Saying the manufacturing sector has undergone major changes in the last decade is an understatement. With the pandemic, trade rifts between China and the United States, and the newly formed North American trade agreement, the manufacturing companies in the United States are looking forward to Mexico now more than ever.

Though several sectors have already benefitted from manufacturing in Mexico in the last decades, automotive, aerospace, and medical device companies are maximizing the use of the skilled labor force in Mexico because of the reasons given below:

  • Problem hiring manufacturing workers in the United States
  • Medical device companies’ headquarters are close to the US/ Mexico border.
  • The USMCA regulations help the automotive material manufactured in North America.

Problem hiring manufacturing workers in the United States

With the US economy experiencing the post-pandemic shift, the demand for products is increasing and rising to 37 year high. However, production companies find it tough to find a talented workforce for machinery, welding, surgical equipment production, and other specialized roles. According to a Deloitte and the Manufacturing Institute report, 77% of production executives’ surveys revealed that the companies will notice issues retaining workers in 2021.

Luckily, Mexico continues to develop a reasonably priced, highly talented workforce with the required education, internship, and training to meet the job requirements, from operators to production supervisors and managers. 

The aerospace industry reported a 14% growth in their average yearly export from 2004-2019, with more than 63000 job positions created, leading to a $6 billion direct foreign investment.

Compared to other manufacturing industries, the aerospace sector has a young presence in Mexico. But, the sector has consistently grown from 100 production units in 2004 to 260 units in 2019. The growth of medical device manufacturing in Mexico has also been excellent, creating demand for a talented workforce.

The headquarters of medical device companies are in close vicinity to the US/ Mexico border

Another reason US companies are looking forward to the skilled labor force of Mexico is the vicinity. In the United States, San Diego is the biggest medical device company in the US, with many manufacturers. The small drive across the border to Tijuana has made this sector grow immensely well. Currently, 70% of medical device plants in Tijuana are from America.

Baja houses the biggest medical device clusters globally with 75% medical device producers and 71000 job opportunities. The location is great for production supervision, quality check, and transportation. With growth consistently increasing, Chihuahua, Sonora, Jalisco, and Nuevo Leon are also seeing a rise in medical device manufacturing Mexico.

USMCA regulations help the automotive material manufactured in North America

Mexico manufacturing is a good plan for US companies because of the USMCA changes enforced in 2020. A major provision needs 75% of auto content to be produced in North America, and 40% of them made by workers earning $16 per hour. This is a major incentive for US companies to choose relocation and expansion and shift to Mexico.

The automotive sector enjoys a great presence in Mexico, with over 1 million labors employed. Producing 3.7 million cars yearly, it is all set to expand in Guanajuato, Queretaro, Sonora, Baja, and more.

The skilled labor in Mexico is one of the most amazing lucrative things attracting the US and other foreign companies here.