In the United States, the revenue in the musical instruments market for 2024 is projected to reach $6 billion USD and this market is anticipated to experience an annual growth rate of 5.06% from this year to 2028. It’s no wonder why a lot of people would want a share of it, however, the bigger the market the harder to compete. In order to do this, nowadays companies resort to offshoring, and particularly nearshoring, to reduce costs. Many American music instrument manufacturers choose a Mexican border state for this. Find out about it here.
Nearshoring in Mexico
As we know, nearshoring is a business model where companies install their production plants in nearby countries to reduce costs related to facilities, services, labor, and taxes. Unlike regular offshoring, it also reduces logistics costs due to proximity. Currently, multiple industries point to Mexico as the best nearshoring destination, especially for the United States markets for obvious reasons.
This represents a great opportunity for international companies looking for business opportunities in Mexico, particularly so for music instrument manufacturers. But the US-Mexico border is 2000 miles long, so where should you look?
The Best Choice for Manufacturing Musical Instruments
Baja California, Mexico, is the state right across the border with California. Tijuana is an industrialized and big Mexican city known for being the most transited border in the world and for being a leader of maquiladoras in Mexico. Baja California, and particularly Tijuana, have a lot to offer in terms of labor and shelter programs (business models where foreign companies hire and delegate all the installation and operation of their production plants to other companies). But what do they know in Baja about manufacturing musical instruments?
Believe it or not, important American brands such as Fender have been working part of their production here since decades ago. Fender, for example, opened their factory in Ensenada back in 1987, more than 35 years ago. Other renowned companies such as Gibson, Taylor Guitars, and Aquarian Drumheads are also working here.
So why is Baja such a good choice for musical instrument manufacturing? As mentioned before, its highly-skilled labor base and privileged location were a start, but also the experience and vocation of this place in terms of music instrument manufacturing is something that anyone interested in this market should consider and if possible use to his or her advantage.
Start Your Venture, Reduce Costs, and Provide High-Quality Instruments
If reading this makes you consider starting a business in Mexico, you should also know about Contract Manufacturing solutions. These are a variety of services offered to foreign companies through a sole contract with a local company that takes charge of installing, recruiting, and operating your business in Mexico. Through these shelter programs, American companies or companies from around the world interested in the American market can benefit from the benefits of producing in Mexico, particularly in Tijuana and the rest of Baja. These companies know all about logistics; norms and regulations; recruiting; international trade agreements; and fiscal exemptions such as those for maquiladoras; and pretty much solve any trouble along the way.
If you are interested in being one of the music instrument manufacturers that operate in Baja and benefit from all of these for selling in the American market, you should contact Tijuana EDC. This is a non-profit organization dedicated to assisting foreign companies interested in the Cali Baja mega-region. Their contacts are not only in Mexico, but also California, so you will surely find lots of business synergies and opportunities with them.
