Mexico's Manufacturing Workforce

In the high growth markets, total labor costs account for approximately 30 percent of total location-sensitive costs in manufacturing and approximately 65 percent of total location-sensitive costs in service operations. Labor costs are lowest in Mexico, India, and China.

Mexican labor rates are competitive and can be the difference between surviving and thriving in your innovation-driven industries.

In the last 10 years Mexico has significantly closed the gap in labor costs compared to its offshore competitor, China. Labor cost in Mexico went from being 200% more expensive than labor cost in China, to an impressive 19.6% difference today.

Adding in transportation, logistics time and costs, manufacturing companies are finding manufacturing in Mexico is dramatically less expensive, even with the growing gap in labor wage.  

• Baja California is home to 44 universities and 14 technical schools offering over one hundred professional degrees including Biotechnology, Physics, Oceanography, Digital Geothermal Technology, Astronomy, Aerospace, Electrical Engineering, and Sustainable Energy.

• Most universities and technical schools are in major urban centers such as Tijuana (35) and Ensenada (16) and many participate in direct education exchange programs with the leading universities in Southern California and San Diego.

• The Baja California’s State University (UABC) is located in most major urban centers of the state and offers Bachelor of Science degrees in Aerospace, Electronics, Electrical, Mechanical, and Industrial engineering fields.

• Additionally, executives cite benefits of the closer cultural ties with the mostly bilingual workforce versus difficulties observed in offshore locations like those in the Asia-Pacific. The manufacturing industry in Tijuana represents 47% of the permanent private jobs in the city boasting 50 years of manufacturing experience.