After the COVID-19 pandemic halted supply chain operations for almost two years, nearshoring has gained much popularity. But, despite the favorable evolution of the pandemic, supply systems continue to operate with several limitations.
Within this context, finding new business partners and supply sources is important for vital businesses like the health sector, which could not suspend operations despite the worldwide logistical constraints.
Medical equipment—like pacemakers and ventilators—is crucial to our way of life. Additionally, as wireless technology and artificial intelligence are integrated into these gadgets to increase their sophistication, so does the requirement for skilled assembly workers.
Medical Device Nearshoring Opportunities in Mexico
Not all countries are good candidates for Medical Devices nearshoring. However, there are a lot of elements that make Mexico a trustworthy partner for these operations.
Mexico has become a powerful source of affordable Medical Device manufacture for the rest of the world because of its skilled labor, nearness to essential markets, and excellent infrastructure capabilities.
Let’s Talk About Numbers
Mexico is currently a global leader in importing and exporting medical equipment. In addition, the country is a recognized leader in life sciences with significant contributions to the world healthcare industry.
Currently, Mexico is:
- In charge of 70% of all Medical Device exports from Latin America,
- The first largest exporter of Medical Devices in Latin America,
- The eighth largest exporter in the world;
- Exports goods to 135 nations;
- Annually brings in about $4 billion in imports.
Tijuana: The Perfect Place for Medical Device Manufacturing
In Baja California, there are 74,000 employees working in Medical Device manufacturing. Moreover, Tijuana is called the Medical Device manufacturing capital of the world, given that several companies rely on the capabilities and results of this city.
That’s why some of Tijuana’s companies specializing in Medical Device manufacturing in Mexico include the world’s renowned names, such as:
- Johnson & Johnson
- Welch Allyn (Hill-Rom)
- GE Medical Systems (GEM)
Fortunately, opening a business in Mexico is easier than many believe, which is good news for the healthcare sector and other industries looking for Contract Manufacturing solutions.
Alternatively, more renowned firms can decide to establish direct ownership for total control and long-term commitment. On the other hand, a sizable segment of the industry follows the shelter model. This choice enables foreign businesses to collaborate with a shelter company already registered and established in Mexico that handles all the administrative tasks, allowing them to focus on their production instead.
The shelter company is well-equipped to use Mexico’s advantages for long-term success in the Medical Device sector because it already has the required qualifications, networks, employment practices, and ideal manufacturing locations.
At Tijuana EDC, we provide specialized business consulting and logistics services for companies considering Medical Devices nearshoring in Mexico. If you would like to get more information about maquiladoras in Mexico, contacts us.
We know that your business demands priority service. We can advise you on the requirements for your cluster and how to adapt to the city’s advantages.