Mexico is a country with a rich history and culture, and it also happens to be the popular country for many businesses to extend their operations. Several significant factors need consideration when selecting locations in Mexico.
Geographic Location
The geographical location of your site is also critical. You need to choose one that is accessible to your target market and has a good transportation network. Also, you can consider a place with a good climate and natural disasters that may affect your activities.
Infrastructure
The infrastructure of your site will be another important factor. Make sure that the site has an adequate supply of water, electricity, and other necessary services. Also, consider whether transportation and communication infrastructures are readily available.
Labor Force
Labor force: Mexico has a huge and relatively cheap labor force. However, it is worth mentioning that labor quality varies with location. You have to choose the location of operation with a skilled labor force, according to your needs.
Incentives
The Mexican government encourages businesses to invest in Mexico through incentives. These incentives include tax breaks, subsidies, and infrastructure development. Seek to know what incentives are available in the regions in which you intend to set up your business.
Cost of Doing Business
The cost of operation in Mexico will also vary by region. You must be able to compare labor costs, land costs, and other variables to determine the most economical location for your business.
Political and Economic Stability
Mexico is politically and economically sound. However, keep track of the political and economic changes in the country to ascertain that the environment is conducive for your enterprise.
Cultural Factor
Mexico is culturally diverse. You must know the local culture and customs to be successful.
Environmental Laws
Mexico is very strict in terms of the different regulations in the environment. It would be extremely essential for your company to ensure that they operate within the set standards.
Security
Crime rate in Mexico is high. Depending on the location, the research area needs to be safe and secure for your employees, not to forget your customers.
Brand Name
Sixmexico is the leading site selection firm for Mexico. We can lead and help you find the best place for your business, plus the problems that accompany doing business in Mexico.
Consulting for choosing an ideal place in Mexico
However, besides these factors, there are other things that business institutions should consider before selecting a location in Mexico:
Infrastructure and Logistics:
- Transportation: Analyse the access and readiness of transport infrastructure, such as roads, railways, and ports. Also, consider the proximity to primary transportation hubs and ease of good movement.
- Utilities: Assess if utilities are available, including electrical supply, water supply, and natural gas supply. Then consider the possibility of interruptions in utility services and associated utility services costs.
- Telecommunications: Evaluate if the telecommunication infrastructure, ranging from broadband internet to telephone services and data centers, is in good quality and accessible. Determine if the region can support your business’s technological needs.
Talent and Human Resources:
- Labour Market: Evaluate the supply and quality of skilled labor in the region, including education levels and skills in both local and foreign languages, as well as industry-specific experience.
- Wage Rates: Determine the relative wage rates in regions, such that a location is identified as one that will most appropriately strike a balance for your business between its operating cost. Take into consideration the level of productivity and the package on the benefits.
- Labor Relations: Analyze the climate regarding labor relations, focusing on the existence of labor unions as well as the likelihood of industrial disputes.
Environmental and Sustainability:
- Environmental Regulations: Determine the environmental regulations and standards that govern your industry. Discuss the associated costs and challenges to comply with these regulations.
- Sustainability Initiatives: Evaluate if the region is focusing well on sustainability and their efforts towards promoting the green business culture. What benefits can be derived from locating in an area where sustainability is focused?
- Cost of Living: Compare the areas in terms of housing, food, and transportation. Consider how this will affect living costs and, therefore, employee satisfaction and retention.
- Healthcare: Evaluate regional health services availability, quality, and overall healthcare offered for comparison. Consider that this will have direct implications on costs associated with providing health care as a benefit for employees.
- Education Quality and Accessibility: It evaluates the quality and accessibility of available educational institutions, such as schools and universities. Consider how education is crucial to the attraction and retention of talent.
Conclusion
Choosing a location for your business in Mexico may be a difficult time as there are several things to consider in choosing the right location for your business. When considering the factors above, you will be sure that you make the right decision to ensure the success of your business.
FAQs
Which is the best region in Mexico to manufacture?
The best region to manufacture in Mexico will depend on your needs. A few of the most preferred regions include Baja California, Chihuahua, and Nuevo León.
What does it cost to do business in Mexico?
In a general sense, the costs of doing business in Mexico vary based on the region, but Mexico tends to be a relatively low-cost country for business.
What are the incentives for investing in Mexico?
The Mexican government offers many incentives to companies interested in investing in the country. These can include tax breaks, subsidies, and infrastructure building.
What is the security situation in Mexico?
Mexico has a serious case of high crime rates. However, there are many safe and secure regions within the country.
