Mexico had been well recognized for automotive, metal mechanics, construction and fiber industries for fairly long period now. But while these industries were in the spot light, medical device industry had been quietly, but rapidly growing.
Here we will check the brief prospect of manufacturing medical devices in Mexico, commonly manufactured medical products, and the best locations for the business to join the success story.
The statistics show that medical device manufacturers in Mexico saved costs with the average of 20% compared to 9 other leading medical device manufacturing countries in 2011 and the after-tax profit was close to four times the benefit than manufacturing in the U.S. The medical device production in Mexico in the same year was about US $8.6 billion. It is expected that the average annual growth rate will be 6.4% until the year 2020, and by this year the value of production in Mexico will be around US $15 billion.
Mexico is currently the fifth largest exporter of medical products worldwide, and is the second largest market in Latin America.
Although Mexico produces many other medical devices, it is known for being;
The leading exporter of gloves, gauze and bandages
The third largest exporter of tubular metal and suture needles
The fifth largest exporter of medical, surgical, dental and veterinary instruments and devices
The sixth largest exporter of mechanotherapy, massage and related equipments
The primary medical devices manufactured in Mexico were chiefly single-use disposables such as procedure trays, sutures, latex gloves, surgical bandages and splints. Nowadays, medical devices that require higher technique to produce are commonly manufactured in Mexico such as stents, artificial respirators, remote controlled insulin pumps, pacemakers and defibrillators and other delicate instruments.
More or less 750 medical device manufactures from all over the world are huddled in 9 states of Mexico, which are Baja California, Chihuahua, Coahuila, Jalisco, the State of Mexico (and the Federal District), Jalisco, Nuevo Leon, Sonora and Tamaulipas. Among them, Tijuana City in Baja California is the most populated of all North American countries with such manufactures. The State of Chihuahua ranks second.
As medical device manufacturers are seeking to keep quality and R&D up while keeping the costs down, many major and middle sized companies have moved their factories to Mexico. Well-known companies such as Johnson & Johnson, Kimberly Clark, Medtronic, Boston Scientific, GE, Greatbatch, Welch Allyn, Tyco, Siemens and Cardinal Healthcare, Stryker Incorporated, Becton Dickinson, 3M are the examples.