Shelter service providers are unique to Mexico and began helping foreign manufacturers in the late 70’s and 80’s by acting as an “in-country knowledge and experience layer” between a foreign manufacturer and the various Mexican governmental bodies. The idea of a shelter service provider was to allow foreign companies to benefit from the lower wage structure in Mexico and not have to deal with unfamiliar laws and business practices that could create an unacceptable level of predictability and risk.
Today, shelter service providers have taken various forms. Some provide everything from real estate to human resource management and include a legal framework that eases operational and fiscal burdens of a foreign company manufacturing in Mexico. Other shelter providers offer an “a-la-carte” approach to services while others are hybrids between a full service and a-la-carte providers. What is important to note is that shelter providers are not contract manufacturers and are often regarded as a smart alternative between a standalone operation and a contract manufacturing arrangement.
The Offshore Group recognizes that the long and short term needs of foreign manufacturers operating in Mexico may change over time, and a business model that worked at first may not be the best option in the future. Recognizing this reality, The Offshore Group offers the most comprehensive set of services in the industry and works with its clients to accommodate legal frameworks and operational structures to which clients may want to transition in the future.
Today, The Offshore Group has 16,500 employees working on behalf of its 57 manufacturing clients across 4.5 million square feet of class A industrial space in various locations in Mexico. The secret to the success of our business model is no secret; it is the combination of economies of scale built over the last 28 years, strategic venues with unique labor characteristics, robust and continually improving services, and legal frameworks that clients of any size leverage from day one. For companies that lean towards eventually “doing it all” themselves, The Offshore Group offers its advisory services and transition plans to ensure their success in Mexico.
The Offshore Group comprises several U.S. and Mexico based legal entities that are privately held and which are configured to provide high-value solutions to foreign manufacturers that want the benefits of operating in Mexico but without the burdens and distractions inherent in operating in a foreign country. Our strengths are in dealing with Mexico’s workforce, handling international logistics, complying with regulatory requirements, and providing the “brick and mortar” in Mexico so that clients can focus on making good products, delivering them on time, and operating at the lowest possible cost.
Headquartered in Tucson, Arizona, The Offshore Group employs nearly 100 people in the United States and is actively involved in binational and regional development efforts that are ultimately aimed at strengthening the manufacturing capacity, competency, and competitiveness of the U.S. and Mexico. To this end, The Offshore Group and Tech Parks Arizona, a division of The University of Arizona, have partnered to offer companies the innovation and R&D resources of a world renowned research institution that is the University of Arizona and the unparalleled expertise and reputation of The Offshore Group when manufacturing in Mexico becomes a viable option. This partnership is called GlobalAdvantage. For more information please click here.