Why These Are the Very Best Places for Manufacturing in Mexico

Published On: September 23, 2022

If you’ve considered nearshoring your operations, you probably already know the many benefits of manufacturing in Mexico. Now, the question is, which city is best for your business? The country as a whole comes with natural competitive advantages, but you want to know you’re choosing the Mexican state and city that best aligns with your company.

Here are some of the most common industries with manufacturing operations in Mexico, plus the best locations for each.

THE INDUSTRY: AEROSPACE

The Location: Tijuana & Mexicali

There are a handful of aerospace manufacturing hubs across the country, but the cities of Baja California (Tijuana and Mexicali in particular) are without a doubt the largest. Together, they’re home to more than 110 aerospace firms and support tens of thousands of direct jobs. They’ve also helped drive forward Mexico’s aerospace manufacturing capabilities, which has moved from small parts and components to jet housings, landing systems, and more.

While aerospace manufacturers moving to one of these cities might face some competition, they’ll gain have access to a highly specialized labor pool as well as flexible real estate options. Plus, Baja California contains one of the largest and oldest manufacturing clusters in the country, which means practically every component of an aircraft can be made locally.

THE INDUSTRY: AUTOMOTIVE

The Location: Guanajuato

Guanajuato is the city of choice for many of the largest automotive OEMs, including Toyota, Honda, General Motors, and more. A historically agricultural state, Guanajuato continues to see a flood of car manufacturers that want to be part of the area’s rapidly growing automotive industry.

With the large number of OEMs already present in the area, Guanajuato presents many opportunities for Tier-1 and Tier-2 manufacturers looking to expand into Mexico. The region’s workforce and real estate options may not be as abundant as other regions, but as the automotive industry grows, the government continues to invest in state-of-the-art infrastructure to support it.

THE INDUSTRY: MEDICAL DEVICE

The Location: Baja California

Baja California, especially the city of Tijuana, isn’t just known for its aerospace manufacturing. It has also become one of the world’s most prominent medical device exporter and represents over half of the industry in Mexico.

Thanks to the industry’s extensive presence in the region, everyone from OEMs to Tier-3 suppliers can gain access to more of the medical device supply chain. Furthermore, Baja California is home to numerous border cities, many of which are just a couple of hours away from major U.S. cities and top science technology hubs. In other words, Baja California is a highly strategic location for medical device manufacturers hoping to lower production and labor costs by setting up an operation in Mexico.

THE INDUSTRY: APPAREL & TEXTILE

The Location: Central & Northeastern Mexico  

Since the first textile manufacturing company opened in 1830, textile production has been at the heart of Mexico manufacturing. Not only is the industry one of the oldest in Mexico, but it’s also one of the most successful, accounting for 3.7% of Mexico’s manufacturing GDP. Today, 63% of Mexico’s textile and apparel industry is concentrated in the central and northeastern parts of the country, which include large manufacturing hubs like Monterrey, Nuevo Leon.

In addition to the short distance between production facilities and end consumers, one of the largest benefits of manufacturing in Monterrey is the amount of resources available to apparel manufacturers. From existing infrastructure to a wide range of textile manufacturing capabilities, manufacturers can meet the fast-changing demands of the apparel industry with ease.

Find the Right Location for Your Business

No matter your industry, finding the right region and city is one of the biggest keys to success in Mexico. That’s why we’ve developed a comprehensive site selection process backed by over 30 years of experience. Together, we’ll identify the ideal location for your operations, and then we’ll stick with you through final construction and tenant improvements. Connect with NAPS today to learn more about how we support your business in Mexico.

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