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Medical Device Manufacturer Phase 2 opens Tijuana Plant Contract Manufacturer Expands Production Nearshore with New 30,000SF Facility


Contract Manufacturer Expands Production Nearshore with 30,000SF Facility.
A conversation with Phase 2 Medical Manufacturing, featuring: Adam Prime, CEO Ben Prime, Technical Manager OUS.

PHASE2 Manufacturing Operation | Case Study

Why Tijuana Bests Offshore Manufacturing

Customers began telling Phase 2 that the availability of low-cost labor outside the United States would be a criteria for vendor sourcing going forward. Phase 2 ruled out China due to rising labor costs, rising shipping costs and being too far away to manage. Costa Rica was also ruled out, largely because of the 18 days’ time on the water to the United States. With North America generating the most revenue for the medical device industry in 2013, and the US representing 38% of the global sector, manufacturers have lost their infatuation with offshore manufacturing.


Just south of San Diego, California, Tijuana has an over 30-year history in medical device manufacturing and is highly regarded as a major global hub for medical device manufacturing. Boasting a 65,000 person-strong labor pool directly serving the 78 companies operating in the region, the medical device industry in Baja California represents the largest concentration of companies and of job creation in Mexico.

Mexico is also the fifth largest exporter of medical products in the world, with 50% of these exports coming out of Baja California.

Just south of San Diego, California, Tijuana has an over 30-year history in medical device manufacturing


With global medical device outsourcing forecasted to reach more than $50 billion by 2020, there are no shortages of new markets and new customers to tap into. Strategic positioning and location are now just as crucial as your marketing and sales force. With an average of 15% production cost savings for OEMS who outsource to CMOs, Phase 2’s expansion in Tijuana has placed them at the center of the industry.

With the trending best practice of the “One Stop Shop,” medical device OEMs are now seeking contract manufacturers with a global footprint and an increased breadth of services and capabilities.

"Our customers are looking for more vertical integration. The new nearshore plant and our new capabilities in medical injection molding are significant milestones in Phase 2's growing abilities to meet and even exceed our client’s expectations; while also attracting new customers seeking high-quality contract medical manufacturing."

"We found that buildings were readily available, and business and labor costs were better than in Costa Rica. We [also] ruled out China because it was not a good fit. Beyond the political situation and rising labor and shipping costs, it was too far away for us to manage."

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