Mexico has become one of the best countries for North American companies to expand or move their manufacturing operations. Due to the country’s offered advantages like low cost skilled labor, reduced operational costs, network of free trade agreements and more, the manufacturing industry has grown exponentially over the past few years.
According to the report from the Mexican Center of Public Finance Studies (CEFP) the top manufacturing industries in Mexico include:
This manufacturing industry is the oldest in the country, starting with the first producer established in Mexico in 1921, followed by another one in 1925.
Over the last decades Mexico has developed a successful network of suppliers for the automotive industry and the Mexican government has improved the infrastructure in order for companies to have an easier way to manage supply chains and logistical needs.
The country is currently the seventh largest vehicle manufacturer in the world, fifth largest in auto parts production and fourth largest exporter.
Over the past decade, Mexico has become one of the world leaders in the aerospace industry making it the most dynamic manufacturing industry in the country. This industry started to grow in the late 60s when the IMMEX program started allowing the importation of goods to be assembled and exported free of duties and taxes and continued its growth with ProAereo 2012-2020 that includes strategies and policies to put Mexico at the top of the aerospace industry.
The aerospace sector consists mostly of manufacturing aircraft parts, design and engineering services, as well as maintenance, repair and operations.
Medical Device Industry
The medical device industry has been growing slowly but steadily in the country and has become an emerging industry. Mexico is the leading exporter of medical devices in Latin America and the eight largest exporter in the world. The main items being exported are medical instruments for surgery, dentistry and veterinary use. Moreover orthopedics for fractures, mechanotherapy devices, oxygen therapy and aerosol therapy equipment, as well as x-ray devices.
This growth is due to the country’s investment in training and education generating a skilled and educated workforce, as well as the collaborations of different sectors to expand the manufacturing of devices and improve efficiency, and the proximity to the US providing cost effective benefits.
Lastly, the electronic industry is also one of the most prominent industries in Mexico. This sector is focused on the manufacture of appliances and components like audio and video, computing and office, communications, and others. The electronic manufacturing of consumer goods is on the rise due to the increased availability of skilled and educated engineers and design specialists.