Mexico’s economy is growing at a consistent pace. According to BizLatin hub, after a decrease in production between 2016-1018, Mexico’s economy has grown at an annual rate of 2-3-%. Growing manufacturing industries in Mexico are helping to spur this growth.
Part of the reason for this success is the proximity to the United States, like the manufacturing border city of Matamoros where Novalink is located, which allows factories there to take advantage of strong trade agreements like USMCA, but also to absorb the manufacturing business needs of large industries in the US.
When people consider Mexico manufacturing, the prevailing thought is toward the textile industry. Although textiles are a very large and strong industry in Mexico, they are by no means the only strong industry for manufacturing in that country. There are literally dozens of industries enjoying success in Mexico; according to Statista, here are a few of the fastest growing manufacturing industries in Mexico between 2019-2020.
Electronic Components Manufacturing
Owing to the skills of the Maquiladora, electronic component manufacturing such as circuit boards, wire harnesses, computers and consumer electronics is one the largest growing manufacturing industries in Mexico. Companies looking for an alternative to their manufacturing operations in China are finding manufacturing partners in Mexico that can produce the same, and in many cases better, electronic components.
Medical Device Manufacturing
Mexico is the second largest manufacturer of medical devices in Latin America. Most of these industries are located in Baja California, home to over 60 companies that make up 36% of all medical device exports. Much like the electronics industry, the medical device manufacturing industry is labor-intensive and highly complex, perfect for the skilled Mexican labor force. According to Medical Product Outsourcing magazine, the global medical device market is expected to reach $532 billion by 2024 and Mexico expects to be an important resource in this growth.
Every major automobile manufacturing in the world, including companies from Japan and Europe, have manufacturing operations in Mexico. Chrysler, GM, Ford, BMW, Toyota, Nissan, Audi and Volkswagen all currently have assembly plants in Mexico. According to the International Trade Administration, over one million people in Mexico work for the automotive industry, making Mexico the sixth-largest passenger vehicle manufacturer in the world. The assembly of automobiles is not the only industry for Mexico, as they are also major producers of automotive parts & electronics, particularly wiring. With the variety of industries related to automobiles, the Mexican Automotive Industry Association estimates that Mexico will become the fifth-largest worldwide vehicle producer of all types, not just passenger vehicles, by 2025.
The aerospace industry is slated for tremendous growth in the next 3-4 years. According to FEMIA, an organization founded to promote the aerospace industry in Mexico, Mexico’s aerospace sector grew from 100 manufacturing firms and organizations in 2004 to more than 350 in 2019. The International Trade Administration adds in their 2020 report, “Mexico has improved its aerospace manufacturing capabilities, moving from production of components, small parts, and harnesses, to manufacturing of airframes, flight surfaces, small drones, and flight control and avionic assemblies.”
Supported by over 30 years of experience, NovaLink has provided shelter or contract manufacturing services to a variety of industries. Whether it is a product that requires precision and high tolerance, or a product that has been commoditized, NovaLink operates at an advantage.
Do you need a nearshore manufacturing partner or solution for your business? Contact NovaLink today: 956-621-7362 or visit our website: www.novalinkmx.com