Electronics manufacturing services (EMS) provider Plexus Corp. announced it would begin manufacturing operations in Guadalajara, Mexico after a new 265,000 sq. ft. facility is built next year.
The Neenah, Wisc.-based EMS provider will lease the facility, which is being built at Guadalajara Technology Park. The facility will become a part of Plexus’ global network of 24 facilities, providing OEM customers with electronics design and manufacturing services. Plexus also has a facility in Juarez, as well as factories in the U.S., Europe and Asia.
Todd Kelsey, executive vice president and chief operating officer, said demand for low-cost manufacturing is increasing in North America and the Guadalajara facility will help Plexus meet the manufacturing needs of OEMs.
“Guadalajara provides Plexus with access to a highly skilled workforce, a network of suppliers, a supportive business environment and an efficient logistics infrastructure,” he said.
Steve Frisch, executive vice president, global customer services, said that the investment in Guadalajara “emphasizes our focus on fulfilling customer needs in the Americas. This expansion provides valuable options for our customers that require a Mexico solution,” he said.
Thomas Dinges, senior principal analyst with IHS Electronics & Media, said Plexus needed another site in Mexico to grow its business and “chose to move where everyone else already has a site, which is in Guadalajara.”
He added Plexus will likely keep its Juarez site running for now, but longer term “I'm sure they'll look to expand Guadalajara more and possibly close Juarez.”
While most other EMS providers already have facilities in Guadalajara or Monterrey, “there is plenty of room to expand there for both new business and transfer business,” said Dinges.
Demand for manufacturing in Mexico is growing. “The growth rate for Mexico in terms of production revenues should outpace the broader industry," said Dinges. “Our industry forecast calls for 2 percent per annum for the next five years. Mexico should be higher than that by 1 percent or so,” he said.
