Growing from an impoverished and agriculture-based economy, Mexico has cemented its status in recent decades as a manufacturing and industrial powerhouse. Through innovation, continued investment from both public and private sectors, and an aggressive free-trade policy, Mexico has crawled out of poverty and into a leading role in the global marketplace.
Indeed, the once impoverished nation has solidified its position as a leading global manufacturing hub, attracting companies from many diverse industries. And with a well-developed network of industrial clusters, the country offers strategic advantages to businesses looking to nearshore production.
Mexico’s industry clusters – geographic concentrations of interconnected industries – foster efficiency, innovation, and economic growth for the people of Mexico and the corporations that do business there. From aerospace to packaging and plastics, Mexico’s industrial landscape is as varied as it is dynamic.
As we will see below, Mexico has something to offer virtually every manufacturer, although some regions are more networked and optimized for a specific industry than other regions.
The northern states that comprise Mexico’s border region with the United States include:
These states are home to some of Mexico’s most technologically advanced clusters, largely due to their proximity to the United States. This region has long been a manufacturing stronghold, particularly in high-value sectors. Some of the key Mexican industry clusters in this region include the following sectors.
Aerospace:
Concentrated in Baja California, Chihuahua, and Sonora, Mexico’s aerospace sector has experienced significant growth, driven by international investment and demand for components. A shocking 400+ aerospace companies now operate in the country, producing parts such as turbine components and fuselage sections. This major Mexican industry has seen an annual growth rate of 8% over the past five years, with exports surpassing US$7 billion annually.
Automotive:
Nuevo León and Coahuila are major hubs for automotive manufacturing, housing assembly plants for General Motors, Kia, and other automakers. In 2024, Mexico’s automotive sector reached a record production of 3.9 million light vehicles, a 5.6% increase from 2023, surpassing the previous record set in 2017.
Electronics:
With companies like Foxconn and Samsung investing in manufacturing facilities, the northern region of Mexico is a key player in global electronics production, specializing in semiconductors and consumer devices.
Medical Devices:
Tijuana is a well-known center for medical device manufacturing, producing high-quality surgical instruments, catheters, and diagnostic equipment.
Packaging:
Packaging production, particularly for the food and beverage sector, has expanded significantly in northern Mexico, with advanced facilities providing materials to both domestic and international markets.
The central-north region of Mexico – including Jalisco, San Luis Potosí, and Guanajuato – features a diverse range of industrial clusters, with a strong emphasis on manufacturing and technology. Key industries thriving here include:
Automotive:
Guanajuato, Querétaro, and San Luis Potosí have become hotspots for Mexican automotive manufacturing, with major automakers and suppliers establishing operations to serve North American markets.
Electronics:
Guadalajara, known as the “Silicon Valley of Mexico,” is a major electronics manufacturing hub, attracting investments from IBM, Intel, and HP.
Molding and Plastics:
Mexico’s molding industry thrives in Jalisco and Guanajuato, serving industries such as automotive, medical devices, and consumer goods.
Food and Beverage Manufacturing:
With well-established processing plants and a robust agricultural sector, the central-north region is a key player in Mexico’s food industry.
The central region of Mexico is home to Mexico City, the State of Mexico, Querétaro, and Puebla – all critical economic centers for manufacturing and industry. This heartland features a diverse mix of manufacturing and service-oriented Mexican industry clusters. Some of these include:
While the southern region has historically seen slower industrial development and noticeably less manufacturing, several Mexican industry clusters are gaining traction here, fueled by natural resources and growing investments, such as:
With a strong foundation in manufacturing, technology, and resource-based industries, Mexico is poised for continued industrial expansion. Mexico’s industry clusters create a highly competitive environment for successful manufacturing and international business. And this carefully crafted ecosystem in turn fosters innovation, efficiency, and economic growth. For businesses considering nearshoring or investment in Mexico, the nation’s diverse and strategically located industry clusters offer compelling advantages that align with today’s changing manufacturing needs and position businesses to strategically compete and succeed in the global economy.
