Made in Mexico is a phrase seen more and more on products in the US and around the world. The Latin American country has been steadily growing their market share of the global economy for decades and using manufacturing as a primary driver for this growth.
Exports are on the rise in Mexico, as is the interest in doing business there. Foreign companies seek to outsource manufacturing to take advantage of a cost-effective labor pool and free-trade access to most major global markets.
So, just what exactly is made in Mexico? What are Mexico’s specialties? And what products does this growing country export to trade partners the most? Read on, because that’s precisely what we’re about to discuss.
Mexican Manufacturing for Export
With nearshoring on the rise, it’s clear that global manufacturers are choosing Mexico in ever increasing numbers. And the appeal is pretty easy to figure out. Mexico offers clear advantages over other destinations when it comes to manufacturing for export. With state-of-the-art industrial parks, cutting edge telecommunications, aggressive infrastructure investment, and more free-trade partners than any other country, Mexico’s industrial regions are locations where manufacturing thrives.
But it’s not just cheap labor and free trade driving export manufacturing success. The country is also keen on an educated workforce for those manufacturing jobs requiring more sophisticated skills and operations. Mexico’s universities and trade schools partner with industry to produce engineers and skilled labor to fill the specific roles that manufacturing demands.
As a result, this highly affordable, highly skilled workforce produces quality manufactured goods for several key export industries. Last year, Mexico exported around $593 billion USD worth of products, up from about $460 billion in 2019. Mexico is the top trade partner for the US, but many other countries do business with Mexico as well. While the US imports nearly 80% of Mexico’s exports, Canada, Germany, Brazil, and many Asian countries (including China) also buy exports made in Mexico.
Made in Mexico
Now, let’s look at just what Mexico exports. While Mexico exports products in many industries, there are several that stand out as clear leaders in the country’s economy.
Automotive manufacturing is Mexico’s most active source of exports. In fact, vehicles account for over 26% of all exports made in Mexico at around $156 billion USD. In 2005, Mexico made and sold over a million passenger vehicles.
As the 2nd largest automotive manufacture in the world, most leading automotive brands in the world do business there, including BMW, Audi, Ford, GM, Honda, and others. And as long as 70-75% of the vehicle’s content originates in North America, these companies can export vehicles made in Mexico to the US and Canada duty free.
Electrical machinery and equipment are one of the primary sources of Mexican exports, totaling about $103 billion in 2023. Computers and other machinery accounted for another $90 billion. And really, electronics manufacturing in Mexico goes all the way back to the 1960s. The sector has grown since then and now encompasses many areas, from consumers electronics to automotive electronics, medical equipment, computing, and more. The electronics industry accounts for 2.5% of Mexico’s total gross domestic product.
Medical devices and related exports are expected to reach an annual average value of $15 billion USD in the near future. Mexico is already the 7th largest medical devices exporter in the world and exports products to 135 countries globally. Key medical brands like Johnson & Johnson, Medtronic, GEM, and Integer depend heavily on products made in Mexico to propel their global success.
Plastics and plastic articles are manufactured extensively in Mexico and account for nearly $12 billion in annual exports. With over 4,000 companies, plastics manufacturing in Mexico is a vibrant export sector.
Mexico actively makes materials and parts like PVC, acrylic materials, and PP film, as well as plastic resins, capital equipment, and recycled goods. In fact, 50% of plastic resins produced in Mexico are PET, PVC, or HDPE.
Mineral and metal products exported from Mexico total nearly $80 billion USD per year. Mexico’s wealth of natural resources makes it a major exporter of minerals and metals. Mexico is the world’s largest producer of silver, which is used extensively in the construction and electronics industries. Mexico also makes refined metal products like steel for use in automotive, aerospace, and construction applications.
As an industrious nation, rich in natural resources, economic opportunity, and a vision for the future, Mexico has many export industries on the rise. These are only some of their biggest and most active.
And as the shift from global supply chains to regional and more resilient operations comes full circle, the country’s advantages will become clearer. Manufacturing for export there will become even more profitable. And more and more products we use every day will come with the stamp, Made in Mexico.
