When talking about instrument production, one of the first questions would be: what country produces the most instruments? The answer to that question points to China. Known for its enormous manufacturing capacity, China dominates the world market, from guitars to keyboards and other traditional and electronic instruments.
So how can companies participate in this dynamic market? First, you need to understand instrument consumption and how to reach that market.
Which Country Consumes the Most Instruments Worldwide?
China produces the most instruments, but who consumes the most? According to Statista data, China is also the largest consumer in gross terms, but not per person. While the revenue generated by China by 2024 is expected to be $10.12 billion, that of the United States will be approximately $5.946 billion.
In terms of revenue per person, an average of $6.13 is forecast for 2024. Considering that there are less than a quarter as many Americans as Chinese citizens, this makes the U.S. the world leader in instrument consumption, thus a very interesting market for companies interested in producing musical instruments. In this case, what would be a good way to participate in it?
Globalized Markets: China, USA and Mexico
Trade relations between the U.S. and China had been growing stronger from the early 1990s until mid-2010. This changed abruptly when new US foreign policies began to affect Chinese logistics and imports in what many have called a trade war. A context of globalized markets and the impossibility of substituting imports due to high labor and production costs naturally lead American markets to look for alternatives.
In the instrument industry, as in many others, Mexico appears as a very attractive alternative to China, due to its highly skilled labor force, its competitive production and labor costs, as well as its proximity to the US. Business opportunities in Mexico flourish in a context of trade war with China and higher logistics costs, because it is a country that offers multiple solutions to companies interested in international markets, particularly the US.
Competitive Workforce, a Lot of Experience
Manufacturing requires a competitive and highly skilled workforce, as well as experience. In Baja California, Mexico, alone, there is a labor base of more than 17,000 workers (20% of whom are engineers), as well as multiple universities and research centers. Among the capabilities of this workforce is expertise in a variety of industries of particular interest to instruments: electronic components; software development and IT solutions; microphones, headphones and sound speakers; audiovisual electronics; consumer electronics; and mechanical assembly; among others.
Maquiladoras in Mexico through contract Manufacturing solutions have extensive experience in the production of a wide variety of consumer goods for the U.S. market. Specifically, high-end instrument brands such as Aquarian Drumheads; Glasser Bows; Taylor Guitars; Fender; and Gibson have been working and taking advantage of these and other regulatory benefits in Baja California for decades.
When thinking about what country produces the most instruments we better look at which one consumes the most if you want to compete. If you want to learn how big is the musical instrument industry or need assistance in establishing your business in Baja California, contact Tijuana EDC. Backed by years of experience helping companies establish in Baja California, Mexico, they are your best option to immerse yourself in the California-Baja binational zone.
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