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California and Baja California are known as the “CaliBaja Mega Region” with Tijuana as the main manufacturing hub. Maquiladoras, or manufacturing plants operating under the IMMEX program, have been helping US and global manufacturers build and assemble products for more than 50 years.
Many of today's manufacturing companies in Mexico also reach beyond simple assembly. It is not uncommon to find companies that design, develop and manufacture some of the most complex products in the marketplace in a variety of industries. From pacemakers to airplanes, Mexico manufacturing meets and exceeds the standards set by global companies.
Adding favorable or zero tariff possibilities through the North American Free Trade Agreement (NAFTA), the North American governments have made it very lucrative to operate, co-produce and trade in manufactured products. Often products that are Made in Mexico contain a high number of components that were Made in the USA.
458,653 Workforce
2,300+ Mexico Electronics Manufacturers
Export Value: $80 Billion
63,000+ Workforce
330+ Mexico Aerospace Manufacturers
Export Value $7.6 Billion
156,831+ Workforce
740+ Mexico Medical Device Manufactures
Export Value $8.3 Billion
4th top exporter
of vehicles globally
Export Value $173 Billion
A close working relationship between the main industries in Mexico and higher education have made this possible. Curricula at universities and technical schools are now shaped by the specific demands of the industry.
With industry expertise also comes the need for product and facility international accreditations and certifications. Maquiladoras and Mexican industrial facilities carry the important and often required ISO, Nadcap, ITAR, and other crucial certifications necessary for complying with production standards and facility requirements.
In Tijuana alone, industrial supply demand totals $11B USD annually, with a majority in electronics, medical products, automotive, aerospace and defense are the major industries in Mexico. Companies like Eaton Aerospace, Gulfstream and Honeywell have found that their proximity to other aerospace manufacturing and assembly operations opened themselves up to new suppliers and a new supply chain.
For Honeywell, who first established operations in Mexico in 1947, the country has played an important role in Honeywell's globalization initiative over the past decade, greatly expanding the company's manufacturing base and shared services operations. The country is making a big contribution to the company's success by increasing domestic sales, exports and the production of aerospace, automation and control, and turbocharger products.
Expanding capacity to reducing overall costs may be what initially drives manufacturing companies to our shores, but it's the proximity to major markets that remains the top reason for moving operations to nearshore Mexico.
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