Mexico has quickly become a global power for manufacturing, and that includes medical device manufacturing. In 2018 alone, Mexico exported $9.049 billion in medical equipment and supplies. As per the Instituto Nacional de Estadística y Geografía (INEGI), that number is expected to rise to $15 billion by 2020.
As with Mexico’s other major sectors of manufacturing, medical device producers benefit greatly from the country’s:
- Low wages
- Highly-skilled workforce
- Developed infrastructure
- Proximity to major markets (the U.S. and Canadian markets account for the vast majority of exportation)
- 10 Free Trade Agreements with 45 countries
- Membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnerships (CPTPP)
- Membership in the USMCA
Some of the major companies in this sector include Smiths, Tyco Healthcare, Cardinal Health, Pall Life Sciences, Medtronic, Gambro, Medimexico, ICU Medical Inc., Hudson Aci, Dj Ortho, CLP, Johnson & Johnson, Avail, and Siemens.
Mexico as a Global Leader in Medical Device Manufacturing
Mexico has been ranked as the number one country for lowest business costs, which has proven to be a fundamental cause for its success in drawing in manufacturers from numerous sectors. Coupling low wages with a high-skilled workforce creating quality products has been a boon for businesses and allowed manufacturers to benefit tremendously.
As the leading provider of medical device exports to the United States, the best country in Latin America for doing business, as well as the largest medical device exporter to South America, manufacturers have plenty of reason to expand into Mexico.
Some of the leading medical device exports include:
- Syringes (3rd in global exportation)
- Needles (4th in global exportation)
- Bed, stretchers, and catheters (4th in global exportation)
- Gloves, gauze, and bandages (1st in Latin America exportations)
- Tubular metal and suture needles (3rd in Latin America exportations)
- Medical, surgical, dental & veterinary instruments (5th in Latin America exportations)
- Mechanotherapy, massage, and pyschotechnical equipment (6th in Latin America exportations)
- Orthopedic devices and apparatus
- Electronic thermometers
- Hemodialysis components
- Infusion pumps
- Orthopedic braces
Amazingly, within the period of 1999 to 2010, a little over $927 million USD in foreign direct investment took place, with major countries like the U.S.A., Switzerland, Germany, and the Netherlands investing in this sector.
As Mexico continues to expand its economic influence and manufacturing capabilities with agreements such as the CPTPP, which gives it access to 495 million consumers and 13.5% of the global GDP, suffice to say that there is plenty of promise for medical device manufacturers in Mexico.
World-Class Facilities, Infrastructure, & IP Protection
Mexico’s industrial sectors and governing bodies have come to understand the importance of following international and industry standards for quality and safety of any products manufactured within their borders – and this is especially true for medical device products.
Mexico offers world-class facilities that meet FA, CE, and ISO 13485 standards, as well as Class 100 to 100,000 clean rooms.
Additionally, since the implementation of NAFTA, Mexico has heavily invested in building a robust infrastructure that can offer a wide range of logistical solutions for manufacturers all throughout the country. As El Grande Group is located in El Bajío, we offer many logistical advantages include ease of access to the United States and Canada, the biggest markets for medical devices.
Our geographical location means quick access to major highways, seaports, both major railroads that cross over the region, as well as eight international airports that support the region’s manufacturing sectors and industries. With great logistical solutions, manufacturers are able to cut back on transportation and material costs that can affect their bottom lines.
Alongside a quality infrastructure that allows manufacturers to meet deadlines and effectively establish their operations, Mexico has also taken actions to better protect Intellectual Property, developing several laws to protect the rights and ideas of businesses, including the Industrial Property Law and the Copyright Law. Alongside these two, the USMCA has also established intellectual property provisions to protect U.S.A. and Canadian companies from unlawful activities.
Mexico is the largest exporter of medical devices to the United States and Latin American countries. El Grande Group can help you take full advantage of these prospects.
Contact El Grande Group today to start the process of expanding your manufacturing operations in Mexico.
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