In today’s highly competitive global market, electronics companies are constantly seeking options to optimize their operations, reduce costs, and improve efficiency. One strategy that has gained significant momentum in recent years is contract manufacturing.
Mexico is an excellent place for companies to subcontract manufacturers. It has a favorable business environment, skilled workers, and is close to major markets. In this article, we will discuss contract manufacturing in the electronics industry in Mexico, including its benefits and considerations.
Contract manufacturing is when a company hires another company to manufacture its products. In the electronics industry, the Original Equipment Manufacturer-OEM partners with a Contract Manufacturer-CM to produce electronic goods. This allows the OEM to focus other activities, while the CM takes care of manufacturing, logistics, and supply chain management.
The benefit of opting for Mexico for this strategy is that it offers low-cost and reliable solutions. Moreover, Mexico is highly regarded as one of the best locations due to its proximity to the North American market. This translates into shorter shipping times and reduced transportation costs when compared to manufacturing overseas.
Additionally, an important aspect to consider is that Mexico’s workforce is highly skilled and productive, with experience in electronics manufacturing.
ELECTRONICS MANUFACTURING IN TIJUANA AND MEXICO
Tijuana holds the crown as the global leader in television manufacturing and will continue to do so as plasma, technologies advance LCD and LED. Baja California alone produces approximately 19 million high-tech televisions annually. But there are more reasons to be excited about manufacturing in Tijuana, as being a city close to the United States brings additional advantages.
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 labor force and proximity to US and North American markets. The pace of new foreign direct investment and new plant openings haven’t stopped – more and more manufacturers are expanding into Mexico than ever before.
ELECTRONICS MANUFACTURING IN TIJUANA AND MEXICO
Tijuana holds the crown as the global leader in television manufacturing and will continue to do so as plasma, technologies advance LCD and LED. Baja California alone produces approximately 19 million high-tech televisions annually. But there are more reasons to be excited about manufacturing in Tijuana, as being a city close to the United States brings additional advantages.
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 labor force and proximity to US and North American markets. The pace of new foreign direct investment and new plant openings haven’t stopped – more and more manufacturers are expanding into Mexico than ever before.
TOP ELECTRONICS MANUFACTURERS IN MEXICO
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.
TOP ELECTRONICS MANUFACTURERS IN MEXICO
| Aerospace electronics Automotive electronics Flat screen televisions Microphones, speakers, headphones Computers Cell Phones Audio/visual electronics | Household appliances Power supplies Lighting Wiring harnesses Cable assembly Contract manufacturing services Subcontract assembly …and more! |
That is why for these and other reasons, global companies are increasingly joining IB Connections’ contract manufacturing services. Would you like to learn more about our services? Contact us.
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