Why is it so popular to manufacture in Tijuana, Mexico?
Tijuana’s experience is unmatchable when it comes to manufacturing. Time and time again, companies from all over the world have chosen Tijuana as the heart of their operations thanks to its many benefits. Here are some of the most notable ones:
- Nearshoring: When in Tijuana, manufacturing companies’ greatest advantage is their proximity to the world’s second and first largest economies: The United States and China. Whether a company is looking to import resources or export products to and from these countries, nearshoring reduces times and costs of transportation, shortens the supply chain, and allows for easier communication.
- Lower production costs: If a company wants to make it in today’s market there is no better place than Tijuana, where costs of operation (rent, utilities, labor, administration, resources, etc.) can be so much lower and tax incentives are put in place in favor of the manufacturing industry. This increased operational efficiency and considerable cost savings can give your company the leverage it needs to not only compete in the global marketplace but can allow you to re-invest savings in research and development.
- Highly skilled labor force: It’s no secret to anyone that Tijuana attracts people from all across Mexico who are willing and ready to work. In 2022 alone, the maquiladora industry created and filled over 264,744 job openings for our lively border city (INCOMEX, 2022). With the added benefit of being a low-cost, high-value asset, the workforce in Tijuana is highly skilled, educated, and ever growing. Most maquiladora workers in Tijuana are fluent in English and many have previous experience in the manufacturing industry, from aerospace to medical to electronics, making the onboarding process a quick and efficient one.
- Infrastructure: Tijuana’s connectivity is one of its greatest strengths. Our borders, ports, highways and international airport give you direct access to the world’s largest markets. Not only that, but this city’s seniority in the manufacturing industry has resulted in the creation of many industrial parks with strong infrastructure that can house any type of operation. You will also find that Tijuana’s newest industrial buildings, like those built by ATISA, use the latest technology to provide efficient, customized, and high-quality spaces for your company to thrive.
- Trade agreements: Companies in Tijuana will fully benefit from Mexico’s agreements that encourage and facilitate trade between nations. The United States-Mexico-Canada Agreement (USMCA), which recently replaced NAFTA, pursues a positive and meaningful economic impact for all three countries involved by eliminating barriers to trade, promoting conditions of fair competition, and increasing investment opportunities (California Chamber of Commerce). Mexico is also actively involved in trade agreements with the European Union, The Pacific Alliance, EFTA, and the CPTPP, which opens up a world of opportunities for companies looking towards expanding their reach.
- Maquiladora Program: Due to its positive impact on the city’s economy and labor market, Tijuana encourages foreign investment by making it easy for companies to transition their operations by issuing special regulations to manufacturing companies such as the duty-free, temporary importation of raw materials, supplies, machinery and equipment.
If your company is searching for their future manufacturing headquarters, Tijuana is next to none when it comes to advantages for its companies. Our experts at ATISA will help you start benefiting from these perks as soon as possible and get you settled in a high-quality building in no time.
INCOMEX (2022) Maquiladora pierde 2 mil 184 empleos en Tijuana. Retrieved from: https://incomex.org.mx/index.php/2022/09/30/maquiladora-pierde-2-mil-184-empleos-en-tijuana
California Chamber of Commerce (2020)U.S.-Mexico-Canada Agreement (USMCA). Retrieved from: https://advocacy.calchamber.com/international/trade/u-s-mexico-canada-agreement/