A Look at Skilled Manufacturing Labor in Monterrey

Mexico manufacturing has grown significantly beyond the popular region of Baja California, with several sectors solidifying their place within different hubs around the country. Monterrey, in particular, has emerged as a strategic place for U.S. and other foreign manufacturers to set up production.

It’s a viable area to partner with other IMMEX companies for raw materials exchanges, plus there’s security in knowing there’s an established supply chain in place. However, the most important piece of production setup is hiring the right talent.

Manufacturing in Mexico provides solutions for those struggling to find cost-competitive, industrial talent. Some of the best private universities in Mexico are in Monterrey, attracting talent from all over Mexico.

Additionally, Monterrey is the largest recipient of foreign direct investment of all of Mexico’s manufacturing sectors, maintaining a long history of metal manufacturing success and becoming the center of expansion for EV production in the automotive space.

Even in today’s market, as companies are focused on the shifts in tariffs, manufacturers still benefit from the proximity to target markets and the availability of advanced labor that manufacturing in Mexico provides, which can help offset any tariff fluctuations.

In general, companies in search of highly technical talent with experience working in a factory setting, Monterrey is a good place to start. Here’s why:

Strong Sector Growth

There’s been exponential growth in Monterrey, especially among the automotive, home appliances, and IT sectors.

Kia Motors, Navistar International, and Polaris are among those operating in Monterrey, employing thousands of people. Additionally, global manufacturers including LG and Whirlpool have increased their presence in the region.

Thanks to the educational investment in the area and the convenient transportation routes available to manufacturers, Monterrey has become a key place driving technological advancements and growth.

Cost-Effective, Highly Skilled Talent Pool

Manufacturers, particularly in the U.S., have struggled to recruit industrial talent while still maintaining costs. Whereas, every year, over 110,000 engineers graduate from Mexican universities and vocational schools, expanding the talent pool.

However, though industrial labor rates in Mexico are lower compared to the U.S., manufacturers must be mindful of the benefits and incentives that will attract the best workers as they create competitive compensation packages. A shelter services company can help manufacturers address salary requirements and employee expectations to drive recruiting.

Ability to Recruit Quality Workers Quickly

Certain sectors benefit from Mexico manufacturing more than others. For companies needing a thousand workers in a couple of weeks, namely the textile industry or those with other low-complexity production needs, manufacturing in Mexico may not be the most cost-effective option.

However, companies requiring highly skilled positions with specific training and experience, such as plastics, metal fabrication, mobility equipment, electronic components, electronic equipment appliances, etc., there is a pool of qualified talent available that can also help foreign manufacturers save on costs.

Additionally, working with a shelter services company can streamline recruiting. A shelter service company is familiar with the talent availability and salary expectations in various regions, making it more feasible to recruit large groups of employees within two to three weeks, depending on the roles required and other factors that affect the process.

Partnering with IVEMSA to Secure Skilled Labor

Labor rates in Mexico are a key part of the cost savings that foreign manufacturers benefit from when expanding production. Initiating a shelter services solution can help maximize these costs, minimize risks, and create a more seamless transition to manufacturing in Mexico.

Learn more by downloading our free Mexican Manufacturing Cost Fact Sheet (Monterrey Edition).

Source: https://mexicobusiness.news/trade-and-investment/news/monterrey-solidifies-its-position-mexicos-nearshoring-hub