How Hermosillo is Fostering the Top 4 Mexico Industries
Mexico is proving to be an increasingly attractive site for industrial businesses looking for solutions to challenges ranging from labor shortages to the rising cost of goods. Manufacturers have moved into Mexico to reap advantage that include low-cost labor, well-developed infrastructure, and easy access to global markets.
Manufacturers wondering how they might fit into the well-established supply chain networks of Mexico might consider how they can serve the four primary Mexico industries driving the country’s manufacturing growth: automotive, aerospace, electronics, and medical device manufacturing. From there, the only question left is what location might help a company most strategically serve one of Mexico’s top industries.
For many manufacturers, that answer is Hermosillo.
Where is most manufacturing in Mexico?
For years, most manufacturing in Mexico has been focused on the U.S.-Mexico border for the tremendous ease of access this location provides to the world’s largest consumer market. A direct result of this is that certain areas along the northern border command higher wages and real estate costs.
While Sonora, Mexico, does sit on the U.S. border, its capital, Hermosillo, is 175 miles to the south of the U.S. border city of Nogales, Arizona. This location has for years provided manufacturers with a balance of reasonable costs and easy access to United States consumers. In fact, Hermosillo sits at the center of the Arizona-Sonora megaregion, an economic development group that is rounded out by the Empalme and Guaymas to the south.
Hermosillo has long been recognized as an excellent central location from which to manufacture. Goods from across western Mexico cross through this point, making it a central spot from which to work with the country’s thousands of fabricators and suppliers. It also provides easy connectivity by rail, highway, international airport, and the nearby deep-sea port in Guaymas. This range of transportation options affords manufacturers critical versatility when it comes to delivering products to the U.S. and around the globe.
What are Hermosillo, Mexico’s, top 4 industries?
Since at least 1986, Hermosillo has been known for its role a powerhouse supporting Mexico’s robust automotive manufacturing industry. That was the year Ford began production at the Stamping and Assembly plant that continues to serve the region. In fact, the Ford plant in Hermosillo, Mexico, was recently chosen as the ideal location for producing a first-of-its-kind addition to the Ford line: the hybrid compact Ford Maverick pickup truck.
From this beginning, Hermosillo, Mexico, has built a reputation in several manufacturing industries, noted below.
1. Automotive manufacturing
Thanks to the Ford plant in Hermosillo, Mexico, auto component production has grown and continues to have a significant presence in the city. While global supply chain disruptions have impacted automotive exports out of Hermosillo in 2020 and 2021, the evolving market has also presented opportunities for new suppliers to step in. Ford’s Maverick has demonstrated that there is strong demand for hybrid and all-electric vehicle production, as reports indicate that the automaker has been “stunned” by the volume of demand for its innovative compact pickup.
Hermosillo already has a workforce and infrastructure attuned to automotive production needs. Innovative suppliers will find that now is an excellent opportunity to help Ford meet these new demands.
2. Aerospace manufacturing
The fastest growing Mexico industry has taken off in Hermosillo. Mexico’s aerospace sector grew from about 100 manufacturers in 2004 to 368 by mid-2020, according to FEMIA, the Mexican Aerospace Industry Federation. A big portion of this growth has been centered in Hermosillo, which has easy access to the U.S.’ fourth largest aerospace sector in Arizona. In 2020, Hermosillo manufacturers exported $108 million worth of aircraft components.
Sonora has become a national leader in the manufacture of turbines and engine components, Hermosillo. Companies include Figeac Aero, which machines metal structural and engine parts, and AT Engine, a joint venture between Germany-based Aerotech Peissenberg and Mexico’s Grupo Punto Alto aimed at providing high-precision machined aircraft turbine components for GE.
3. Electronics manufacturing
With all of the electronics needed in today’s aircrafts and vehicles, it’s perhaps no wonder that Hermosillo’s electronics manufacturing sector has exploded with growth. In Oct. 2021 alone, Hermosillo exported $65 million in electrical wires and cables for assembly into an array of goods, and millions more in additional electronic devices. TE Connectivity, Flex and GE operate in Hermosillo, demonstrating the far-ranging electronics expertise available here.
4. Medical device manufacturing
The medical device manufacturing sector was growing in Hermosillo before the COVID-19 pandemic hit. At that point, however, skyrocketing demand for medical products pushed a number of companies to expand their footprint and Hermosillo was seen as an ideal choice.
For example, Fortune 500 medical technology company BD found a location in Hermosillo to provide tremendous synergy in supporting its two factories in Nogales, Sonora, on the U.S. border. The medical device provider opened its 2,322-square-meter facility in 2020 to produce infusion sets. Across the state of Sonora, 26 companies manufacture medical devices, generating more than 17,240 jobs, making the state a significant source of success for one of Mexico’s top industries.
Space to suit your infrastructure needs in Hermosillo
If Hermosillo sounds as though it might be right for your manufacturing needs, the next question is where to find appropriate industrial space for lease in the city. Fortunately, that has become easier too. To support the demand for Class A industrial space in Hermosillo, Tetakawi has launched the Rio Sonora manufacturing community, the newest and most advanced industrial park in Northern Mexico. Strategically located nine miles from the Ford plant in Hermosillo, Mexico, Rio Sonora provides the infrastructure and amenities your business needs to thrive.
To learn more about how to position your industrial operation to success in Mexico, contact Tetakawi today.