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Baja California manufacturing sector among nation’s fastest growing

Baja California manufacturing sector among nation’s fastest growing

One of the leading engines of Mexican economic growth is the Baja California manufacturing sector.

The Instituto Nacional de Estadística, Geografía e Informática (INEGI) is the Mexican government agency that captures, processes and disseminates information pertaining to the country’s territory, population and economy.

INEGI recently released information from its monthly manufacturers’ survey that revealed that the value of production emanating from the Baja California manufacturing sector increased  during  the year over year July 2014 to July 2015 period by an impressive 33.6%. This was the largest annual increase of any state in the Mexican Republic over the same time period. Numbers from this recently release report revealed that the Baja California manufacturing sector experienced a steady expansion over 11 consecutive months. The increase in industrial expansion in Baja California greatly surpassed the 2.7% that the nation as a whole experienced.

In addition to value of production, the Baja California manufacturing sector also registered gains in the important area of job creation. Recently published INEGI data shows that from June 2015 to the present 22,461 jobs have been added to the state’s diverse industrial base. Although most of the growth in production positions in the Baja California manufacturing sector were created as the result of organic growth within companies already resident in the entity, INEGI information demonstrated that over the July 2014 to July 2015 time frame 8 new companies, made up of foreign capital, chose Baja California as the Mexican state in which to initiate new Mexican manufacturing operations. According to statistics provided by the Mexican Social Security Institute, or IMSS as it is known by its Spanish language acronym, 52% of employment in Baja California is linked to manufacturing activities.

The Baja California manufacturing sector is one of the major contributors to the entity’s Gross State Product, or GSP. Industrial activities comprise 20% of the economy of Mexico’s westernmost state, and the resulting value of its monthly manufactured exports exceeds US$ 3 billion. Baja California ranks third in this measure among the nation’s 31 states. Most important among Baja California’s manufactured products are items that are produced for industries that include:

  • aerospace
  • automotive
  • electronics
  • medical devices
  • textiles
  • transportation

Due to the anticipated continued growth of the Baja California manufacturing sector, it is anticipated that opportunities for suppliers that support the Baja California manufacturing will continue to expand for the foreseeable future. Those most familiar with the composition of the State’s manufacturing base suggest that the suppliers that will encounter the most success in the Baja California manufacturing sector are those that are ISO 9001 and/or ISO 13485 certified, have previous experience in supplying companies in the industry or industries which they are targeting, as well as those that can offer world-class quality at competitive prices and make delivery directly to their customers’ facilities.

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