You will save money by using our Mo-Mex Shelter Plan

·        By utilizing our shelter plan, you minimize your capital requirements,

because we provide the building and charge for all services in arrears.

Your costs will be known and controlled:

·        Shelter costs are known in advance and controlled by contract. Our charges are based on the space which you occupy and the labor hours worked in your plant. Shelter clients avoid the need for, consultants, accountants and attorneys who would be needed to incorporate and set up an independent operation.  They also avoid the cost of an administrative staff, because those functions are performed by the Shelter.

·        Our space charge is US$4.80 per square foot per year, which we bill to you in weekly increments.  All

space is exclusively yours, with your own individual access for personnel and your own loading dock(s) in a modern, well lighted, air conditioned building.  We take full responsibility for maintenance of the building and its mechanical systems.

·        Our fully loaded base labor charge (including benefits and employer taxes) is currently US$1.30  per hour worked.  We adjust the labor charge for any changes in wage levels, taxes and benefits, as well as for changes in the Dollar value of the Mexican Peso.  The following  table shows the fully loaded base labor rate and the Pesos/Dollar exchange rate at the end of each of the specified years or the indicated dates for the current year:

·        We also apply an hourly service fee to the hours worked, to cover our other costs and provide a profit.

The hourly service fee declines as the number of plant workers increases.  It starts at $2.37 per hour for a plant with 15 to 25 production workers, but at 576 workers it is just $1.00 per hour worked.

·        Workers in positions which require special skills earn premiums, and each plant has its own system of

incentives. All premiums and incentives are billed at cost.  The greatest premium we currently pay is 2.5 times the loaded base labor change per hour.  Incentives currently are running at $0.33 per hour worked.

·        Goods and services provided by third party vendors are also billed at cost. They include such things as

electricity telephone toll charges, Mexican trucking costs, fees of Customs brokers and costs for other goods and services which we purchase at your request.

Other advantages of utilizing our Mo-Mex Shelter Plan.

·        It simplifies getting started because we take care of tasks with which you are unfamiliar.  Our knowledge and experience avoids problems in setting up your plant and getting it operating on time.

·        We know the local labor market, making it easier to attract and choose the right personnel for your operation.

·        Our years of experience with Mexican and U.S. Customs regulations, as well as with the provisions of

 the NAFTA treaty, simplify and reduce the cost of getting products from your Navojoa plant into the U.S.  We can do the same for exports to Canada.

·        Because your operation is legally a division of our Mexican company, you are not subject to Mexican

taxes on income and assets.

·        By outsourcing support functions to our shelter, your plant supervision is relieved of administrative burdens

and can devote full attention to operations, output and quality.  You also avoid the very substantial labor costs of overhead personnel which an independent operation would require.

·        Costs in our Navojoa location are generally lower than in other areas of Mexico, and we reflect that in

lower charges to you.

Navojoa offers a cost–effective alternative to Asian manufacturing

·        Importers of goods from Asian countries are well aware of problems of rapidly escalating costs, goods

tied up for weeks in transit, and poor or inconsistent quality.  Distance makes it difficult, time consuming and costly to deal in person with such problems.

·        Letting our Mo-Mex Shelter Plan provide you with your own manufacturing facility in Navojoa offers a truly cost effective alternative to Asia.  Manufacturing costs in Navojoa are competitive with Asian countries, and have escalated very slowly over the years.

·        Overnight truck delivery of raw materials and finished goods eliminates the need for large inventories usually required when manufacturing in Asia and shipping by sea.  Moreover, the cost of a round trip for a trailer up to 53 feet in length from Nogales, Arizona to Navojoa and return to Nogales is currently just $1,050.

·        Personnel can travel between Phoenix and Navojoa on scheduled airlines in just over three hours instead

of the 20 or more hours required for a flight from the U.S. or Canada to Asian destinations. 

·        Goods which would be subject to Customs duties if imported from Asian countries can enter the U.S. and Canada duty-free under NAFTA when manufactured in Mexico.

·        So the savings in cost and time, and the opportunities for better quality and greater control are significant.