FAQ — Relocating or Expanding Operations to Tijuana, Mexico
Thinking About Expanding to Mexico? Start Here.
If you’re a COO, VP of Operations, or supply chain decision-maker considering nearshoring, Tijuana is already on your radar, and for good reason.
Strategically located just 19 miles south of San Diego, Tijuana offers access to a massive binational workforce, certified industrial infrastructure, and a logistics advantage that can slash delivery times from weeks to hours. But even with all those benefits, expanding into a new country raises big questions:
- How much will we save?
- Is there enough talent?
- What are the real risks?
- And how fast can we launch?
At Tijuana EDC, we’ve heard these questions thousands of times from aerospace, medical devices, electronics, and logistics companies and helped them get honest answers.
This FAQ distills the 13 most common and critical questions companies ask before relocating or expanding operations to Tijuana. Start here if you’re evaluating Mexico as part of your global operations strategy.
1. Why is Tijuana considered a strategic location for manufacturers?
Tijuana sits 19 miles from San Diego, giving companies same-day truck access to the world’s largest consumer market while remaining inside USMCA. The city’s Otay Mesa and San Ysidro ports of entry handle > $50 billion in annual trade, so inputs and finished goods move in hours, not weeks. It’s a rare combination of proximity, precision, and people that sets Tijuana apart, enabling global companies to scale high-value operations with unmatched speed to market.
2. Which industries see the greatest advantage here?
Aerospace, medical devices, electronics/semiconductors, 3PL/logistics, and advanced automotive components—all sectors that require regulated, high-precision manufacturing—have mature supply chains, certified facilities, and dedicated industry clusters in Tijuana. The city is a manufacturing powerhouse with decades of excellence in these regulated industries, supported by ISO-certified, R&D-capable facilities, including ISO 13485 for medical devices and FAA Part 145 for aerospace.
3. How much can we realistically save?
Most foreign operators report 40-50% production cost savings versus comparable U.S. plants, thanks to lower labor (entry-level direct employees start at ~$4/hour fully burdened), industrial rent ($0.48-$0.52/sq ft monthly), and utilities (electricity rates have fallen 18-26%). The operational cost advantage extends beyond labor; transportation costs drop significantly with same-day shipping to major U.S. distribution centers.
4. What incentives are available?
Federal Level:
- IMMEX 4.0 – duty- and VAT-free import of materials/equipment for export production
- VAT refunds in 20 days (vs. standard 90 days elsewhere in Mexico)
- Accelerated depreciation on capital equipment
Regional Benefits:
- Northern Border Zone rates – reduced corporate tax rates for qualifying companies
- Special Economic Zones (SEZs) with streamlined regulations and modern infrastructure
- State & municipal sweeteners – payroll tax relief, fast-track permits, and utility connection discounts
Workforce Development:
- Training subsidies through Baja California’s workforce programs aligned with over 50 technical universities
5. How long does it take to set up?
With EDC guidance or a shelter partner, a maquiladora can be IMMEX-certified in 30-45 days; full plant launch typically falls inside six to nine months, depending on build-out needs. The cargo pre-inspection program at Otay Mesa allows qualified shipments to cross within an hour, and streamlined customs procedures ensure efficient operations from day one.
6. Is skilled talent really available?
The metro hosts over 259,000 manufacturing workers and more than 50 technical universities. Tijuana boasts one of North America’s largest, youngest, and most technically skilled workforces, with a high concentration of talent in STEM and R&D-intensive industries. Roughly 40% of engineering and technician graduates are bilingual, and sector-specific programs, such as those aligned with ISO 13485 and FAA Part 145, cater to employer needs. Alliances between the government, the private sector, and academia have created an education-rich environment where technical training in specific processes has become a collaborative venture.
7. How reliable are infrastructure and utilities?
Dozens of modern industrial parks offer redundant power (avg. $0.08/kWh), fiber-optic internet, and on-site security. Tijuana’s infrastructure is generally well-developed with modern industrial parks, reliable utilities, and good internet connectivity. Recent developments, such as the $911 million Natura Industrial Park, are redefining the region’s industrial landscape. Border capacity continues expanding with the upcoming Otay Mesa East facility.
8. What does cross-border logistics look like day-to-day?
Pre-cleared trucks regularly clear customs in under 1 hour via FAST/SENTRI lanes; many firms achieve “dock-to-dock” deliveries from Tijuana to Southern California distribution centers in the same shift. Products manufactured in Tijuana can reach U.S. distribution centers within hours, rather than weeks, providing significant supply chain efficiency advantages. The city’s integration into North American supply chains is characterized by strong connections to U.S. and Asian markets.
9. How safe is Tijuana for employees and cargo?
Industrial zones are gated and patrolled 24/7, and cargo theft on well-monitored border corridors is rare. Companies should implement standard corporate security protocols and provide employee safety guidance regarding travel in certain areas and cash handling precautions. Most multinationals rate operational risk in industrial zones as manageable with proper security measures.
10. What is life like for executive managers?
Executives often live in upscale Tijuana districts or San Diego suburbs, enjoying binational commuting via the CBX bridge. According to the World Happiness Report, Mexico ranks highly in terms of happiness and quality of life. The region offers affordable living costs, vibrant culture, diverse dining, a mild climate year-round, and access to outdoor activities, including nearby beaches and Valle de Guadalupe wine country.
11. Can we meet strict U.S./EU compliance standards?
Absolutely. Facilities routinely hold ISO 13485, AS9100, FDA, and FAA certifications. Mexico’s Bilateral Aviation Safety Agreement (BASA) with the United States facilitates aerospace manufacturing through mutual recognition of standards. Medical device manufacturers must adhere to strict quality standards, including ISO 13485 and MDSAP certifications. USMCA rules provide additional compliance advantages and expedited validations.
12. How is intellectual property and R&D supported?
Tijuana’s growing innovation ecosystem includes universities, research centers, and tech parks that foster collaboration and technological advancement. The city’s proximity to San Diego provides access to a larger innovation hub and cross-border collaboration opportunities. The CaliBaja Education Consortium allows researchers and students to collaborate across borders, while local institutions like CETYS University offer unique cross-border MBA programs with UC San Diego partnerships.
13. What exactly does Tijuana EDC do for us?
The EDC acts as your one-stop concierge and gateway to North American innovation, arranging site tours, connecting you with tax/legal advisors, coordinating with state agencies, and providing market data, workforce connections, and ongoing support throughout your expansion journey. We facilitate the rare combination of proximity, precision, and people, enabling global companies to scale high-value operations with speed, savings, and skilled talent.
If this article was helpful, you can consult, Safran: Revolutionizing Aerospace Manufacturing in Tijuana or Expand your business in Tijuana, without mistakes and with success.
Ready to explore how Tijuana can transform your operations? Contact Tijuana EDC to schedule your executive site visit and discover why leading manufacturers choose Tijuana as their strategic gateway to North American markets.
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