As the leading exporter of medical equipment and devices to the United States and home to over 223 companies manufacturing medical devices, as well as other medical supplies and medication manufacturers, the country’s already well-developed industry has been rapidly scaling up production in recent months to meet the sudden increase in demand due to the COVID-19 pandemic. This, combined with other geopolitical factors that were already causing growth in the sector, have resulted in consequent boom in industrial real estate Mexico as manufacturers grow and look for new and larger facilities to allow them to meet production demands.

Medical Devices Manufacturing Mexico

For several decades, the medical devices industry has been one of the fastest-growing sectors in the country and has long played an important role in international markets. It was already predicted to increase U.S. exports by $6 billion dollars over the last few years, growing from $9 billion in 2018 to $15 billion by this year, number which it is sure to surpass due to an increase in requests for not only ventilators (which has grown from an annual demand of 700 to approximately 2000), but also masks, hand sanitizer, disinfectants and other antibacterial products, disposable overalls, thermometers and generic medication.

There are several factors that have been contributing to this significant expansion in Mexico’s medical supply sector: in addition to recent changes due to the pandemic, including breakdowns in supply chains and increased demand, the ongoing trend in manufacturing aimed at making supply chains more agile, diverse and less dependent on China, and the new USMCA trade agreement, were already promoting more investment and growth in the industry. Having come into effect on July 1 of this year, NAFTA 2.0 as it is also known, not only provides greater certainty for investors in all sectors, but also includes several provisions aimed at fostering growth in the medical devices industry by streamlining processes for importing medical and pharmaceutical production and harmonizing and enhancing regulatory compatibility.

International companies in Mexico

In addition to these factors, Mexico is also poised to move up the value chain due to its geographical advantage, ability to offer better quality guarantees than its competitors, and the fact that standards are already very closely aligned to those in the U.S. Though this expansion will likely be more gradual than in other industries, such as the automotive industry Mexico and the aerospace industry in Mexico, due to the complex equipment required to manufacture these high-tech devices, everything is in place to allow it to become a world leader in the industry. In order to ensure this, it will also be key for the country to work on closing the skills gap through the formation of alliances between manufacturers, governments and higher education institutions.

All of this growth has also resulted in major increase in demand for industrial real estate Mexico, with the medical devices industry showing a year over year increase of 20.3% in industrial space occupied just in the first quarter of 2020. With all these factors at play, now is the perfect time to look at site selection in Mexico and the advantages of using shelter services in Mexico to take advantage of all that Mexico has to offer as this expansion continues.


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

* indicates required

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



Related posts

January 26, 2021
Maintaining Human Connection in a Digital World
Though technology has played an increasingly central role in all our lives in recent decades, 2020 accelerated this exponentially. In many cases, virtual spaces have become […]
January 18, 2021
Happy Family, Successful Business
We can all agree that it is difficult to concentrate on professional activities and launch successful ventures when our families are going through stressful situations. The […]
January 12, 2021
Word of the Year for 2021: Resilience
Though some may view resilience as an inherent quality—and likely one many of us didn’t give much thought to prior last year, it has come front […]
January 6, 2021
Mindset Shifts for Business Leaders to Move from Fragile to Agile
Faced with increasing volatility and uncertainty, business leaders are being forced to change the way they approach emerging challenges in a way that allows them to […]
December 28, 2020
New Mexico-United Kingdom Trade Agreement
With the departure of the United Kingdom from the European Union, and to maintain preferential market access between the two countries, on December 15, 2020 the […]
December 22, 2020
Manufacturing in Mexico
Three Factors that Can Contribute to Creating a Positive (and Competitive) Work Environment
With the labor market becoming increasingly competitive, it is more important than ever for companies to establish and maintain an excellent work environment. A changing culture […]