Medical Device Manufacturing in Mexico: How Shelter Companies Champion Growth

U.S. companies manufacturing in Mexico have been historically successful and continue experiencing strong growth across all sectors. The medical device industry, in particular, has become a hub of production, following in the footsteps of global manufacturers like Medtronic, Stryker, and Johnson & Johnson. With the majority of industrial hubs set up along the border of Mexico, the proximity is conveniently close to California, a leader in the U.S. market for medical devices.

However, growth isn’t limited to a single state. Globally, the medical device industry is expected to grow from $536 billion in 2023 to nearly $800 by 2030. This spike in demand is predicted as a result of a rising number of inpatient admissions and surgical procedures. Also, increased research and development investments have allowed for greater development of technologically advanced products and equipment.

Therefore, U.S. manufacturers want to keep pace with the demand and are looking to medical device manufacturing in Mexico as a key part of the solution.

Why Medical Device Manufacturing in Mexico Benefits U.S. Companies

As medical device innovations become more sophisticated, knowing IP protections will be enforced helps drive further advancement in this sector. USMCA provisions secure intellectual property (IP) and copyright protections, which is an important benefit for manufacturers.

Meanwhile, the industrial workforce in Mexico allows U.S. manufacturers to save on costs without compromising production time or quality. This is especially valuable in the current landscape as millions of U.S. industrial roles go unfulfilled. Manufacturing companies are strategizing other ways to meet their production targets, and labor in Mexico is a cost-effective resource.

Mexico also offers quicker, cost-effective transportation compared to manufacturing in China. Though China has been a reliable source of outsourced production in the past, problems with retaliatory tariffs, delayed supply chains, and challenges with intellectual property rights have caused a shift to manufacturing in Mexico over the past several years.

In order to continually meet market demand, the close proximity between the U.S. and Mexico offers a distinct advantage to keep manufacturers competitive. Medical device manufacturing in Mexico allows companies to get their products to their target market faster while saving on costs.

Securing a Seamless Transition with a Shelter Company

Another unique advantage of manufacturing in Mexico is working with a shelter company. A Mexico shelter company handles all the administrative tasks necessary to set up production for foreign manufacturers. These tasks include:

• Industrial site selection
• HR and recruiting
• Accounting, legal, and trade compliance
• Permitting and certifications

Partnering with a shelter company can get a manufacturer up and running in as little as three to four months, nearly half the time it takes as a standalone entity. Furthermore, operating under a shelter company minimizes the risk and liability for U.S. manufacturers operating in Mexico.

Medical device manufacturing in Mexico is becoming increasingly competitive with higher demand. As a result, a rising number of U.S. manufacturers are seeing the benefits of nearshoring to Mexico as a way to save costs and meet market deadlines.

To implement a seamless transition to manufacturing in Mexico, IVEMSA can help. Contact our team today to learn how our shelter services can be customized to fit your production needs.

Sources:
https://ustr.gov/sites/default/files/files/Press/fs/USMCA/USMCA_IP.pdf
https://www.fortunebusinessinsights.com/industry-reports/medical-devices-market-100085