Manufacturing in Mexico: Key Industries
From site selection to daily operations management, we simplify complexity for the world’s leading industries. Discover how to secure your operational success in Mexico.
Mexico is a top manufacturing destination for companies seeking cost-effective, efficient expansion. It offers a stable economy, competitive labor costs, and growing high-tech manufacturing capabilities. Compared to other regions in the Americas, Europe, and Asia, Mexico provides significant savings on labor and operational costs. As an open economy, it also offers access to global markets through a wide network of free trade agreements. These advantages make Mexico an ideal location for international manufacturers.
At American Industries, we offer comprehensive solutions for companies looking to expand their operations to Mexico efficiently and profitably.
Our Services for Your Success
At American Industries, we offer turnkey solutions to help you establish and operate your manufacturing business in Mexico. We handle everything, from operational management to regulatory compliance and nearshoring support. Our services include:
- World-Class Industrial Spaces: Access to modern, customized facilities tailored to your specific needs.
- Comprehensive Production Management: Optimize your operations with tailored solutions for your industry.
- Regulatory and Legal Compliance: Expert guidance to ensure adherence to local and international regulations.
- Logistical Support: Efficient management of your supply chain and product distribution.
Strategic Location: Direct Access to the U.S. Market
Mexico offers a unique proximity to the United States, which facilitates logistics and reduces transportation times. This strategic location allows companies to leverage nearshoring, optimizing both distribution and production while maintaining low costs. At American Industries, we help businesses establish operations in Mexico, taking advantage of this proximity to enhance supply chain efficiency.
Reducing Operational Costs: Maximizing Profitability in Production
Mexico is renowned for its competitive labor and resource costs, enabling companies to significantly lower operational expenses without compromising on quality. Additionally, the Mexican government offers fiscal incentives and other economic benefits to attract foreign investment, making Mexico an ideal location to optimize production and improve profit margins.
Robust Infrastructure and Local Supplier Network
Mexico boasts an advanced industrial infrastructure, including world-class industrial parks, access ports, and a network of high-quality local suppliers. This allows companies to leverage nearby resources and establish an efficient operation with no supply chain disruptions. Our team at American Industries connects you with the best local suppliers, streamlining the installation and production process.
How to Manufacture Products in Mexico?
- Joint Venture
- Acquisition of an existing operation
- Contract manufacturing
- Wholy owned
- Shelter program
Top 10 Reasons to Consider Manufacturing in Mexico: At a Glance
Here’s a quick summary of the key advantages that make manufacturing in Mexico a competitive edge for your business:
Proximity to Key Markets
Technical Training Support
Real-Time Communication
Quality Culture
Skilled Workforce
Supply Chain Integration
Tax Incentives
Tariff Savings
Soft Landing Culture
Major Manufacturing Industries in Mexico
- Automotive
- Aerospace Manufacturing in Mexico
- Medical Device Manufacturing in Mexico
- IT & High-Tech Manufacturing in Mexico
- Electronics Manufacturing in Mexico
- Appliances Manufacturing in Mexico
- Textile Manufacturing in Mexico
Mexico has become one of the world’s leading hubs for automotive assembly and manufacturing, thanks to its strategic location and competitive labor costs.
Key facts:
- 4th largest vehicle exporter and 7th largest producer worldwide, with nearly 4 million units manufactured in 2024 and over 48 million exported.
- Privileged location and over 45 trade agreements, including USMCA, providing preferential entry to the U.S., Canada, Europe, and Asia.
- 4th largest auto parts producer globally, with a complete ecosystem of Tier 1–3 suppliers and consolidated clusters in Bajío, Coahuila, Nuevo León, and Puebla.
- Highly trained labor force specialized in precision manufacturing, with costs up to 40% lower than in the U.S. while maintaining international quality standards.
- Significant investments from global leaders like Tesla and BMW, with projections that by 2026, 40% of national production will be hybrid or electric.
Competitive advantages:
- Production of components such as bodies, engines, brake systems, powertrains, interiors, metal stamping, and electrical parts.
