Medical device manufacturing in Tijuana

Tijuana, Baja California – When Phase 2 Medical, Rochester, New Hampshire, a medical device contract manufacturer of single-use, started exploring the idea of expanding their operations to a cost effective location the company was set to go to Costa Rica. But after a lot of examination Phase 2 had no doubt that Mexico's Medical Device Manufacturing environment was the best near-shore location for their new facility.

“We found that buildings were readily available, and business and labor costs were better than in Costa Rica. We [also] ruled out China because it was not a good fit. Beyond the political situation and rising labor and shipping costs, it was too far away for us to manage,” says CEO Adam Prime.

Just south of San Diego, California, Tijuana has more than a 30-year history in medical device manufacturing and is highly regarded as a major global hub for medical device manufacturing. Boasting a 50,000 person-strong workforce directly serving the 70 companies operating in the region, the medical device industry in Baja California represents the largest concentration of companies and of job creation in Mexico. Mexico is also the fifth largest exporter of medical products in the world, with 50% of these exports coming out of Baja California manufacturers.

"Our customers are looking for more vertical integration. The new nearshore plant and our new capabilities in medical injection molding are significant milestones in Phase 2's growing abilities to meet and even exceed our client’s expectations; while also attracting new customers seeking high-quality contract medical manufacturing," says Technical Manager-OUS, Ben Prime.

With global medical device outsourcing forecasted to reach more than $50 billion by 2020, there are no shortages of new markets and new customers to tap into. Strategic location is now just as crucial as your marketing and sales force. With an average of 15% production cost savings for OEMS who outsource to CMOs, Phase 2’s manufacturing expansion to Tijuana has placed them at the center of the industry. With the trending best practice of the “One Stop Shop,” medical device OEMs are now seeking contract manufacturers with a global footprint and an increased breadth of services and capabilities.

“Phase 2 was set up in Tijuana in months, and the only way it was possible was through the efforts of Co-Production International (CPI). CPI visited our plant in New Hampshire to get an excellent understanding of what we do, how we do it, the space we needed, and the level of expertise required by our labor force,” Prime adds.

Working with an administrative and shelter services firm is the new best practice for expanding manufacturing operations outside of the United States. Manufacturers gain a strategic and cost effective advantage working with companies like CPI who handle the entire process of exploration, cost analysis, and complete set-up. Hiring in-house site or expansion teams just isn’t cost effective anymore, especially including the added cost and time spent navigating and complying with a foreign country’s business regulatory requirements. CPI offers manufacturers a unique and innate advantage over an in-house team: the local knowledge, expertise, and established network of partners.

Source: Phase 2 Medical