the electronics - Tijuana Economic Development Corporation

TIJUANA: THE ELECTRONICS
SECTOR NEARSHORE
MANUFACTURING CAPITAL
Tijuana: Mexico’s Nearshore Electronics Hub
Less than 500 miles or 90-minutes by plane are all
that separate Tijuana from one of the global
hotbeds of innovation: Silicon Valley. Virtually
next-door neighbors in a world where distant,
offshore manufacturing options are considered
routine, Tijuana has quietly emerged as one of
Mexico’s leading manufacturing centers for
technology companies targeting North America.
In fact, Tijuana stands out by having one of the
largest concentrations of electronics clusters in
Mexico, with more than 120 companies. As
impressive as that is, research from Fall 2014
show these companies employed more than
48,700 workers at their manufacturing plants in
Tijuana1 – greater than many electronics sector
clusters on the West Coast of the United States,
and, in fact, one of the largest concentrations of
electronics manufacturing employment in North
America.
With a diverse range of consumer and advanced
manufacturing, EMS and contract manufacturing,
as well as high- and low-volume production,
Tijuana’s electronics industry provides global
(and regional) companies with a highly
competitive, nearshore capabilities – in many
cases, even more cost-competitive than China.
This document provides a fact-based introduction
on why Tijuana is not only still the number-one
city in Mexico for maquiladora (IMMEX)
manufacturing companies2, but also a cutting
edge home in North America for electronics.
3
“The ability of our Mexico workforce to develop advanced processes apace with the
technological changes in our products while maintaining top quality standards is
- Ken Kannappan
extraordinary…”3
President & CEO, Plantronics
www.TijuanaEDC.org  [email protected]
Toll free from the US & Canada: 1-855-558-5332 (1-855-55-TJEDC) 
ph (011-52) 664-681-8344  fx (011-52) 664-681-8788
1
Why Mexico and Why Tijuana? The Experts Agree…
As more options exist for offshore and nearshore manufacturing, it’s also useful to note that
Mexico was one of the lowest-cost countries analyzed by Boston Consulting Group in their 2014
Manufacturing Cost Index (below left) – with average total landed costs lower than even China.
The experts at KPMG also (again) found Mexico with a significant cost advantage in its annual
Competitive Alternatives study (below right) – with Mexico providing nearly a 12% cost
advantage for electronics manufacturing compared to other global locations. Past analyses by
the same experts at KPMG have also found that Mexico-based manufacturing operations can
result in nearly four-times the after-tax profit as compared to the U.S. 4
The facts: while many regions market themselves as possible locations for globally-expanding
companies, no other international city offers the unique combination of:

A large base of more than 120 existing electronics companies within Tijuana, and even
more in adjacent areas of Baja California;

A “next-door”, nearshore location with quick logistical access to the West Coast of the
U.S. and major international seaports and airports measured in hours – not weeks;

A trained, quality-conscious and highly bilingual workforce – in a low union, businessfriendly environment;

Strong intellectual property-rights protections guaranteed via NAFTA; and

Lower-cost, just-in-time production capabilities.
Did You Know..?

In a recent survey of 70+ Tijuana electronics
companies, 51% (36 total) stated they offer
contract manufacturing services…

