Eastek’s workers in Mexico are hungry to grow and learn. The biggest benefit is the clients now have the opportunity to visit Central Mexico in a few hours to inspect the site themselves and apply their stamp of approval.
Overview
True global success means daring to diversify. With decades in China and Malaysia, Eastek International took bold steps into Mexico—securing their future and redefining what it means to be a global manufacturer.
Let’s face it—David rarely beats Goliath. Bigger companies have a lot of inherent advantages against smaller competitors. In manufacturing, it’s arguably even harder for midsized companies to go toe-to-toe with the bigger boys. Larger manufacturers have, over many years, developed the required economies of scale, experience, cost-competitive operations and global production footprint that most midmarket-sized manufacturers can only dream of.
So if you’re a proven midsized contract electronics manufacturer with three decades in the industry like Illinois-based Eastek International, what options do you have when you decide you want to make the leap to being a global manufacturing company?
As a contract manufacturer with customers in various sectors – including industrial, medical and automotive—Eastek’s leadership team realized it would need cost-competitive global production locations in multiple regions and the ability to scale if the company was going to compete and continue to expand as an internationally oriented electronics manufacturer.
This story will analyze Eastek’s journey and explore how this ambition wasn’t born from a desire to simply grow bigger—it was driven by a vision to serve clients more effectively in the Americas, Europe and Asia, protect their intellectual property (IP), and scale in ways that allowed them to compete with the largest electronics manufacturers in the industry.
The Shift to a Global Footprint
The leadership team at Eastek recognized early on that to compete on a global scale, they needed more than just a single production facility. As a company that had already established a presence in China in the 1990s, they were well-versed in the complexities of international manufacturing. However, evolving macroeconomic conditions, including rising tariffs, labor costs and geopolitical uncertainties, spurred them to reconsider their reliance on China as a sole production locale outside of the US.
Eastek’s clients, too, began to express the need for more diversified production capabilities—solutions that would mitigate risk and reduce logistical burdens. This feedback set in motion Eastek’s pursuit of a global footprint that could offer proximity to key markets, flexibility in operations, risk mitigation and the ability to scale.
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From Regional to Global: The Role of Entrada Group
In 2019, Eastek set up a facility in Malaysia to complement its existing operation in China. While this gave the company a solution to China tariffs, it became clear that it also needed a production base closer to North American customers. Even Eastek’s clients whose products were made at their facility in China urged them to look at a closer alternative. The next logical step in Eastek’s expansion was Mexico—a nearshore location that would offer cost-competitive production, available skilled labor and tariff-free export to the US market.
Rather than undertaking the complexities of building and managing a new facility in Mexico from the ground up, Eastek chose to partner with Entrada Group. This partnership enabled Eastek to quickly establish operations in Mexico without being weighed down by administrative burdens such as labor, compliance and import/export regulations. Entrada’s role in providing these services allowed Eastek to focus on what it does best—high-quality contract manufacturing—while simultaneously scaling operations to meet increasing global demand.
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The Importance of a Nearshore Presence
Eastek’s decision to expand into Mexico was not just about proximity to the US—it was a crucial move to solidify its position as a global competitor. Having a nearshore operation in Mexico would allow Eastek to offer clients faster turnaround times, more flexible production schedules and site visits without the logistical challenges of long-haul international travel.
This ability to be "close enough to touch" proved to be a competitive advantage. Clients could inspect facilities, meet the team and build trust more easily, leading to stronger business relationships and more opportunities for Eastek to win new projects in the Americas. It was a move that positioned Eastek to compete with larger contract manufacturers, while maintaining the agility and client-focus that had always been its strength.
Global Footprint
For Eastek, scaling wasn’t just about adding more locations. It was about creating a seamless, integrated global manufacturing platform that allowed it to serve clients across multiple industries without sacrificing on quality or consistency. By diversifying operations across China, Malaysia and Mexico, Eastek was able to protect its clients' IP, mitigate geopolitical risks and ensure cost-competitiveness in every market it served.
Entrada Group’s support in Mexico enabled Eastek to scale up rapidly, providing the infrastructure and expertise needed to manage labor, compliance, and administrative requirements. Eastek didn’t have to divert attention away from its global growth strategy or risk the complications of managing a new facility in Mexico on its own. Instead, Eastek was able to focus on delivering exceptional manufacturing services while Entrada handled the operational complexities.
A Global Strategy for the Future
For Eastek, expanding into multiple regions was not just about solving short-term challenges like tariffs, logistics or availability of labor. It was a long-term vision for how to grow sustainably in the face of industry shifts and increasing client demands, to compete with larger electronics manufacturers.
Its partnership with Entrada Group has been a critical component of this success. As Eastek continues to expand and serve clients in new markets, their story serves as an example of how a midsized manufacturer can scale up and compete globally—when armed with the right strategy and the right partners.
