Outlook: Manufacturing in Mexico – Medical Device Industry
August 17, 2012
Based on a study conducted by the Crossborder Group, Tijuana (in Baja California) has the largest concentration of medical device companies manufacturing in Mexico
The study performed by the Crossborder Group shows that Tijuana may as well be the medical device manufacturing capital of North America. Tijuana has the highest rate of employment in the medical device industry, employing over 31, 000 workers. Reports show that employment has continued to increase year to year dating back to 2004.
Today’s global market forces companies to evaluate production costs in logistics on a continuous basis in order remain competitive. KPMG’s 2012 Competitive Alternatives for medical device manufacturing showcased Mexico as a top low cost option out of the 14 countries analyzed. Mexico had a significant cost advantage to the U.S. and Brazil, sitting just under China.
Tijuana sits on the U.S. Mexico border 30 minutes south of San Diego. Its strategic location provides just-in-time delivery to the U.S. and quick access to west coast international airports and seaports. This location is superb not only because of the ready access to the U.S. market, but also thanks to the network of suppliers located in close proximity. Medical device manufacturers have the ability to ship finished products to the U.S.
As the supply chain continues to be developed, medical device companies benefit in terms of logistics and cost savings. Medical device manufacturers in Tijuana are in close proximity to many of their suppliers. Tijuana is bustling with over 40 medical device manufacturers and about 14 contract manufacturers. In addition, companies and suppliers in Southern CA and the Southwestern U.S. are very accessible.
Kenn Morris from Crossborder Group stated in his report “the Tijuana-San Diego Bio Border will continue to evolve, and remain a prime location for all sciences-related manufacturing and development for decades to come.” It is important to note that almost all of Tijuana’s medical manufacturing facilities operate under FDA or CE requirements, and are certified under ISO 13485, ISO 9000 or other high quality management standards.
North American Production Sharing has its corporate headquarters in Tijuana. Since 1991, NAPS has played a key role in ensuring the success of over 70 companies manufacturing in Mexico including Intuitive Surgical, JAE, Monster Cable, Parker Hannifin, Speck Products, Toyota & Qualcomm.
View Complete Study / More Information About the Crossborder Group