Where to Manufacture in Mexico? Top Locations to Consider in 2025 During Site Selection

As global supply chains continue to evolve, Mexico has solidified its reputation as a prime manufacturing destination. With its strategic location, competitive labor costs, and robust trade agreements, it’s no wonder many U.S. companies are looking South of the border for their manufacturing needs.

But with so many potential locations within Mexico, how do you decide where to set up your following manufacturing site?  Here’s a look at the top locations to consider for manufacturing in Mexico in 2025.

1. Monterrey: An Emerging Industrial Hub

Monterrey, often called the “Industrial Capital of Mexico,” is a crucial location for manufacturing, mainly for the automotive, aerospace, and electronics industries. Its proximity to the U.S. border and well-developed infrastructure, including highways, railroads, and an international airport, make it an attractive option. Monterrey also offers a highly skilled workforce supported by leading universities and technical institutes, making it ideal for high-tech manufacturing.

2. Tijuana: The Gateway to North America

Located just across the border from San Diego, Tijuana is a strategic location for companies seeking quick access to the U.S. market. The city is a hub for the maquiladora industry, where foreign companies can benefit from favorable trade conditions and lower production costs. If you set up here, you get the full advantage of the CaliBaja region. Also, Tijuana is particularly strong in the medical device, electronics, and automotive sectors, offering a mature supply chain and experienced workforce.

4. Querétaro: A Rising Aerospace Powerhouse

Querétaro has emerged as a critical player in Mexico’s aerospace sector, attracting major global companies like Bombardier and Safran. The state’s aerospace cluster is supported by specialized training programs and research institutions, ensuring a skilled workforce tailored to industry needs. Querétaro’s central location also provides logistical advantages, with easy access to Mexico City and major ports.

5. Ciudad Juárez: A Strategic Border City

Ciudad Juárez, located directly across the border from El Paso, Texas, is a significant manufacturing hub for the automotive, electronics, and consumer goods industries. The city’s strategic position allows for efficient cross-border trade, supported by a robust transportation network and numerous industrial parks. Ciudad Juárez also benefits from a large, experienced workforce that is familiar with international manufacturing standards. Remember that this city is the cradle of the maquiladora industry in Mexico!

6. Mexicali: A Key Manufacturing Hub at the U.S. – Mexico Border

Located at the U.S.-Mexico border, Mexicali is a thriving manufacturing hub offering key advantages for global companies. Its proximity to North American markets facilitates efficient cross-border trade, while advanced logistics infrastructure reduces lead times and transportation costs. With lower labor costs, tax incentives, and a skilled, bilingual workforce, Mexicali provides an ideal environment for high-quality, cost-effective production. The city is home to major industries including aerospace, medical devices, electronics, automotive, and food processing, all supported by local universities and technical institutions. Mexicali’s commitment to innovation and advanced manufacturing technologies further enhances its appeal, making it a prime location for companies seeking to optimize operations and strengthen their global competitiveness.

Choosing the right location for manufacturing in Mexico involves weighing various factors such as proximity to the U.S. border, industry specialization, infrastructure, and labor availability. Each location offers unique advantages that cater to different manufacturing needs. By choosing the right location, companies can optimize operations, reduce costs, and gain a competitive edge in the global market.

Ready to take the next step? Explore these top locations and leverage Mexico’s manufacturing prowess to boost your business’s competitiveness and efficiency. If you want to start operations faster, you can contact a trusted partner like TECMA to set up your operations safely.

So don’t wait any longer; start exploring your options in Mexico today!