When planning to expand your manufacturing footprint into Mexico, choosing the right operating model is one of the most strategic decisions you’ll make. Your ideal setup will depend on your:
- production goals
- risk tolerance
- level of control
- time-to-market requirements
Below is an overview of the multiple turnkey operational structures for manufacturing in Mexico—ranging from low-risk entry models to fully owned subsidiaries.
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Manufacturing in Mexico: Choosing the Right Operating Structure
Workforce Management
Operate in Mexico without setting up a legal entity.
- Build a team in Mexico via Mindfacturing®, Prodensa's employer of record service.
- Source required resources with Flexforce, Prodensa's staffing and BPO services.
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Different scenarios for export of services or domestic delivery.
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Fastest route to build a presence with low overhead and full compliance.
Ideal for: Tech firms, service providers, startups testing the market.
Contract Manufacturing
Outsource production to an established Mexican manufacturer.
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Manufacture your products under your brand with minimal investment.
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Flexible and scalable, with reduced operational risk.
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Quality and supply chain control depend on the third-party manufacturer.
Ideal for: Companies seeking fast production capacity expansion.
Contract Logistics (with IMMEX)
Extend service and distribution capabilities in Mexico.
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Use PRODENSA’s infrastructure for warehousing, final assemblies, and packaging.
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Operates under the IMMEX program for export-related logistics.
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Ideal for companies needing fulfillment capabilities or inventory staging.
Ideal for: Automotive, electronics, and international suppliers with frequent shipments.
Inshoring U.S. Manufacturing Services
Outsourced manufacturing services run by Prodensa.
- Leverage pre-existing IMMEX infrastructure to source manufacturing services.
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Effectively provides a turnkey factory setup and talent sourcing administration.
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PRODENSA acts as Employer & Importer of Record, mitigating liabilities.
Ideal for: Mid-sized companies needing speed and simplicity.
Dedicated Shelter
Exclusive legal entity managed by PRODENSA, tailored for each client.
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Full operational focus with flexibility to transition into an independent subsidiary.
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Includes support in HR, compliance, tax, and real estate without direct liability.
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Faster ramp-up with long-term scalability.
Ideal for: Companies needing risk mitigation, rapid setup, and full transparency.
Wholly Owned Maquila
Create your own subsidiary in Mexico for export manufacturing.
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Full control over operations, finances, and compliance.
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Operates under IMMEX and safe harbor rules.
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Requires a deeper commitment and local legal presence.
Ideal for: Experienced companies with clear long-term investment plans.
Toll Manufacturing
Flexible processing/assembly through your own or a third-party facility.
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Produces goods in Mexico with raw materials and designs provided by the parent company.
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Allows focus on R&D and market strategy while outsourcing production.
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Can be used under your own legal entity or with a contractor.
Ideal for: Companies seeking control over quality but limited asset investment.
Full-Fledged Manufacturing
Establish a profit center and standalone Mexican subsidiary.
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Operates as an independent legal entity handling both exports and local sales.
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Full control over manufacturing, administration, and distribution.
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Requires significant investment and long-term strategy.
Best for: Large corporations looking for a strategic manufacturing hub in North America.
Trading Company
Import and sell in the Mexican market without manufacturing locally.
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Ideal for companies looking to distribute finished goods in Mexico.
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Set up as a profit center managing imports, branding, and retail.
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No need for production facilities.
Ideal for: Consumer goods, apparel, electronics, and global brands.
Making the Right Choice
Each structure carries its own set of trade-offs—between cost, control, compliance, and speed. Whether you're looking for a light-touch entry or long-term operational independence, understanding these options is key to setting up successfully and manufacturing in Mexico.
Comparison of Operating Models in Mexico
This table provides a high-level comparison of different operational models available for foreign companies looking to manufacture or sell in Mexico.
Model |
Entity Needed |
Control |
Setup Speed |
Best For |
Workforce Management Programs |
No |
Low |
Very Fast |
Tech firms, startups, admin services |
Contract Manufacturing |
No |
Low-Medium |
Fast |
Rapid production expansion |
Contract Logistics (IMMEX) |
No |
Low |
Medium |
Distribution and fulfillment |
Inshoring |
Shared |
Medium |
Fast |
Mid-sized manufacturers |
Dedicated Shelter |
Yes (via shelter) |
High |
Medium |
New entrants needing flexibility |
Wholly Owned Maquila |
Yes |
High |
Slow |
Established exporters |
Toll Manufacturing |
Optional |
Medium-High |
Medium |
Cost-sensitive custom production |
Full-Fledged Manufacturing |
Yes |
Very High |
Slow |
Large-scale, long-term investment |
Trading Company |
Yes |
High |
Medium |
Retail & consumer brands |
Prodensa provides comparative cost modeling and strategic advisory to help you choose the right turnkey model for your project.
Want to walk through pros and cons based on your specific goals?
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