Mexico stands out as a global leader in aeronautics due to its technology, strategic investment, and commitment to sustainability.
Key facts:
- 6th largest supplier to the U.S. aerospace sector.
- Average annual growth of 15%.
- Average annual FDI of USD 33 billion; cumulative USD 4 billion since 1999.
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Competitive advantages:
- Adaptable and strong industrial ecosystem.
- Specialized workforce.
- Presence of major OEMs such as Bombardier, Safran, Zodiac Aerospace.
- Integration of AI, automation, renewable energy, and recycling.
Mexico is one of the most important markets in the Americas for medical devices, with tariff-free imports from the U.S. and Canada, assembled and re-exported.
Key facts:
- Over USD 3.4 billion exported to the U.S. (2012 data).
- 223 companies dedicated to medical devices, with 92% of production exported.
Competitive advantages:
- Proximity to the U.S.; efficient logistics and regulatory alignment.
- Manufacturing compliant with FDA, CE, ISO 13485 standards.
- Skilled workforce and cost competitiveness compared to China.
- Companies such as Medtronic, J&J, and Siemens operate in the country.
Beyond traditional manufacturing, Mexico has become the most important tech cluster in Latin America, with software development, design, and BPO centers.
Key facts:
- Software employment growth of 8.6% this year in Mexico City, Guadalajara, and Monterrey.
- Over 500,000 IT professionals; 65,000 new graduates per year.
600 SMEs export 70% of their output; presence of Oracle, HP, Motorola, and IBM.
Competitive advantages:
- World-class infrastructure and strong academia-industry links.
- Cost of living and salaries well below Silicon Valley; compatible time zones.
The electronics industry is one of the fastest-growing in Mexico, making it the second-largest supplier of electronic products to the U.S.
Key facts:
- More than 730 manufacturing plants producing audio, telecommunications, components, and computing equipment.
- USD 605 million in FDI between January and September 2023; cumulative total since 1999: USD 25.2 billion.
Competitive advantages:
- Proximity to the U.S. and a skilled workforce.
- Presence of leading EMS companies such as Foxconn, Flex, Sanmina, and Benchmark.
Strong intellectual property protection and tariff benefits under the USMCA.
The appliance industry is one of Mexico’s key strengths, making it the main supplier to the U.S., Canada, and Central America.
Key facts:
- Contribution to GDP grew 85% since 1995, reaching 5.22 trillion pesos (~USD 281.9 billion) in 2023.
- Cumulative FDI of USD 1.499 billion.
Competitive advantages:
- Global leadership supported by brands such as Whirlpool, LG, and Electrolux.
- Clusters like Nuevo León encourage cooperation; expanding supplier network.
- Stable business environment and USMCA providing tariff-free access.
Mexico’s textile industry has grown rapidly, now ranking as the country’s fourth-largest manufacturing activity, covering everything from fibers to fabrics and decoration.
Key facts:
- USD 7.6 billion in exports to the U.S. in 2022; representing 2.7% of GDP.
- Generates more than 1.1 million jobs.
Competitive advantages:
- Scalable production, affordable labor costs, and technological innovation.
- Trade agreements and programs such as IMMEX and USMCA offering tariff benefits.
- Textile manufacturing capabilities for the automotive and aerospace sectors.
- American Industries enables production start-up in as little as 9 weeks through shelter services.
EXPLORE OUR STRATEGIC REGIONS FOR MANUFACTURING IN MEXICO
How to Quickly and Safely Launch a Manufacturing Operation in Mexico (The Shelter Model)
Starting operations in a new country involves complex administrative, legal, and HR challenges. American Industries’ Shelter Program is a proven solution that removes these barriers, allowing you to operate in record time while we handle everything else.
Proven Results: The Success of Our Partners
The numbers and success stories speak for themselves. Global leaders trust American Industries for their strategic operations in Mexico.
Establish Your Manufacturing Operation in Mexico Today
Discover how we can help you optimize your production and take full advantage of the benefits of manufacturing in Mexico. Request a free consultation and begin your journey toward success.
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