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Consulting HR International Expansion Recruitment

Inshoring: Accelerating Facility Start‑Up
for Strategic Growth

The case study shows the delivery of rapid and effective facility start-up solutions for SMEs in the manufacturing sector. By leveraging our cross-border expertise and providing tailored inshoring strategies, PRODENSA enabled the client to overcome significant operational challenges and achieve accelerated growth.

Table of contents

Overview

A U.S.‑based SME specializing in thermal and acoustic insulation products faced the challenge of establishing a new facility in Mexico to meet the demands of a major new CLIENT. The timeline was critical, as the company needed to be operational quickly to retain and expand this contract. With limited cash flow and tight deadlines, the company turned to PRODENSA for comprehensive support in launching and scaling their operations in Mexico. The project has been ongoing for three years, and a new 10‑year contract has been recently signed.

Project Stages

Facility Start‑Up & Initial Hiring

PRODENSA began by rapidly hiring 48 employees to get the facility operational within the required timeline. The immediate goal was to ensure the company could meet the initial production demands of their new CLIENT.

Scaling Operations with Second Shift

As demand increased, PRODENSA assisted the CLIENT in implementing a second shift, further expanding production capacity. This phase was crucial in ramping up operations to meet the growing needs of their CLIENT.

Further Expansion & Third Shift

PRODENSA continued to support the CLIENT as they expanded their workforce to 90 employees, surpassing initial expectations. The facility’s capacity was further expanded to accommodate additional warehousing and production employees. The CLIENT also began sub‑assembly work to support their U.S. operations.

Relocation & Future Growth

In response to ongoing growth, the CLIENT is planning to relocate to a larger facility in Mexico. This move will allow them to hold more inventory, further increase their workforce to approximately 160 employees, and continue scaling their operations.

Challenges & Solutions

  • Tight Timeline and Cash Flow Constraints: The CLIENT needed to establish operations quickly while managing limited cash flow. The incorporation and VAT certification processes in Mexico posed significant risks to their financial stability.
  • Solution: PRODENSA utilized an inshoring strategy, leveraging their existing U.S.‑Mexico cross‑border structure, permits, and certifications. This approach allowed the CLIENT to bypass lengthy administrative processes and start operations swiftly, protecting their cash flow.
  • Scaling Operations Rapidly: The CLIENT needed to scale production quickly to meet the demands of their new contract.
  • Solution: PRODENSA’s flexible recruitment and operational support enabled the CLIENT to scale up to Phase 1 of planned production capacity within six months—approximately twice the speed of what would have been possible through a newly incorporated entity.

Project Outcome

PRODENSA’s support allowed the CLIENT to establish and scale their Mexican facility at an accelerated pace. The facility not only met but exceeded the initial production requirements, enabling the CLIENT to retain and grow their contract with the new CLIENT. By reducing turnaround times from two months to three weeks, the facility has become a key component of the CLIENT’s supply chain, with plans for further expansion and increased production capacity in the near future.