Success Stories: Companies Thriving with Shelter Services in Mexico

Setting up manufacturing operations in a new country can be daunting. The complexities of regulations, local laws, and logistical challenges can overwhelm even the most seasoned businesses. That’s where Co-Production International (CPI) comes in.

As the premiere provider of administrative and shelter services for global companies expanding into Mexico, CPI has made a significant impact. In this article, we highlight the success stories of UFP Technologies, Brentwood Industries, and Cablex Group, showcasing how CPI’s expertise has helped these companies thrive.

The Power of CPI’s Shelter Program in Mexico

CPI specializes in nearshoring and soft-landing solutions, offering comprehensive support from the initial setup to ongoing administrative duties. With 45 years of experience and a proven track record of establishing over 300 companies in Mexico, CPI stands out for its:

• Experience & Expertise: With the labor force, labor laws, benefit structures and recruitment.
• Existing Infrastructure: From legal structures and permits to full administrative and compliance support.
• Flexibility: Tailored programs to meet each company’s unique requirements.
• Organizational Culture: Mirroring and respecting the client’s company culture.
• Risk Elimination: Minimizing risks to ensure swift and cost-effective setups.
• Hands-On Approach: Expert teams working closely with clients as an extension of their own teams.

Let’s dive into how these benefits have translated into success for UFP Technologies, Brentwood Industries, and Cablex Group.

• UFP Technologies’ Rapid Expansion in Tijuana
  • The Challenge
  • The Solution
• Brentwood Industries’ Expansion in Tijuana
  • The Challenge
  • The Solution
• Cablex Group’s Strategic Move to Monterrey
  • The Challenge

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UFP Technologies’ Rapid Expansion in Tijuana

UFP Technologies, a renowned designer and manufacturer of medical components and packaging, sought to expand its operations closer to its customers in the medical market. Headquartered in Newburyport, MA, UFP aimed to leverage its expertise in specialized foams, films, and plastics through its UFP MedTech division.

The Challenge:

Finding a location that met stringent FDA requirements while facilitating quick setup, hiring, and integration into the local community, all within a tight timeframe, was the primary challenge for UFP Technologies.

“After evaluating multiple locations, our clients selected Tijuana for its strategic advantages and alignment with their goals. CPI’s support was instrumental in this decision.'"
Mitch Rock, President of UFP Technologies' MedTech division

The Solution:

CPI played a pivotal role in UFP Technologies’ expansion by leveraging its Shelter Turnkey Program:

• Cost Analysis: CPI provided a meticulous cost analysis, highlighting the economic advantages of moving operations to Mexico.
• Site Selection Strategy: Assisted UFP in evaluating and selecting the best location in North America.
• Industrial Real Estate Support: Helped secure an 84,000-square-foot built-to-suit option in Tijuana, later customized to meet FDA requirements.
• Ramp-Up Support: Connected essential utilities, identified qualified vendors, and coordinated with contractors for necessary improvements.

"Steve Cardin, Vice President, Chief Operating Officer highlighted, “CPI’s expertise and hands-on approach enabled us to set up a fully operational facility in just nine months. Their assistance was crucial in navigating local regulations and logistics"

UFP Technologies successfully established an FDA-registered medical device manufacturing and assembly plant in Tijuana. The swift setup and operational efficiency provided a significant competitive edge, aligning perfectly with UFP’s strategic goals.

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Brentwood Industries’ Expansion in Tijuana

Brentwood Industries, a medical packaging and thermoplastic molding company based in Reading, PA, aimed to expand its operations to Tijuana, Mexico to support its existing client base. This move marked Brentwood’s first strategic international manufacturing expansion in Latin America.

The Challenge:

Brentwood needed a facility that could meet the high standards required for medical packaging and molding, including the establishment of a clean room environment.

"Brentwood has many existing medical customers in Tijuana. By opening a manufacturing site in close proximity to our existing customer base, we can better serve them by offering faster order turnaround times, reduced freight costs and strategic inventory control options.”
Walter Banta, BRENTWOOD, Senior Director of Market Development

The Solution:

CPI facilitated Brentwood’s expansion through:

• Site Selection and Cost Analysis: Provided a comprehensive evaluation of potential sites and cost implications.
• Tenant Improvements: Assisted in the build-out of a 35,000-square-foot clean room facility in the Thomas Alva Edison Industrial Park.
• Administrative Management: Managed daily administrative functions under CPI’s Shelter Program.
• Phase 2 Expansion Support: Negotiated new industrial space and navigated all steps for the move, including legal compliance, permits, and tenant improvements.

Brentwood’s new facility not only met their operational needs but also provided critical capabilities for operational redundancy. The success of the initial site led to further expansion, with an additional 100,000 square feet of production space added in 2023. Walter Banta, Vice President of Operations, praised the seamless integration and enhanced capabilities, highlighting the positive customer response and local team’s performance. CPI’s support in the Phase 2 expansion was crucial, ensuring a smooth transition and continued growth.

"CPI has been true partners throughout the discovery process, offering extremely valuable insights and support. As we move into the construction and business execution phase, their local presence and expertise has allowed us to move both rapidly and comfortably.”
Walter Banta, BRENTWOOD, Senior Director of Market Development

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Cablex Group’s Strategic Move to Monterrey

Cablex Group, a Slovenian company and a leading provider of specialized cable solutions, sought to expand its manufacturing footprint to North America to be closer to its clients and expand its customer base. With established operations in Europe, Turkey, China, and India, Cablex recognized the strategic advantages of nearshoring to Mexico. Monterrey, Nuevo León, was chosen for its robust industrial infrastructure and proximity to key markets in the United States and Canada.

The Challenge:

Establishing a new production facility in Monterrey required navigating local regulations, setting up infrastructure, and ensuring seamless integration into the North American market.

CPI supported Cablex Group through:

• Industrial Real Estate: Helped find the right building and location within the Monterrey metropolitan area according to their needs and secured the building.
• Logistics Support: Assisted with logistics strategy to export from Europe to their plant in Santa Catarina, Monterrey, ensuring effective and timely transportation.
• Permitting and Licensing: Managed the legal framework and access to tax incentives like the IMMEX program and VAT certification through our certified Mexican entity.
• Administrative Support: Provided ongoing administrative support in compliance with Mexican regulations and labor laws, including accounting, payroll, HR, and import/export management.

Cablex Group successfully set up its new Santa Catarina plant, significantly reducing transportation and labor costs while enhancing responsiveness to customer needs in North America. CPI’s expertise in navigating the complexities of local regulations and infrastructure setup was instrumental in this successful expansion, reinforcing Cablex Group's competitive edge in the market.

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Ready to Expand Your Manufacturing Operations into Mexico?

If you’re considering expanding your operations, CPI’s comprehensive shelter services in Mexico could be the key to your success. Get in touch with CPI to explore how they can help your company thrive in Mexico.