Durango, Mexico, is fast becoming a prominent player in electronics manufacturing, primarily supporting the automotive and aerospace industries. With its strategic location in northern Mexico, a well-educated workforce, and rapidly improving infrastructure, Durango is an attractive destination for both domestic and foreign investment. In this article, we will discuss the state’s economic climate, notable companies, and the advantages it offers to businesses in the electronics manufacturing sector.
Historically known for agriculture and mining, Durango has seen rapid growth in its economy since the ratification of NAFTA in the early 1990s. The state now hosts hundreds of manufacturing and assembly facilities (maquiladoras), particularly in the capital city, Durango. Over the course of three years, Durango has attracted 3.7 billion pesos in automotive investment projects, generating 30,000 direct jobs in the industry. The aerospace sector in Durango is also on the rise, with local entrepreneurs manufacturing remote control aircraft that can be used as drones for security and rescue.
Automotive Electronics Manufacturing
Durango’s automotive industry focuses on the production of electronic components for various automotive companies. Some of the major automotive companies in Durango that are relevant to the electronics industry include:
- KYUNGSHIN CABLE DURANGO: Produces cables for the automotive industry, supplying companies such as Kyungshin Lear, Yura, APTIV, Kongsberg, Reynosa, Kongsberg Canada, Kyowa Kogo, Sensata, and Tae-Sung.
- DAWS DURANGO and DAWS Nombre de Dios: Manufacture automotive wire harnesses for KIA and Hyundai.
- YAZAKI YED DURANGO: Produces automotive wire harnesses and raw materials for Honda, Isuzu, Ford, Mazda, Nissan, Toyota, Chrysler, Renault, GM, and Mitsubishi.
- LEONI: Manufactures automotive wire harnesses for GM and Mercedes Benz.
Aerospace Electronics Manufacturing
Durango has recently become part of the aeronautical industry, with local entrepreneurs manufacturing remote control aircraft that can be used as drones for security and rescue. Four companies are currently dedicated to this sector, generating 110 direct jobs. Notable companies in the aerospace electronics sector include:
- Prysmian Group: A world leader in the manufacture of cables for the aerospace, automotive, and telecommunications sectors and the industry.
- Advanced Composite Technology: Specializes in the design and assembly of radio control, ultralight, or composite-based sport aircraft.
- ACV Group: A member of international organizations such as the Mexican Federation of Aerospace Industry (FEMIA) and the Laguna Advanced Manufacturing cluster.
- Laguna Advanced Manufacturing: Offers cutting, bending, machining, painting, welding, and sandblasting services for aerospace products and processes.
Workforce and Infrastructure
Durango boasts a well-educated workforce of about 150,000, with approximately 1,500 graduates in engineering, construction, and manufacturing each year. The state is home to around 60 institutions of higher learning and employs about 200 academic researchers in fields such as biotechnology, agronomy, and medicine. Labor costs in Durango are typically lower than the already competitive national average.
Infrastructure development has also been a priority for Mexico, with Durango benefiting from the construction of an international airport and 1,200 kilometers of railway. This improved infrastructure has attracted automotive companies, such as Delphi, which invested $23 million in a new plant in the state to produce automotive wiring and electric circuits for customers like General Motors, Johnson Controls, Flex N Gate, and NYX Inc.
Durango’s strategic location, competitive labor costs, and thriving automotive and aerospace sectors make it an attractive destination for electronics manufacturing companies. With ongoing investments in infrastructure, education, and research, Durango is poised to become a key player in the electronics industry in Mexico and beyond. The state’s focus on supporting the automotive and aerospace industries demonstrates its commitment to fostering growth and innovation. As Durango continues to develop, it is expected that more electronics manufacturing companies will establish operations in the region, further solidifying its position as a hub for electronics production in both the automotive and aerospace sectors.