Not Just Manufacturing, What Monterrey Has to Offer
02.19.25Monterrey has been a central focus in manufacturing news recently, with several announcements from global companies announcing they are growing their footprint in Mexico’s third-largest city. Volvo, Polaris, and Bosch are among the manufacturers that have announced new projects and facilities in recent months.
- In October 2024, Volvo broke ground on their new $700 million USD plant, slated to be the world’s largest facility, to produce heavy-duty trucks to supply the North American and Latin American markets.
- American all-terrain vehicle maker, Polaris, was recognized in April 2024 for its investment of more than $500 million in 15 expansions over the years and has created over 6,700 jobs in Mexico thus far.
- Bosch announced its first home appliances facility located in the Interpuerto Monterrey industrial park with a $260 million USD investment and a creation of approximately 1,500 jobs needed for the production of refrigerator units designed specifically to meet innovation and sustainability standards in North America.
Monterrey continues to receive an influx of foreign direct investment (FDI) and is recognized as a significant contributor to the automotive, aerospace, home appliances, and IT and software industries. When combined with the benefits of the IMMEX program, Monterrey is a viable market not only for manufacturing but also for sales and business development.
The Convenience of Interconnectivity
Logistically, manufacturers with an audience in the central or eastern part of the U.S. benefit from the close proximity of Monterrey, and its strong connectivity with Texas, where there is already a strong manufacturing presence.
However, Monterrey doesn’t only provide production for the U.S. It’s a large industrial market with a strong supply chain. Manufacturers have access to commercial seaports in the Pacific Ocean (Altamira Port) and the Gulf of Mexico (Lazaro Cardenas Port), as well as rail transport and an international airport.
Business Development Opportunities
Despite the current tariff uncertainty for Mexico, there are already several large manufacturers relying on Monterrey to fulfill production demands. Supplying the same products within the U.S. would not be as feasible or as cost-effective.
Monterrey has the skilled workforce necessary to meet manufacturing needs worldwide with the competitive labor costs Mexico is known for. Plus, the infrastructure of 140 industrial parks is in place to elicit new growth opportunities from those already manufacturing in Monterrey and to new businesses coming in.
Therefore, Monterrey is likely to continue being the largest recipient of FDI and maintaining the highest GDP per capita in Mexico.
Read more: Monterrey emerges as a global steel manufacturing leader.
Exploring Monterrey Manufacturing
Monterrey has emerged as a promising location for U.S. and other foreign manufacturers wanting to expand their production. Its strategic location to the North American market, technically skilled labor force, and Mexico labor rates significantly less than in the U.S., cements its place in the global market.
IVEMSA can work with manufacturing companies to analyze the benefits of expanding production to Monterrey and prepare for new developments in the area. Learn what this region has to offer and see if it’s a fit for your production goals.
Contact our team today for a customized cost analysis for expanding your production to Monterrey or another region of Mexico.
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