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Expanding manufacturing operations to a new country presents both opportunities and challenges. For Frame-X, a U.S.-based manufacturer specializing in prefabricated wall and floor assemblies for residential construction, the decision to expand into Mexico was driven by growing demand in the U.S. and the need for increased production capacity.

In 2012, Frame-X began its journey to establish operations in鈥疶ecate, Baja California, Mexico, with the help of鈥� 人妻91无码 International (CPI), leveraging Mexico鈥檚 proximity to the U.S. and cost-effective manufacturing advantages.

This case study explores how Frame-X successfully scaled its鈥�manufacturing operations in Mexico鈥痓y partnering with CPI, utilizing鈥痵helter services鈥痶o overcome regulatory challenges, train a new workforce, and streamline administrative tasks.

Challenges of Expanding Manufacturing into Mexico

Frame-X faced several unique challenges when expanding into Tecate, Mexico:

1. Non-Traditional Manufacturing Space: Unlike most鈥�maquiladora operations, which operate inside industrial buildings, Frame-X鈥檚 manufacturing process required a more unconventional solution. The nature of their product didn鈥檛 fit the mold of typical鈥�滨惭惭贰齿鈥痮辫别谤补迟颈辞苍蝉, which involve renting warehouses or factory spaces. Instead, Frame-X needed an open-space facility to accommodate their production. This non-traditional setup presented logistical and operational challenges, but CPI worked with Frame-X to develop a solution by securing a 42-acre outdoor manufacturing yard.
2. Regulatory Compliance: In addition to the need for open-space manufacturing, Frame-X鈥檚 prefabricated components were unfamiliar to Mexican regulatory bodies. Navigating the complexities of鈥痠mporting and exporting materials, 鈥痺hile ensuring compliance with local regulations added further complexity to the expansion.
3. Training a New Workforce: Prefabricated construction manufacturing was new to the local Tecate workforce. Frame-X had to develop specialized training programs from scratch to ensure the workforce met their high production standards.
4. Administrative Burden: Managing day-to-day operations, such as payroll and recruitment, while ensuring labor law compliance in a new country required significant support. Frame-X needed CPI鈥檚 expertise to handle these tasks so they could focus on ramping up production.

Why Frame-X Chose Mexico

Expanding into鈥疢exico鈥痺as a strategic decision for Frame-X due to several factors:

• Proximity to the U.S. Market: Mexico鈥檚 location allows for faster, more cost-effective transportation of finished goods to U.S. customers.
• Lower Operating Costs: By relocating part of their operations to鈥疢exico, Frame-X could lower production costs while maintaining high quality.
• Past Success with CPI: Frame-X had previously partnered with鈥�人妻91无码 International鈥�(CPI) and knew the value of their鈥痵helter services鈥痠n navigating the complexities of鈥痬anufacturing in Mexico.

After evaluating other cities like Tijuana, Frame-X selected鈥疶ecate鈥痑s the site for their expansion due to its favorable business environment and their prior positive experience working with CPI.

The CPI Solution: Comprehensive Shelter Services in Mexico

To ensure the success of their鈥痬anufacturing expansion鈥痠n Mexico, Frame-X relied on CPI鈥檚 comprehensive shelter services, which provided expert guidance in several key areas:

1. Creative Facility Solutions for Non-Traditional Manufacturing: Understanding that a traditional warehouse would not work for Frame-X鈥檚 unique manufacturing process, CPI secured a 42-acre open space yard. This outdoor setup provided the flexibility needed for their large prefabricated components while adhering to operational and logistical requirements. CPI鈥檚 ability to "think outside the box" ensured that Frame-X's production facility could function efficiently despite the non-standard nature of their operations.
2. Compliance and Logistical Expertise: CPI leveraged its deep knowledge of Mexican regulatory frameworks to handle the complex import and export requirements for Frame-X鈥檚 materials. The compliance team not only ensured that Frame-X鈥檚 manufacturing met the necessary standards but also streamlined the cross-border logistics to minimize disruptions. This expertise helped Frame-X stay on schedule and maintain smooth operations.
3. Tailored Workforce Development Programs: Given the specialized nature of prefabricated construction, CPI took charge of recruiting and training local employees. CPI鈥檚 team worked closely with Frame-X to develop customized training programs that equipped the workforce with the specific skills required. Within four weeks, the workforce had expanded from 60 to 160 employees, and nearly all recruits were retained, proving the effectiveness of the tailored training approach.
4. Efficient Administrative Management: CPI鈥檚 shelter services included managing all administrative tasks, from handling payroll to ensuring compliance with Mexican labor laws. This allowed Frame-X to focus on ramping up production without the burden of navigating complex administrative requirements. CPI鈥檚 expertise in managing overtime, incentive programs, and employee benefits ensured a motivated and compliant workforce.

