Growing U.S. Industries That Benefit from Mexico Manufacturing

Article Overview: Technology has increased demand for industrial production beyond traditional sectors that have extensively relied on Mexico manufacturing in the past. Perhaps unsurprisingly, the fastest-growing U.S. industries that are next to benefit from the advantages of expanding production to Mexico are all linked in some way to artificial intelligence (AI).

Mexico manufacturing has been a significant factor in the expansion of U.S. industries, including automotive, aerospace, and electronics manufacturing, among others, for decades.

Much of the production for these sectors requires highly specialized talent and stable supply chains to support the increasing demand over the years.

Now, as technology continues to introduce new products, interests, and audiences, companies must keep pace with a rapidly growing industry while still managing costs and meeting strict deadlines.

Many manufacturers are continuing the path they know as they expand their offerings, while others are entering new territory altogether. Either way, Mexico manufacturing and the help of a shelter company remains a top strategy.

All Roads Lead Back to AI

It’s no surprise that AI has opened up new pathways for manufacturers to explore.

Some have begun expanding their own services and capabilities, using what they’re already skilled in and finding new applications.

From cooling systems needed for data centers to robotics and automation equipment used across multiple sectors, Mexico has become a central hub for the data center supply chain with a strong ecosystem producing electrical, cooling, mechanical, connectivity, and precision metal components used in data centers.

Data Center Cooling

The appliance sector is expanding its production to support data center cooling needs. With HVAC manufacturing already in place for businesses and homes, expanding these services is a sensible next step.

• Daikin, a leading global commercial and industrial HVAC manufacturer, notably invested USD $121M in a Tijuana manufacturing facility to support significant data center market growth in North America.
• Vertiv operates multiple manufacturing facilities throughout Mexico to meet the surging demand for emerging technologies, including AI and power for data centers.

Power Distribution & AI Infrastructure Electrical Equipment

Machine manufacturing, power distribution manufacturing, and electrical transformers are all main growing U.S. industries in Mexico.

Over USD $650B in U.S. data center planning is expected in 2026, though close to half of these builds are delayed or canceled due to a shortage of key electrical components, including transformers and switchgear.

While China has previously been a supplier of these types of components, the trade war between the U.S. and China has led to new investments and reshoring production in Mexico as an alternative to fulfill these needs.

• Hitachi Energy has invested $155M for production expansion to include the new Reynosa distribution transformer plant.
• G&W Electric has quadrupled the size of its original location in Mexico to support the company’s long-term global growth

Industrial Robotics & Automation Equipment

In 2024, the International Federation of Robotics reported 5,600 industrial robot installations in Mexico, 63% of which were for the automotive sector.

However, supply chain integration between the U.S. and Mexico offers the opportunity beyond automotive manufacturing alone and expands to the adoption of robotics, machine vision, and other automatic technologies.

AI Computing Hardware (Servers, Networking, Electronics)

Manufacturers in Mexico are expanding production of laptops, servers, and other electronic components to meet North American demand and reduce dependence on Asia.

• Between 2018 and 2025, U.S. goods imports from Mexico grew 55% while imports from China dropped 43%, a reflection of the implementation of the USMCA.
• In 2024, the U.S. imported $114.1B in finished electronics from Mexico, a 22.5% year-over-year increase.

Growing sectors, AI or otherwise, can benefit from Mexico’s technically proficient labor pool, which has a higher availability rate and lower salary cost compared to the U.S.

Other Key Manufacturers and Suppliers with Operations in Mexico

Shelter Services Help Streamline Manufacturing Setup

As the industry continues to shift gears to accommodate AI advancements, it’s a race against time to stay competitive.

Working with a shelter company expedites the setup process and minimizes risk for U.S. companies operating in Mexico. It saves manufacturers time, costs, and stress of launching or expanding production.

Shelter services include expert assistance with compliance requirements and all administrative responsibilities to ensure companies stay flexible and cost-effective with their production goals.

For more information about manufacturing in Mexico and how a shelter company can help streamline the process, contact IVEMSA today.

Sources:

https://www.gwelectric.com/news/gw-electric-facility-san-luis-potosi-mexico/

https://www.daikin.com/press/2024/20240613

https://www.vertiv.com/en-latam/about/news-and-events/news-releases/vertiv-strengthens-its-presence-in-mexico-with-the-inauguration-of-modern-offices-in-mexico-city/

https://www.investmonterrey.com/investment-announcements/mabe-strengthens-commitment-to-mexico-with-record-investment/

https://finance.yahoo.com/sectors/technology/articles/half-planned-us-data-center-150928890.html

https://www.hitachienergy.com/news-and-events/press-releases/2024/09/hitachi-energy-bolsters-manufacturing-capacity-in-north-america-with-additional-investments-of-over-155-million-usd

https://www.gwelectric.com/news/gw-electric-facility-san-luis-potosi-mexico/

https://www.automate.org/robotics/blogs/6-companies-driving-automation-in-mexico

https://nam.org/wp-content/uploads/securepdfs/2026/05/USMCA_Full_Report_Web.pdf