Monterrey isn’t just a city surrounded by breathtaking mountains and natural parks, it is also one of the most developed Mexican cities. Following Mexico City, Monterrey has the highest GDP per capita and the second largest metropolitan area in Mexico. It is regarded as one of the most “livable” cities, and is ranked as one of the safest cities in Mexico.
Most consider Monterrey to be the commercial center of northern Mexico, which makes it a frequent destination for many businesses. Monterrey’s major regional and international highways, railways, inland ports, and its international airport make it an ideal city for manufacturing in Mexico. Due to high demand, Aeromexico has made it the second most important city for operating routes in Mexico and has many nonstop flights from the United States directly into the Monterrey International Airport.
Why Manufacture in Monterrey, Mexico?
The industrialization of Monterrey has attracted hundreds of manufacturers from around the world. With metal manufacturing dating back to the early 1900s, Monterrey became the center of steel product manufacturing in Mexico. That steel industry in Mexico set the stage for the infrastructure that now supports robust manufacturing efforts across a number of other key industries. That infrastructure includes two international airports, international railway, the country’s largest inland port, and access to major highways.
All of this has made Monterrey one of Mexico’s major manufacturing cities today. It has developed a diverse portfolio of foreign companies and manufacturers from the aerospace, automotive, electronics, textiles, medical devices, and packaging industries.
More than 1,000 companies currently manufacture in Monterrey, such as Johnson and Johnson, Philips, Pratt & Whitney, CEMEX, John Deere, PEMEX, Mercedes Benz, Grupo México and Caterpillar. Supporting the high demands of manufacturing, Monterrey has more than 50 major industrial parks for manufacturers and suppliers.
Certain companies who relocate their manufacturing operations to Monterrey, and bring strategic value to the area, can qualify for incentives offered by the Mexican government.
Supply Chain Benefits
One competitive advantage to Monterrey is it has the largest inland port in Mexico. Its developed transport pathways, and proximity to large target markets in the United States, mean manufacturers in Monterrey see a number of advantages in terms of supply chain management.
The ability to transport goods and products by air, rail, truck, or ship offers a flexibility not found abroad. Because it is just a short drive from the Texas border (125 miles), Monterrey allows manufacturers operating in Mexico to quickly deliver to their customers with minimized risk.
A Hub of Manufacturing
Monterrey manufacturing is home to a thriving manufacturing sector. In addition to giving manufacturers access to world-class facilities, the city’s many industrial parks contribute to increasing foreign investment and create numerous employment opportunities, thereby stimulating economic growth.
Beyond attracting foreign investment, Monterrey’s industrial parks have significant environmental advantages as well. Within these large-scale industrial “communities,” companies have the potential to conserve resources, recycle materials, and decrease emissions.
The IMMEX (Maquiladora) Program
Unlike companies operating in China, who outsource through contract manufacturing, companies that set up in Monterrey, Mexico can take advantage of the country’s IMMEX program. Under the program, manufacturers have the option to operate under a shelter company, a legal entity that helps the foreign manufacturer get up and running quickly while assuming the legal risk.
Quality of Life
As one of the most developed areas in Mexico with high numbers of foreign visitors, Monterrey offers manufacturers and their employees a comparatively high quality of life. With the most modern conveniences and the highest per capita income in Mexico, Monterrey is a thriving city that provides foreigners and locals alike a safe and prosperous environment.
Monterrey has skilled labor, turnover rates below 5% and ample universities and training centers to complement the highly competitive candidate pool. With 26 colleges, 22 graduate divisions and three technical schools known for producing quality engineering talent, Monterrey has an abundant and diverse labor market for manufacturers.
Costs of labor are another advantage in selecting Monterrey. Although compensation is competitive, the city boasts low labor costs relative to labor costs in the United States, China and Europe.
Partner with a Shelter Company in Mexico
Connect with NAPS today to see if manufacturing in Monterrey, Mexico would be a good fit for your business. Low labor costs, close proximity to the U.S. border, and high-quality facilities make Monterrey a desirable choice for manufacturers moving to Mexico.
NAPS specializes in helping Monterrey manufacturers through the feasibility, start-up and ongoing administration of their factories in Mexico. NAPS focuses on managing Human Resources, Import/Export, Accounting (in Mexico), Environmental Health & Safety, and all related Mexican government compliance. This allows companies to focus on production quality control.
With more than 30 years of experience, NAPS is the solution for shelter services in Monterrey, whether you have new or existing operations in Mexico. Contact NAPS today.