Textile Manufacturing: Why Mexico Is a Prime Location For Textile Production

Revitalized by innovation, rising demand, and the USMCA free trade agreement's ratification, Mexico's textile manufacturing industry is surging.

Mexico’s Textile Manufacturing Industry is Tailored for Success

Textile manufacturing in Mexico has been well-established for centuries and dates back to the country’s first textile factory in Puebla in 1830. As competencies in textile manufacturing have evolved, the textile market has surged.

With annual exports of USD $7 billion per year, Mexico’s textile and apparel industry is now one of the country’s strongest industries.

Given the growth of the automotive, aerospace, and medical device industries in Mexico, demand for technical textiles, industrial fabrics, and specialty apparel has increased. Wage inflation in China and other Asian countries has also made Mexico a top alternative for textile production in recent years. Coupled with proximity to high-demand markets (the United States in particular accounts for over 70 percent of Mexico’s textile exports) and the ability to provide fast turnaround times, textile and apparel manufacturers in Mexico can create quality products cost-effectively. A textile manufacturer based in Mexico has access to low production costs, prime industrial locations, and large market opportunities.

With historical growth in the textile industry of 5 to 7 percent per year – which is expected to continue through 2022 – manufacturers seeking a textile production haven for quality fabric, cotton, fiber, yarn, and other textiles have no further to look than Mexico. If you are ready to enter the textile industry in Mexico, we can help you get started with the process today.

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What to know about
Textile Manufacturing
in Mexico

Thinking about manufacturing textiles in Mexico? Learn about Mexico's Textile industry and how shelter services can help.

Textile Manufacturing in Mexico - Tetakawi

Mexico’s Textile Manufacturing Industry by the Numbers

639,000

workers are employed in Mexico’s textile manufacturing industry

As of 2020, Mexico's textile and apparel industry employs a remarkable 639,000 textile workers, from cotton farming and fiber production to fabric and finished garment manufacturing.

3%

of Mexico’s GDP is accounted for by the textile and apparel sector

According to the International Trade Administration (ITA), Mexico’s textile industry accounts for approximately 3 percent of the country’s GDP.

$7 billion

in annual exports of textile and apparel

Mexico exports about USD $7 billion per year in textiles to destinations around the globe. The United States is by far the country’s largest textile market importer, accounting for over 70 percent of Mexico’s textile exports.

Launch Confidently with Tetakawi’s Textile Advantage

Whether you’re thinking about manufacturing textiles in Mexico or you’re already there, Tetakawi can help your company launch, operate, and thrive in the country’s competitive textile manufacturing industry. With over 34 years of experience in the Mexican manufacturing landscape, we’re experienced in getting textile manufacturers up and running smoothly. Our services are built on strategy, driven by experience, and tailored to meet your operation’s unique needs. Though we’re the largest shelter services provider in Mexico, our hands-on approach means that you can rely on a trusted partner to guide you through the process of starting your textile business, while keeping things under your control. We can help you:

  • Select the right site for your textile factories and manufacturing business
  • Configure legal, organizational, and support processes structures
  • Recruit, train, and retain your employees
  • Manage all admin functions from finance and accounting to labor and processing textiles through customs
  • Keep processes running smoothly from initial launch through ongoing operation
  • and so much more – we do the heavy administrative lifting so that your textile team can focus on your competitive advantage: manufacturing excellence.

Start your textile manufacturing operation seamlessly with comprehensive support from Tetakawi.

Establish or expand your textile manufacturing business in Mexico with our tailored services. From in-depth consultations to turnkey manufacturing facilities, we can help you at any stage of the start-up process.

Shelter Services

Focus on what you do best and we’ll do the rest – our shelter service offering is the easy, cost-effective, and low-risk way to establish a textile manufacturing presence in Mexico.
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Soft Landing

Launch successfully with a streamlined team of experts dedicated to ensuring your entry strategy is executed on-time and on-budget.
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Manufacturing Communities

Run your textile operation seamlessly with turnkey manufacturing facilities that combine Class A industrial space, on-site support, and shelter services.
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Advisory Services

From site selection and customs analysis to cost estimation, we’ll help you make decisions that are informed, strategic, and actionable.
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FAQs About Textile Manufacturing in Mexico

What are the top areas of growth for companies looking to manufacture textiles in Mexico?

There are several significant opportunities for manufacturers of textile and apparel products, particularly with fabric production. Some of the best prospects in Mexico's textile industry include manufacturing of:

  • Rayon-based synthetic fibers and other artificial fibers
  • Fabrics with textured polyester dyes
  • Taffeta fabrics with discontinuous dyes made of polyester fibers
  • Upholstery fabrics
  • Industrial fabrics for the automotive and aerospace industries
  • Silk and fine wool fabrics

The wide variety of fabrics and textiles made in Mexico is a large factor contributing to the growth of the textile industry and the number of market opportunities available.

 

What impact has USMCA had on Mexico's textile manufacturing industry?

The introduction of USMCA has only improved competitive opportunities for Mexico's textile and apparel industry. Under the agreement's "yarn-forward" rule of origin, for an apparel item or textile to qualify for duty-free treatment, each component must be formed within the free trade area. This includes the spinning of the yarn or thread, the weaving or knitting of the fabric, and final assembly. Given these requirements, Mexico has become an increasingly attractive option for its proximity, ease of entry with shelter services, and low cost of making textiles.

 

Where should I locate my textile manufacturing operation in Mexico?

According to the Mexican National Institute of Statistics and Geography (INEGI), 63% of Mexico’s textile industry is concentrated in the central and northeastern parts of the country, with hubs in Puebla, Mexico City, and the states of Mexico, Hidalgo, Tlaxcala, Jalisco, Queretaro, Coahuila, Sonora, Guanajuato, Nuevo Leon, and San Luis Potosi. These locations have the resources and labor necessary to produce textiles and run a successful textile operation. Each location is an ideal place to open your textile production factories and enter the growing industry.

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Start Your Mexico Strategy Today!

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