Key Ways Mexico Shelter Manufacturing Strengthens the Medical Device Industry

Nearshoring to Mexico has impacted the growth of the global market in several manufacturing sectors, including the medical device industry. Due to the convenient proximity to the U.S. market and an established infrastructure, Mexico continues to be a thriving production hub.

2024 revenue reports reflect the medical device market in Mexico is expected to reach upwards of $7.96 billion with an anticipated annual growth rate of 5.37% to reach market volume of $10.34 billion by 2029. Among the many reasons for the surge in growth is the improving access to advancements in medical technology driving demand.

With the support of a highly skilled workforce, a reputation for quality, and a reliable supply chain, among other benefits, Mexico continues to be a chosen location for production expansion and increased foreign direct investment. It is already home to many of the top global medical device manufacturing companies in the world, including Medtronic, Stryker, Baxter, Becton Dickinson, and Intuitive Surgical, and continues to support growth in the sector.

Highly Skilled Workforce

For decades, U.S. and other foreign manufacturers have relied on the cost-effectiveness of Mexico’s workforce. However, it’s the availability of technical talent that allows manufacturers to fulfill roles that may otherwise go unfulfilled as the U.S. struggles with recruiting qualified labor.

Many U.S. and other foreign manufacturing companies partner with local universities in Mexico. They set up specific training programs to teach skills required to consistently meet production needs.

Reputation for Quality

Due to Mexico’s proximity to the U.S. market, it’s easier for project managers to provide quality assurance and production oversight compared to manufacturing in China. Also, because of the highly specific nature and requirements necessary for medical device production, recruiting top-level talent ensures fewer mistakes that may delay getting products to market.

Reliable Supply Chain

The complex logistics of manufacturing in China have caused many manufacturers to diversify their portfolios and expand production to Mexico. U.S. manufacturing companies can import and export more quickly and at a much lesser cost compared to production in China. Plus, a steady supply chain and multiple transportation methods allow manufacturers to choose the best route for them.

Focus on Patent Protections

Medical device products in Mexico are subject to the same safety regulations as those manufactured in the U.S., under FDA Class I, II, and III guidelines. Additionally, provisions under the USMCA clearly outline protections for intellectual property and penalties for violations for greater manufacturing confidence.

Advantage of Shelter Services in Mexico

One of the key benefits helping to strengthen the medical device sector is Mexico shelter manufacturing. This unique advantage provides U.S. and other foreign manufacturers with the easiest and safest way to do business.

Working under a shelter model mitigates a manufacturer’s risk and exposure to legal authorities while allowing them to maintain full control over production. Additionally, a Mexico shelter company handles all administrative responsibilities needed to launch production, including site selection, HR and recruiting, and tax and customs compliance.

Implementing shelter services allows manufacturers to launch production in three to four months, which cuts the timeline nearly in half compared to setting up as a standalone entity. Plus, it saves costs on labor, infrastructure, and license fees.

Medical device manufacturing is one of the many sectors experiencing significant growth, which is driving new foreign businesses to set up production in Mexico. To get started as quickly and efficiently as possible, most manufacturers choose to work with a shelter company.

Find out if shelter services are a good fit for your manufacturing company and how you can save time, money, and resources by working with IVEMSA. Contact us today.

Source:
https://www.statista.com/outlook/hmo/medical-technology/medical-devices/mexico