December 2008 — ROCHE Industries partners with Groschopp to begin Mexico Operations
FOX RIVER GROVE, Ill.  March 31, 2009 – At the turn of the 21st century, all signs pointed to developing countries like China and Vietnam as beneficiaries of the wave of direct investments from the US and Europe for offshore manufacturing. And while manufacturing in Mexico remains strong—particularly in the shelter operations or maquiladoras—the country’s trade with the US fell behind China by the end of 2006.

That was then, this is now. Recently, there appears to be a resurgence of manufacturers in the US and Europe opting for offshore manufacturing in Mexico. One such decision was evident in 2008 when Groschopp, Inc., a leading producer of high-quality motors in the fractional horsepower motor market chose to move some of its high-volume motor manufacturing to Central Mexico. With the help of ROCHE Industries—a shelter company that helps manufacturers quickly ramp up operations in the interior of Mexico, Groschopp was up and running in San Luis Potosi in a matter of weeks. 

“We are very proud to work with Groschopp and their leadership team to help provide the right facilities and people in Central Mexico in an effort to contribute to Groschopp’s success.” says Richard Roche, CEO of ROCHE Industries, LLC. “Our expertise in Central Mexico shelter operations, combined with Groschopp’s superb engineering and manufacturing knowhow, will result in a strong partnership that means a win-win for all parties involved.” 

But that’s not the end of the story. Groschopp’s new manufacturing operations in Central Mexico will also mean that some of its more expensive processes in China will now move to North America…quite a coup if you consider that a mere two years ago, Mexico was losing ground to China and Vietnam as the offshore manufacturing destination of choice for the US and Europe. The reality is that as China and other developing nations’ economic standings improve, the labor market becomes tighter, people are making more money (and expecting more), raw materials become more costly due to supply and demand, a surge in energy costs, the economic downturn, and all of a sudden, depending on the manufacturing process, it is no longer such a windfall to manufacture in Asia–especially when you factor in the escalating freight costs and time-to-market needs. 

The obvious benefit of maquiladora manufacturing in Mexico for US (and to a certain extent Europe) manufacturers is logistics: the close proximity to the US and Canada means easier oversight of the operation, savings in freight costs, and quick delivery time. But a great value-add is how manufacturers can contribute to protecting the environment, because less distance means less freight, which translates into less fuel used and ultimately, less harmful greenhouse gases. 

Is this a major trend in offshore manufacturing in Central Mexico? Time will tell, but in the short term, firms like ROCHE Industries are getting more inquiries these days from manufacturers who in the past would have only made calls to Asia.

December 2007 — Saint-Gobain begins operations with ROCHE in Saltillo, Mexico
ROCHE Industries is pleased to announce that Saint-Gobain Performance Plastics has started initial production operations in a temporary facility in Saltillo until their permanent facility in Ramos Arizpe is completed scheduled for spring 2008.

November 2007 — ROCHE establishes an office in Saltillo, Coahuila, Mexico
ROCHE Industries is pleased to announce that ROCHE Industries de Mexico has established an office in Saltillo lead by Dr. Jesús Ramirez. Dr. Ramirez joins ROCHE as a high capacity leader with over 30 years of manufacturing experience having owned businesses employing thousands. He will oversee shelter operations for ROCHE and will be directly assisting with the Saint-Gobain plant start up. In addition, our office in Saltillo, Mexico puts ROCHE next door to Monterrey and in the middle of one of the most industrial regions of Mexico–combining the benefits of central Mexico with proximity to the border.

November 2007 — Roche signs new agreement with Saint-Gobain Performance Plastics
ROCHE Industries is pleased to announce a new agreement has been reached with another Saint-Gobain business unit to provide Shelter Services in Ramos Arizpe, Coahuila, Mexico. Saint-Gobain Performance Plastics will be producing belting and machined components for the industrial and automotive industries. Ramos Arizpe is located between Saltillo and Monterrey, one of the most industrial regions of Mexico.