News, Insights and Best Practices for Manufacturing in Mexico

Mexico becomes a medical device manufacturing leader

22 Aug 2013

Category: Medical Device Manufacturing

Mexico is home to many types of manufacturing, but it is quickly becoming a global leader in medical device production. With the market for medical IT and health care devices growing, there is a strong demand for the production of medical devices. Thanks to Mexico's close proximity to the U.S., its focus on fabrication and low-cost manufacturing, expanding to Mexico can be beneficial for U.S. medical device producers; and offshoring manufacturing to the country is exactly what many businesses are doing.

Medical device manufacturing in Mexico expected to grow
According to Plastics Today, a news site, Mexico's chunk of the medical device manufacturing market is estimated to increase throughout the next decade. The site reported the production of medical devices in Mexico is forecasted to rise by 74 percent from 2011 to 2020. While other countries are also set to grow their medical device manufacturing sector, Mexico is estimated to outpace its offshoring competitors because it shares a border with the U.S., where much of the demand is originating, according to Plastics Today. 

In fact, the site reported Mexico is now the 11th-largest exporter of medical devices in the world, according to figures provided by the Mexican government's pro-trade organization ProMexico. Many production companies are now choosing to expand into the country to take advantage of its growing specialization in medical device manufacturing. For example, Controlled Environments Magazine, a source of contamination control information, reported Phillips-Medisize Corp., an injection modeling company, recently decided to offshore some of its manufacturing to the country, and more companies may soon join them in doing so.

A study by Boyd Company, a New Jersey-based consulting service, found the overall costs of medical device manufacturing in Mexico is more affordable for companies than centering the production process in the U.S. Mexico is becoming a hub for medical electronics and gadgets producers - more than $5.2 billion worth of medical devices were delivered to the U.S. in 2008  - because locating the production process in the county is a cost-effective solution for many companies.

Close proximity to US aids Mexico
According to Plastics Today, Mexico is an emerging leader in medical device manufacturing because of the U.S.'s strong demand for the materials. By sharing a border with the U.S., Mexico is able to quickly, easily and efficiently export and transport medical devices to the country. Compared to other countries, such as China and Germany, Mexico's geographic location to the U.S. is an important boon to manufacturing logistics. Plastics Today reported more than 80 percent of Mexico's exports are sent to the U.S., with many companies choosing to use California and Texas as key links between the two countries.

Industrial centers in the northern Mexico city of Saltillo, Coahuila, which is close to the U.S. border, and other strategic trade routes through Guaymas and Empalme in Sonora, a western state in Mexico, are set to see increased traffic and more medical device manufacturers as companies decide to expand to the country. 


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