Introduction
Choosing the right location is paramount when expanding or relocating production to other countries. Numerous countries are competing to attract investment as an ever-growing number of companies looks for offshore and nearshore options.
Factors that make a certain country attractive to investors are various, with laws and regulations, labor cost and availability, and developed infrastructure being some of the most important ones.
With all these things to consider, an increasing number of businesses started to rely on shelter service providers, which are companies whose sole purpose is to help set up and run various aspects of foreign companies’ business dealings in a new country.
In this article we will look into some of the differences between shelter services availability in Mexico and Brazil, as two large, heavily populated countries with developed consumer markets and a quick and easy access to foreign markets as well.
While both these countries have their own advantages, the availability and quality of shelter services in Mexico is going to keep it a better choice for investment until Brazil catches up.
Let’s look at some of the details about shelter services, and functions performed by shelter services providers in Mexico and how they compare to those in Brazil.
Shelter Services in Mexico
Mexico has a very well-developed network of shelter service providers which has cemented its place as a leading manufacturing destination. These service providers offer guidance to foreign companies through every step of setting up and running a business in Mexico.
Everything from legal compliance and administrative support to workforce recruitment and facility setup is handled by these experienced companies that ensure a seamless transition into a new market and manufacturing landscape, enabling the manufacturer to keep focus on its core activities.
Shelter service providers like Tetakawi, even have state-of-the-art industrial parks with ready-to-use facilities like factories, warehouses, and offices which results in significant time and cost savings.
We cannot talk about shelter service providers without mentioning the added benefit of support networks and an extensive network of local suppliers and service providers which shelter services share with their customers in a way that is specially tailored for each business and investor. This ensures an accelerated and expedited market entry and that is extremely attractive in the business world, where time is money.
With their extensive experience and expertise, shelter service providers play a crucial role in attracting investment to Mexico, as numerous investors have recognized the advantages of utilizing these services.
Shelter Services in Brazil
Brazil has a huge market potential and an abundance of natural resources which also attracts foreign investment in the manufacturing field. There is a lot of potential for the growth and development of foreign companies, but the shelter service provider landscape is definitely lacking compared to that of Mexico.
Although this area of services has seen some development recently, Brazil’s shelter service providers lack the experience and expertise of their peers in Mexico. Furthermore, Brazil’s legal and regulatory environment is more complex, and less stable and business-friendly than that of Mexico which makes it much more difficult to navigate, and that can often result in unexpected hurdles and difficulties, costing time and money.
Brazil’s industrial real estate market is more saturated which results in a longer time needed to set up production and higher lease prices, whereas in Mexico, shelter providers have state-of-the-art facilities already set up and ready to use.
Higher labor costs along with concerns about work conditions and labor rights also often raise concerns among investors and ultimately deter the country’s progress almost as much as the notoriously complex tax system with high rates and frequent changes.
While Brazil has the natural resources, the market size, and an abundant workforce, it has a long way to go when it comes to creating a business environment that would be manufacturer friendly, and conducive to attracting foreign investment, and improvements to the shelter services provider landscape will work a long way towards that goal.
Conclusion
While both Mexico and Brazil offer opportunities for significant manufacturing growth, the extensiveness and availability of shelter services in Mexico maintain the country’s status as a preferred manufacturing destination.
These companies provide comprehensive support in setting up and running production in everything from administrative and legal issues to setting up the supply chain and workforce recruitment. They have well-developed industrial parks with state-of-the-art facilities that ensure seamless relocation and start of production.
Brazil, on the other hand, doesn’t have such a well-developed network of shelter service providers and the services that they provide are not as extensive. Furthermore, the regulatory and legal system is so complex that it’s hard even for shelter providers to navigate let alone for a foreign company by themselves.
While Brazil has plenty of things to offer potential investors, the field of shelter services needs to develop further so that the country can fully develop its vast manufacturing potential.