Mexico Manufacturing Companies Host 8 Of 10 Largest Electronics Firms

Mexico Manufacturing Companies currently enjoy the #2 spot of electronics products supplied to the U.S. market.  In fact, in terms of export potential and jobs generation, Mexico has the fastest growing electronics industry in the world.  A staggering $71.4 billion USD was exported to the U.S. alone in 2010, a whopping 20% increase over the previous year.  Foreign Direct Investment (FDI) continues to funnel large capital investments into the electronics industry, largely centered along the northern region of Mexico bordering the U.S.  Audio, video, telecommunications and computers comprise the lion’s share of the Mexico manufacturing companies output in electronics production, with over 730 plants in operation currently.

Two critical factors contribute to this remarkable increase.  First, Mexico enjoys the lowest component production costs within the industry, as much as 18.2% lower than other electronics manufacturing nations like Canada, Netherlands, UK, France, Germany or Japan (AlixPartners; KPMG reports).  Second, Mexico manufacturing companies are benefitting from an increase focus in higher education, churning as many as 114,000 engineering students, as well as technology related fields annually.  This factor, of course, contributes to Mexico’s increasingly more sophisticated labor force.  And according to Mexico’s Ministry of Economy, 80% of the world’s electronics suppliers are now operating in the northern region.  Combine component companies like Flextronics, Jabil Circuit, Celestica, to name a few, with powerhouses like Sony, Samsung, JVC and Pioneer and it is easy to conclude that Mexico manufacturing companies devoted to electronics production will continue to experience robust growth in the years to come.


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