Tijuana, situated on the US/Mexican border along the Pacific Rim, is a stone’s throw away from San Diego, California.
Tijuana’s manufacturing plants, known as maquiladoras, play a vital role in exporting $293 billion worth of goods back to the US annually. It has earned a reputation as an excellent choice for OEMs, turnkey contract manufacturing, and assembly operations. In fact, this area has embraced a new identity as the CaliBaja Mega Region.
It’s the perfect time for you to join the global community!
Tijuana has a long history of trailblazing in manufacturing. Years of continuous growth, foreign direct investment, collaborations with local universities to cultivate a skilled workforce tailored to manufacturers’ requirements, and unwavering support from both governments have firmly established Tijuana as the premier nearshore destination. With a multitude of world-class manufacturing giants already thriving in the region, this is your chance to leverage the cost savings and robust service and supply infrastructure that Tijuana has to offer.
Tijuana Manufacturing Highlights
- Over 570 manufacturers
- 185,000 employees dedicated to the manufacturing industries
- Tijuana has the one of the largest concentrations of electronics manufacturers in North America
- Over 50 years manufacturing excellence
- Easy access to the San Ysidro Tijuana border crossing for executive and company visits
- Tijuana International Airport for executive travel
Manufacturing Industries in Tijuana
- Aerospace & Defense
- Automotive & Automobile Parts
- Medical Devices
- Consumer Electronics
- Cable Assembly
- Contract Manufacturing
“ICON looked at Tijuana, Mexicali, and Juarez. We selected Tijuana due to the strong pool of talent, industrial infrastructure, and proximity to our California headquarters.”
Just-In-Time Supply Chain
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, more than 829,500 trucks transported goods valued at over $28 billion through the Otay Mesa Port of Entry. This accounted for around 72% of all surface trade between California and Mexico. Many of these goods continue their journey along NAFTA corridors to various destinations across the United States. The immense volume of trade between the US and Mexico relies on a well-organized and effective supply chain infrastructure. Parts and components are frequently exported to manufacturers in Tijuana, where they are assembled and swiftly imported back into the US within a few days.
For many manufacturers, expanding their operations to nearby Tijuana is all about getting closer to their customers. With numerous manufacturers requiring parts and components, the ability to serve customers more effectively by reducing costs and minimizing transit time is a compelling reason to start operations in Mexico.
“We already have several customers in the region and we expect to gain even more given the large Aerospace cluster. For Barry Avenue it is good business to be near our customers.”
Tijuana Industrial Real Estate and Facilities
Tijuana offers a wide selection of modern industrial spaces, totaling over 2.56 million square feet as of the first quarter of 2017. It is known for having a well-established industrial real estate market in Mexico. The average lease rates for high-quality Class A spaces range from $0.44 to $0.46 per square foot. Currently, there are about 628,000 square feet of new industrial spaces being constructed.
Tijuana prioritizes compliance with international facility regulations and certifications. Lean Manufacturing and Six Sigma principles are ingrained in the work culture, with 90% of facilities employing over 250 people holding ISO certification. The city also provides clean rooms of Class 10,000 and Class 100,000 standards for products falling under FDA regulations. For the aerospace and defense sectors, there are regulated facilities approved by Nadcap, FAA, and the Department of Defense. Furthermore, Tijuana has QS-certified operations in the automotive industry throughout the city.
Tijuana’s Skilled Workforce in Manufacturing
Tijuana boasts a labor culture that supports business and fosters a dispute-free environment with unions. One of the city’s greatest strengths lies in its abundant pool of skilled workers, which currently amounts to nearly 185,000 employees solely in the manufacturing sector. The main strategic advantage of this border city is the lower labor costs associated with highly skilled work. Manufacturers operating in Mexico are reducing their labor expenses by an impressive 40-60%. You can click here to see a breakdown of the cost savings on labor in the manufacturing sector in Mexico.
Universities and technical schools in Tijuana collaborate closely with the government and private sector to ensure that their curricula and courses align with the needs of today’s manufacturers. Many professionals in Tijuana also take advantage of their proximity to universities in San Diego, expanding their education in fields such as aerospace, biotechnology, business administration, computing, engineering, and medicine. It is the deep economic ties and cross-border collaboration that truly make this region shine.
“Based on our extensive experiences in Tijuana, not only with Smiths but also the experiences of my colleagues and me in other companies, we know that we possess the local capabilities to establish a truly world-class operation