Advantages of Nearshoring in Mexico, Key Highlights and 2016 Industry Overview.
Why are Electronics Manufacturers Expanding to Mexico?
Tijuana has carried the crown as the global hub for television manufacturing and continues to do so as plasma, LCD and LED technologies evolve. Approximately 19 million high-tech TVs produced annually in Baja California alone. But there’s more than TVs to get excited about when looking at manufacturing in Mexico.
As the US closest nearshore manufacturing opportunity, Mexico is also the world’s largest producer of smartphones. If a product has electronics, it’s being made in Mexico Coupled with the 115,000 engineering students Mexico’s higher education system graduates every year, global manufacturers and suppliers alike are flocking to Mexico for its favorable trading terms, highly- skilled workforce and proximity to US and North American markets.
In 2012, Mexican based companies, including American multinationals, imported $199.9B US dollars in goods and services. From materials to electronic components, the over 200 electronics manufacturing companies in Baja California are ordering and importing millions of products and raw materials for assembly and production with 40% being imported from US suppliers. Compared to $97.4B imported by Mexico a mere 10 years ago, the steady and stable growth of the electronics industry has brought suppliers and OEMs alike to the region.
Electronics manufacturers in Tijuana have been taking advantage of the highly-skilled, low-cost labor for decades. Coupled with favorable or zero tariffs via NAFTA and the lightning fast speed back to market, there just isn’t a reason you shouldn’t be manufacturing here too. Besides OEMs, subcontract manufacturers and contract assembly companies number over 100. If you’re an electronics supplier, this is where your existing and new customers are. If you’re an OEM, Tijuana gives you the flexibility to lower costs and spur investments in your next innovation.
“We have seen an increase in our business and see tremendous growth opportunity coming from existing customers and from other locations including the West Coast.”
"CPI has been a valuable partner for us. We use CPI’s expertise in the local marketplace, in recruiting our people, in administering some of the things that CPI is really good at in infrastructure, and that allows us to focus on our core business which at the end of the day are designing and manufacturing our products for the marketplace.”