firms currently located at the La Angostura Industrial Park.

As a result an accelerated demand, The Offshore Group's construction firm, Dinisa S.A. de C.V., has completed the completed 183,000 square feet of new industrial space.  An additional 70,000 square feet of building is in the planning stages, and will be required to house projected growth.

Customs' FAST Program (Free and Secure Trade) Enhances Mexico's Competitive Position


By Les Glick, Esq. - Porter, Wright, Morris & Arthur

While low-costs are of paramount concern to manufacturers, reliability and speed of  service are also keys to economic competitiveness.  

The U.S. Customs FAST program, which is open only to CTPAT members, allows Mexican exporters' to expedite their shipments to the U.S.  Under the program, firms exporting from south of the border can use special FAST lanes at crossing points to ensure rapid delivery to their customers.  Customs has indicated that these lanes may stay open when other lanes are closed due to security alerts.

Because CTPAT and FAST are currently only open to Mexican exporters, this gives Mexico a logistics "leg up".  For instance, Chinese exporters cannot currently join CTPAT or FAST.  In times of security alerts, their waterborne cargo may be delayed while Mexican trucks will be making uninterrupted deliveries to their customers.  

In terms of cost, reports have indicated that FAST members may also save up to 25% on trucking charges.  This is the case because faster crossings  and lower inspection rates allow greater use of capacity.  

The combination of participation in the CTPAT and FAST programs can mean a reduction in transportation costs, increased security, and, most importantly to U.S. customers, reliability and predictability in meeting their delivery schedules even in times of national emergencies.

Let Us Know How We are Doing

Leticia Martinez, Offshore Group ISO Management Representative

As a part of ongoing efforts to promote an atmosphere of continuous improvement, The Offshore Group has established a permanent email account to which client firms and their personnel may directly address their complaints, comments, and suggestions. The purpose of establishing this direct and convenient line of communication is to enable The Offshore Group to determine and respond to its shelter plan client's requirements and expectations with greater speed and efficiency.

Please send complaints, suggestions or comments to: ISO@offgroup.com

Keep up-to-date on economic, political and business developments with MexicoWatch.

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