When considering options for outsourcing electronics manufacturing, it’s understandable that many people think of China. However, located just south of the U.S. border is one of the world’s leading electronic manufacturing hubs. Indeed, with more than 700 companies manufacturing electronics in Mexico, suffice it to say, nearshore electronics manufacturing has never been more popular. Read on to learn why Mexico is not only a good location for outsourcing electronics manufacturing, it may be the very best location to bring your products to life.
Mexico: The North American Hub of Electronics Manufacturing
Mexico holds the title of being the second-largest electronic products supplier to the United States. As a leading industry in Mexico, global electronics companies including Sharp, LG, Samsung, Toshiba, HP, Intel, Foxconn, Flextronics, Panasonic, and Plantronics have all established manufacturing and assembly operations in Mexico. Although manufacturing facilities are found in several regions, the largest cluster of electronics manufacturing is based in Tijuana, Mexico.
Electronics manufactured in Mexico are used for the following industries:
- Audio & Visual (speakers, microphones, televisions, cellphones)
- Battery Packs
- Cable & Wire Harnessing
- Commercial Construction tools and accessories
- Consumer Products
- Healthcare, Life Science, Biotech
- Household Appliances
- Information Technology (circuit boards, computers, memory chips)
- Lighting, Switches, Starters
- Medical Device
- Many Others
Why is Mexico So Popular for Electronics Manufacturing?
The manufacture and assembly of electronics in Tijuana, Mexico is popular because it offers the following unbeatable benefits.
Low Operating Costs
Labor costs, production costs, and shipping costs are all attractive to electronics companies looking for a nearshore facility to outsource manufacturing.
Large Talent Pool
Baja, California, where Tijuana is located is home to a large, young, experienced labor force. Thanks to the Mexican government’s investment in education, more students graduate in the fields of engineering and technology per capita, than in the U.S. Moreover, Mexico boasts many training centers specifically designed to train workers in the fields of high-tech manufacturing.
Favorable Tax Incentives
The USMCA opened up free trade in North America providing U.S.-based electronics manufacturers duty-free access, along with other tax incentives, including the extremely popular Maquiladora program. The Maquiladora (IMMEX) program allows you to manufacture in Mexico without opening a Mexican company.
Fast, Easy Access to Facilities
Located just 10 miles from the U.S. border in San Diego, Tijuana’s electronic manufacturing hub allows for easy access to facilities. Rather than spending a day traveling to Asia, the proximity to the U.S. offers benefits including greater oversight and quality control.
Expedited Delivery to Market
Electronics manufactured in Mexico are not at the mercy of problems in the global shipping supply chain. Products can be manufactured and brought to market in a fraction of the time, compared to overseas manufacturing.
Intellectual property theft is a serious concern for companies manufacturing in China. As many as 1 in 5 North American-based companies have reported I.P. theft when manufacturing in China. By contrast, Intellectual Property rights are protected by multiple agencies under the Mexican government.
Coastline International: Your U.S. Partner for Electronics Manufacturing in Mexico
Coastline International is a San Diego, CA-based contract manufacturing partner for U.S.-based companies. Since 1982, Coastline International has helped U.S. companies to successfully manufacture electronics, including devices for the medical, life science, biotech, consumer, aerospace, and automotive industries in our 50,000 square feet of state-of-the-art manufacturing facilities. To learn more about nearshore manufacturing in Mexico, call 888-748-7177, or send us a message.