How to Set Up a Shelter Operation in Tijuana: Your Fast-Track to Mexican Manufacturing
Let’s be honest, when you’re looking at Mexico for manufacturing, you’re probably asking yourself: “How do I get this done without getting buried in red tape?” The answer is simpler than you think: use Mexico’s shelter model.
Here’s what that means in practical terms. Instead of spending 6-7 months setting up your own Mexican entity, dealing with lawyers, permits, and compliance headaches, you partner with a shelter provider who’s already figured all that out. You’re up and running in 3-4 months, focused entirely on what you do best: making great products.
We’re going to walk you through exactly how this works in Tijuana, step by step. No fluff, just the real process that companies like yours use to get manufacturing operations running fast.
Why Tijuana’s Shelter Model Actually Works
Think of a shelter operation like this: you bring the manufacturing expertise, they handle everything else. Your shelter partner becomes your legal entity in Mexico, manages your payroll, deals with customs, handles compliance, all the stuff that would normally eat up months of your time.
Meanwhile, you keep complete control over your production line, quality standards, and day-to-day operations. It’s the best of both worlds.
The economics make sense too. You’re looking at manufacturing costs that are 50% lower than what you’re paying now, duty-free imports through Mexico’s IMMEX program, and access to Tijuana’s 259,000-person manufacturing workforce. Plus, you’re 19 minutes from San Diego; try finding that combination anywhere else.
Step 1: Get Your Strategy Straight
Figure Out What You Actually Need
Before you start calling shelter providers, get clear on your requirements. How much production capacity do you need? What skill levels are we talking about? How does this fit with your existing supply chain?
Tijuana has a proven track record in aerospace, automotive, electronics, and medical devices. If you’re in one of these sectors, you’re in good company. The infrastructure is already there, the workforce knows what they’re doing, and the supply chains are established.
Understand the IMMEX Program (It’s Actually Pretty Simple)
Here’s the deal with IMMEX, Mexico’s manufacturing program that makes all this possible. You need to export at least $500,000 USD annually or have exports represent 10% of your total business. For most manufacturing operations, this isn’t even a question.
What you get in return: duty-free imports of your raw materials and equipment, VAT exemptions on temporary imports, and streamlined customs. It’s designed to make manufacturing easier, not harder.
Step 2: Find the Right Shelter Partner (This Decision Matters)
Don’t Just Pick the Cheapest Option
Tijuana has over 25 registered shelter providers, and here’s the truth: they’re not all created equal. You want someone who actually knows your industry, has solid financials, and can demonstrate a proven track record of success.
Look for these three things:
- Active IMMEX certification (ask to see it)
- Real experience in your sector (get references and call them)
- Financial stability (you don’t want them going out of business six months in)
Do Your Homework
This isn’t the time to rush. Visit their facilities, talk to their existing clients, ask tough questions about how they handle problems. A good shelter provider will be completely transparent about their fees (usually 8-15% of payroll), show you their facilities, and connect you with companies they’re already working with.
If they’re dodging questions or seem vague about their processes, keep looking.
Step 3: Get the Legal Structure Right
Pick Your Model (Keep It Simple)
You’ve got two main options here:
Option 1: Not Incorporated Model – You operate completely under your shelter provider’s legal umbrella. No Mexican subsidiary, no extra complexity. This is the fastest route and works great for most companies.
Option 2: Hybrid Model – You keep production under the shelter but set up a separate Mexican sales entity. This makes sense if your customers need official Mexican invoices or you want extra flexibility down the road.
Most companies start with Option 1. You can always get more complex later if you need to.
Nail Down the Details
Your agreement needs to be crystal clear about who does what. They handle legal stuff, HR, customs, and bookkeeping. You run production, control quality, own your equipment, and manage your customers.
Build in performance standards. If they’re slow responding to HR issues or compliance problems, you need to know about it fast.
Step 4: Find Your Production Home
Location Really Does Matter
Tijuana has 78 industrial parks with facilities ranging from 25,000 to 250,000 square feet. You want to be close to the Otay border crossing if you’re shipping to the U.S., near your labor pool, and in an area with the necessary utilities (especially if you require heavy power).
Industrial space runs $4-8 per square foot annually, a fraction of what you’d pay for comparable space in the U.S. Factor in room to grow and make sure the infrastructure can handle your specific needs.
Get Through IMMEX Registration
Your shelter provider handles this, but it typically takes about 30 days. They’ll need documentation on your facility, proof that the infrastructure works for your processes, and environmental compliance paperwork.
The key is making sure everything’s in order before you sign your lease. Nobody wants surprises here.
Step 5: Build Your Team
Tap Into Tijuana’s Talent
This is one of Tijuana’s biggest advantages: the workforce actually knows what they’re doing. We’re talking about people with real experience in precision manufacturing, working for wages that range from $2-8 per hour depending on skill level.
Your shelter provider handles recruitment, but you set the standards. Be specific about what you need, including technical skills, experience levels, and certifications. Don’t settle.
Let Your Shelter Handle Compliance
Mexican labor law is strict, and the penalties for getting it wrong are real. Your shelter provider takes on this responsibility, but make sure they have solid systems. They should be able to show you exactly how they handle payroll, benefits, safety training, and labor relations.
Step 6: Launch Smart
Get Your Equipment and Systems Ready
Plan for 2-3 months to get equipment installed and systems running. This can happen during the recruitment process, so use the time efficiently.
Coordinate all aspects, including machinery transportation, installation, testing, and utility connections. Ensure that all necessary safety protocols are in place before commencing production.
Don’t Skip Trial Runs
Even the best-planned operations hit unexpected bumps during startup. Use trial production to work out the kinks, train your team on your specific processes, and make sure quality systems are dialed in.
Build some buffer time into your schedule. Better to launch a month late with everything working perfectly than to rush and create problems you’ll spend months fixing.
Step 7: Stay on Top of Performance
Track What Matters
You need clear visibility into how things are running. Production numbers, quality metrics, costs, compliance status—your shelter provider should give you regular, detailed reports on all of it.
Set up KPIs that matter to your business and make sure you’re getting the data you need to manage effectively.
Think About the Future
Most companies run shelter operations for 3-4 years before considering whether to go independent. That gives you time to understand the market, build relationships, and figure out if you want to take on more complexity later.
Your shelter agreement should accommodate growth, whether that means more space, additional product lines, or whatever direction your business takes.
The Real Timeline and Costs
Here’s How Long It Actually Takes
- Month 1-2: Planning, picking your shelter partner, getting contracts done
- Month 2: Finding your facility, getting IMMEX started
- Months 2-3: Setting up the space, installing equipment, hiring your team
- Months 3-4: Trial runs, fine-tuning, full production
What You’re Actually Spending
Beyond shelter fees (8-15% of payroll), you’re looking at facility costs, competitive wages, and normal operating expenses. The total is still way below what you’d spend setting up independently, and you get to market much faster.
Why This Actually Works in Tijuana
Look, every manufacturing location makes promises. Tijuana delivers because the infrastructure is already there. The workforce is proven. The logistics to North American markets are seamless. And the shelter model eliminates the usual barriers without sacrificing control.
For companies in aerospace, electronics, medical devices, and precision manufacturing, this isn’t just about saving money, it’s about accessing a manufacturing ecosystem that’s built to compete globally.
The shelter providers succeed when you succeed. They’ve figured out the regulatory maze so you don’t have to. You bring your manufacturing expertise, they handle the rest, and together you build something that works.
Start with your strategic assessment, choose your partner carefully, and execute step by step. The result? You’re manufacturing in one of North America’s most competitive locations without the usual headaches that come with international expansion.
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