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

April 9, 2021
Guadalajara: Pillar for IT Industry in Latin America
Located in central western Mexico’s state of Jalisco, the cosmopolitan city of Guadalajara plays a major role in the country’s economic expansion. It is also the […]
April 6, 2021
How the USMCA is Spurring Investment in Key Industries in Mexico
With current global economic restructuring and years of US-China trade tensions, the USMCA comes at a critical time, offering significant opportunities for international companies in Mexico […]
March 26, 2021
Canadian Company Finds a Stable And Non-Slip Foundation For Growth in Silao, Mexico
When Jim Scott, President of Ground Effects Ltd., first shared his plan to start up operations in Mexico to provide his spray-on bed liner services for […]
March 22, 2021
Guanajuato State: Home to One of the World’s Most Economically Dynamic Regions
When considering relocating or expanding operations to Mexico, choosing the right area for your company is an important and sometimes overwhelming decision. Each city and region […]
March 17, 2021
Why Manufacturing in Guanajuato State Can Increase Productivity and Supply Chain Resilience
Guanajuato State is situated in Mexico’s geographic center, in the heart of the Bajío area that is home to a number of industrial cities and several […]
March 9, 2021
Logistics Benefits of Nearshoring in Mexico: Free Up Time and Money
Economic disruptions and shifts in consumer behavior resulting from our new normal have highlighted the importance of logistics, and specifically innovation in logistics and supply chains, […]