MANUFACTURING INDUSTRY IN MEXICO: KEY SECTORS

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. More and more companies are expanding into Mexico every month to be a part of the nearshore network of North American manufacturing and supply.

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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.

Manufacturing industries in Mexico are supported by a highly-trained and plentiful workforce. 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.

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.