New Operations Launch:
Labor Market Research
for the US Food & Beverage Manufacturer
The case study demonstrates delivering comprehensive labor market research tailored to the specific needs of companies expanding into new regions. By providing detailed insights into the labor environment, compensation structures, and regional best practices, PRODENSA enabled the client to make informed decisions that supported the successful establishment of their new manufacturing facilities.
Overview
A U.S.‑based food and beverage manufacturing company sought to establish new manufacturing facilities in Mexico. To ensure the success of this expansion, the company needed to evaluate and understand the compensation structure, labor environment, and HR practices in the region. PRODENSA was engaged to conduct a comprehensive labor market research study over three months, focusing on gathering current, relevant information that would inform the CLIENT’s recruitment and HR strategies.
Project Stages
CLIENT Needs Analysis
PRODENSA began the project by conducting an analysis of the CLIENT’s specific needs and objectives. This stage involved identifying the key factors that would impact the establishment of new manufacturing facilities, such as demographics, education indicators, economic activity, foreign direct investment, and the overall labor environment.
Desktop Research & Survey Design
Extensive desktop research was conducted to gather preliminary data on the regional labor market, including competition structure, talent benchmarks, and union activity. PRODENSA also designed a tailored survey to capture additional insights from companies operating in the food and beverage manufacturing sector.
Competitor Identification & Benchmarking
PRODENSA identified and benchmarked 45 companies across multiple locations of interest. This benchmarking focused on understanding their compensation structures, HR practices, and operational strategies. The goal was to provide the CLIENT with a clear comparison of regional practices and identify key trends that would inform their strategy.
Data Gathering & Analysis
The data was gathered and processed to create a comprehensive picture of the labor market conditions in the targeted regions. This analysis included a deep dive into compensation structures, HR environments, and potential challenges related to talent attraction and retention.
Report Elaboration & Presentation
The final stage involved compiling the findings into a detailed report. PRODENSA presented this report to the CLIENT’s expansion team, providing actionable insights and specific recommendations for their talent attraction strategy. The report also highlighted potential challenges and offered strategies to mitigate them, ensuring the CLIENT could establish and scale their new operations successfully.
Challenges & Solutions
- Performing Spatial Analysis for Talent: Identifying talent pools and aligning transportation routes with these areas presented a significant challenge.
- Solution: PRODENSA conducted geographical assessments based on the CLIENT’s locations of interest, providing detailed recommendations that optimized talent accessibility and logistical planning.
Project Outcome
PRODENSA successfully analyzed information from 45 companies to gain a deeper understanding of regional labor practices. The insights gained from this analysis were used by the CLIENT’s expansion team to develop an initial recruitment strategy, with a clear understanding of compensation structures and HR best practices. The study also provided valuable data to support the CLIENT’s medium‑term recruitment processes, ensuring their new manufacturing facilities would be staffed with the right talent.
