Expect Employees to be University Educated and Technically Trained
The labor force in Mexico is well-educated, plentiful and reliable. Graduating around 115,000 engineering and technical students nationally per year, Mexico produces roughly three times more graduates per capita in the field than the United States.
The Baja California’s State University (UABC) is located in most major urban centers of the state and offers Bachelor of Science degrees in Aerospace, Electronics, Electrical, Mechanical, and Industrial engineering fields. Additionally; executives cite benefits of the closer cultural ties with the mostly bilingual workforce versus difficulties observed in offshore locations like those in the Asia-Pacific. The manufacturing industry in Tijuana represents 47% of the permanent private jobs in the city boasting 50 years of experience.
Education: Highly Skilled & Highly Trained
Baja California is home to 35 universities and 14 technical schools offering over one hundred professional degrees including Biotechnology, Physics, Oceanography, Digital Geothermal Technology, Astronomy, Aerospace, Electrical Engineering, and Sustainable Energy. Most universities and technical schools are located in major urban centers such as Tijuana (35) and Ensenada (12) and many participate in direct education exchange programs with the leading universities in Southern California and San Diego.
Globally Competitive Labor Rates
In the high growth markets, total labor costs account for approximately 30 percent of total location-sensitive costs in manufacturing and approximately 65 percent of total location-sensitive costs in service operations. Labor costs are lowest in India, China, and Mexico.
In the last 10 years Mexico has significantly closed the gap in labor costs compared to its offshore competitor, China. Labor cost in Mexico went from being 200% more expensive than China, to an impressive 19.6% difference today. Adding in transportation and logistics time and cost, companies are finding nearshore operations in Mexico dramatically less expensive, even with the growing gap in labor costs. Get your no-obligation and no-cost labor analysis today!
Close Cultural Ties to the United States
Strong cultural, economic and familial ties have existed between Tijuana and San Diego for decades, some would say as long back as when California was still a part of Mexico. With over 59 million northbound crossings from Tijuana to San Diego a year, executives find that the region is not only largely bilingual, but also engrained with many American customs. Additionally, the US Dollar is a widely accepted and used form of currency, especially along Northern border regions and in city metropolises. The US dollar is also the main currency for most commercial trade.