Printed circuit boards (PCBs) power a tremendous range of electronic devices and have come a long way in size, function, and complexity since their introduction in the 1940s. Today, stacked layers of extremely small PCBs create the conductive pathways that support consumer electronics, aerospace equipment, computers, telecommunication solutions, and other instruments. Even as these devices grow more complex, more PCBs than ever are being assembled by highly skilled, low-cost labor at Mexico-based operations.
Experts project that the global PCB market will grow at a CAGR of 4.2% to USD $80.38 billion by 2024, driven by increased adoption of automation solutions, continued demand for wireless devices, further miniaturization of devices, and new need for more efficient interconnect solutions. As demand increases, so too does the call for innovation around these products.
Trends driving the future of the assembly industry include:
Mexico has proven attractive to foreign investors across a range of industries as a low-cost manufacturing center, and for the ease of entry, it offers foreign manufacturers. However, there are several factors of particular interest for PCB assembly companies.
1. Strong industrial clusters. Mexico’s manufacturing clusters leverage economies of scale to strengthen local infrastructure, industry training, and supply chains. Consider that Mexico is the 14th largest aerospace supplier globally, eighth-largest electronics producer, and fourth-largest automobile exporter in the world. By launching an operation near these established clusters, companies can sell into the local supply chain in addition to meeting global demand.
2. Nearshoring benefits. Nearshoring promises many of the cost savings of offshoring, but without the logistical challenges. Shipping lead times and costs drop dramatically, particularly for U.S. companies sourcing products from Mexico’s border regions. Companies sourcing low-volume solutions further benefit from Section 321 of the U.S. Code of Federal Regulations, which sets an $800 minimum value on shipments allowed into the United States duty-free.
3. Trained labor. PCBs are sophisticated products that require strict adherence to quality standards. While Mexico is known for its low-cost labor, manufacturers who operate here also recognize that laborers are well trained and adept at handling complex assembly processes. In fact, some manufacturing communities provide on-site training to ensure employees are able to meet customer requirements.
Maximizing the benefits described above depends upon how quickly, efficiently, and cost-effectively a company can launch operations in Mexico. While there are many ways the federal and state governments support foreign investors, the simplest way to launch your PCB assembly operations is to partner with an experienced shelter service provider. Companies like Tetakawi can identify strategies for streamlining product delivery through customs and connect employers with experienced employees or training options. This frees up manufacturers to innovate in the areas they know best.
Learn more about how partnering with a shelter service provider can support your success in the complex world of PCB assembly.