Printed Circuit Board Assemblies (PCBA) are the backbone of modern electronics, from simple devices people use daily to computing systems used in critical applications. As rising demand and global supply chain disruptions confound manufacturers and consumers alike, Mexico has emerged as a leading provider of advanced PCBAs.
The Mexico PCBA Production Advantage
Nearshore manufacturing is a trend that is continuing to rise as offshore trade sectors become more complex. Even before pandemic uncertainty changed the manufacturing landscape, Mexican manufacturing interest was evolving. For those exploring options closer to the US, Mexico provides many benefits, especially in the Electronic Manufacturing Services (EMS) industry. Some of the advantages include:
Lower Costs - Mexican labor costs, while steadily increasing, are an estimated 20% cheaper than similar Chinese costs, offering a distinct advantage. In addition, manufacturers find overhead expenses such as real estate, utilities and other operational expenditures, more cost advantageous while enjoying the added time savings of being next door to the United States market.
Skilled Workforce - The Mexican government has invested in higher education and specialized training for advanced, technical industries, with more than 110,000 engineers graduating from Mexican universities and technical schools each year. As a result, Mexico offers a robust workforce where companies can do far more than simple manufacturing or basic assembly. With an abundance of highly skilled, low-cost labor with expertise in aerospace, electronics, medical device, and other industrial manufacturing, Mexico provides an educated and experienced workforce that can quickly adapt to the demands of today’s modern EMS environment.
Reliable Quality - The quality of Mexico-built PCBAs rivals those manufactured elsewhere. Mexican manufacturers are well-versed in Quality Management Systems such as ISO 9001 along with many others ISO industry standards ensuring accuracy, precision, and repeatability. At the most fundamental level quality control ensures a well-documented system is in place for streamlining processes, improving efficiencies, and working to ensure consistency from board to board.
Respect for IP - Intellectual Property theft is a valid concern for US manufacturers looking to move production to lower cost locations. Some countries have a poor reputation in this regard, but not Mexico. Mexico has a strong independent legal system and gives patents and trademarks the same level of respect they receive in the US.
Keeping Things Close to Home - It is no surprise that PCBAs built in Mexico is beneficial. Aside from the cost savings, its proximity to the US and shorter supply chain to destination markets is a major advantage. Components can be sourced from the US, assembled in Mexico, and shipped back to the US in a short amount of time. In addition, with Mexico being more time zone friendly to the US, real time communication and supply chain operations such as facility visits is that much easier, along with an added bonus of fewer language/communication barriers.
More Than Manufacturing – Trade Advantages - Tax savings may represent the most substantial way US companies cut costs through the maquiladora program (IMMEX), and most recently the USMCA (United States, Mexico and Canada Agreement. Maquiladora operations may greatly reduce tax liabilities such as VAT, raw materials import duties, finished product export tariffs, and duties on equipment and machinery via Mexico’s foreign trade policies. This program is ideal for electronics manufacturers who are looking for low-cost manufacturing and assembly solutions that also shorten the supply chain to major markets.
In summary, Mexico is a strategically competitive geographic location for North American businesses. Mexico offers companies better opportunities, better margins and a more agile manufacturing relationship coupled with the value of shorter supply chains and closer connections between design, manufacturing, and market.
PARPRO - Your Trusted PCBA Manufacturer in Mexico
If you’re looking to bolster your PCBA supply chain, PARPRO Mexico has you covered. With advanced manufacturing equipment, engineers, highly trained technicians, and quality-minded management, PARPRO is well-positioned to provide you with high-value, low-cost PCBA and electronics manufacturing solutions.
Strategically located near the US/Mexico Border, the 135,000 square feet state-of-the-art Tijuana facility offers comprehensive manufacturing solutions serving OEM customers in the aerospace/defense, gaming, medical, industrial, and computing/communications markets. Operating as a Maquiladora – a free–trade-zone manufacturing facility – PARPRO Mexico leverages its close proximity to major logistic providers to deliver low cost, manufacturing services and streamlined logistic support.
In addition to specializing in leading-edge custom PCBA assembly and EMS manufacturing, PARPRO is a contract manufacturer with multiple capabilities: from electro-mechanical assemblies, cable & wire harnesses, box build and sheet metal fabrication to serve its medium to high volume customer base.
Want to know more: With North American headquarters in Southern California, PARPRO has manufacturing facilities in both USA and Mexico. If you are looking to move your production and are interested in knowing more, please contact us and discover the benefits of partnering with PARPRO.