Skip to content
Close
LOGIN
SEARCH
CN
CN
ave-calvar-kQgyfgCukI4-unsplash-1

A MULTINATIONAL MOVE FROM EUROPE TO MEXICO?

Mexico

PROJECT BACKGROUND

A multinational manufacturing company producing a range of small appliances was evaluating a change. The private equity owner was seeking an evaluation between current Research & Development operations based in Europe, and something within North America. Varying time zones and extended vacations were significantly limiting their ability to meet timelines and KPIs for the development of new products.
They sought to understand if Mexico could provide the necessary talent at a competitive cost-level that could support their aggressive growth strategies. Their primary product, around since the 1850's and used by millions of consumers worldwide, was undergoing a facelift and embarking on the world of AI capabilities. The company needed an agile team that could bridge different R&D teams around the world, with the goal of delivering innovation to their consumers.
MARKET INTELLIGENCE

PROJECT SCOPE

Educational Pipeline Identifying and classifying the educational institutions in the specific tech and engineering skills and programs required for their highly skilled software and hardware engineers. Prodensa coordinated meetings with major univiersities.
Office Site Selection Without a specific strategy, their goal was to compare and contrast the 3 largest cities in Mexico to determine if one provided an advantage for their specific needs. Prodensa coordinated meetings with local incubators and technology parks.
Competitors for Talent

When looking at talent availability, it was also important to see what competitors for labor would look like in each of the chosen locations. Prodensa provided quantitative as well as qualitative data analysis.
Employment Costs Within the three Mexican cities chosen, labor costs were not substantially different, but make other factors such as office lease, commutes, and remote working culture were quantified for the analysis.
Cultural Training Our team dedicated hours to training the global R&D and executive team on the labor culture and expectations in Mexico. Prodensa's team included experts from tech recruitment, operations advisory, real estate, and project management.

 

PROJECT CHALLENGES

Our client needed to make a strategic decision.. and fast.

  • The 4-week project timeline depended on our ability to utilize mapped databases that leveraged previously built relationships with institutions throughout Mexico

  • Limited public data sources on talent availability meant that Prodensa's proprietary data and experience was needed to fill in the blanks

  • Validation of a cost model over a 3-years growth period needed to include market growth variables that also mapped new investments in the industry not yet "online"

  • Coming out of the pandemic, it was unclear how much of the remote working in the tech industry in Mexico would remain, or what other drivers would emerge

  • Company executives had a range of feelings about the potential transfer of R&D operations, creating an addition layer of complexity in the communication of results
getty-images-WXCroQFBhio-unsplash-1
Empowering Strategic Decisions

ANALYSIS RESULTS

As part of the Labor Feasibility analysis, PRODENSA provided a tailored analysis with data including:

  • Demographics
  • Educational Indicators
  • Economic Activity & Industry Investment
  • Industry Labor Environment
  • Competitor Mapping
  • Talent Availability
  • Salary Benchmark
  • Labor Culture

Results of the labor feasibility analysis showed that labor costs for the specific, highly-skilled employees were higher than the executives had estimated. PRODENSA's insights showed that the particular skills, and thus candidates, in consideration were highly sought after, and the necessary expense to attract and retain them over the first few years was substantial. PRODENSA was able to show real-life data from our boots on the ground in Mexico, understanding labor culture and drivers and including those in the quantifiable analysis.

In this particular case, the project was put on hold indefinitely while the corporate office analyzed their options. PRODENSA was able to provide the strategic decision-making data that supported (or not) their investment.

EVENT LOCATION

Exhibition Arena, Munich
Pelikanstrasse 2
80333, Munich, DE
hello@power.com

Are you seeking a labor feasibility analysis?

Let's talk about your goals and requirements.
CONTACT