Tijuana, the largest city in Baja California, boasts a well-developed infrastructure and transportation network that makes it an ideal location for manufacturing companies.
With over $5.7 billion USD of Foreign Direct Investment since 2012 and more than 550 companies from over 20 countries, Tijuana has established itself as a top destination for manufacturing.
Source: insights.tetakawi.com
In this article, we will delve into Tijuana’s manufacturing industry, focusing on key sectors such as medical devices, electronics, aerospace, automotive, and more. By providing advanced and comprehensive information, we aim to highlight why Tijuana is home to some of Mexico’s top manufacturing companies.
Medical Device Manufacturing Industry in Tijuana
Tijuana has emerged as the biggest hub for medical device parts manufacturing in Mexico. This sector alone has a production value of $599 million USD and employs approximately over 42,000 people.
Source: tetakawi.com
Over the past three decades, the city has seen significant growth in this industry due to its strategic location near major international seaports and airports.
Currently, there are more than 67 medical device manufacturing companies operating in Tijuana. These companies contribute significantly to the local economy by producing a wide range of medical devices including surgical instruments, orthopedic implants, dental equipment, and diagnostic tools. Some prominent companies include Medtronic, DJO Global Inc., CareFusion Corporation (now part of BD), and Greatbatch Medical.
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The success of Tijuana’s medical device manufacturing industry can be attributed to several factors such as proximity to the United States market, favorable labor costs compared to other regions like California, access to a highly skilled workforce with specialized expertise in precision engineering techniques like injection molding and micro-machining.
Electronics Manufacturing Industry in Tijuana
For over 50 years, Tijuana has been a key player in the electronics manufacturing industry. This sector is responsible for producing a wide range of goods including appliances, electrical components, media equipment, and semiconductors. With 122 companies operating in this sector, Tijuana provides employment opportunities to around 50,000 people.
Tijuana’s success in the electronics manufacturing industry can be attributed to factors such as its strategic location near the United States market, which allows for efficient supply chain management and reduced transportation costs. The city also benefits from its proximity to major international airports and seaports, facilitating timely delivery of products.
The electronics manufacturing sector in Tijuana offers a diverse array of services including PCB assembly, wire harnessing, plastic injection molding, metal stamping, and final product assembly. Prominent companies operating in this sector include Foxconn Technology Group (also known as Hon Hai Precision Industry Co., Ltd.), LG Electronics Mexico S.A. de C.V., Samsung Electronics Mexico S.A. de C.V., and Flextronics International.
Aerospace Manufacturing Industry in Tijuana
Over the past 40 years, Tijuana’s aerospace industry has experienced significant growth, making it four times larger than any other sector in Mexico. The city has developed into an ecosystem of supply chain and tier level companies serving the aerospace sector. Currently, there are 39 aerospace manufacturing companies operating in Tijuana employing approximately 11,700 highly skilled workers.
Tijuana’s strategic location near major aerospace clusters in Southern California and access to a skilled workforce have contributed to its success in the aerospace industry. The city offers a wide range of services including aircraft parts manufacturing, precision machining, composites fabrication, assembly, and testing.
Some prominent aerospace companies operating in Tijuana include Honeywell Aerospace Mexico S.A. de C.V., Eaton Aerospace LLC., Hutchinson Aerospace & Industry, and Zodiac Aerospace Services Americas.
Automotive Manufacturing Industry in Tijuana
Tijuana plays a significant role in the automotive manufacturing industry, specializing in various components such as truck chassis, stamped metal parts, seat belts, sound speakers, carbon fiber body kits, and electronic sensors. Currently, there are 50 automotive manufacturing companies operating in Tijuana employing around 14,600 workers.
The city’s favorable conditions for automotive manufacturing include its proximity to major automotive markets like California and its strong infrastructure network. These advantages allow for efficient supply chain management and reduced transportation costs.
Tijuana’s automotive manufacturing companies contribute to the global value chain by providing services such as metal stamping, injection molding, welding and assembly processes. Prominent companies include Kenmex Mexicali S.A. de C.V., Alps Electric Mexicana S.A. de C.V., Bose Corporation Mexico S.A. de C.V., and Lear Corporation Mexico S.A. de C.V.
Favorable Conditions for Manufacturing Companies in Tijuana
Manufacturing companies in Tijuana benefit from several favorable conditions that make it an attractive destination for investment.
The city’s real estate market provides a low vacancy rate for class A space at approximately 5.7%, ensuring access to modern facilities and infrastructure.
Moreover, Tijuana offers a highly skilled workforce with over 185,000 manufacturing jobs available. The region has more than 50 years of manufacturing Foreign Direct Investment experience and boasts a labor force consisting of direct labor employees (74%), technicians/engineers (19%), and management personnel (7%).
To support the demand for skilled labor, Tijuana is home to numerous public and private universities offering engineering and tech programs. These institutions produce over 2,500 engineers annually and offer specialized programs such as mechatronic engineering and nanotechnology engineering.
Final Words
Tijuana has established itself as a top destination for manufacturing companies, particularly in sectors such as medical devices, electronics, aerospace, and automotive. The city’s robust supplier environment, access to global markets, skilled workforce, and favorable economic conditions contribute to its position as a manufacturing powerhouse.
With North America’s top city for jobs in medical device manufacturing and aerospace companies, Tijuana showcases its potential for growth in the manufacturing sector. As new foreign investments are expected to increase job opportunities further in the next five years, Tijuana continues to attract businesses looking for strategic advantages and success in their manufacturing operations.
Looking for reliable manufacturing services? Check out Zetwerk, offers precision machining, fabrication, casting, forging, and more. Visit the Zetwerk Knowledge Hub for additional articles on Tijuana’s manufacturing industry.
FAQs
Tijuana offers lower average hourly wages, excellent labor quality at a lower cost in constant dollar terms, and advantages such as transportation costs, time zone proximity to the United States, and cultural similarities.
Tijuana boasts over 185,000 manufacturing jobs and has more than 50 years of manufacturing Foreign Direct Investment. The region’s highly skilled workforce consists of direct labor employees, technicians/engineers, and management personnel.
Key industries in Tijuana include medical device manufacturing, electronics manufacturing, producing appliances and semiconductors, aerospace manufacturing with supply chain companies, and automotive component production.
Its strategic location near the United States allows easy access to global markets. Combined with competitive costs provided by government programs and a skilled workforce, it makes Tijuana an ideal choice for manufacturers looking to establish operations abroad.
Tijuana provides favorable conditions with low vacancy rates for class A space. This ensures manufacturers have access to suitable facilities while benefiting from the region’s robust supplier environment and skilled workforce.