Why a MAGNOTEK Shelter Program?

Quality, honesty, integrity and a strategic, low-cost location form the foundation of MAGNOTEK and its 22-year success offering comprehensive manufacturing Shelter Programs. We understand the value of a sound, mutually beneficial contractual relationship. That's why we can provide you these key benefits and advantages:

• Complete cost transparency — no hidden fees
• Flexible shelter/subcontract services responsive to workload changes
• Long-term customer relationships and strong partnerships for mutual success
• Located near the U.S. border in Tecate, Mexico

What does our Shelter Program offer?

The MAGNOTEK Shelter program offers companies:

• A well-established, 22-year old legal-working entity
• A mature, efficient infrastructure with manpower in place
• An enterprise can quickly operate as an efficient, successful business
• Years of saved time and effort replicating similar proficiencies

Why consider a Shelter Program?

The Advantages are clear:

• Leverage low-cost manufacturing in Mexico
• Start up quickly with little or no hassles
• Control 100% of your material, quality, and process decisions
• Effectively manage your costs

What Human Resource Support does it offer?

• Recruiting • Screening • Testing

All three are provided for your entire workforce to insure they meet your requirements. Enrollment and administration of your employee’s medical, disability and retirement insurance plans through the Mexico Social Security system (IMSS).

• Wage & Benefit Administration

Wage and Benefit Administration including guidance on the structure of incentives, bonuses and perks.

• Other Support

Interpretation and administration of the legal aspects of Mexican Labor laws. Employee development as you determine and employee recognition as you prefer.

What Customs Coordination is provided?

U.S. Customs Coordination
• We help classify your products for U.S. Customs
• We insure the lowest possible duty rate, if any
• We help prepare documentation to insure legal compliance
• We serve as your interface with U.S. Customs Brokerage and Customs Service

Mexico Customs Coordination
• We help classify your components with Mexico Customs
• We serve as your interface with the Mexico Customs Broker and Mexico Customs

What Space Facilitation is offered in Mexico?

• Locate and contract manufacturing and warehouse space to support your operation • Coordinate subcontractors to install your equipment
• Coordinate any space changes and/or leasehold improvements required
• Supply building maintenance technical labor
• Supply materials on a pass-through cost basis

What Space Facilitation is offered in the U.S.?

• Southbound warehouse services at MAGNOTEK's U.S. warehouse on an in-out basis for limited space to unload and prep materials for importation to Mexico

• Northbound warehouse services at MAGNOTEK's U.S. warehouse on an in-out basis, unless other services are required

• Distribution services provided (plus cost) for space and labor as required.

• Coordinate all incoming/outgoing freight contractors (FedEx, UPS and others)

• Additional U.S. space location (warehouse or office) as needs require

What Logistics Support is Provided?

• Coordination of material and equipment movements from receipt at our U.S. warehouse to your facility in Mexico and back

• We fully monitor freight and brokerage firm activity while your material and equipment is in transport

What Legal Compliance do you ensure?

The MAGNOTEK infrastructure provides the necessary guidance and administration to insure compliance to all the legal requirements in Mexico. These include, but are not limited to:

• SECODAM (administers Mexico customs)
• HACIENDA (Mexico’s IRS)
• IMSS (Mexico’s social security system)
• Seguridad y Higiene (Mexico’s OSHA)
• Payroll Tax Administration

What Legal Administration Benefits are Offered?


• Acquisition of all the necessary permits for your materials and equipment
• Coordination with the Mexico Customs brokerage on the status of your permits
• Constant updating of inventory levels for your materials and equipment
• Obtain work permits for any foreign workers at your operation in Mexico

Mexico Support Functions

Procurement of any supplies needed to support your operation in Mexico are purchased, on your behalf as a pass-through cost, and delivered to your operation. You can use the proven group of vendors that MAGNOTEK MANUFACTURING has established, or we can seek other options as you desire.


The Mexico (peso) costs for your operation are tracked to provide you summaries that support your expenditure history and the shelter invoicing. A Mexican accounting firm is contracted to insure constant updates to reflect any and all changes in the laws that govern your operation in Mexico.

We basically do all of the accounting required to run the operation.


In the past 20 years MAGNOTEK MANUFACTURING has established contacts and maintained good relationships with most of the key local contractors and area sub-contractors. You will have access to a group of the most capable and dependable contractors in Mexico. These cover a wide range of services that you may require covering initial building installation and any future modifications or expansions.

What Other Services are offered?


Effective communication is a key ingredient when operating in an “unfamiliar” environment. MAGNOTEK MANUFACTURING and its management are available to serve your needs 24 hours/day. They will assist in the organization of special events for your employees (i.e. picnics, Xmas parties, etc.) and we will travel to your home operation(s) to assist in the initial planning sessions for your operation’s relocation and/or any needed problem resolution.


A very important service that MAGNOTEK MANUFACTURING offers to its customers is consulting on successful manufacturing practices. We understand the need to be highly effective in the manufacturing arena and support our Shelter customers in their Mexico venture from the beginning.

What Do I Save with a Shelter Program?

• The Shelter Program saves you money.
You could save thousands of dollars on an annual basis compared to having the needed infrastructure on your payroll.

• The Shelter Program saves you time.
Time you can use to manage your manufacturing operation while MAGNOTEK MANUFACTURING manages all the activities to support your Mexico operation.

• The Shelter Program saves you energy.
You save energy not having to worry about unforeseen impacts to your manufacturing operation.

• The Shelter Program saves you customers.
Because the competitive edge provided by your lower-cost Mexico operation gives you an edge to be more competitive and offer better pricing to your customers.

What Doesn't a Shelter Program Provide?


• Day-to-day management of your manufacturing operation
• Activities supported by your home operation
• Control of your operation

Clients retain 100% control of materials, production and quality processes.

What the client does get is the peace of mind from not having to manage all the support departments and also deal with the rules and regulations required by Mexican government agencies.

cost effective manufacturing shelter programs

Shelter Programs

Flexible Alternatives

Contract Manufacturing

Proven Solutions

Mechanical Assembly

Competitive Cost Model