Mexican border cities are the mecca of manufacturing for companies who need to lower costs, connect with their customers, and find skilled employees. Manufacturing in Tijuana is a prime example of business expansion for many companies because of the industry range, inter-country logistics, workforce demographics, and real estate construction.
Tijuana Manufacturing Industries
Tijuana is the medical device manufacturing capital of the Mexico, and maintains a list of of technologies that help boost efficiencies and maintain sanitation standards. With over 30 years of producing goods including thermometers, IV sets, infusion pumps, orthopedics, lenses, pacemakers, and stent systems, the city has accumulated over 60 medical device companies. In 2016, Tijuana’s medical device industry employed about 42,000 people which lead to an overall productino value of $600 million USD.
Another production boost to the city is the electronics manufacturing industry, specifically audio and video equipment. Bose Tijuana, Honeywell, FOXCONN and the Samsung manufacturing plants created an electronics hub in the city bringing in more than 120 electronics manufacturing companies spanning from suppliers to big name brands.
Semiconductor manufacturing in Tijuana is an added industry component that supplies parts to the various electrical equipment and components being manufactured in the city. The industry provides a total of 20,000 jobs across 71 companies.
Another manufacturing powerhouse in the city is the aerospace industry with over 37 Tier 1 companies employing over 11,690 skilled workers and adding to the overall aerospace growth in the country. Much like many other aerospace region in Mexico technical schools and specialized engineering programs in the universities support growth and investment within the industry.
Automotive manufacturing in Tijuana is the next big industry manufacturer that caters to large OEMs such as Toyota and Hyundai, as well as lower tiered companies specializing in auto parts and additive manufacturing.
Tijuana’s workforce has a history of highly skilled manufacturing positions that have been established for over 40 years. The average wage for a manufacturing employee is around $10,252, annually, with Aerospace providing the highest wages, and Automotive providing the lowest. 64% of high school graduates receive technical education and will most likely move into the manufacturing sector, which comprises 28% of the workforce - the largest sector in the city. Workforce sectors also include Retail, Wholesale at 19%; Other and Services both at 9%; and Financial, Corporate; and Restaurants, Hotels all at 8% of the composition.
Source: sandiegobusiness.org; National Survey on Employment and Occupation, 2016; National Institute of Statistics and Geography, 2016; National Survey on Employment and Occupation; Mexico City: INEGI
Tijuana has one of the largest populations in Mexico with 1,677,678 inhabitants and an average population age of 27. The urban lifestyle is popular as many pockets of modern establishments and venues to maintain various types of lifestyles. The city was named New York Times “must-visit” destination in the world in 2017. Although tourism plays a huge role in the urbanization of the city, it also raises the bar for local quality of life.
Industry Real Estate
Tijuana’s leasing price has been slowly increasing in the past 5 years, and has become the highest in the country. The high demand for real estate in the city with a low vacancy rate at 2.2% at 530,000 sq. ft. But, Tijuana had a 44% construction increase from 2016 to 2017 that pushed prices and enabled the steady vacancy rate.
Deciding to manufacture in Tijuana is a common choice for businesses who need to be close to the U.S. but want access to the global market. The city’s experienced workforce and expanding facilities provide reason to consider the border metropolis as a location for expansion.
Learn more about expanding your operations to Tijuana and achieve success in Mexico with The Offshore Group. Contact us today to experience the benefits of manufacturing in Tijuana without the burdens and risks.