Manufacturing in Baja California
The western peninsula, known as Baja California, is a key location for manufacturing in Mexico.
Manufacturing in Baja California
The western peninsula, known as Baja California, is a key location for manufacturing in Mexico.
Home to the increasingly prominent manufacturing hubs of Tijuana, Mexicali, Tecate, and Rosarito, this region combines all of the primary benefits of manufacturing in one geographically desirable area.
In particular, Baja California offers highly skilled labor, along with demonstrably low labor costs relative to standard wages in the United States. As a nearshore hub for manufacturing operations in North America, Mexico is also remarkably cost-efficient compared to other foreign manufacturing markets, particularly once you factor in the costs of import/export and frequent business travel for management.
Across numerous manufacturing industries, Baja California provides a myriad of benefits to the overall supply chain. This is in large part to its close proximity to West Coast shipping and trade cities, such as San Diego. In this region, it is also considerably easier to ensure reliable and on-time transportation of raw materials and finished goods, as compared to many offshore locations where those factors can be uncertain.
As with manufacturing operations that are located elsewhere in Mexico, this particular region is also home to the Maquiladora Program, also referred to as the IMMEX Program. Maquiladoras (or “maquilas”) are manufacturing plants and factories that benefit from preferential tax and fiscal treatment.
Essentially, the IMMEX program allows for tax breaks on imported goods, including raw materials, assembly components, machinery and various kinds of production equipment. Consequently, when used by maquilas, these items can enter Mexico duty and Value Added Tax (VAT) free.
Why Manufacture in Baja California?
Whether a business is considering moving its entire manufacturing operations to Mexico, or only one component of it, Baja California has become an increasingly attractive area of focus for North American manufacturing companies in recent years. The specific benefits can vary by city, as certain locations have become known for their highly-skilled labor in specific fields. For example:
Why Manufacture in Baja California?
Whether a business is considering moving its entire manufacturing operations to Mexico, or only one component of it, Baja California has become an increasingly attractive area of focus for North American manufacturing companies in recent years. The specific benefits can vary by city, as certain locations have become known for their highly-skilled labor in specific fields. For example:
Why Manufacture in Baja California?
Whether a business is considering moving its entire manufacturing operations to Mexico, or only one component of it, Baja California has become an increasingly attractive area of focus for North American manufacturing companies in recent years. The specific benefits can vary by city, as certain locations have become known for their highly-skilled labor in specific fields. For example:
Tijuana
Tijuana is home to over 600 maquiladoras, with particular emphasis on the automotive, electronics, consumer products, and medical device industries. It actually has the largest concentration of medical device manufacturing companies in all of North America to date. And among the many thriving industries in Mexico, Tijuana is also home to the country’s largest concentration of aerospace maquiladoras. It is a testament to the educated and skilled technical workforce here.
Mexicali
As the state capital of Baja California, Mexicali is considered to be one of the country’s safest border cities. As a result, it is home to a variety of innovative manufacturing industries: aerospace and electronics to automotive, medical device production, and even clean energy. As a case in point, the city is home to the Silicon Border area. The nearly 10,000 acre industrial complex was designed and developed specifically for semiconductor manufacturing.
Tecate
Tecate is located just 30 minutes outside of Tijuana, and under 84 miles from Mexicali, with a multitude of industrial parks that are ideal for a variety of companies in Mexico. In particular, Tecate is an excellent site for shelter manufacturing.
Rosarito
When close proximity to the United States is a key factor in deciding where to move manufacturing plants, Rosarito offers an excellent opportunity. It is just around 35 minutes from the U.S. border for ease of transportation back and forth, yet it is situated in a relatively small coastal resort setting (population: just over 70,000). In this way, Rosarito offers all the benefits of manufacturing in Mexico, within a liveable, small town feel.
Whatever the specific city, industrial park or location, Baja California offers many benefits to a variety of manufacturing industries. Its close proximity to the U.S. border means lower-cost logistics and supply chain considerations. It also enables more frequent and affordable business travel for plant managers. Baja California’s highly-skilled labor means top quality manufacturing, at lower overall costs.
Top Manufacturing Industries in Baja California
Top Manufacturing Industries in Baja California
Top Manufacturing Industries in Baja California
