Why Many are Choosing to Move Manufacturing to Monterrey, Mexico

Published On: April 5, 2022

One of the most critical steps in moving your manufacturing to Mexico is choosing the right location, so you need to know exactly what to look for.

Read on to find out which factors you need to keep in mind—and why manufacturing in Monterrey, Mexico might just be the best city for your production site.

What to Consider When Choosing a Manufacturing Location

#1 Proximity to the United States

No matter where you manufacture in Mexico, you’ll get an advantage over manufacturers with offshore operations. However, the regions closer to the border offer even greater benefits. With less distance between your production facility, distribution centers, and consumer markets in the U.S., you can significantly cut down on the costs you would normally allocate to shipping your products long overseas distances.

The Monterrey advantage: Located just southwest of Austin, Texas, Monterrey is only 125 miles from the United States-Mexico border. While other regions may sit a bit closer to the border, Monterrey stands out as the more strategic choice for some of the biggest names in manufacturing given the other advantages it offers on top of its close proximity to the U.S.

#2 Infrastructure

Mexico is known globally for its affordable labor costs. However, inexpensive labor shouldn’t come at the cost of a lack of infrastructure. If your consumers live in the United States, you’ll want to ensure there is a well-connected highway system. If overseas markets are your target, you’ll want easy access to international ports. In all cases, you want solid internet, gas, electric, and sewage infrastructure to support your production.

The Monterrey advantage: Considered Mexico’s business capital, Monterrey offers the best of all worlds. When it comes to transportation specifically, Monterrey gives manufacturers significant advantages over those located in other regions. With two international airports, an international rail network, major international highways, and the country’s only inland port, Monterrey provides manufacturers with access to global markets at lower costs.

#3 Site Availability

In addition to having the right supporting infrastructure, the city you choose needs to have enough available space to meet your real estate needs. Large and heavily populated cities may not have sufficient land on which you can develop, but these cities may provide the supply networks you’re looking for. Ideally, you should be conducting a real estate analysis to determine which location is best.

The Monterrey advantage: With many existing industrial areas, Monterrey is able to accommodate new foreign manufacturers and their diverse real estate requirements. Plus, with the abundance of industrial parks, available real estate often comes in the form of state-of-the-art facilities.

#4 Workforce Availability

As a whole, Mexico is home to a highly-skilled workforce. However, depending on your industry, you may not find available labor in every region. Global companies that have long been established in Mexico have led to the strong presence of specific industries in different regions.

The Monterrey advantage: Many regions may excel in specific manufacturing industries, such as automobiles, but Monterrey is home to manufacturers across all major industries. Some of the biggest sectors include home appliance, aerospace, medical device, electronic, and automobile manufacturing. As a result, labor, while more competitive, is highly available to companies expanding into the area.

Labor in Monterrey isn’t just available, it consists of highly-skilled workers. The Mexican government invests heavily in higher education and vocational training throughout the country, but Monterrey’s workforce stands out among the rest thanks to the city’s academic atmosphere and high levels of development.

#5 Supply Chain Access

As a manufacturer, you’re always looking for ways to lower costs and boost efficiency. To do that, you need local suppliers and materials in addition to having the infrastructure necessary for low-cost transportation. For this reason, you should consider shifting your manufacturing to locations with a strong industrial presence.

The Monterrey advantage: Monterrey attracts global companies looking to develop stronger, more local supply chains. In addition to the robust infrastructure and high-quality facilities, manufacturers located within one of the 50 industrial parks benefit from economies of scale as well as easy access to essential goods.

Ready to Find the Location That’s Right for Your Business?

Securing the right Mexico manufacturing location can be a painstaking process without the right knowledge and resources. That’s why we’ve developed a comprehensive site selection process that helps companies of all industries and sizes find the facility that works best for them. We start by understanding all aspects of your business, and then we stick with you all the way through construction or facility improvements.

Learn more about our approach to site selection in Mexico.

Contact NAPS today to learn about the benefits of our services and find the path that works best for you.

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