Results of the Mexico Manufacturing Expansion

Thanks to CPI鈥檚鈥痵helter services, Frame-X experienced tremendous growth and operational success in鈥疢exico manufacturing:

• Facility Growth: What began as a modest three-acre facility in 2012 has now expanded to a 42-acre manufacturing hub in Tecate, Baja California. This growth has allowed Frame-X to significantly increase production and meet the rising demand in the U.S. market.
• Increased Capacity & Efficiency: By shifting part of its assembly process to鈥疢exico, Frame-X freed up valuable resources in the U.S., allowing it to focus on R&D and product innovation. The additional capacity provided by the Tecate facility also enabled Frame-X to take on more projects and drive business growth.
• Workforce Stability: Frame-X places a high priority on employee welfare, providing competitive wages, transportation, and on-site meals. This commitment to their employees has ccontributed to high retention and productivity, fostering a stable and motivated workforce.
• Compliance & Cross-Border Success: With CPI managing the regulatory and logistical challenges, Frame-X successfully overcame the compliance hurdles associated with expanding into Mexico. CPI鈥檚 import-export team continues to ensure that Frame-X鈥檚 products move seamlessly across the border, meeting tight project deadlines.

Key Takeaways from Frame-X鈥檚 Expansion

1. Strategic Location & Partnership: The proximity of鈥疢exico鈥痶o the U.S. made it the ideal location for Frame-X鈥檚鈥痬anufacturing expansion. Partnering with鈥�人妻91无码 International鈥痚nsured that they could navigate the complexities of setting up operations in Mexico with ease.
2. Scalable Workforce Solutions: CPI鈥檚 recruitment and training programs enabled Frame-X to quickly scale its workforce and meet production demands. CPI鈥檚 expertise in finding qualified candidates and developing specialized training programs was critical to the expansion鈥檚 success.
3. Streamlined Operations: By outsourcing administrative tasks to CPI, Frame-X could focus on innovation and production. CPI鈥檚 support in payroll, compliance, and logistics allowed the company to operate efficiently and without disruption.

Testimonial from Frame-X

鈥淔or us, returning to鈥疢exico鈥痺as an easy decision, and partnering with鈥�人妻91无码 International鈥痬ade all the difference. CPI鈥檚 team rose to every challenge, whether it was compliance, recruitment, or day-to-day operations. We have experienced nothing but success, and with CPI鈥檚 support, we鈥檙e looking forward to a bright future. We wouldn鈥檛 be back here without them.鈥�
鈥� Frame-X Leadership Team

Frame-X鈥檚 expansion into鈥疶ecate, Mexico, has been a resounding success, thanks to their strategic partnership with鈥�人妻91无码 International. With a growing facility, a well-trained workforce, and seamless operations, Frame-X is now well-positioned to meet the demands of the U.S. market and continue its trajectory of growth. CPI鈥檚 shelter services have proven invaluable in helping Frame-X overcome challenges and achieve its goals in Mexico.

Are You Ready to Expand Your Manufacturing Operations in Mexico?

With over 40 years of experience,鈥�人妻91无码 International (CPI)鈥痟elps companies like Frame-X set up and scale their鈥痬anufacturing operations in Mexico. From鈥痗ompliance鈥痑nd recruitment to day-to-day administrative management, CPI provides comprehensive鈥痵helter services鈥痵o you can focus on driving your business success.

Contact us today鈥痶o learn more about how鈥痬anufacturing in Mexico鈥痗an benefit your company.