Tijuana’s Industry 2012 Review and 2013 Forecast, by Tijuana EDC

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Tijuana´s industry continued its growth throughout 2012, primarily in expansion of high technology projects from the Medical, Automotive and Aerospace sector. Over 35 firms established in the region announced expansion investments worth over $183 million dollars underlining their trust on the strength of Mexico’s economy and more specifically on Tijuana´s competitiveness.

tijuana mexico manufacturing review

Global companies located in Tijuana for over 20 years continue expanding operations, such as Mattel (Mabamex) who in February 2012 announced a $5.7 investment as a result of the relocation of production lines transferred from China; and Samsung, the global leader in TV sets, who continued with its $70 million expansion that was announced earlier as part of its vertical integration project.

On May 2012, Hyundai announced the investment of $131 million in its new Aluminum Die Cast Plant in Tijuana and the creation of 300 new direct jobs, this addition represents a new production milestone for the Korean firm which operates in the city since 1990 manufacturing refrigerated containers for trailers, chassis and platforms for U.S. transportation industry. The new plant´s construction started this year and it´s expected to reach its full capacity in 2014.

As a result from companies expanding in Tijuana, the contract manufacturers’ base has expanded as well due to the market´s demand of electronics, and products from the medical and aerospace sectors. Firms such as Suntron, Sigmatron, SMK, Oncore, among others, announced the expansion of their facilities to serve the growing market.

In order to support the industry’s growth, the supplier base has welcomed the arrival of new investments. Barry Avenue Plating Co, a company dedicated to supply metal finishing needs, including large parts, small parts, high production or short runs, to the latest applicable prime contractor, military, defense and civilian specifications started operations in Tijuana and is now part of the supplier base that serves the aerospace industry of the region, which consists of over 40 companies located in the city. ABC Aluminum added 12,000 SQ FT to its manufacturing facilities increasing its production to meet OEMs demand in new markets.

2013 Tijuana Manufacturing Outlook- Current trends indicate that the manufacturing sector will continue to grow in 2013 . Tijuana is home of the biggest base of export manufacturing firms in Mexico, where several companies have already announced expansion projects for the upcoming year. For example, the “Best Place to Work” award winner, Plantronics, announced that in addition to its early 2012 expansion, the company started the construction of a $30 million facility to consolidate its current operations which are spread out in four different buildings. According to a press release from the company, the expansion will signify the creation of 500 new jobs.

Orthopedics leaders Össur and DJO Global, recently announced expansions in 2013 worth over $3.7 million and will create 400 direct jobs. Össur, one of Iceland´s largest companies started operations in Tijuana two years ago and now it will add three new products to its local manufacturing base. “Manufacturing expertise makes Tijuana highly competitive against other manufacturing destinations in the world,” said William Brown, Össur’s VP ofOperations .

Gerry McDonnell, DJO Global Executive Vice President of Global Operations announced for the upcoming year a $2 million expansion that will generate up to 340 new jobs. The notice was revealed during a visit of Baja California Governor Jose Guadalupe Osuna Millan to DJO corporate headquarters located in Vista, California.

Welch Allyn, the global leading manufacturer of frontline medical diagnostic equipment and healthcare products, announced the creation of a Global Finance Shared Service in Tijuana Mexico taking advantage of bi-national bi-cultural talent available in the region. The center will start operations on February 2013, in addition to a company´s recent expansion they both represent an investment of $2 million and it’s expected to create over 40 high value jobs.

2013 Major Industrial Events- Tijuana’s main industrial clusters will continue efforts to strengthen their supply chain base.The Medical Device cluster will host the 5th edition of its Baja Medical Device Forum on June 2013 at the Tijuana’s state-of-the-art World Trade Center., Tijuana’s Airport Hangar will be the venue for the Aerospace Forum on July 2013, which promises to be a great success. Global leading firms have already confirmed their participation on the B2B meetings.

About Tijuana EDC: We are a nonprofit corporation dedicated to help companies to establish successful manufacturing operations in Mexico and to take advantage of business opportunities of vertical integration introducing qualified Mexican suppliers and accessing new markets. For more information on how to take advantage of these opportunities contact the Tijuana EDC at contact(at)tijuanaedc(dot)org or visit their website http://www.tijuanaedc.org

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Flavio Olivieri
Tijuana EDC
(619) 207 4683 227
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Anabel Colunga