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Over the last two decades, Mexico has made tremendous advancements. In addition, the government's objective is to provide a framework to support investment and operations. For example, Mexico has undertaken decisive efforts to improve road infrastructure, expand land-based ports of entry, and ensure interconnectivity between both countries. However, it is up to the individual companies to ensure they are prepared to address and minimize the possible risks associated with any type of investment and/or new operation.
Companies can reduce the risks associated with selecting a new site for their operations by doing their homework. The stories of failed investments, unexpected troubles, unanticipated lack of services among other obstacles, can be attributed to several factors. The most common reasons are that companies fail to conduct a detailed due diligence on the property, verify utility services, secure experienced professionals for advice on legal, tax, human resources, Customs, insurance, banking, and cultural issues.
Many companies have been able to successfully establish and grow their operations in Mexico. For example, the maquiladora industry in the past five years has experienced a 48% growth rate in the number of plants, 71% in the number of employees, and 114% in gross exports. If your company wants to be part of this fast growing industry, be sure to seek advice from experienced professionals, and also do your homework.
By Luiz Ramirez Thomas, MSFS, a native of Mexico, and manager with the Corporate Real Estate Solutions practice for Deloitte & Touche, Los Angeles, CA. E-mail: luramirez@DELOITTE.com. Deloitte & Touche is a global accounting and management consulting services firm.
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