Monterrey Emerges as Global Steel Manufacturing Leader in Mexico

Monterrey is one of the central areas of growth for manufacturing in Mexico. Through continuous innovation and expansion, it’s secured its spot as one of the top-producing cities for quality metal fabrication in the world.

The strength of the metal fabrication sector in Mexico has helped boost other industries as well, including automotive manufacturing, aerospace manufacturing, and mechanical engineering. Thanks to a commitment to quality and incorporation of local suppliers, as well as proximity and cost savings, many U.S. and other foreign manufacturers have their sights set on Monterrey as a place to expand their production.

Key Factors Affecting Monterrey’s Growth

Manufacturing in Mexico continues to be a significant part of operational strategies, with many global manufacturers setting up production along the U.S./Mexico border. However, the steel and metal fabrication industry in Monterrey has grown significantly over the past few years due to its favorable location, industrial presence, and workforce availability, encouraging further diversification.

Geographical Location

Montrerrey’s central location provides convenient transportation routes for Midwest and East Coast companies headquartered in the U.S., saving costs and time-to-market. Welded Tubes, an Ohio-based company, is one of the many manufacturers that have announced expansion in recent years. It has launched a 55,000-square-foot facility in Monterrey with a focus on “small-diameter, tight tolerance tubing for the automotive industry.”

Industrial Presence

As Mexico’s third-largest city, Monterrey is also the largest recipient of foreign direct investment in the manufacturing sector. It’s a reliable supplier of steel and metal fabrication but also continues to expand to meet the needs of advances in various sectors to create new products and customers’ evolving needs.

Additionally, with the introduction of modern technologies, such as 3D printing and laser cutting, manufacturing companies can address complex challenges with sustainable solutions.

In addition to Welded Tubes, Cadrex Manufacturing Solutions, a North American mechanical solutions provider, recently expanded its Mexico footprint by opening a new 150,000-square-foot facility next to its existing one in Monterrey to continue sheet metal fabrication, welding, stamping, and assembly as demand increases.

Workforce Availability

Steel and metal fabrication includes cutting, forming, machining, and/or welding raw materials and transforming them into their desired shape for everything from automotive parts to everyday appliances.

Labor for these types of roles requires highly skilled technicians with experience in handling raw materials and constructing them to fit the exact requirements with no room for error. Monterrey helps meet this need by graduating over 11,000 technicians and nearly 6,000 engineers per year to fulfill the roles necessary for production.

Mexico Shelter Services

Working with a Mexico shelter company has also helped the industry grow at a faster rate, allowing foreign manufacturers to set up production more quickly and efficiently. Mexico shelter services provide the necessary administrative infrastructure while minimizing legal risk and exposure.

Exploring Manufacturing Expansion in Monterrey

Manufacturing in Mexico has been a cost-saving strategy for decades, and foreign manufacturers have an opportunity to diversify their portfolios based on their specific needs. The metal fabrication market is projected to grow from a reported $15.4 billion in 2021 to over $18 billion by 2028, with North America capturing a large part of the market.

The aerospace and automotive sectors continue to grow, along with an increased focus on implementing technological advancements in other industries. This advancement further cements Montrerrey as a leader in the space due to its ability to support the demand.

Interested in learning more about manufacturing in Mexico and how to choose the best location for your production goals? Contact IVEMSA today.

Sources:
https://www.kxan.com/business/press-releases/cision/20230419DE75883/welded-tubes-unveil-plans-for-mexico-facility/
https://www.cadrex.com/large-north-american-manufacturing-company-opens-additional-facility-in-mexico