Tips for U.S. Companies in Mexico: 40 Years of Experience

For 40 years, Prodensa has supported U.S. companies in Mexico, helping them navigate cultural, operational, and regulatory challenges. Mexico today is a top destination for expansion thanks to its proximity to the U.S., competitive costs, and trade incentives under the USMCA.

As part of our 40th anniversary campaign, we’re sharing the lessons we’ve learned after decades of guiding U.S. manufacturers and service providers. These are Prodensa’s top tips for success when doing business in Mexico.

U.S. Companies in Mexico: Industries and Leaders

Mexico has become one of the most important destinations for U.S. companies. Its role as a manufacturing and services hub is anchored in strong industry clusters and integrated supply chains that connect directly to the U.S. market.

Key Industries for U.S. Companies in Mexico

• Automotive and Auto Parts: Mexico is the fourth-largest exporter of vehicles worldwide, and U.S. automakers have long-established operations here: FORD, General Motors, Delphi/Aptiv, Lear, Visteon, Cooper Standard, American Axle & Manufacturing, Tenneco, and many more.

• Aerospace: Clusters in Querétaro, Chihuahua, and Baja California make Mexico a leading aerospace production base for U.S. companies: Honeywell Aerospace, Textron Aviation, Gulfstream Aerospace, Parket Aerospace, Triumph Group, and many more.

• Electronics and Semiconductors: U.S. firms leverage Mexico’s skilled workforce to assemble electronics and, increasingly, components for the semiconductor industry: Intel, Dell, Flex, Jabil, Sanmina, Celestica, Benchmark Electronics, Plexus Corp., Skyworks Solutions, Molex, Texas Instruments, and many more.

• Medical Devices
  : Mexico is the top exporter of medical devices to the U.S., with strong clusters in Baja California and Jalisco: Medline, Medtronic, Johnson & Johnson, Boston Scientific, Cardinal Health, Stryker, Baxter International, Becton Dickinson (BD), CooperSurgical, and many more.

• Consumer Goods and Appliances: Household names rely on Mexican factories to serve the U.S. market with faster turnaround: Whirlpool, General Electric Appliances (GE), Procter & Gamble (P&G), Kimberly-Clark, Colgate-Palmolive, SC Johnson, Mattel, Hasbro, Stanley Black & Decker, Polaris, and many more.

• Industrial Machinery and Equipment: U.S. manufacturers take advantage of Mexico’s engineering talent and industrial parks: Caterpillar, John Deere, Cummins, Parker Hannifin, Oshkosh Corporation, Emerson Electric, Ingersoll Rand, Eaton,  Thermo Fisher Scientific, and many more.

• Shared Services and IT Centers: Beyond manufacturing, U.S. firms also open service hubs and back-office operations in Mexico: IBM, Cisco, PepsiCo, Petco, SAP, Amazon, and many more.

These are just a few of the hundreds of U.S. companies with established facilities in Mexico. At Prodensa, we’re proud to have supported many of them through their Mexico business journey — from site selection and workforce management to compliance and ongoing operations.

👉 Explore our full list of Prodensa clients.

Why Mexico Is a Strong Partner for U.S. Manufacturing and Services

The U.S.–Mexico business relationship is one of the most dynamic and integrated in the world. Today, bilateral trade exceeds $850 billion annually, with Mexico ranking as the U.S.’s largest trading partner.

Why Mexico Works for U.S. Companies

• Proximity to Market: Products manufactured in Mexico can reach the U.S. in days, not weeks — a critical advantage in today’s supply chains.

• Cost Efficiency: Mexico offers a competitive cost structure while maintaining a skilled and educated workforce.

• Trade Incentives: Programs like IMMEX, VAT/IEPS certifications, and duty-free treatment under the USMCA make Mexico highly attractive for exporters.

• Integrated Supply Chains: Mexico forms part of North America’s “factory floor,” producing goods that combine U.S., Mexican, and Canadian inputs.

The Future Outlook

Global supply chain disruptions, shifting geopolitics, and nearshoring trends continue to reinforce Mexico’s role as the preferred partner for U.S. companies. Whether through Mexican manufacturing operations or shared services, businesses can reduce risk while gaining strategic advantage.

Tips for U.S. Companies in Mexico

After 40 years of working alongside U.S. companies, we’ve identified the most important keys to success in Mexico.

1. Adapt to the labor culture.

Becoming an Employer of Choice in Mexico requires competitive benefits, career development, and a respect for workplace norms. By adapting a U.S. manufacturing operation to the Mexican labor culture, you can increase retention and productivity as well as attract top talent in the market. The employee communication network in Mexico is very strong.

2. Visit and invest in local leadership.

U.S. executives should be present alongside Mexican leadership, to align objectives and build cross-knowledge that can enhance both operations. Fostering a "sister plant" culture can go a long way to building the trust necessary to manage agile operations in North America.

3. Choose the right location to operate.

Mexico’s landscape varies widely — from labor culture and business practices to geography, climate, and regional industry strengths — creating diverse opportunities and challenges for U.S. companies. Choosing the right location for your unique business plan can set up you for long-term success in a shifting ecosystem.

4. Invest in your local community.

This is another key factor in becoming an Employer of Choice in Mexico, extending beyond employer branding. Companies that invest in education, training, and CSR not only build stronger loyalty and long-term success but also help shape positive industrial policy by contributing to the well-being of the country.

5. Compliance is key.

Cutting corners can jeopardize IMMEX, VAT certifications, and USMCA trade incentives. Now more than ever, success depends on doing things right the first time and maintaining thorough documentation. Staying current on local policy changes and regional trade agreements not only protects you from penalties but can also give you a competitive edge. 

The First Step to Success: Validating Your Business Plan

If we had to share just one universal tip for U.S. companies in Mexico, it would be this: start with a feasibility study.

A feasibility study validates your business plan and ensures your investment makes sense from the start. It typically includes:

• Cost modeling: Labor, utilities, real estate, logistics, and overhead.

• Site selection analysis: Evaluating regions, clusters, and supply chain advantages.

• Workforce availability: Assessing skill levels, turnover, and recruitment pipelines.

• Compliance mapping: Identifying labor, tax, and trade obligations.

• Incentive analysis: Understanding government and local incentives that may reduce costs.

At Prodensa, we’ve seen time and again that companies who invest in a thorough feasibility study achieve smoother launches and more resilient operations. It is the single most important step to take before opening a business in Mexico. 

Success Depends on Preparation

Mexico is one of the most promising destinations for U.S. companies — but success depends on preparation. From choosing the right industry and location to adapting to labor culture and ensuring compliance, the journey requires both strategy and local expertise.

As we celebrate our 40th anniversary, Prodensa continues to provide world-class guidance to U.S. companies in Mexico, combining trusted experience with future-ready solutions.