Saving money on manufacturing is a priority, irrespective of the product. Whether you’re bringing a new medical device to market, or have secured a bid for electronics components, manufacturers need affordable contract partners. But where do you find lower-cost manufacturers? You may be surprised to learn that you no longer need to travel overseas.
Tijuana, Mexico is the Most Cost Effective Region for Lower Cost Manufacturing of Select Items
Over the past several decades, Tijuana, Mexico has emerged as an attractive, lower-cost manufacturing hub for electronics, medical devices, and more. Rather than outsourcing manufacturing to Asia, countless U.S.-based companies have chosen this city just minutes from San Diego for their manufacturing. The reasons are plentiful.
Tijuana Has Favorable Labor Costs
While Mexico labor costs may be close to equivalent to those in some areas of Asia, the labor rates are incredibly favorable compared to U.S. labor costs. When factoring in other considerations, the labor costs of manufacturing in Mexico are very competitive.
Mexico Offers Excellent Tax Incentives
U.S.-based companies do not need to establish another corporation to manufacture in Mexico. Moreover, thanks to the USMCA, free trade between the U.S. and Mexico is thriving, with duty-free access for manufacturers.
Tijuana Has a Large, Young, Educated Labor Pool
While the U.S. continues to struggle with labor shortages, Tijuana is known for its reliable, educated, and experienced labor force. Tijuana often boasts the lowest unemployment rate in the nation. Moreover, the labor pool is enriched each year with tens of thousands of mechanical, electronic, and chemical engineering graduates.
Travel to Tijuana Offers Significant Time Savings
One of the reasons that nearshore manufacturing in Baja, CA results in lower costs for American companies is due to proximity. Tijuana is accessible from anywhere in the U.S. on the same day. This means that businesses have greater oversight, shipping is expedited, and shipping is not at the mercy of overseas supply chains. Any problems can be remedied quickly, executives can be onsite in hours, and products can be brought to market sooner. Moreover, your team won’t waste hours on planes or need to communicate outside of normal business hours, thanks to sharing a timezone.
Savings of 30%+
U.S.-based companies who opt to outsource manufacturing to Tijuana often realize savings of 30% or more. Reduced labor costs, lower fuel costs, less warehousing costs, lower shipping costs, lower tax burdens, and faster start-up times are just some of the ways that savings add up.
How to Get Started with Low-Cost Manufacturing in Tijuana
If you’ve never outsourced manufacturing, the process can feel overwhelming. That’s why it’s smart to partner with a contract manufacturer with decades of proven, successful experience in Tijuana. From helping you source your materials to providing facilities built to U.S. standards and timely product delivery, a contract manufacturing partner can save you time, money, and stress by managing your nearshore manufacturing in Mexico.
Contact the Leading Manufacturing Partner for Electronics and Medical Devices in Tijuana
For more than 40 years, Coastline International has helped U.S. companies to manufacture their products safely and affordably, just minutes from the U.S. border. Headquartered in San Diego, CA, Coastline International boasts more than 50,000 square feet of operational capacity including ISO Class 8 Cleanrooms. To learn more call 888-748-7177, or send us a message and we will respond promptly.