Electronics Manufacturing In Mexico Offers Quick Turnarounds
Manufacturing In Mexico’s electronics industry has greatly expanded over the last decade, from 9/11’s resultant downturn. ‘Hard Times’ can facilitate great learning opportunities and an average electronics manufacturer in Mexico has turned lemons to lemonade, to say the least. Besides the obvious NAFTA benefits of zero-duty expense, property tax and permit cost exemptions, training redemptions, and cash returns for R&D activity, a new strategy has gained increasing momentum. Manufacturing in Mexico has switched from a ‘low mix/high volume’ strategy to a ‘high mix/low volume’ strategy consequently focusing on design, build-to-order, and configuration-to-order manufacturing support and post-manufacturing repair. And, Entrada Group echoes what the Ministry of Economy and Technology Forecasters, Inc. (TFI) shows: that the future is indeed bright for a niche strategy that complements the Asian production model while proximity to U.S. markets adds to the mix.
TFI additionally states that certain specialty manufacturing in Mexico such as automotive electronics, appliances, aviation and aerospace components have contributed to the 13% increase over the last decade. In fact, foreign direct investment has been meeting or exceeding the $18 billion projection steadily since the nimble strategy of niche production has begun. This is not to say a manufacturer in Mexico has stopped producing circuit boards; they haven’t. The versatility in the EMS industry remains while concurrently they design and produce more system builds. Due to this overall trend, production space has significantly increased and in some cases, more than doubled, and Entrada Group’s experience is no exception. Even with the challenges of keeping pace in personnel needs, policy reforms, etc, the major EMS providers (Flextronics, Solectron, Jobil, Celestica, to name a few) are all investing in increased footprint space.