TT Electronics Embraces Nearshoring, in Mexicali, Mexico
TT Electronics, a global manufacturing solutions provider, has announced the opening of a new facility in Mexicali, Mexico, a fresh step for the company in serving customers worldwide. TT Electronics was founded in 1812 and is based in Woking, England, with 26 locations around the world.
The new factory is equipped with the latest manufacturing capabilities, to meet the rising demand for electronic manufacturing solutions across North America.
A strategic shift in manufacturing
Nearshoring - when a business moves its manufacturing to a country closer to them, or closer to the consumer - is the opposite of offshoring.
In the 1980s, many manufacturing activities were offshored to China and across Asia, as workers there were paid lower salaries, which meant that products could be sold cheaply. But the pandemic brought chaos to the global supply chain, which led manufacturers to review their regular routes and consider nearshoring. Even if workers are paid a higher wage, reliability of products will keep supply chains smooth and customers satisfied.
The Red Sea leads through to the Suez Canal, connecting Asia with Europe and North Africa. This route sees 12% of global maritime traffic. Since Iran-backed Yemeni Houthi militants started attacking freighter ferries in the sea, some manufacturers are taking a different route the long way around the south-west coast of Africa. This adds two more weeks to the shipping time, which costs more in fuel and emissions.
This is why Latin America is an ideal nearshoring location - it’s easy to reach North America, even by land, while Africa and Europe are reasonably protected from militants, by the vast Atlantic ocean.
However, the TT Electronics factory in Mexicali shares a border with California, US, and will not be of much support to customers to the East.
The new facility offers fully integrated electronics manufacturing solutions with capacity for up to six high-speed SMT lines and product integration.
"We are thrilled to inaugurate our new manufacturing facility in Mexico, a testament to our dedication to meeting the evolving needs of our customers and expanding our global footprint," said Michael Leahan, Chief Operating Officer at TT Electronics. "This strategic investment reinforces our commitment to deliver increased value, a world-class service and the capacity to enable our customer’s growth.”
Building a manufacturing ecosystem for the future, at TT Electronics
Previously, Sanjeev Katiyar, Senior Engineering Manager at TT Electronics, spoke exclusively with Manufacturing Digital to discuss DFx trends and strategies, as well as how subcontractor relationships can impact the manufacturing sector.
“Creating a manufacturing ecosystem built for future advances and product longevity is crucial to the long-term success of any product,” he said. “Trouble is, it’s not always obvious that these things don’t necessarily exist. It may not be until product testing fails, an upgrade is required, or a supply chain is disrupted that the core elements of a design will be revealed to be unnecessarily complex and costly.”
Read the full interview here.
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