Manufacturing in Mexicali is on the upswing

Baja California has 931 companies within its territory.  This has positioned the state as a leader in the manufacturing, maquila, and export services industry.

Companies that have IMMEX certification in the entity represent 18% at the national level.  This statistic is according to the state’s Secretariat of Sustainable Economic and Tourism (SEST) information.  Within industry in Baja California, manufacturing in Mexicali plays a prominent role.

Specifically, Mexicali is positioned as one of the leading cities in the maquiladora industry in Mexico. A total of 124 companies affiliated with the Association of Manufacturing and Export Industry (Index) make up one of the most robust economic engines in the economy of Baja California.  Manufacturing companies in Mexicali are the source of approximately 70,000 direct labor jobs.

The majority of the companies that are foreign direct investors in the economy of Mexicali are from the United States. Still, the city has attracted businesses from Asia and Europe, as well.

Pillar of Investment

Of the industries present and manufacturing in Mexicali, companies from the medical device, automotive, telecommunications, metalworking, electronics, and, above all, the aerospace sector stand out.  In this industry, as of 2018, the city and Querétaro were in positions nine and ten, respectively, in the top ten of the FDI Intelligence world ranking of Aerospace Cities of the Future.  The business publication, the Financial Times, is the source of this information.

Currently, 40 aerospace companies are manufacturing in Mexicali.  These firms have a collective workforce of 16,000 laborers, and this number is now on the rise.

Although the United States remains the principal investor in the Mexicali aerospace industry, Canada, France, and Germany have targeted this growing city as a leading destination to expand their investments in the sector. Companies such as Collins Aerospace, Gulfstream Aerospace, GKN Aerospace, and Chromalloy, among others, stand out.

Regarding the specialized electronics manufacturing services (EMS) industry, Mexicali has received significant investment capital from Japan, South Korea, and Taiwan.  The plants use state-of-the-art equipment to produce their various products. Skyworks, Technicolor, Valutech, LG, and Mitsubishi have found an area of opportunity associated with manufacturing in Mexicali, Baja California.

With a highly trained workforce, the metalworking industry has consolidated itself in Mexicali in recent years. It has provided the right conditions for national and foreign companies to expand their operations in the city. In this area, companies such as Accuride, Black & Decker, and Rheem stand out.

Due to the 15 companies representing the sector, Mexicali contributes to making Baja California the most significant medical device cluster in Latin America. With a workforce of more than 6,000 engineers, technicians, among others, manufacturing, assembly, and packaging operations are carried out there. Vyaire, Intuitive Surgical, Breg, and Masimo are among the job-creating companies in the medical industry.

Companies that are manufacturing in Mexicali benefit from the fact that the state capital has a geographically privileged location bordering the neighboring state of California.  This position facilitates manufacturers’ access to the vibrant market situated on the other side of the international boundary. This proximity, in turn, is also desirable for investors from the Asian market who, in addition to gaining access to one of their most lucrative markets, reap the benefit of advantageous labor costs found in Mexico. Both US firms and those from other investor nations have discovered that Mexicali has enough infrastructure to accommodate investment and a workforce that is qualified.  This has been an essential attraction for high technological value companies that have decided to begin manufacturing in Mexicali.

The USMCA opens new opportunities for companies that are manufacturing in Mexicali

Recognizing the opportunities that will materialize in the medium and long term with the entry into force of the Agreement between the United States, Mexico, and Canada (USMCA) in July of 2020, companies that are manufacturing in Mexicali from outside the trading bloc can gain preferential access to the North American market as a whole.  Because of the manufacturing sector of Mexico, Baja California, and the city of Mexicali will continue to thrive and prosper