SUCCESS STORY Yuma – Mexicali: Binational Manufacturing Model
Yuma is an important friendly business community. Strategically located near the US-Mexico border with railway and key highways connecting to Long Beach, Los Angeles and Ensenada seaports and industrial areas in Mexicali and San Luis filled with young and bilingual population, which makes Yuma an attractive site for business.
Julie Engel, CEO of Greater Yuma Economic Development Corporation.-
Yuma is a very attractive place for investment because of tax breaks and other things you offer, and Yuma has taken a role being very binational friendly. So tell us Greater Yuma’s role in reaching areas like Mexicali and Tijuana.
“We have made a concerted effort through 4FrontEd which is binational and represents four states, with a Foreign Trade Zone that can reduce cost, making us more affordable than other areas along the U.S.-Mexico border, and that has been attractive for companies that didn’t know we were beyond our agricultural community and into high technology.
”Why it is important for Yuma to reach out to the Mexicali market and what areas are you trying to reach at this moment?
“We live in a sixty-mile radius metropolitan area where there are two million people so it is very important for us. We are much stronger when we work together complementing assets. If we try to do this alone, we are not strong as when we work together, all of the four states that meet in this area. Our efforts now include adding more manufacturing as in Mexicali. Mexicali is a very sophisticated manufacturing hub with companies that need support services, distribution, and foreign trade zones options, which is what we offering.”
Traci Schultz, Vice-President of Operations for Martech.- Tell us why did you decided to invest in Yuma, Arizona and the success you have had here so far.
“Martech Medical is a contract manufacturing company headquartered in Pennsylvania with a location in Mexicali, Mexico. We have sterilized our medical devices in Yuma for about five years now and because of the logistics of the area we found that definitely Yuma was a place where we wanted to expand. We partnered with Greater Yuma Economic Development and PIMSA, found a location and started distributing for seven of our customers, out of Yuma, Arizona since February.”
Tell us about how Yuma, Arizona has received and supported Martech.
“The City and Arizona have given us great incentives, they have been very welcoming and the resources at our reach have been incredible. “
What are the future plans for Martech?
“We have expanded our plant significantly for the last five years and Yuma will be the place where we will be expanding for manufacturing.”
Tell us why Yuma, Arizona is the prime location for investment.
“The resources, the partnerships with the City GYEDC and the college that has been very helpful in matter of the skills our employees require. So definitely Yuma is a place where we want to be.”
What will be your message for someone in the Cali-Baja Mega Region who wants to invest in Yuma?
“My message for them is that if they want to reduce costs, improve operations, and be able to meet today’s medical device regulations and have sterilization, the location of Yuma, near to Baja, is incredible for medical industry. It has reduced our delivery time, which in our industry is key.”
Xavier Rivas, PIMSA Industrial Developers Vice-President.- PIMSA Industrial Developers decided to make Yuma an alternative location for USA-Mexico Twin Plant Manufacturing Model. How did this relationship come to be and what have been the benefits of working with Greater Yuma Economic Development?
“These are U.S. international companies and they are looking to expand their manufacturing in a competitive way. In the case of Martech, that has been with us in Mexicali for the last 25 years, decided to go to Yuma because they obtained the support they were looking for with a positive and welcoming attitude.
We followed them and opened a corporation in the United States, PIMSA USA, later buying a building and leasing it to this company. It has been a win-win situation, not only for us opening in the United States but for the fact that there is potential in Yuma for other manufacturers. We are working closely with Douglas Nichols, Mayor of Yuma, and Julie Engel of Greater Yuma Economic Development Corporation.
The attitude of Yuma, Julie and GYEDC is encouraging.
Mexicali presents an opportunity for Imperial Valley as well. We are now working with Imperial Valley Economic Development Corporation. We are convinced that we must present Yuma and the Imperial Valley together in all of our Bi-National Community.
For now we want to thank Mayor Douglas Nichols and Julie Engel for their support to PIMSA.”