Tijuana’s 2011 Industry Review & 2012 Forecast

 

Tijuana Mexico Industry ReviewTijuana’s industry continued strengthening this 2011 compared to 2010 when manufacturing industry started to edge up. Until the third quarter of 2011, total net absorption showed a positive trend of 1.2 million square feet sustained by significant expansions and thirteen new companies.

25 established companies announced expansions during the year, representing over 1 million square feet and nearly 3.000 new positions. Companies like Samsung (Korea), Greatbatch(U.S.), Foxconn (Taiwan), Energy Labs(U.S.), Avery Denisson (U.S.), Fisher & Paykel (New Zealand) received federal and state government incentives to support expansions and new projects.

During 2011 fourteen new investments landed in Tijuana with a total investment accounted for over 800.000 square feet. The main growth sectors are represented by support industry suppliers of metal mechanics and packaging, companies like Ryerson (U.S), Inzi Display (Korea), Top Clean Packaging (France), Devicor Medical Products (USA) now are based in Tijuana taking advantage of a potential market of nearly 600 companies. 

Amongst companies landed in Tijuana this year is the solar panel leader Siliken, who opened a 70.000 square feet facility in May with 180 employees and producing 1,500 solar modules weekly. The arrival of key companies like Siliken in the renewable energy sector marks an important step towards Tijuana´s position as a prime manufacturing location for PV modules manufacturing. Silken joined Kyocera and Unisolar that have operations in Tijuana and together employ over 1,000 people.

Tijuana moves towards an innovative industrial profile, this year inaugurated the Technology Consortium of Baja California and Tijuana´s BIT Center; two centers dedicated to provide engineering, lab testing and design services for manufacturing and technology companies to develop locally R&D, and process improvement projects. Through the Tijuana EDC, new companies will have access to these services at reduced costs plus the access to information about federal and state incentives applicable to innovation projects.

 

Tijuana EDC 2012 Industry Outlook,  .

According to Mexico’s Central Bank, the economic growth forecast for 2012 will remain stable in the range of 3.5 to 4 percent. The impact of Europe´s economic weakness and US slowdown will be less for Mexico due to it’s strong macroeconomic indicators, with record capital reserves over 140 billion dollars, 25% higher than 2010. Mexico also has a low inflation close to 3%, and FDI will remain strong around 20 billion USD. For 2012, specially in the automotive, aerospace and other specialized manufacturing sectors.

Reinforced by a stable economy the Tijuana EDC started two strategic alliances with Mexico National Business Council for Foreign  Trade (COMCE) and with CaliBaja Bi-national Mega-region,  in order to expand its business network and provide added value resources to companies in their site selection process. 

Tijuana EDC and Mexico Business Council for Foreign Trade (COMCE) will work together on 2012 in the foreign trade promotion, foreign investment attraction and technology development.  New opportunities for joint ventures and risk capital will emerge as local technopreneurs form part of Tijuana EDC´s innovation program.

The collaboration with the CaliBaja Bi-national Mega-region will be focused on promoting business opportunities within Baja California and South California, with the purpose to attract new investment to the region that represents a potential market of 6 million people.  Companies locating within the region have “the best of both worlds” access to advanced engineering and R&D capabilities as well as excellence in competitive manufacturing.

Tijuana will continue building the base to become a medical device manufacturing hub, in 2012 the first sterilization plant in northwest of Mexico will initiate operations supporting the current market of nearly 40 medical device companies in Tijuana.

The Tijuana EDC is ready to help companies maximize benefits of near-shore Manufacturing, with new alliances, stable national economy, and new government incentives for innovation and business expansion 2012 is full of opportunity.