Why Monterrey Is Sparking Interest for U.S. Manufacturers

Setting up production close to the U.S./Mexico border is a common strategy when manufacturing in Mexico. However, the northeastern part of the country has emerged as another alluring choice for nearshoring opportunities.

Monterrey, in particular, is an industrial hub in this area known for its infrastructure and innovation, which is valuable for manufacturers that want to reach the U.S. market. It boasts a consistent growth rate, a highly skilled workforce, and a significant contribution to Mexico’s total exports.

Though Monterrey has been an established industrial region for years, let’s look at a few key reasons why there is increased interest from U.S. and other foreign manufacturers.

Streamlined Supply Chain Logistics

Manufacturing in Mexico provides significant cost savings for U.S. and other foreign manufacturers, particularly when it comes to labor rates and supply chain costs. Because of Monterrey’s location, it serves as a central industrial hub for the southern and eastern states of the U.S.

Manufacturing companies with headquarters and/or target markets in these areas can reduce their transportation times and costs by streamlining supply chain logistics. This time- and cost-savings then promote other areas of business growth, such as research and development and product innovation.

History of Industrial Excellence

Monterrey is well-known for its industrial excellence in several sectors including automotive, aerospace, and electronics manufacturing. There are more than 145 industrial parks, with more manufacturing facilities continuing to be built to meet demand.

Also, the location makes it a bustling transportation hub with access to highways, railways, and an international airport to advance timelines and get products to market faster. This established presence and infrastructure present a strong foundation for new companies also wanting to launch production in Mexico.

Top-Tier Technical Talent

Monterrey is home to multiple well-respected technical institutes and programs that supply a steady stream of qualified industrial talent at cost-competitive labor rates. Moreover, the workforce is made up of highly skilled, bilingual workers, most of whom are in their 20s, who can fulfill the variety of roles needed for production.

As America and other countries struggle to recruit for technical positions left open by retired workers, Monterrey’s industrial workforce seems to be just getting started.

Looking to the Border and Beyond

Industrial hubs set up along the U.S./Mexico border continue to thrive and welcome new companies ready to set up production. It remains the area manufacturers consider first for nearshoring. However, as competition grows, it’s valuable to have options that provide similar benefits.

In terms of streamlined supply chains, established infrastructure, and advanced technical talent, Monterrey is growing in popularity. And, in some cases, it’s the preferred choice for production.

There are several factors which determine the best place to set up a manufacturing site. Working with a shelter company like IVEMSA can help with the selection process and tailor services to align with your specific production goals.

For more information about the benefits of manufacturing in Monterrey in comparison to other regions in Mexico, contact our local team of experts today.

Source:

https://www.investmonterrey.com/wp-content/uploads/2022/10/Investment-Guide-Real-Estate.pdf