…of these, 30 also stated that they provide
design and product development services, too
www.TijuanaEDC.org  [email protected]
Toll free from the US & Canada: 1-855-558-5332 (1-855-55-TJEDC) 
ph (011-52) 664-681-8344  fx (011-52) 664-681-8788
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Quick Access…
Just-in-time production isn’t a shocking idea for Tijuana’s electronics companies – it’s a real,
cost-saving logistical benefit that allows many of the city’s manufacturers to not only reduce
or avoid inventories, but also to ship finished product into the North America market in as little
as a few hours.
Physically located only 15-minutes from downtown San Diego, California, companies operating
in Tijuana are easy to access for better management communications and control, as well as
have easy access to transportation infrastructure so electronics products can be trucked to
anywhere in the U.S., Canada or Mexico within one- to five-days (with time-sensitive products
flown from San Diego, LAX, Tijuana, and other cargo airports to customers in only hours).
Great access isn’t just about geographic proximity – it’s also what electronics manufacturers get
from their suppliers, with Tijuana located within 400 miles of major electronics industry
clusters in Silicon Valley, Los Angeles/Orange County, Phoenix and San Diego…
…And the Benefits of the Pacific Rim – Without the Problems
Offshoring to Asia isn’t what it used to be. Now,
companies are finding that not only can Mexico be just as
cost-competitive, but Tijuana actually helps today’s
global firms avoid the headaches that come with
manufacturing in China.
In fact, Tijuana can keep your total landed costs lower
than Asia, while retaining high quality and IP protections,
and avoiding 15-30 day oversea shipping times.
Taking a look at reshoring back to North America? Try
Tijuana – the perfect Pacific Rim option.
Offshoring to Asia =
Long distance problem-solving trips
Language barriers
Impossible-to-enforce intellectual
property rights
Rising labor costs
Month-long shipping delays
Overseas suppliers & logistics
www.TijuanaEDC.org  [email protected]
Toll free from the US & Canada: 1-855-558-5332 (1-855-55-TJEDC) 
ph (011-52) 664-681-8344  fx (011-52) 664-681-8788
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The High-Tech Talent of Tijuana (and San Diego)
In today’s global economy, who doesn’t need a highly
talented, bilingually educated workforce? Where to
find it?
Here, in Tijuana.
Not only does Baja California already have one of the
highest education levels in Mexico, but the combined
university enrollment in the Cali-Baja Mega Region
(covering Baja California, San Diego County and
Imperial County) has over 400,000 student enrolled
at regional universities combined5.
Universidad Autónoma de Baja California
In the 2013-2014 school year, in fact, Tijuana alone
had over 40,000 undergraduate and 2,400 graduate
university students enrolled – ranking it amongst the
top per-capita university enrollment levels in Northern
Mexico.
For today’s high-tech industries, Tijuana’s talent base
is also highly technical, including nearly 1,000
engineering students graduating each year from a
range of degreed programs including
electromechanical engineering, electronics,
information and computer sciences, as well as
industrial processes.
UC San Diego
“Tijuana’s engineering and manufacturing capabilities, as well as access to a
binational pool of high-tech talent, are a crucial part of keeping Benchmark
Electronics Tijuana's operation competitive and constantly innovating…”
- Rod Gunther
General Manager, Benchmark Electronics Tijuana
www.TijuanaEDC.org  [email protected]
Toll free from the US & Canada: 1-855-558-5332 (1-855-55-TJEDC) 
ph (011-52) 664-681-8344  fx (011-52) 664-681-8788
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3D Robotics Inc. • Adi Systems • Amigo Tecnología • Arris • Asteel Flash •
Tijuana’s
Manufacturers
Autosplice • Baja Border
Maquila Electronics
• Ballard Power
Systems • Bandy Servicios • BC
& EMS/CEM Providers:
Manufacturing • BEI
Sensors
MexicoHereshore
• Belden Location.
de Sonora • Benchmark
World
Classde
Quality.
Electronics • Blue
Bose Corporation
• Bourns
• Chiyoda
Integre • Clayton
With Streak
over 120•electronics
manufacturers
– including
over 35 contract
electronics manufacturing service providers, large and small – Tijuana’s
Maquiladora •companies
Coastline
Remec
• workers
Cubic and
• lower-cost
Custom Sensors
reflect• theCobham
global quality,
talented
&
environment that they need to stay competitive. It’s what you might expect
Technologies •when
Delphi
Delta
DGS
Electric
DHA • Diamond
nearly •90%
of the Electronics
