Frequently Asked Questions

 Yes, relocating your manufacturing or assembly operations to México can bring significant labor cost  savings, but it’s not a one-size-fits-all solution. Several factors must be carefully considered to  ensure a successful transition: 

• Business Stability – Moving operations won’t fix underlying financial or operational issues. Small  to mid-sized companies under financial stress may lack the necessary manpower, logistics, and  working capital to support the transition effectively. 
• Process Documentation – Clear, well-structured documentation is essential. Cultural  differences, such as idiomatic expressions, may lead to misinterpretation, impacting operational  efficiency.
• Labor & Quality Standards – Maintaining high-quality manufacturing practices and strong labor  management is key to long-term success.
• Customs & Trade Compliance – To minimize duty costs, Certificates of Origin must be provided  for every part and piece of equipment sent to México, and they must be renewed annually for  continuous imports.  
• Leadership & Internal Resistance – The transfer process must be led by someone high up in the  organization to ensure alignment and execution. Resistance at lower levels is common, as  employees may feel their jobs are at risk. The leader must serve as both a team builder and an  advocate for the México operation, ensuring that challenges are addressed constructively rather than  shifting blame.
• Investment in Equipment & Logistics – The transition may require duplicate inventory or  equipment to keep production running at home while scaling up in México. Additionally, travel  expenses between locations and shipping frequency must be factored into the cost analysis.   
• Customs & Freight Costs – These can be significant for smaller companies, requiring careful  budgeting and analysis. We can assist in identifying cost-saving opportunities to optimize operations. 

For many businesses, customer demand is the driving factor for expansion into México—particularly  to ensure timely supply for production lines in the country. Our shelter program provides a  streamlined process to get you operational quickly, minimizing risk while maximizing efficiency. 

Nogales, Sonora, México offers a prime location for businesses looking to expand. Just 60 miles  south of Tucson International Airport, it’s easily accessible via Interstate 19, a fast and efficient four lane highway.

Border crossings are smooth and hassle-free, especially compared to Tijuana and Juárez, making  transportation and logistics far more efficient. Our factories are just 10 minutes from the border,  ensuring quick access to U.S. markets.

Nogales maintains a low crime rate, providing a stable and secure environment for business  operations.

Additionally, no unions operate in the local factories, ensuring flexibility for employers.

Best of all, rental costs in our industrial park are highly competitive, making it a cost-effective choice  for companies looking to establish a presence in México.  

 Moving operations to Mexico can lead to significant savings, particularly at the direct labor level:  

• Direct labor operators – Approximately $18,000 per year per employee in savings. 
• Spanish-speaking production supervisors – Savings of around $12,000 per year per supervisor. 
• Bilingual production supervisors – Estimated savings of $9,000 per year.
• Bilingual engineers – Around 33% lower compared to U.S. engineers. 
• Seasoned bilingual plant managers – Savings are minimal, and costs may even increase. 

 The greatest cost reductions occur at the direct labor level, while savings diminish as skill levels rise.  Based on our experience, the most successful manufacturing and assembly operations maintain a  high ratio of direct labor to support personnel, ensuring the best balance of cost efficiency and  productivity.  

  Establishing a foreign subsidiary requires significant investment in infrastructure, staffing, and  operations—costs that can be difficult to justify, especially if your factory workforce will remain  below 250 employees in the first two years. Additionally, setting up a maquiladora in Mexico now  takes considerable time, adding complexity to the process. 

 If your business plans for rapid expansion, maintaining a large, stable workforce, and has experience  starting foreign subsidiaries, launching your own company may be a viable option. However, if  demand fluctuates, a shelter program offers much-needed flexibility. 

 At International Assemblers, we provide a tailored solution, helping businesses scale efficiently by  reallocating excess workers when demand shifts. During slow periods, we can place employees with  other clients in need, and when demand surges, we can bring in additional labor from our network—  creating a dynamic workforce solution that has worked successfully for many companies. 

   With over 40 years of experience, we provide the expertise and infrastructure needed to help  businesses succeed in México. Unlike other providers, we offer honest assessments—if we believe  your chances for success are limited, we’ll tell you upfront.  

 We offer flexible solutions, including incubator (shelter) programs and labor-value-added  subcontracting, ensuring companies of all sizes find the right fit. Our available factory space makes  setup quick and efficient, and we specialize in supporting small to medium-sized businesses,  allowing you to start with just one employee—no large commitments required. 

 Our programs scale to meet your needs, ranging from two employees to 250 employees, giving you  the flexibility to grow. With hands-on management, we are always on-site at our Nogales campus,  ensuring personalized support and immediate assistance when needed.  

 At International Assemblers, your success is our priority. Let us help you navigate the complexities of  manufacturing in México with transparency, experience, and dedicated service. 

    Selecting a shelter provider is a critical decision, and transparency should be your top priority. While  several companies in Nogales offer these services, it's essential to ensure they fully disclose all  costs—especially hidden "pass-through costs" like taxes, fringe benefits, security, janitorial services,  customs fees, inter-border freight, logistics, and in-plant maintenance. These expenses can add up  quickly, and discovering them after signing a contract can be a costly mistake. 

When considering  a shelter company  in the Mexican  interior, an  important factor is  traveling expenses  and time  commitments for  executives.   commitments for executives. Border locations like Nogales provide major advantages, including the  ability to handle emergency shipments within hours, something much harder to achieve when  operating further inland. 

Be wary of slick marketing and exaggerated claims—while some providers may present themselves  as low-cost options, their hidden fees tell a different story. Always verify the true costs, ask tough  questions, and visit the company in person. Speaking with current and former clients can provide  valuable insights into their experience and cost transparency.  

