A Hub of Industry: Why Companies Manufacturing in Mexico Choose Monterrey

Published On: December 9, 2021

It’s no surprise that Monterrey, as the country’s business capital, is the location of choice for companies manufacturing in Mexico. With more than 40% of the world’s biggest manufacturers now operating there, the city offers significant advantages to companies looking to bring some or all of their operations back to North America.

Regarded as one of the most “livable” cities, Monterrey has the highest per capita income in the country and affords locals and foreigners alike a high quality of life. In addition to these attractions, Monterrey’s industrial roots and continuous growth draw in companies from around the world.

Industries in Monterrey

While companies across all sectors can be found throughout Monterrey, the area is known for a few key sectors that are responsible for much of Mexico’s exports to the United States and the rest of the world.

Aerospace industry

The Mexican state of Nuevo León has become a leader in aerospace manufacturing and design largely due to the support of the Monterrey Aerocluster. With the goal of promoting aerospace development in Mexico, this cluster represents everyone from foreign to national and small to enterprise-sized businesses in the aerospace industry.

Automotive industry

The automotive industry in Mexico is both the top exporting sector and employer in Nuevo León. Monterrey alone is home to 25% of the country’s auto parts companies, 2,600 of which are foreign. The city also contains various automotive clusters, which help develop local companies while drawing in international ones.

Electronics industry

The electronics manufacturing industry is thriving all across Mexico but has found notable success in Monterrey, which is responsible for more than 30% of Mexico’s exports. Hosting big brands such as Johnson Controls and Emerson Electric, Monterrey is particularly well known for its computer, home appliances, and consumer goods electronics manufacturing.

Companies currently manufacturing in Monterrey

While cities and states throughout Mexico offer their own advantages, Monterrey tops the list for many of the world’s biggest brands, including:

  • GE
  • Whirlpool
  • Caterpillar
  • Mercedes Benz
  • Johnson & Johnson

Although Monterrey is further from the United States border compared to cities such as Tijuana and Juarez, businesses still favor Monterrey. With a long history of industry and manufacturing, the city has evolved into a modern metropolis with prominent advantages for manufacturers.

Infrastructure

Monterrey contains robust transport infrastructure. This not only makes onsite visits easier for manufacturers based in the United States but also allows for a shorter and stronger supply chain that is less prone to risk, compared to those that reach overseas. Notable infrastructure projects in Monterrey, Mexico include:

  • The Monterrey International Airport is one of the fastest-growing airports in the country. It also offers 300 daily flights and a 15-acre cargo terminal.
  • Interpuerto Monterrey, Mexico’s largest inland port, sits in a strategic location and was constructed with intermodal connectivity to offer unmatched supply chain and logistics support.

The Advantages of Industrial Parks

One of the biggest benefits of manufacturing in Monterrey is the city’s 50 industrial parks which span five industrial areas. Similar to office parks, industrial parks are parts of a city that have been allocated to industrial development. By operating within one of Monterrey’s industrial parks, companies are able to take advantage of various strategic benefits.

Lower production costs

Companies within the same industrial park may decide to utilize centralized buying and selling. By purchasing in bulk, businesses are able to minimize their production costs. This shared handling of resources also helps newly established companies hit the ground running to maximize profitability.

Shared facilities

Industrial parks are home to all the amenities companies may need, such as banks and post offices. Manufacturers can focus on growing and developing their business as opposed to locating essential support services.

Existing infrastructure

Many companies are moving their manufacturing operations to Mexico for its modern facilities and readily available real estate. Through industrial parks, businesses can find the location best fit for their needs and priorities.

Investment & development

Industrial parks are both industrial centers and knowledge centers. Through their collaborative spirit, these hubs promote entrepreneurship and development in manufacturing. This not only offers surrounding neighborhoods significant employment opportunities, contributing to local economic growth, but also draws in outside investment.

Start Manufacturing in Monterrey with NAPS

Many global businesses have decided to open manufacturing locations in Monterrey for good reason. In addition to providing companies and the city’s highly skilled labor force a thriving place to live, Monterrey is a hub of manufacturing that drives growth and innovation.

Whether you’re looking to expand or relocate to Mexico, NAPS has the experience and knowledge you need to quickly scale your business. Contact NAPS today to learn more about how we can help you find success in Monterrey.

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