We are thrilled to share some exciting news with our community! Megaforce MedTech's Managing Director of North America BU, Eric, has been invited by EL UNIVERSAL to discuss the compelling insights surrounding our decision to operate a facility in Tijuana, Mexico.
The Shift in Production Chains and the Rise of Nearshoring
The relocation of production chains or nearshoring has been a game-changer, attracting numerous foreign companies to expand their investments, thanks to the geographical proximity to the United States.
From January to September, 76 out of every 100 dollars that Mexico received in Foreign Direct Investment were from reinvestment of profits, according to the Ministry of Economy. Companies are recognizing the potential beyond lower manufacturing costs and are envisioning Mexico as a hub for obtaining inputs and transforming their plants into design and development centers.
Eric Chen, Managing Director of Megaforce MedTech's North American Business Unit, emphasizes, "The most important thing is that in the future we want to develop and design in Mexico. They are two of the crucial elements for the long term."
Challenges and Opportunities Ahead
With our new plant in Tijuana, we foresee various activities unfolding in the next five years. However, Eric Chen stresses the importance of the right program, the right business, and the right consumer to achieve our goals.
"Our primary focus for 2024 and 2025 is finding the right talent. We believe that having the right people is crucial to driving Megaforce's goals forward," says Chen.
Chen explains, "Mexico is very convenient because it is very well established and globalized." Despite the challenges associated with a complex supply chain, Megaforce MedTech sees Mexico as a strategic choice due to its proximity to the U.S. market. Chen highlights the advantage of faster transportation of inputs by land, which would be challenging if the plant were located in Central America.
He adds, "For us, Mexico offers a well-established and globalized environment. The challenge lies in the supply chain's stability, and we hope to see more suppliers of materials right here in Mexico."
Megaforce MedTech's commitment to producing medical equipment, electrical appliances, and auto parts remains unwavering. As Eric Chen concludes, "Producing in the United States is challenging due to costs, making Mexico an attractive alternative. Our vision is not just about manufacturing but developing a sustainable ecosystem that thrives on local talent and suppliers."
Stay tuned for more updates as we embark on this exciting journey in Tijuana, Mexico!