When comparing locations, keep in mind that border cities generally have similar operating costs.  

Your decision should be based on logistics, labor availability, living conditions, union presence, and  crime rates. Also, evaluate management style to ensure it aligns with your company's values—our  approach at International Assemblers is lean and efficient, focused entirely on saving you money.  

Finally, review the contract carefully—it should be clear, fair, and include an escape clause that  allows you to exit if necessary, with all termination costs outlined upfront. 

Making an informed choice ensures a smooth, cost-effective transition into Mexico.

If you need help  with cost analysis, we’re here to guide you every step of the way. 

     In some cases, we’ve had clients start operations on the very first day! While this is rare, smaller  operations can move quickly. With our established assembly processes for interconnects,  connectors, optical switches/isolators, plastic irrigation valves, contacts, and injection-molded  parts, there's a good chance we already have permits with the Mexican government that cover your  materials and processes. Plus, we have factory space and can provide or source qualified personnel  to support your launch. 

Key Steps to Begin Your Operations:

• Economic Analysis – Determine feasibility, including understanding all pass-through costs. We  can assist with cost analysis.  
• Project Champion – A dedicated leader within your organization who can drive the transition,  overcome resistance, and ensure smooth operations.   
• Documentation Accuracy – Your bills of materials, processes, standards, and manifests must  be well-defined.  
• Certificates of Origin – U.S. Customs Form 434 must cover all materials and equipment you’ll  send to Mexico. We can help with this. 
• Accessible Leadership – Your project champion must be available to address issues and  coordinate solutions.  
• Training Plan – Depending on operational complexity, your technical staff may need to train  Mexican personnel either on-site or remotely. 
• Inventory Strategy – If your product is already in production, building an inventory buffer before  transitioning can help maintain stability. 
• Scalable Growth – While we recommend starting small, we also encourage controlled but  aggressive expansion to maximize efficiency.  

With our expertise, infrastructure, and hands-on support, we make the transition as seamless as  possible. Let’s discuss how we can tailor a solution for your business. 

 Operating in México offers significant advantages, but understanding potential pitfalls is essential.  These challenges can be broken down into three key areas: 

 I. Operational Considerations 

Success in México requires stable, well-documented, and clearly written processes. If processes  are unclear in English, they’ll be even harder to translate into Spanish. We can assist with translation,  but businesses must ensure their workflows are solid before relocating production—especially if  engineering support on-site will be limited. 

Cultural differences also play a role in communication. Mexican professionals tend to avoid saying "I  don’t understand" to prevent causing offense, which can lead to misinterpretations. Simply asking  “Do you understand?” may not be enough—the proof lies in consistent execution. Staying engaged in  the early stages is crucial to ensuring smooth operations.  

 If managing directly, full immersion Spanish training is highly recommended to bridge  communication gaps. 

Trade compliance is another factor—every component must have Certificates of Origin (U.S.  Customs Form 434), which vendors must provide. We can assist with this process, but responsibility  lies with suppliers. Additionally, sourcing components from NAFTA countries can help avoid  potential duties on non-NAFTA materials, particularly for non-electronic or non-automotive  products. If unsure, contact us, and we’ll help determine if duties apply. 

 II. Living Conditions for Foreign Professionals  

 Nearly all foreign professionals working in México reside in Arizona, with most settling in Santa Cruz  County and Pima County.

 III. Security Considerations  

 Security in Nogales, Sonora is a valid concern but remains lower than in larger border cities like  Tijuana. Businesses should take basic precautions similar to those in the U.S., ensuring portable  valuables are secured. Additionally, clients are expected to implement internal security procedures  within their workspaces to maintain safety. 

      Compared to U.S. labor laws, México’s regulations offer strong protections for workers, requiring  businesses to adapt their operations accordingly. Here are key restrictions to keep in mind:  

• Guaranteed Daily Wages – Once an employee punches in, they are entitled to a full day's pay,  even if production stops due to material shortages or equipment failures. To avoid unnecessary  costs, businesses must ensure a steady workflow or, in cases like build-to-order operations, budget  downtime into their planning. 
• Severance Pay for Layoffs – If an employee is laid off, businesses must compensate them with  three months' salary, plus an additional half-month's salary per year of seniority. However, layoffs  are rare, as employees are often reassigned to other clients needing workers, reducing financial  strain on employers.  
• Dismissal Restrictions – To terminate an employee without paying severance, their violations  must be documented in detail and reviewed by our personnel office to ensure compliance with local  regulations. We guide businesses through this process to ensure legal and fair dismissals.  

By working closely with our personnel office, businesses can navigate these restrictions effectively,  ensuring compliance while maintaining operational efficiency. Despite these challenges, we have  found that partnering with Mexican employees fosters a positive, rewarding work environment. 

       For the Maquiladora industry, the answer is a clear NO. Businesses operating under this model  adhere to strict environmental and safety regulations, following U.S. EPA and OSHA standards for  workplace conditions. Additionally, companies undergo regular inspections by three Mexican  regulatory agencies, ensuring compliance with local laws.

 It’s important to note that México does not provide a loophole for bypassing safety and  environmental regulations. Any business looking to set up operations must meet these standards,  just as they would in the U.S.

 While challenges exist, the benefits of operating in México far outweigh the restrictions. With proper  planning and compliance, businesses can take advantage of México’s cost savings and strategic  location, particularly in Nogales, Sonora, which presents a strong and competitive environment for  manufacturing and assembly operations.