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MAQUILADORAS CASE STUDIES

Case Study #1

A fine furniture and wrought iron fabricator with approximately 30 employees could not remain profitable paying burgeoning worker’s compensation costs in California.

Company One came to Border Assembly frustrated by increasingly unfriendly employee regulations in California. At the time, responsible for paying 40% worker’s comp costs, our prospective client was ready to close down. Despite having a fully developed product line that was selling well, Company One would have been better off financially to simply cease operation rather than remain in production trying to cover its labor costs.

Company One called Border Assembly, and a meeting was set for the following week. During that meeting, the client decided Border Assembly’s corporate shelter program and a maquiladora in Tijuana would fit their needs, and wanted to see prospective manufacturing locations immediately. Three buildings were shown to the client that same day, and a 10,000 square foot factory was chosen based on size, layout, and utilities.

Company One was anxious to begin manufacturing, so Border Assembly filed all the necessary legal, tax, and accounting paperwork, established payroll and an employee benefits program, and within ten days the client was ready to commence operations. The business had been established so quickly, it exceeded the time it took to do some re-wiring of the building required for Company One’s equipment.

Determined to begin fabricating to meet market demands for its products, the client brought in generators and was up and going. A few weeks later power modifications were complete, and Company One was in full swing.

Established and running in ten days’. Fully operational in thirty’ A true instant maquiladora. Company One now saves over half of its previous labor costs, has regained profitability, and has a staff of some of the finest metal fabricators in the world. Known for this special skill, Mexican craftsmen have a definite flair for ironwork. And while Company One benefits from the dedication and talent of its workers, they in turn enjoy good wages, full medical coverage for them and their entire families, profit sharing, a retirement fund, and paid vacations and holidays, among other perks. Company One is planning to expand to 100 employees.

Border Assembly has established successful maquiladoras for more than 60 companies. Is it right for yours? Give us a call at (619) 710-0555 or fill out our info request form. We’ll gladly answer any of your questions, send you more information, or provide you with a free cost estimate.

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