ARIZONA & MEXICO

Several other sectors, such as fabricated metal products, machinery manufacturing, plastic and rubber
products, leather and allied products, are among Nogales’ more traditional maquiladoras with a longer
history in the region. In contrast, administrative and support services, as well as management and
technical consulting services developed as a natural outgrowth of the industry’s needs
AUTOMOTIVE INDUSTRY IN HERMOSILLO
The Ford company opened its first plant in Hermosillo in 1986, and in less than two decades the
automotive industry became not only one of Sonora’s manufacturing pillars, but also one of Mexico’s
leading automotive industry’s production centers. About 80 companies established their presence
around the Ford plant to supply components and services. Many of them operate as Tier 1, Tier 2 or Tier
3 supplier maquiladoras, including distribution centers. Together, the main plant and locally based (but
largely foreign-owned) suppliers employ about 15,000 people. 4
About $1.8 billion worth of transportation equipment is exported annually to Mexico through
Arizona-Sonora border ports of entry. The dollar value of imported transportation equipment (including
cars) shipped north through Arizona-Sonora border ports of entry is $6.7 billion. 5 Nogales serves as the
main gateway for inputs into Sonora’s automotive industry both for southbound shipments of
components and northbound shipments of assembled cars.
AEROSPACE INDUSTRY CLUSTER IN THE GUAYMAS-EMPALME AREA
The development of aerospace activity in Sonora is a relatively new phenomenon. It was built on
established expertise in manufacturing of cables for aircraft companies like Boeing, precision machining,
and electronics manufacturing and assembly. Today the industry encompasses a whole array of
composite components for aircraft interiors, aerospace electronics manufacturing, precision machining
of airplane components, turbine components, and turbine assembly. The port of Guaymas with nearby
town of Empalme is the main location for aerospace companies. 6
SONORA AND SINALOA LEAD IN MEXICO’S IMMEX NON-MANUFACTURING ACTIVITIES
Whereas in manufacturing activities Sonora trails behind other Mexican border states, in the nonmanufacturing
activities Arizona’s neighboring state holds the top rank (18 percent of Mexico’s total).
The state of Sinaloa, a major origin of winter fresh produce to the U.S., had over 45,000 employees in the
IMMEX non-manufacturing services (17 percent of Mexico’s total). Together, these two states accounted
currently for more than a third of the IMMEX non-manufacturing employment.
CONCLUSION: TAKING ADVANTAGE OF BORDER LOCATION
Since the inception of the maquiladora model more than 40 years ago, Arizona’s companies have had
taken advantage of their geographic proximity to Mexico’s assembly/production plants, especially those
located in the neighboring Sonora.
4
Kristian Richardson, U.S. Export Service.
5
Annual Report 2015, AZMEX Indicators http://azmex.eller.arizona.edu
6
Source: The Offshore Group, www.offshoregroup.com
APRIL 2016 • ARIZONA TOWN HALL • ARIZONA & MEXICO • 46