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

The manufacturing trails were blazed in Tijuana decades ago. Years of growth, foreign direct investment, partnerships with local universities to prepare the workforce specific to manufacturer’s needs, and constant binational government support to help global manufacturers succeed, have all solidified Tijuana as the number one nearshore destination. With hundreds of world-class, global manufacturing powerhouses already in the region, this is your opportunity to take advantage of the cost savings and well-established service and supply infrastructure available in Tijuana

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.

Over 2.56 million square feet of modern industrial space are available in Tijuana (1Q, 2017), home to the most mature industrial real estate markets in Mexico. Average lease rates for Class A space run $0.44 -$0.46 US Dollars per square foot. Around 628,000 square feet are currently under construction. [NAI Mexico]

Tijuana takes international facility regulations and certifications seriously. Lean Manufacturing and Six Sigma are part of the work culture in Tijuana where 90% of facilities with over 250 employees are ISO certified. Additionally, Class 10,000 and Class 100,000 clean rooms are available for products that fall under FDA jurisdiction. For the aerospace and defense sectors, Nadcap, FAA and Department of Defense regulated facilities are available. QS-certified automotive industry operations also exist throughout the city.

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 185,000 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.