Meeting the growing demand for an increasingly digitalized world is a challenging task. Businesses and manufacturers alike are devising innovative ways to create the essential electromagnetic products needed to keep the world running smoothly. A crucial piece to many operations is the custom inductor.
For many companies, using standardized inductors isn’t an option. Whether they have a specialized project or are trying to optimize performance, custom inductors are the solution. Manufacturing custom inductors can be costly, and many organizations are outsourcing production.
Mexico is the ideal place to find your new custom inductor manufacturer. Reduced labor costs, a highly skilled workforce, and neighboring U.S. proximity make this a safe and advantageous bet. SCHOTT Magnetics provides custom engineering solutions to companies and can help your organization save time and money while producing the highest quality product.
In this article, we’ll explain why Mexico is an ideal place for manufacturing custom inductors.
What Is a Custom Inductor?
Inductors are also known as coils, which are passive two-terminal components used in power electronic circuits. The inductor stores energy in the magnetic field when the current is applied. Inductors consist of insulated copper wire that transfers energy in power converters. It also filters high-frequency noise in circuits and manages electrical spikes and surges. Due to their operational value, it makes sense why inductors are used across so many various disciplines, including the following:
- Consumer electronics
Many applications use custom inductors, including:
- Power supplies
- Test equipment
- Medical electronics
- Manufacturing equipment
In several scenarios, you would opt for a custom inductor over a standard one. When every electronic circuit is different, the value a custom inductor brings is the ability to fit the need perfectly. In this case, it’s best to design the inductor after you finish the digital portion of the circuits.
In other situations, you need a custom inductor for optimal performance to counter electromagnetic interference (EMI) issues in high-speed circuits. Inductors can also help you avoid interfering with other circuits.
What Is Custom Inductor Manufacturing?
Outsourced custom manufacturing is an emerging trend in various industries, and for a good reason. It brings about various benefits and flexibility, one being the ability to custom manufacture products instead of being forced to use strictly standard parts. Standard parts may sometimes be sufficient, but many organizations require a custom job.
When you outsource custom parts production, you save time, money, and resources on the manufacturing costs. Custom inductor manufacturing involves more initial investment but can ultimately be a cost-saving decision.
Why? Because using standard parts may have fewer upfront costs from a strictly basic perspective, but in the long run, design challenges may justify investment in custom manufacturing. It all depends on the company and its unique needs.
For those who lean toward the side of custom work, manufacturing electromagnetic products comes with a specific set of challenges. Custom inductors require a skilled and knowledgeable hand.
The Custom Inductor Market and Challenges to Manufacturing
Market research shows the inductor market is expected to grow from 3.01 billion in 2015 to 3.94 billion in 2022, and the projection anticipated a 3.93% compound annual growth rate between 2016 and 2022. What do the numbers show today? The global inductor market reached a value of 4.01 billion in 2021 and is expected to reach 5.31 billion by 2027. This displays a CAGR of 4.60% between 2022 and 2027.
The inductor market continues to grow steadily and is exceeding projections. It’s becoming increasingly relevant to the overall manufacturing conversation.
3 Emerging Trends in the Custom Inductor Market
Keeping an eye on emerging trends in the market can be beneficial for companies to prepare for challenges and take advantage of opportunities. Here are three emerging trends in the custom inductor market of which to be aware:
1. Consumer Electronics
The most significant emerging market trend is the increased demand for consumer electronics such as:
- Portable gaming consoles
- Set-top boxes
More access to high-speed internet means more adoption of smart devices. Several other factors contribute to this trend, such as rising rates of disposable income and improved living standards.
2. Innovative Product Variants in the Automotive Industry
Key players are emerging with innovative product variants to gain a competitive advantage and expand their portfolios. This shows up most prominently in the automotive industry. There is increasing demand for electric vehicles as consumers display more of an inclination toward those products.
This escalation of product demand across the automotive industry keeps the inductor market flowing, especially as custom iterations are developed.
3. New Adoptions in Medical and Industrial Industries
The entire world is digitizing at a rapid rate. While the medical industry was previously dependent on many traditional systems, they’re also moving toward digital processes. The industrial application of ongoing research and development activities propels market growth.
The introduction of 5G technology also puts a market strain on industries. Professionals are seeking advanced technological solutions to match the pace of their evolution. The need for quality inductors, both standard and especially custom, is rising as a result.
Why You Should Manufacture Custom Inductors in Mexico
The benefits of manufacturing your custom inductors in Mexico are immense, but can be summed up quickly. Contract manufacturers in Mexico offer reduced costs and an unmatched speed to market. Mexican contract manufacturers present unique advantage combinations not found anywhere. These include:
- Reduced labor cost
- Neighboring proximity to American markets
- Educated and skilled talent
- An extensive workforce
- Production quality in alignment with both U.S. and international standards
Outsourcing your inductor manufacturing to Mexico is more beneficial now than ever before.
