Phillips Expanding Mexico Operations: A Strategic Move for Growth
Phillips Industries and Phillips Connect are significantly expanding their Mexico operations, demonstrating their commitment to growth and success in the trucking industry. By investing in a world-class facility, skilled workforce, and state-of-the-art equipment, the companies are well-positioned to meet the increasing demands of their customers and the broader market.
The Evolution of Phillips in Mexico
Phillips Industries and Phillips Connect have been continuously growing their presence in Mexico since they first started production of wiring harnesses in 2007. With the recent expansion and relocation of U.S.-based product lines, the companies are showing their commitment to Mexico as a key manufacturing base.
Ribbon-Cutting Ceremony Marks Expansion
On March 8, Phillips officials were joined by their customers, partners, HDT, and other trucking and local media, company executives, and local government officials for a ribbon-cutting ceremony to celebrate the expanded and reconfigured 380,000-square-foot facility for Phillips Industries.
Reasons Behind the Expansion
The decision to relocate production to the Mexico campus was primarily based on workforce challenges in California, according to Phillips Industries and Phillips Connect CEO Rob Phillips. The company has struggled to maintain a consistent workforce in California, but has found more reliable and skilled employees in Mexico.
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Choosing Mexico Over Texas
Although Phillips considered relocating to San Antonio, Texas, the company ultimately decided to expand in Mexico due to its long-term success and the opportunity to build upon an existing team. This decision reflects the confidence Phillips has in its Mexican workforce and the country’s manufacturing capabilities.
A World-Class Facility for Phillips Expanding Mexico Operations
The expanded 500,000 square-foot manufacturing campus in Arteaga, Mexico is the cleanest, most well-organized, and best-managed facility Phillips has anywhere in the world, according to company officials. The facility is equipped with state-of-the-art technology and equipment to ensure efficient and high-quality production.
Looking to the Future
By the end of 2023, Phillips expects to employ 2,100 people in Arteaga, solidifying the company’s commitment to Mexico as a key manufacturing base. Phillips’ headquarters will remain in California, serving as the base for customer service, accounting, research development, and other support functions for North America, Europe, Phillips Connect, and Phillips Innovations.
Upgraded Equipment for Increased Production Capacity
Phillips has invested in upgraded equipment for its Mexico facility, including three new high-speed wire and cable extruders, 36 new injection molding machines, and various other applicators. This investment will significantly increase Phillips Industries’ capacity to service both the aftermarket and truck manufacturers in North America.
Ready for Additional Business
With the expanded space, latest manufacturing techniques, quality control functions, workforce availability, and proximity to customers, Phillips Industries is prepared for additional business. The company is confident that its investment in Mexico will drive growth and success in the trucking industry.
High Standards for Phillips Connect
The original Arteaga building, with 120,000 square feet of floor space, has been reconfigured to manufacture, test, and ship electronic telematics products for the Phillips Connect business under the highest of standards. This dedication to quality reflects the company’s commitment to delivering reliable and innovative products to its customers.
Conclusion: Phillips Expanding Mexico Operations for a Prosperous Future
Phillips Industries and Phillips Connect’s expansion in Mexico demonstrates their commitment to growth and success in the trucking industry. By investing in a world-class facility, skilled workforce, and state-of-the-art equipment, the companies are well-positioned to meet the increasing demands of their customers and the broader market. This move is not only a testament to the capabilities of the Mexican workforce, but also a shining example of the potential for international collaboration and growth in the manufacturing sector. As Phillips continues to expand its operations in Mexico, it sets the stage for a bright and prosperous future for the company, its employees, and the trucking industry as a whole.
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For more information visit the Official Sites for Phillips Industries and Phillips Connect
Phillips Industries official website: https://www.phillipsind.com/
Phillips Connect official website: https://www.phillips-connect.com/
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