Mexico Manufacturing & Maquiladoras - NMEDD

Companies locating or operating in New Mexico are uniquely poised to provide the maquila plants the just-in-time delivery and minimal transportation costs they are seeking. New Mexico is a link to over 90 million consumers as the North American Free Trade Agreement continues to provide unprecedented access to Mexico.

Geographically, New Mexico is an ideal location. New Mexico shares a 175-mile common border with Mexico, which offers distinct advantages to maquiladora operators, suppliers and companies offering goods and services to the Mexican consumer marketplace. New Mexico's well-developed highway infrastructure, the elimination of trans-shipment to more distant plants and quick access to management in response to frequent technological and design innovations and changes are a few of the many advantages to be realized by operating a maquila business from New Mexico. New Mexico abounds in technical expertise in a variety of areas, particularly from current or former employees in the defense industry. The state's infrastructure for facilitating the maquila industry is solidly in place, as is an excellent interstate system provides direct access to and from major markets and maquilas. Excess utility services and labor, and low cost land are few of New Mexico's infrastructure advantages.

There are a variety of support services that are needed by the maquila operations. Transportation, communication, consulting, computer services, plumbing, printing, construction, warehousing, travel agency services, relocation services and legal and accounting services that can be more effective provided by New Mexico companies who have knowledge of border communities and cultures.

To some extent parent corporations may locate primary or subsidiary facilities in New Mexico and operate their maquila operation in Northern Mexico. The most likely prospects for this aspect would be companies that need to produce sub-assembled or partially manufactured components for their maquila operations with more highly skilled and better-educated American employees. A market niche is readily available for providing the support services mentioned above. New Mexico companies should have a relatively easy and immediate entry into this market, and may rapidly expand as new border crossings are opened.

New Mexico's biggest potential lies in providing the direct and indirect materials to maquilas, with the provision of indirect materials being the more immediate opportunity. Intensive effort in two areas should prove to have the biggest impact on the state. Initiating small and medium sized manufacturing companies that can individually or in cooperation with other similar businesses produce indirect and direct materials to the tight specifications of maquilas should become very lucrative. Attracting medium and large corporations from outside the state that are currently supplying the maquila industry also has excellent potential for expanding New Mexico's share within the $37 billion annual pie.

General contact information

New Mexico Economic Development Department