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Nolan’s Notes: Why Mexico’s Time Has Come

Why are so many electronics companies looking more closely at Mexico? Geography and labor costs are obvious answers, but trade policy adds another important piece to the equation.

U.S. trade attorney James Kim recently pointed out that certain Chinese-origin IT goods can qualify for USMCA preferential treatment when shipped to the U.S. from Mexico, even when the Mexican operation consists only of sorting, picking, packing, and shipping. The provision, rooted in NAFTA Annex 308.1 and recognized in U.S. Customs and Border Protection rulings, gives Mexico a potentially valuable role as a gateway into the U.S. market and strengthens the case for further investment there.

So, what does that look like on the ground? We surveyed a variety of companies that represent the mix of electronics manufacturing in Mexico today and asked them about the country’s climate. Their responses can largely be summarized in two words: “optimistic” and “legitimate.” Mexico has been a legitimate manufacturing player for some time, of course, but there’s a growing sense that it is evolving from a strong regional player to a strategically important global one. Find the results of that survey in this issue.

Mexico increasingly serves as a low-cost gateway to the U.S. market for computer-related products and, as such, you can feel a shift in its four electronics manufacturing hubs: Guadalajara, Nuevo Leon, Juarez, and Tijuana-Mexicali. As the Mexican government invests in infrastructure that encourages more sophisticated electronics manufacturing, Mexico’s leadership potential is rising. All one must do is visit SMTA Guadalajara, Oct. 7-8, to see what I mean. It’s impressively large for a regional show, revealing just how much momentum Mexico carries. In this issue, SMTA’s Ana Mendoza shares the why and how SMTA Guadalajara is important to the Mexican electronics industry.

Speaking of momentum, Mexico has opened an “overland canal” in recent years, known as the CUII, linking the Atlantic and the Pacific on the Mexican isthmus. While this idea has had its starts and stops for more than 150 years, it seems to have found its time. Read my article on the history and strategic importance of the CUII, a corridor that not only offers an alternative shipping lane but also suggests that a manufacturing chain could easily develop along the route. In my research, I learned that recent low water levels in the Panama Canal have threatened canal operations, underscoring the importance of the CUII in Mexico.

To continue with the theme, I’m including interviews with suppliers building out their local presence in Mexico: Paul Lancaster talks about Heller and Seho’s investment in the Mexico market and how a local presence improves their ability to serve their customers, while Chris Bastecki of Indium discusses his company’s brand-new solder paste manufacturing facility in Guadalajara, built to improve product quality, delivery times, and cost savings for their customers. Jamie Noland discusses important training updates from Blackfox.

I’m also pleased to introduce a new column by Tianming Liu, president and CEO of FSQuality and Fuji PCB, who will share his vantage point as a Chinese fabricator with Japanese training and a novel new plant in Thailand. Mr. Liu’s insights will assist the entire electronics ecosystem in better understanding how cross-cultural manufacturing practices, efficiency standards, and communication styles are both unique and universal.

To that end, I see the ongoing evolution in Mexico as a key player in the global market. It is attracting foreign companies from more than just the U.S., locally owned companies are thriving, and changing trade agreements and shipping patterns create a bold new opportunity for Mexican-based distribution. It’s not at all hard to see that Mexico’s time has come.

This column originally appeared in the September 2026 issue of SMT007 Magazine.