Medical device manufacturing in Mexico, specifically Tijuana, currently has over 28,000 employees and the largest concentration of medical device manufacturers in all of North America. The skill level of the labor in Mexico, especially within the maquiladora medical device manufacturing industry, ranges from manual labor (unskilled) to personnel who conduct research and development on sophisticated product lines. Mexico has many excellent educational institutions that help ensure a steady supply of employees who are qualified in handling medical device manufacturing in Mexico, and the Mexican government continues to support the efforts of continued education.
The North American Free Trade Agreement (NAFTA) was formed in 1994 and, coupled with the devaluation of the Peso, contributed to the expansion of the medical device manufacturing in Mexico industry. Importation of medical equipment and components to Mexico from the United States and Canada became duty-free, enabling finished goods to be processed, assembled and then re-exported at a much lower cost. With the expansion of Mexico’s free trade agreements across the world, global medical device companies can also take advantage of Mexico’s low labor costs and highly skilled workforce.
The medical device industry was quick to take advantage of NAFTA and the IMMEX (formally know as the Maquiladora) program in Mexico. Understanding the need to follow strict Mexican labor laws and other compliance related to human resources, import/export and the environment, many Medical Device companies manufacturing in Mexico looked to outsource their administration and compliance management to a shelter company. Shelter companies can help manufacturers with feasibility, start-up and the on-going administration of a plant in Mexico, enabling the manufacturer to focus on production and quality control.