For many U.S., Canadian, and European manufacturers, the shelter model in Mexico is one of the most attractive ways to launch operations south of the border. It promises a faster path to production, a lower-risk entry strategy, and operational support that allows companies to focus on what they do best: manufacturing.
But here’s the truth most advisors don’t spell out: not all shelter service providers in Mexico are created equal.
There are around 30 shelter providers in the country. Each one operates differently. Some limit their involvement to administrative structure and compliance paperwork. Others provide more comprehensive support across labor, infrastructure, and supply chain, but it’s rarely apples to apples. The variation in services, cost structures, and risk-sharing responsibilities can be significant.
And while that range of models isn’t inherently bad, it does mean one thing:
If you don’t ask the right questions, you’ll end up comparing price tags, not platforms.
This post breaks down what the shelter model is, how different providers operate, and what Tetakawi does differently—especially in Mazatlán, where we’re the only established player building a full-service Manufacturing Community.
What Is the Shelter Model—and Why Use It?
The shelter model was created in the early 1980s to help foreign manufacturers operate in Mexico without having to establish a legal entity. Under this model, the shelter provider becomes the legal employer and administrative entity, allowing the manufacturer to:
- Launch operations faster
- Avoid liability for labor and regulatory issues
- Access programs like IMMEX and avoid paying VAT on imports
- Operate without needing deep internal knowledge of Mexican law
Shelter providers typically handle HR, payroll, taxes, customs compliance, and other essential back-office functions, but how they do that (and how much responsibility they take on) varies widely.
Not All Shelter Providers Offer the Same Value
It’s a common misunderstanding: many companies assume shelter providers all deliver the same set of services. In reality, the differences can be dramatic.
Some providers market themselves as full-service, but in practice, they leave major responsibilities in your lap, like recruiting, training, EHS compliance, and more. Others offer only fragmented support, requiring you to hire additional staff or manage multiple vendors.
Others claim to lower your shelter fee by putting people from each service area (e.g., HR, EHS, customs) on your payroll, while still charging a shelter fee on top. It sounds like a cost savings, but it often drives up total landed costs while increasing your compliance burden.
Some even form a new entity per client. While this may reduce risk on paper, it also creates an agency problem—these providers have less skin in the game to ensure compliance is upheld. It often extends the timeline to launch by 10–12 months and places 100% of compliance costs on your plate, at a time when the cost of compliance in Mexico has risen dramatically over the past decade.
The Main Types of Shelter Models in Mexico
The shelter industry in Mexico has evolved. Today, most shelter providers fall into one of the following categories:
- Legal & Administrative Only
- Offer basic compliance, tax, and labor structure
- Manufacturer still handles recruiting, training, and daily operations
- Fee-Only + Internal Burden Models
- Shelter provider handles legal and fiscal setup
- Most administrative support staff placed on client payroll
- Often marketed as low-cost, but total cost is higher when fully loaded
- Fragmented Service Models
- Offer piecemeal support across HR, logistics, or EHS
- May require you to coordinate vendors or staff yourself
- Full-Service Execution Platforms (like Tetakawi)
- Deliver a turnkey environment where infrastructure, services, and labor support are unified
- Everything is handled in one place, under one roof, with one contract
What Makes Tetakawi Different
Tetakawi has built one of the largest shelter operations in Mexico by doing things differently. We don’t just lease buildings and offload risk. We deliver a fully integrated Manufacturing Community model that eliminates the inefficiencies companies face in traditional shelter environments.
Here’s what sets us apart:
- On-Site Support: When something goes wrong, our team is a walk away—not a flight away.
- Embedded Infrastructure: Class A buildings, recruiting centers, and compliance teams are all located within our campuses.
- Economies of Scale, Scope, and Learning: Our on-site, unified model accelerates time to value, improves performance, and reduces operational variability.
- Comprehensive Services: From HR and payroll to Import & Export, facilities management, and EHS compliance, we handle it all—with dedicated personnel on our payroll to control quality and cost.
Our main service areas include:
- Labor Management (HR, payroll, benefits, union relations)
- Import & Export Administration (IMMEX, customs, cross-dock)
- Facilities Management (maintenance, utilities, infrastructure)
- Environmental, Health & Safety (EHS permitting and compliance)
- Purchasing & Supply Chain Support (local vendor coordination)
- Accounting & Fiscal Compliance (invoicing, VAT recovery, audits)
Questions to Ask Before Choosing a Shelter Provider
If you’re comparing providers, don’t stop at the services list. Dig deeper.
Scope & Support
- What functions are you responsible for—and what will still fall on our team?
- Do you provide on-site support, or is your team centralized elsewhere?
- Will we need to hire additional admin, HR, or compliance staff internally?
Cost Structure
- What recurring costs are included in the shelter fee—and what’s variable?
- How is your shelter fee calculated? (Headcount? Payroll? Value of Exports?)
- Are there onboarding or startup charges not included in the base fee?
VAT / IVA Recovery
- Do you assist with VAT (IVA) recovery under IMMEX?
- If so, do you charge a percentage of the recovered value—or is it included?
Transparency & Performance
- What kind of reporting tools or dashboards do you offer?
- How do you benchmark turnover, absenteeism, and performance?
Fit & Scale
- How many clients do you currently serve—and what’s your average client tenure?
- Can your team support multiple locations if we expand?
- Do you own or lease the buildings you offer?
The more you understand about how a shelter works behind the scenes, the more confident you can be in your decision.
Why This Matters More Than Ever in Mazatlán
Mazatlán is one of the most exciting new labor markets in Mexico. But it’s new to manufacturing, and that means legacy systems, networks, and talent pipelines don’t yet exist.
Tetakawi is the only established shelter provider in Mazatlán. We’re not waiting for the market to catch up. We’re building it right.
Our Mazatlán platform includes:
- Move-in ready buildings
- On-site recruiting and training
- Labor and education partnerships
- Embedded compliance and operational teams
It’s ideal for:
- Companies entering Mexico for the first time
- Manufacturers already in Mexico that need satellite capacity but don’t want to duplicate admin functions
In Mazatlán, you can scale without compromise, because Tetakawi has already built the infrastructure and support systems that make it possible.
Final Thought: The Right Shelter Partner Makes Mexico Work
The shelter model is one of Mexico’s most effective tools for helping manufacturers scale. But it only works when the provider behind it actually delivers.
If you want to de-risk your launch, streamline operations, and make the most of Mexico’s workforce and trade advantages, don’t just look for shelter. Look for a platform.
That’s what Tetakawi delivers. And that’s why we’re already building the next generation of manufacturing in Mazatlán.
Ready to Compare Shelter Options the Right Way?
- Schedule a Shelter Strategy Call
- Visit our Mazatlán Manufacturing Community
Let’s make Mexico work—together.