companies over •250+
employees
have• quality
certifications ranging from ISO 9000, ISO 9001:2000, AS 9100, ISO 13485, TS
Electronics • Doitronics
• Dong
Chuel
• other
Eaton
• Electronica
de La Mesa • Enersys
16949,
to NADCAP
and
world-class
standards.
• Ensambladora
Altecsa
• Ensambles
De Calidad
Mexico
• Ensamb
les Ser-Cal •
Below are
just a few
of the world-class
electronics
companies
that currently
manufacture in Tijuana – shouldn’t you?
Eson • Esterline • Foxconn • Goto • Hanil Electronics • Harman • Hubbell Lighting
• Idatech • Industria Mexicana De Ensamble Electrónico • Industrias Electricas
Ag • Jae • Jem • JMK • Jumper Shop • Katolec • Kollmorgen • Kyocera • Kyung
In • Lark Engineering • Leviton • Lockheed Martin • Mac Manufacturing •
Manitowoc • Manufacturera Baja Mex • Mayax USA • McCain Traffic Supply •
Meade Instruments • Merry Tech International • Mexhon • Mi Technologies
Internacional • Muramoto • Nexergy • North A merican Production Sharing • Nova
• Nutray • OCP • Omni Track • Oncore • Osca -Arcosa • Oshitani • Pacific
Transformers • Panasonic • Parpro • Philatron International • Philips Lighting
Electronics • Plantronics • Portable Energy • Pulse Power • Rectificado res
Internacionales • Ricoh • Right Hand Synergy • Saehan Electronics • Samsung •
Santomi • Sanyo • Scheneider Electric • Schott Magnetics • Seacon • Seiton •
Seong Ji • Sigmatron International • Smiths Conexion • SMK Electronica • Sohnen
• Soundpia Mexicana • Summit • Switch Luz • Tally Genicom • Tamura Power •
Técnicas y Servicios Internacionales • Tecnología y Servicio Para La Informática
• Teledyne • Tornik • Transmex Internacional • Trend Smart de México •
Trombetta • Tyco Electronics • Ugcom • Uni -solar • Vigobyte • Volex • Worldwide
Manufacturing • Zoom de Mexico
www.TijuanaEDC.org  [email protected]
Toll free from the US & Canada: 1-855-558-5332 (1-855-55-TJEDC) 
ph (011-52) 664-681-8344  fx (011-52) 664-681-8788
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“Tijuana and Baja California are well
positioned to become a center of
excellence for component manufacturing
in the aerospace industry given the
number of companies established in the
region, its geographical location, and
the initiatives academia, government
and private industry are promoting...”
- Alberto García Hentzen
Manager
Latin America Supply Chain Management
EATON Aerospace Group
Building the Future in Tijuana
It´s not an accident that Tijuana´s manufacturing leadership in the State of Baja California make
it one of the top places in Mexico and in North America for computer and electronic components. It takes a combination of assets to be successful- including not just lower- cost labor, a
ready pool of talent form both sides of the border, and one of the best security environments in
Nothern Mexico.
Companies from around the globe have found that Tijuana is a
nearshore powerhouse for the elecronics industry, as well as for
other advanced technology sectors. Looking to build the future?
Start by building your products in Tijuana.
TIJUANA EDC SERVICES
Advisory Services
Site Selection
Business Services
One-Stop-Shop
Government
Liaison
Is a private non-profit organization
landing of manufacturing
operations in Tijuana, Mexico and
the CaliBaja Mega-Region.
To learn more, come visit us at the
first Gold LEED-certified building
in Northwest Mexico – home to the
Tijuana EDC.
Initial Recruiting
White paper developed and researched by Crossborder Group
(www.CrossborderBusiness.com)
1
Tijuana electronics rms, employment and company cert cation information veri ed
primarily via phone survey in October 2014 by Crossborder Group (70 rms), supplemented
with 2014 data from the Tijuana EDC/DEITAC, company websites, and regional industrial
directories ;
2
INEGI rm data for Industria manufacturera, maquiladora y de servicios de exportación
(IMMEX) industry, accessed February 2015 ;
3
Ken Kannappan quote from 2014 Mexico National Quality Award press release ( http://newsroom.plantronics.com/press release/mexico/plantronics -earns -two-premier -awards -mexico), images courtesy of Plantronics and PNC.org.mx
4
“Competitive Alternatives: KPMG’s Guide to International Business Location – 2014 Edition”, ( http://www.competitivealternatives.com/ ).
5
Crossborder Group analysis of educational statistics from Baja California’s Sistema Educativo Estatal del Gobierno del Estado
(http://www.educacionbc.edu.mx/), the State of California, and individual university data
www.TijuanaEDC.org
Toll free from the US
[email protected]
& Canada: 1-855 -558 -5332 (1 -855 -55 -TJEDC)
ph (011 -52) 664 -681-8344
fx (011 -52) 664 -681-8788
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