A wide range of options is available in Tijuana for companies seeking contract manufacturing solutions.
Over the past several years, there has been much written and communicated on the topic of companies “reshoring” manufacturing from the Far East, mainly from China, back to the North American continent.
A significant share of this activity involves firms that have subcontracted the manufacture of their products to third parties. As of late, due, in particular, due to the rising cost of labor in China, as well as the volatility in the cost of transportation, manufacturing executives increasingly are seeking out options closer to home, where costs, across the board, have become more competitive, and proximity to end user markets translate into competitiveness-enhancing lead times. In the context of North America, contract manufacturing offers a diversity of options for companies that are pursuing this production option.
According to the Tijuana Economic Development Corporation, the “ecosystem” for contract manufacturing in the city, and in the Baja California region, is a highly developed one. Contract manufacturing in Tijuana offers a diversity of options that activities ranging from “basic assembly” to “packaging,” and to “complex turnkey” activities. These include:
- medical device contract manufacturing
- plastics processing
- contract metal fabrication
- third-party electronics assembly
A 2013 white paper published by the Tijuana Economic Development Corporation, in cooperation with the Axis Strategic Intelligence Center, the International Economic Development Council, and the City of Tijuana identified the presence of seventy-nine companies engaged in contract manufacturing in Tijuana. These firms reported a combined headcount of 21,731 employees. Research conducted by the Tijuana Economic Development Corporation and its partners revealed that of these manufacturers:
- “80 percent ISO 9000, ISO 13485, A/S 9100 and/or TS 16949 certified.
- “Seven firms comply with government rules and regulations that include those outlined by the FDA, the FAA and ITAR.”
- “Eight of every ten companies have implemented efficiency improvement programs such as Lean Manufacturing and Six Sigma.”
In addition to the aforementioned activities contract manufacturing in Tijuana also consists of companies that engage in contract:
- metal finishing
- product integration
The main industries served by the majority of those firms with contract manufacturing in Tijuana capabilities are in the areas of:
- electronics and medical device manufacturing
- automotive and aerospace
- general manufacturing, pharma and textiles
Those companies that are seeking an alternative to production in China should consider the option of contract manufacturing in Tijuana. Much of the information for this blog has been excerpted from information that can be downloaded by visiting the Tijuana Economic Development Corporation’s website. It is entitled, “Tijuana’s Contract Manufacturing Ecosystem.