Chihuahua, the capital city of the State of Chihuahua, is a medium-size city with a long history of engaging in manufacturing activities. This has been the State’s main activity for more than four decades, creating a culture of productivity and labor stability and putting Chihuahua on the radar of international companies in Mexico. Today, the State is the country’s leading state in exporting goods for the manufacturing industry and a preferred location for foreign direct investment and companies looking to start up manufacturing services in Mexico.

Some of the keys to Chihuahua’s success as a manufacturing hub include its strategic geographical location close to the border, as well as its highly trained and skilled, stable and available human talent and world-class infrastructure with a lower cost of living than other Mexican cities. Chihuahua’s world-class infrastructure includes combined-cycle and solar power plants that guarantee the availability and stability of electricity, as well as redundancy in natural gas pipelines, water, sewage, and IT infrastructure, among others. It is also an area that is free from natural disasters, and has great accessibility and an excellent business environment. These factors, among many other competitive advantages, facilitate the successful establishment and operation of international companies in Mexico.

A strong collaboration between local governments, academic institutions and industrial conglomerates (also known as clusters), has fostered the development and integration of a strong supply chain, another reason why Chihuahua is an industrial leader in Mexico.

Chihuahua is home to more than 100 international corporations employing more than 100,000 people. Chihuahua’s main manufacturing sectors include the aerospace industry Mexico, automotive and auto-parts, medical devices manufacturing Mexico, IT, mining, metal-mechanical, plastics, energy, BPOs and Shared Services, among others.

Offshore manufacturing in Mexico

Companies that require trained engineers and highly skilled human talent are expanding to Chihuahua due to the city’s investments in educational and R&D infrastructure. The city of Chihuahua is the largest provider of engineers per capita in the country, and low-migration levels guarantee operational stability and an excellent labor environment with low turnover and absenteeism rates. Each year more than 5,000 engineering students and over 30,000 technicians graduate from local institutions.

The city is also home to the largest and most integrated aerospace cluster in Mexico with more than 50 plants from international corporations, including 6 OEMs and more than 40 certified suppliers occupying over 6 million square feet of state-of the art facilities and employing 17,000 people.

Chihuahua is also home to one of the most important auto parts clusters in Mexico. It is comprised of more than 40 plants from international companies in the sector that create more than 50,000 jobs. Some of the largest companies that call it home include Ford, DTR, Continental, Buelher, Tristone, Lear, Yazaki and many others. The main processes carried out in the automotive sector include plastic injection, aluminum injection, precision machining, metal stamping, thermal treatment, interiors fabrication, security systems, electric and electronic parts and components and wire harnesses assembly.

In addition, Chihuahua is also a strong hub for medical devices manufacturing in Mexico, and is home to important companies such as Conmed, Essilor, Cardinal Health and Teleflex. The city is currently working on expanding in this sector, as it allows companies the ability to make their supply chains more resilient.

The state also gives companies access to a market of more than 1.2 billion consumers through the network of free-trade agreements that Mexico has with over 40 countries, the renewed free trade agreement with the US and Canada, its strategic geographic location that reduces the lead time to the north American market, its availability of talent at a very competitive cost and easy access to the east and west coast in the US. All of these are reasons why companies should consider Chihuahua as a logical choice to invest in Mexico.

International companies in Mexico



By Sandra Malottky | Chihuahua Business Development Manager | American Industries Group®
Did you find this content interesting? Sign up for our monthly newsletter to receive more articles and infographics.

Subscribe

If you would like to find out more about this topic or are interested in receiving a complimentary business case analysis for your operation in Mexico, please fill out this form or contact us at:

US toll-free: +1 (877) 698 3905

CAN toll-free: +1 (844) 422 4922

start@americanindustriesgroup.com
Please note that we do not accept job applications here. If you are interested in applying for a position, please visit the following link: https://www.americanindustriesgroup.com/jobs/




Related posts

August 3, 2021
Parachute Manufacturer finds a Safe Haven in Guadalajara, Mexico
Canopies Manufacturer finds a Safe Haven in Guadalajara, Mexico
Established in 1982, Performance Designs is a canopy manufacturer with operations in Guadalajara, Jalisco. Though it currently is an international company with operations in the US, […]
July 29, 2021
Manufacturing in Mexico
Ciudad Juarez preparing for the Future investing in World-Class Innovation Centers
With the arrival of the first maquila companies to Ciudad Juarez in the 1960s, the city quickly went from a border town famous for its nightlife, […]
July 24, 2021
Ciudad Juarez: Mexico’s Binational and Bicultural Heart of Industry
As one of the most important border towns in the world, Ciudad Juarez, located in Mexico’s largest state of Chihuahua, is known for manufacturing, exporting, and […]
July 15, 2021
Manufacturing in Mexico
US Companies can Mitigate Labor Shortages by Nearshore Manufacturing in Mexico
With activities beginning to return to normal across many cities in the United States, a sector of the economy experiencing a boom in demand—manufacturing—is facing a […]
June 21, 2021
My Home is Your Home: Chinese Furniture Manufacturer Expands To Monterrey
When the leadership of KUKA, a Chinese upholstery and furniture manufacturer, made the strategic decision to set up operations in Mexico to be closer to its […]
June 14, 2021
Nuevo Leon: Home to One of Mexico’s Most Skilled, Stable, and Productive Workforces
When relocating to a new country and starting up operations, a key factor in ensuring success is recruiting and maintaining personnel that is productive, stable and […]