• Tucson, AZ, USA


  • Navojoa, Sonora, Mexico




Advantages.

You will save money by using our Mo-Mex Shelter Plan! Your Costs will be known and controlled. 

You will save money by using our MO-MEX Shelter Plan!

By utilizing our shelter plan, you minimize your capital requirements, because we provide the building and charge for all services in arrears.

Your Costs will be known and controlled:

Shelter costs are known in advance and controlled by contract. Our charges are based on the space which you occupy and the labor hours worked in your plant. Shelter clients avoid the need for consultants, accountants and attorneys who would be needed to incorporate and set up an independent operation.  You also avoid the cost of an administrative staff, because administrative functions are performed by the Shelter.

Our space charge is US$4.80per square foot per year, which we bill to you in weekly increments.  All space is exclusively yours, with your own individual access for personnel and your own loading dock(s) in a modern, well lighted, air conditioned building.  We take full responsibility for maintenance of the building and its mechanical systems.

Labor rates are set annually by union contract.  Our fully loaded labor charge ( including benefits, employer taxes, premium pay and incentives ) averages just US$1.14 per hour. We adjust the labor charges weekly for fluctuations in the exchange rate for Mexican pesos.  Workers in positions which require special skills earn premiums and each plant has its own system of incentives. All premiums and incentives are billed at cost.  

We also apply an hourly service fee to the hours worked, to cover our other costs and provide a profit. The hourly service fee declines as the number of plant workers increases. It starts at US$2.37 per hour for a plant with 15 to 25 production workers, but at 300 workers it is just US$1.41 per hour worked. 

Goods and services provided by third party vendors are billed at cost. They include such things as electricity, telephone toll charges, Mexican trucking costs, fees of Customs brokers and costs for other goods and services which we purchase at your request.  We pay the vendors in Mexican pesos and then bill you in U.S. Dollars or Euros at the bank rate of exchange.

Other advantages of utilizing our MO-MEX Shelter Plan.

It simplifies getting started because we take care of tasks with which you are unfamiliar.  Our knowledge and experience avoids problems in setting up your plant and getting it operating on time.

We handle all relations with Mexican vendors and governmental authorities, including compliance with all labor, tax, environmental and Customs regulations.

We also handle relations with U.S. Customs at the border in Nogales, Arizona.

We work closely with clients to ensure smooth movement of goods into and out of Mexico. We arrange for the importation and shipment of clients' machinery, equipment, raw materials and components to their factories in Navojoa and export of their finished goods.

We qualify clients’ products for benefits available under the North American Free Trade Agreement (NAFTA) and free trade agreements which Mexico has with the European Union and other countries.

We also make local purchases of Mexican goods and services as requested by clients or their plant management.

We know the local labor market, making it easier to attract and choose the right personnel for your operation.

We supply screened and tested production workers and assist in recruiting any professional staff required.  We insure compliance with Mexican labor laws, take care of labor relations and pay both production workers and Mexican professional staff.

Because your operation will be legally a division of our Mexican company, you will not be subject to Mexican income taxes for the first four years of operations.

By outsourcing support functions to our shelter, your plant supervision will be relieved of administrative burdens and can devote full attention to operations, output and quality.  You also will avoid the very substantial costs of overhead personnel which an independent operation would require.

Costs in our Navojoa location are generally lower than in other areas, and we reflect that in lower charges to you.

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Navojoa offers a cost-effective alternative to Manufacturing in China.

Importers of goods from China are well aware of problems of rapidly escalating costs, goods tied up for weeks in transit, and poor or inconsistent quality, Distance makes it difficult, time consuming and costly to deal in person with such problems.

Letting our MO-MEX Shelter Plan provide you with your own manufacturing facility in Navojoa, Sonora, Mexico offers a truly cost effective alternative to China. Manufacturing costs in Navojoa are competitive with China, and have escalated very slowly over the years.


Overnight truck delivery of raw materials and finished goods eliminates the need for large inventories usually required when manufacturing in China and shipping by sea. Moreover, the cost of a round trip for a trailer up to 53 feet in length from Nogales, Arizona to Navojoa and return to Nogales is currently
just US$1,100 (March 1, 2017) 

Personnel can travel from Phoenix or Los Angeles to Navojoa (Ciudad Obregon Airport) on scheduled airlines in just over three hours instead of the 20 of more hours required for a flight from the U.S. or Canada to China and other Asian destinations.

Goods which would be subject to customs duties if imported from China can enter the U.S. and Canada duty-free under NAFTA, or enter the European Union and many Latin American Nations under other free trade agreements when manufactured in Mexico

So the savings in cost and time, and the opportunities for better quality and greater control are significant

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NAFTA benefits.

NAFTA is the free trade agreement among the United States, Canada and Mexico wich has been in effect since January 1, 1994

NAFTA (North American Free Trade Agreement)


Under NAFTA, most goods produced in Mexico can enter the United States and Canada duty free:

To quality for duty-free enter under NAFTA, goods must meet rules of origin requirements. There are several different tests which can be applied to determine if a particular good meets those requirements, but most goods manufactured or assembled in Mexico will meet the rules of origin requirements.
Even goods manufactured or assembled in Mexico from non-North American components can usually meet the rules of origin requirements for duty-free entry into the United States and Canada under NAFTA.

Duty-free entry into the United States and Canada under NAFTA may provide a competitive advantage:

Savings on Mexican goods which enter the United States and Canada duty-free under NAFTA have a competitive advantage over similar goods from a non-NAFTA country, on which duties must be paid.



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