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Is Mexico Suitable for Electronic Manufacturers?

As far as deciding where to run the operations of manufacturing electronics is concerned, there are many options

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Is Mexico Suitable for Electronic Manufacturers?

As far as deciding where to run the operations of manufacturing electronics is concerned, there are many options. You can find reliable partners domestically in China, the US, and other countries.

But what many individuals don’t know is that Mexico remains the second most popular country for businesses looking to run manufacture Mexico operations for electronics.

Dominated by sectors, such as medical & optical implements, electronics, automotive, and machinery, Mexico’s neighbor to the south is usually a perfect way for the companies in the United States to get all their products to the market and improve or keep their competitiveness.

The reasons Mexico is a great fit for productions differ from one company to another. Most choose the country for flexible MOQs (minimum order quantities), workforce quality, and labor costs, not to mention proximity.

Analyzing Mexico

The industrial scenarios of every country differ based on various factors. When it comes to manufacturing industries in Mexico, these factors are evaluated by the nation’s infrastructure, workforce, and location, just to name a few.

In addition, outcome and production can drastically change because of the cluster of every company. The overall outlook is great in the country, but there are stronger sectors than others, including electronic manufacturing.

What Electronics Are Manufactured?

Around 30% of electronic manufacturing in the country pertains to the IT industry. Many factories in the countries have many products, including routers, network switches, computer CPUs, memory chips, and computers.

Another 30% of the country's electronics are consumer electronics, including video & audio goods and TVs. Mexico also manufactures:

  • Electronic appliances
  • Communications equipment
  • Mobile phones
  • LCD panels
  • Circuit boards

Are Consumer Electronics on Demand?

Mexico has technically become one of the attractive locations for manufacturing consumer electronics because of its synergy with other production activities.

Although it has a strong consumer electronics sector, much of its expertise has risen from the long history of creating complex components for the medical device, automotive, and aerospace industries.

In most cases, there are valuable overlaps between these sectors. As automobiles grow, they drive demand for new kinds of components and players.

These overlaps mean the materials and skillsets being used in the automotive sector are building up supply chains and skillsets to support the electronics manufacturing sector.

Demand for computers is as well pushing semiconductor and computer production sky high. Dramatic upticks in virtual school and remote work have strained the existing supply chain of producing computers, pointing to the need for increased manufacturing of other electronic components.

So, Why Is Mexico Ideal for Every Electronic Manufacturer?

Mature electronic manufacturing in the country dated back several decades ago and was among the sectors to experience growth.

Because of the ongoing foreign investments, the electronic manufacturing industry has continued expanding and is now the second biggest globally.

As of now, electronic manufacturers continue relocating their manufacturing operations from China to the country.

One of the major benefits of taking your electronic operations to Mexico is proximity to the consumer markets. Although China has been the electronics supplier to the US for a long time, its distance from consumer markets develops complex supply chains that are susceptible to issues.

In addition, the manufacturing of electronics needs skilled labor as it usually encompasses thorough quality control and intricate processes.

To fulfill this need for skilled employees, Mexico has invested a lot in education in an attempt to improve life quality and drive productivity.

Apart from a skilled workforce and nearness to consumer markets, other reasons to take your electronic operations include:

  • Low production costs
  • Growing market
  • Government incentives

The Takeaway!

Challenges or not, manufacturers, including those running electronic operations, are vouching for Mexico. Thanks to a deep talent pool, state-of-the-art technology, good logistical access, and production access, electronic operations in Mexico place it as the second-biggest exporter of electronics to the United States.

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