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Guadalajara is Mexico’s second largest urban area, covering 70.3 sq miles. Formerly known as Mexico´s Silicon Valley, it stands as one of the most attractive cities for foreign investments in Mexico and is the most important market in Mexico’s Occidental region.
Industrial activity in Guadalajara is diversified; some of the products that are produced include food and beverages, textiles, tequila, auto-parts, agricultural products, photographic equipment, electronic appliances and iron and steel products. It is important to highlight that Guadalajara is one of the most important non-border locations for manufacturing in Mexico, hand-in-hand with Monterrey and the cities stretched along the NAFTA Highway.
There are several high technology firms in electronics and communications in the metro area. In fact, Guadalajara produces over 60% of Mexico's entire computer output and has evolved into a main center of distribution for both central and western Mexico. The city also benefits from a highly integrated banking and financial services industry. Even though the city is known internationally for its high tech industry, most of the industrial activity still relates to traditional industries like food, textile, and wood production.
Industrial Clusters
The aerospace industry in Guadalajara is one of the sectors with fastest growth over the past 5 years. Since the region had already developed high tech manufacturing capabilities several years before in the electronics and automotive sectors, the up-shift into aerospace production was a natural step forward.
Companies in the region have driven this transition by certification in aerospace quality standards such as AS9100 for manufacturing, supply chain management and logistics. In addition to this, R&D activities have also started by embedded design companies servicing global OEM customers.
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Mexico's extensive experience in the automotive manufacturing industry is globally known. Nevertheless, Guadalajara's Metropolitan Area is also one of the leading regions in the country evolving manufacturing into innovation in R&D and advanced engineering.
- Semiconductor companies in the region greatly contribute to the automotive sector development, fostering university programs with automotive R&D contests as well as internship programs and embedded design tool donations.
- With Guadalajara's local talent and managers, automotive companies have achieved full product development including PCB layout design, software development with CMMI L3 standards, test engineering and validation.
- Added value activities for manufacturing are also a focus to elevate capabilities within processes. These activities include manufacture and testability reports, lean manufacturing, production simulation, machine design, construction and set up of assembly stations and vision systems.
- Along with the presence of Fortune 500 companies, a local suppliers base is well developed for the automotive vertical, ranging from parts manufacturers to high end engineering and testing for dynamic occupant and pedestrian safety, static airbags, vehicle dynamics and others.
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With the signing of the NAFTA agreement in the 90's, Mexico's electronics contract manufacturing industry bloomed. Most of the major CEM companies such as Flextronics, Jabil and Sanmina-SCI established operations in Guadalajara. The region offered many tangible benefits as other semiconductor, computer and telecom manufacturers had already developed local high tech manufacturing capabilities.
- From 2000 to 2003, the industry suffered migration of many projects to Asia as large developing nations like China created local facilities. Therefore, Guadalajara revised its core competencies and has been successful in transitioning to higher added value projects: high/low-volume mix, engineering, testing and custom solutions.
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- Through the fostering of technical programs in universities, construction of scaleable infrastructure and government incentives, the electronics manufacturing industry is now able to deliver complex engineering and indigenous design in mid-markets and verticals such as aerospace, medical, automotive and others.
- New federal programs supporting higher value-added capabilities have benefited Guadalajara's high tech manufacturing industry, one example is the Programa para la Competitividad de la Industria Electrónica y de Alta Tecnología (PCIAT), that established over 250 suppliers nationwide to support major multinationals creating over 30,000 jobs.
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Guadalajara's Metropolitan Area is a significant contributor to the nation's market's size, hosting a truly developed ecosystem with Mexican and foreign companies being small to medium or renowned multinationals such as IBM, HP and Dell. More than 10,000 engineers and over 20 universities with IT programs give the region one of the best IT and BPO skill pools in Latin America.
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- Enabling high value-added operations in IT, BPO and Software development has been a focussed effort in Guadalajara over the past 10 years. Training and certifications have been achieved through the government funding of academic programs in specific technologies such as Java, .NET, C++/C and others.
- Global IT services (applications and infrastructure), software development/maintenance and embedded software are being provided compliant with international standards such as CMMI and CMM. BPO services provided include customer management, F&A, technical support, procurement and other business processes.
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Electronic Design engineering is one of Guadalajara's most successful high tech sectors. In addition to local capabilities in PCB layout originally targeted to servicing electronics contract manufacturers, a fast growing industry is developing to service the domestic embedded market.
- The most notable success in terms of global collaboration and innovation in Electronic Design are Fortune 500 companies such as Intel, Continental and Freescale Semiconductor that have chosen Guadalajara's Metropolitan Area to establish their design centers in Mexico.As Mexico has shifted into high value added engineering operations, Guadalajara has become known as Mexico's “Silicon Valley” and taken the lead in terms of Electronic Design, opening R&D centers for global and local companies with complete product development.With over 20 design houses established in the region and 2 government research centers that cooperate in industry and academic projects, the cluster model has made the region extremely attractive for sourcing global R&D operations.Every year the local universities graduate over 6,500 engineers in IT/EE and computer engineering courses. Through this local talent capability, the local research centers are not only able to fulfill high value add projects, but also accelerate delivery through government funding programs for PhD level IC design and validation.
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The process to build advanced multimedia capabilities in Guadalajara has been a sustained effort over the last 5 years. The industry has achieved key milestones like establishing collaboration programs with Mexico's movie industry and setting up short film productions such as “Batallon 52”, which involved over 50 designers working for 8 months in software parks with specialized training by international experts.In addition to this, some startup companies in Guadalajara have been able to obtain international contracts to support animated films for Hollywood studios, not just in effect editing but also in storyboard and creative animation conceptualization.
- All major universities in the region have also aligned their academic programs and IT infrastructure to be able to train in the latest technologies for 2D and 3D animations. Private training institutions have also been established in the region and are graduating approximately 200 advanced designers per year.New media initiatives have also been supported by the state government, partially-funding projects for online television broadcasting and special show production.
- Advanced imaging algorithms engineering and driver development are some of the most high value projects being developed in Guadalajara.Vision systems for advanced manufacturing testing and CAD imaging and animation for prototype development are services available through local companies and research centers. Although these applications are highly specialized, the knowledge created is readily adaptable for application in other industries.
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