The Competitive Advantages of Manufacturing in Mexicali
Mexicali continues to be a thriving hub of opportunity for companies seeking to enhance their global competitiveness through nearshoring. The city has decades of experience in manufacturing, especially in the aerospace, automotive, and medical devices industries.
Moreover, Mexicali is strongly committed to quality and compliance with international standards. Many manufacturing facilities in Mexicali adhere to ISO, TQM, and other quality management systems, ensuring that products meet or exceed customers’ expectations. This commitment to quality is vital for businesses looking to maintain their reputation and competitiveness.
Mexicali’s proximity to the U.S.-Mexico border and its robust transportation infrastructure make it an ideal location for companies looking to access North American and global markets. The city also has several incentives for foreign companies and a skilled workforce, making it an attractive investment destination.
Nowadays, Mexicali has 151 active manufacturing sites. These manufacturing plants employ more than 86,000 skilled workers. Most of the manufacturing operations are conducted inside the 27 industrial parks around the city.
The industrial space has a high demand in Mexicali. The city has around a 3% vacancy of industrial space while developers are building some facilities, but most have already been leased. Still, companies willing to operate in Mexicali can find industrial buildings with companies like TECMA.
Mexicali is an ideal location for foreign companies looking to tap into the Mexican market and take advantage of its favorable business environment, strategic location, and established supply chains. Companies can make a smoother transition using TECMA’s shelter services.
Mexicali boasts a well-established and thriving manufacturing industry.
In 2022, around 55 companies from the U.S., South Korea, China, Germany, and France invested US$1.22 billion in expanding their facilities or in new factories, according to the Ministry of Economy and Innovation of Baja California. This year, at least US$899 million will be invested mainly in Mexicali and Tijuana.
Moreover, as the global business landscape evolves, Mexicali is poised to play an increasingly vital role in the nearshoring strategy of companies worldwide. At least 15 companies are looking for space to start a new operation in this city. Most of these companies are from the U.S. and some Asian countries like Japan and South Korea.
Foreign Direct Investment (FDI) has been flowing into the communities in Baja California, Mexicali being one of them. It is worth mentioning that this state no longer discloses this information by city. During the first semester of 2023, the FDI in Baja California accounted for US$1.46 billion; in 2022, it was US$1.87 billion. In 2021, FDI recorded US$2.22 billion, the highest figure in the last decade.
Mexicali has a consolidated manufacturing sector. As a result, trade activities have been growing in the last two years. In 2022, Mexicali exported US$10.68 billion worth of commodities, while the imports accounted for US$10.62 billion, according to the Ministry of Economy.
The U.S. is Mexicali’s leading trade partner, accounting for 94% of the traded commodities. The primary commodities manufactured in Mexicali and exported to the U.S. include integrated electrical circuits (US$1.9 billion), medical devices (US$1.2 billion), and motors and generators (US$541 million). Even though aerospace products are not among the top traded commodities, this sector has critical operations in Mexicali.
Also, Mexicali’s manufacturing industry has created opportunities for local businesses that provide support services such as logistics, transportation, and maintenance; therefore, the city has a diversified economy.
As Mexicali continues to evolve and strengthen its position in the global market, it is undoubtedly a city to watch out for in the future. If you are considering expanding your manufacturing operations, Mexicali may be the perfect location for your company. You can schedule a consultation with one of our industry experts in Mexicali to explore more of what Mexicali has to offer.
