When a 175-year-old German precision optics company chooses to build its largest manufacturing hub outside Germany in a border city, that’s not a coincidence; it’s strategy.
Carl Zeiss Vision didn’t come to Tijuana for cheap labor. They came for talent, speed, sustainability, and proximity to the world’s largest eyewear market. Today, the company employs over 3,900 people across five facilities in Tijuana, producing prescription lenses that are shipped to markets throughout the Americas, Asia, and Europe.
This is the story of how a global leader in optical engineering turned Tijuana into a cornerstone of its supply chain—and what it reveals about why manufacturers who demand precision are increasingly choosing Mexico’s border region.
Why Zeiss Chose Tijuana: The Strategic Calculus
Carl Zeiss Vision’s Tijuana facility is the company’s largest manufacturing operation outside of Germany, producing a comprehensive range of optical products including single vision lenses, progressive lenses, sunglass lenses, sports lenses, and workplace-specific eyewear.
But scale alone doesn’t explain the choice. Three factors made Tijuana indispensable:
1. Proximity to the U.S. Market
Tijuana’s location, sharing a border with San Diego, enables the seamless transportation of raw materials and finished goods between the U.S. and Mexico, for products like prescription lenses, where customization and speed matter, being hours, not weeks, away from American optometrists and retailers is a game-changer.
2. USMCA Trade Advantages
Products meeting USMCA rules of origin criteria are exempt from heightened tariffs, providing Zeiss with significant cost advantages compared to alternatives in Asia. This isn’t just about saving money—it’s about predictability and control in an era of shifting trade policies.
3. A Skilled, Bilingual Workforce
Tijuana’s substantial English-speaking population facilitates seamless communication and training for multinational operations. In contrast, Mexico’s commitment to vocational training programs has created a workforce particularly proficient in manufacturing sectors including optics, electronics, and medical device production.
For a company like Zeiss, where precision manufacturing meets global coordination, this workforce profile is essential.
The Numbers Behind the Operation
Let’s talk specifics. Labor costs in Mexico average approximately $6.50 per hour for entry-level manufacturing positions, compared to $24 per hour in the U.S., representing savings of roughly 75%. But Zeiss isn’t just chasing lower wages. The company is investing heavily in the region’s future.
In 2021, Zeiss announced a $48 million investment to expand production and assembly of prescription lenses in northern Mexico. That’s the kind of capital commitment you make when you’re not just setting up a cost center—you’re building a strategic asset.
The facility’s impact extends beyond Zeiss itself. Tijuana registered an industrial real estate absorption rate of almost 6 million square feet in 2021, with the medical device manufacturing sector expected to grow at a compound annual rate of 44%. Zeiss is both benefiting from and contributing to this industrial momentum.
Beyond Cost: Quality and Sustainability Leadership
Here’s where the Zeiss story gets interesting, and where it challenges outdated assumptions about what “Made in Mexico” means.
World-Class Quality Standards
Zeiss’s Tijuana facility serves as one of only three Zeiss Group Test Centers globally, alongside locations in Aalen, Germany, and Guangzhou, China. These specialized facilities conduct comprehensive chemical, thermal, and mechanical testing using 24 proprietary Zeiss test procedures.
This isn’t a satellite operation reporting to headquarters. It’s a global center of excellence trusted with the same testing protocols used in Germany.
Sustainability at Scale
The Tijuana facility achieved a 50% reduction in freshwater consumption between 2019 and 2021, and by 2023 had reached a 94% reduction compared to 2019 levels—despite government water shutoffs in Baja California.
How? By rethinking processes. Key initiatives included stopping tank flushing in production, implementing filtration and reuse systems for eyeglass lens rinse water, and reusing residual water from machinery in other processes—resulting in an annual water savings of approximately 550,000 cubic meters.
The facility also operates on 100% green electricity as part of Zeiss’s global commitment to renewable energy, contributing to the company’s goal of carbon neutrality by 2025.
For manufacturers facing increasing pressure to reduce environmental impact, Tijuana offers both the regulatory framework and the innovation ecosystem to make sustainability operational—not aspirational.
The Workforce Advantage: Why Talent Matters More Than Wages
Cost savings get attention, but talent retention tells the real story.
Zeiss has earned Great Place to Work certification in Mexico, with approximately 85% of Zeiss Vision Care employees agreeing that Zeiss is a good or very good place to work.
In a region with low unemployment and high demand for skilled workers, that’s not accidental. It reflects investment in training, competitive benefits, and a workplace culture that values precision and continuous improvement.
Tijuana has emerged as Mexico’s leading hub for medical device manufacturing, with 44 of the state’s 69 medical device manufacturers located in the city, employing over 41,000 workers. That concentration creates a talent ecosystem—workers move between companies, but they stay in the industry. Best practices spread. Supply chains deepen. Technical institutes adjust curricula to meet industry needs.
For Zeiss, this means recruiting doesn’t start from zero. The talent pipeline is already flowing.
The Cluster Effect: Zeiss Isn’t Alone
Smart companies don’t just look at their own operations—they look at who else is there. Zeiss operates alongside Medtronic, Stryker, and Essilor in Tijuana’s medical device cluster. In the broader manufacturing ecosystem, Samsung, Panasonic, Honeywell, and Toyota all have major operations in the city.
Why does this matter? Because these companies share suppliers, logistics providers, and technical expertise. When a customs broker understands FDA compliance for medical devices and USMCA rules for automotive parts, your supply chain runs smoother. When industrial parks invest in advanced utilities and security, everyone benefits.
Mexico’s position as the 14th largest aerospace supplier worldwide, with over 80% of companies in the sector dedicated to manufacturing aerospace products, means that Tijuana has access to suppliers, logistics partners, and technical expertise that enhance operational efficiency.
What the Zeiss Story Means for Your Expansion Strategy
Carl Zeiss Vision’s success in Tijuana isn’t a lucky break. It’s the result of aligning strategic priorities—market access, cost efficiency, quality standards, and workforce capability—with a location that delivers on all four.
Three takeaways for manufacturers considering Mexico:
1. Proximity still matters. In an era of just-in-time production and customized products, being hours from your largest market beats being weeks away—even if wages are slightly higher than Mexico’s interior.
2. Quality and cost aren’t trade-offs. Tijuana’s combination of ISO-certified facilities, experienced workers, and global testing centers proves that precision manufacturing and competitive costs can coexist.
3. Sustainability is operational, not aspirational. Zeiss’s water reduction and renewable energy achievements show that environmental goals are achievable when embedded in daily operations—and when supported by local infrastructure and incentives.
For companies in optics, medical devices, electronics, or aerospace, the Zeiss model offers a roadmap: start with a clear strategic rationale, invest in local talent and sustainability, and build for the long term.
Considering Tijuana for your next expansion? Carl Zeiss Vision is one of dozens of global manufacturers that’ve found strategic advantage in Mexico’s border region. The question isn’t whether Tijuana can support advanced manufacturing; it’s whether your competitors will get there first.
This post is part of the Tijuana Success Stories Series, profiling global companies that have built strategic operations in Mexico’s most dynamic border city.
