Frequently Asked Questions and Facts about Maquiladora Manufacturing Services

The following is a list of questions that businesses usually ask when thinking about outsourcing their manufacturing to Mexico. If you have any additional questions that are not addressed here or would simply like to have more detailed information, please feel free to contact us.

What is a maquiladora?

Simply put, a maquiladora is a production facility that utilizes inexpensive Mexican labor to process or assemble components into finished goods.

How much can I save by utilizing CaliBaja's services?

The potential for savings is huge! In fact, we estimate a bare minimum (5 operators) labor savings of around $45,000 annually! You can use the estimate calculator to instantly project the potential savings for your own company.

What is subcontract/contract manufacturing?

This service means that Calibaja will handle each step of the entire production process, from the initial material purchasing and inspection through production to the final shipping of the finished product. Basically, you tell us what you want and we make it for you for an agreed upon price per piece – often significantly less expensive then if you were making it for yourself! Learn more about contract manufacturing and shelter services.

What is a "shelter"?

With Calibaja's shelter program, we essentially "shelter" your company in Mexico by allowing you to operate under our legal permits and licensing. This system allows your company to enjoy the benefits of manufacturing in an inexpensive labor market without the otherwise prohibitive legal expense and hassle of establishing a Mexican legal presence of your own. We handle all of the human resource responsibilities, administration, facility leasing, and legal issues, while you provide the equipment, raw materials, and operation management. Learn more about shelter services.

What protection is offered when I manufacture in a foreign country?

This question is of utmost importance when choosing a contract manufacturer or shelter company to outsource your operation with. The answer to this question is completely dependent on whether or not you are dealing with a company that has a US side of their business. With Calibaja you can be assured that you will enjoy all of the protection available under United States jurisdiction as all of your contracts would be with the US side of our business. Learn more about how CaliBaja can protect your proprietary information and physical capital

How large of a manufacturing operation do I need before I start thinking about outsourcing?

Obviously the larger the operation you outsource, the more money you stand to save. However, we know that the size and scope of every businesses' manufacturing needs vary and that in order for a small business to grow, it need a competitive edge. We are willing to provide that competitive edge to operations with as few as five operators if there is adequate potential for growth. Feel free to Contact a Calibaja representative to discuss the various options available for small businesses or just spend some time reviewing our pricing structure and our instant online quote calculator to determine for yourself if you should start thinking about outsourcing.

What kinds of visas and passports are required for foreign workers in Mexico?

A FMN is a temporary work visa available to Citizens of the United States and Canada who wish to travel to Mexico for business purposes for less than 30 days. If a person intends to work in Mexico for a prolonged period a more permanent FM3 visa will be required. At Calibaja, we are experts in Mexican customs requirements and will handle all the complexities of the Mexican legal system for you.

Who hires/fires the employees?

Calibaja will take care of each and every step of the staffing process following your approval. Whenever you need an employee, Calibaja will handle the recruiting and preliminary interviewing, then upon your approval we will either hire the employee or continue looking for a better fit. You can bring in whatever of your own specialized support that you need. However, it is Calibaja that will take care of the day to day management of the Mexican workers.

How are tariff and tax issues handled?

Arrangements under the Maquiladora agreement with the Mexican government, as well as trade pacts such as the North American Free Trade Agreement, eliminate the large majority taxes and tariffs normally associated with the importation and exportation of goods across international borders. The United States Department of Labor states that duties must be paid on the added value of the product, or if the product is less than 35% Mexican when completed. Calibaja has extensive experience in working with the complicated custom laws between the United States and Mexico, so Contact a Calibaja representative today for an in depth analysis of whether or not tariffs and taxes will affect your business.

What are the laws dealing with foreign land ownership in Mexico?

Mexico has a few unique property laws. The Constitution of Mexico prevents foreign land ownership of any property within 100 kilometers of the border or 50 kilometers of the coast, although the Mexican Foreign Investment Law of 1993 states that a foreigner or foreign corporation may acquire property ownership rights through a bank trust called a "fidelicomiso". Also, non-residential property can be purchased through a Mexican corporation which can be foreign owned, provided that the corporation is subject entirely to the laws of Mexico and not those of the parent country.

What type of manufacturing operations can be outsourced to Calibaja?

In the manufacturing outsource world, we are quite unique in this respect; we have not limited ourselves to any one particular type of manufacturing operation. A little research will quickly show that many manufacturing outsource companies are very limited in their scope of abilities. We are currently manufacturing a range of products as diverse as industrial wiring harnesses and high-tech resistive touch sensors. For further quantification of our diverse competencies, take a look at our experience list and manufacturing success list, or simply contact Calibaja today and allow us to further explain how we are able to undertake such varied operations.

How are the labor rates in Mexico?

Some examples of Calibaja's going hourly rates (in US Dollars) are as follows:

  • $2.568 for an operator
  • $3.452 for a material handler
  • $3.452 for a quality inspector
  • $4.504 for a lead
  • $6.187 for a supervisor
  • $5.345 for a maintenance/test tech
  • $9.576 for a planner/buyer
  • $11.655 for an engineer
  • $19.017 for a manager

These prices are "fully burdened" prices which include all taxes and benefits required under Mexican labor law. These wages may seem quite low, however, it is important to note that the Mexican government offers the same protections and rights to its workers that workers in the United States enjoy.

Please contact us for calculation of the various labor rates that your business could expect to pay with Calibaja.

Need More Information?

Call Calibaja Manufacturing Services toll-free at (866) 240-6065, or simply send us an e-mail with your question and we will get back to you shortly.