How Does Manufacturing in Mexico Help Meet Market Trends and Challenges?
There are several reasons that manufacturing in Mexico meets market trends and offers companies a serious competitive advantage. First, choosing to outsource your inductor manufacturing allows your organization to save time, money, and resources. Taking operations to a third-party expert team can feel daunting, but many businesses need to scale, and this is the way to do it.
Moving manufacturing operations to Mexico can help companies overcome the initial hesitation toward outsourcing. In addition to the unique advantages outlined above, there are other key benefits of outsourcing your custom inductor manufacturing to Mexico:
- Duty-free temporary imports of raw machinery and materials
- Less conflict in the trade relationship
- Deeply integrated with the American economy
- Abundant free trade agreements (the most in the world)
- Proximity to the U.S. means dedicated border crossings and globally connected deep-water ports
Ultimately, it’s a smart business move to outsource your inductor manufacturing to Mexico for most companies.
What Are the Logistics and Infrastructure of the Mexico Manufacturing Industry?
Mexico is a highly connected country, a significant advantage for companies looking to outsource their custom inductor manufacturing. Knowing the logistics and infrastructure of the Mexican manufacturing industry is pivotal to grasping the benefits of this outsourcing location. Proximity to your chosen manufacturer can prove immensely beneficial for operational efficiency.
Following is a glimpse into the infrastructure of Mexico’s manufacturing industry. These critical elements will lend a bit more insight into the logistics.
Highways and Transportation in Mexico
Just a few minutes south of San Diego, California, are the Tijuana and the Otay Mesa Port of Entry border crossings. This location is uniquely and conveniently oriented to give commercial transportation easy access to NAFTA highways and essential North American trade corridors. This solid network of well-maintained highways provides direct access to manufacturers.
Mexican Deep Water Seaports
Mexico has over a hundred active ports and terminals. These connect to almost 150 countries situated near high manufacturing and commercial activity with access to Mexico’s highway network. The main container ports in Mexico allow for both bonded and in-bond shipments. Mexican deep water seaports are also advantageous as they connect the state to shipping ports in California.
Airports in Mexico
With San Diego International just 20 minutes from the Mexican border (next to Tijuana), executives enjoy proximity to their partnerships. Tijuana’s international airport is also easily accessible. It’s just a 10-minute ride to reach the largest industrial hubs.
Mexican Utilities Infrastructure
While many companies consider the initial investment when outsourcing contract manufacturing for inductors, the ongoing production costs can easily become a blindspot. Utilities, for example, can place a weight on the total operational cost equation. These costs include electricity and natural gas. One of the great things about manufacturing in Mexico is the significantly lower utility costs.
Telecommunications in Mexico
If there’s one thing that’s essential in all business operations, it’s communication. These days, everyone is more connected than ever. You don’t want to sacrifice access to your onsite network or miss out on the chance to communicate properly with your manufacturer. Mexico boasts solid access to the internet, phones, and an extensive communications network. Especially in manufacturing clusters, you’ll never have to worry about being disconnected.
Advantages of Custom Inductor Manufacturing in Tijuana
Tijuana is one of Mexico’s most rapidly growing cities, and it’s projected to become the second-largest in the country. Because this city is so close to the border, there are several advantages to custom inductor manufacturing in Tijuana.
The city continues to grow so quickly because there are over 600 maquiladoras (foreign manufacturing operations) in Tijuana alone. What does this mean for your company? There is an educated and highly skilled workforce of over 230,000.
The Mexican manufacturing industry is booming, making it a central hub for magnetic and electronic components for various specializations. This world-class manufacturing city could be the perfect place to outsource your custom inductor production.
Manufacture Custom Inductors in Mexico with SCHOTT Magnetics
If you’re looking for a trusted partner in contract outsourcing for custom inductors, SCHOTT Magnetics can help. SCHOTT is a U.S.-based contract manufacturer with established reach and connections in the Mexican manufacturing industry.
Our focus is on delivering the highest quality electronic magnetics components under the most demanding schedules. SCHOTT offers unparalleled flexibility, from complete turnkey manufacturing to labor cost-based assembly—all with unparalleled quality standard.
Our services include:
- Automated electrical testing
- Coil winding
- Hand assembly
- IPC soldering
- Joining PCBA with custom magnetics
- Potting and encapsulation
- Wire terminal crimping
For custom inductor product development, prototyping, and manufacturing in Mexico, contact SCHOTT Magnetics today.