Manufacturing in Tijuana: Industries, Manufacturers, Labor & Industrial Real Estate

New roadways that connect to US NAFTA corridors, efficient commercial border crossings, expansion of the International Airport and Cross Border Xpress, modern water treatment plants and natural gas distribution systems, all provide the resources necessary for high productivity. Currently, Tijuana is on a path to be the innovation-driven production capital of Latin-America, with significant supply chain opportunities.

 In 2015, over 829,500 trucks carried over $28 billion dollars’ worth of goods through the Otay Mesa Port of Entry alone, accounting for approximately 72% of all surface trade between California and Mexico. Many of these goods are then transported along NAFTA corridors throughout the rest of the United States. The sheer magnitude of trade between the US and Mexico depends heavily on a well-managed and efficient supply chain infrastructure. Parts and components are often exported to manufacturers in Tijuana, assembled and imported back into the US in a matter of days.

For some manufacturers expanding operations to nearshore Tijuana is about getting closer to their customers. With hundreds of manufacturers needing parts and components, serving their customers better by lowering costs and reducing time-in-transit is reason enough to start operations in Mexico.

Tijuana’s labor culture fosters a pro-business and union dispute-free environment. One of the City’s strengths is its vast skilled workforce that today is close to 264,744 employees in manufacturing alone. Lower labor costs for highly skilled work is the main strategic advantage of this border city. Manufacturers with operations in Mexico are reducing labor costs anywhere from 40-60%. Click here to see a breakdown of the labor cost savings by manufacturing in Mexico.

Universities and technical schools work closely with government and the private sector to make sure curriculum and courses of study are in line with today’s manufacturer’s needs. Many Tijuana professionals also take advantage of being next door to San Diego's Universities to further their education in areas such as aerospace, biotechnology, business administration, computing, engineering, and medicine. It’s these deep economic ties and cross-border collaboration that make this region shine.