Mexico has enabled us to strengthen our position globally. It’s not just about expanding our footprint—it’s about finding the right people and opportunities to support our growth and keep delivering for our clients around the world.
Overview
“It’s a niche, high-quality product. You couldn’t produce that in China, much less Mexico.”
Lumitex ignored those words. Now the lighting company boasts a who’s who roster of clients including Apple and GE.
Lumitex, a company founded nearly four decades ago in the heart of Ohio, has always had one mission at its core: to improve life with light. Its vision of becoming the global leader in medical device lighting has seen the company transform from a regional manufacturer to an international player in the lighting industry. That four-decade journey took a bold new turn in 2019 when Lumitex strategically expanded into Mexico, with the help of Entrada Group, to lay the groundwork for a true global footprint.
For years, Lumitex thrived with headquarters, production and R&D in Strongsville, Ohio, before establishing a secondary production base in Taiwan. By 2019, Lumitex’s leadership realized that achieving true global prominence in the lighting industry would require more than just a production presence in a couple key regions. To realize its vision of being the leader in medical device lighting, Lumitex would need a global production footprint, one that could support both cost-effective manufacturing, as well as access to both talent and customers in key markets.
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Why Mexico? Why Now?
Mexico was the logical destination for Lumitex’s ambition. While many companies at the time were looking to Mexico to reduce costs, Lumitex had a broader vision—one centered on long-term growth, a talented workforce and the opportunity to expand its presence in the automotive industry.
By setting up its first-ever Mexico operation, Lumitex could introduce its innovative lighting solutions to new customers in the auto industry, and realize a new revenue stream. But a Mexico production location would offer an additional benefit: Access to a young, talented workforce of direct labor employees and engineers who could work on Lumitex’s existing medical device product line. This talent pool would become more crucial as Lumitex’s American workforce grew older and retired, without obvious replacements in the pipeline. Mexico would be a true win-win, that would enable Lumitex to continue its trajectory to being a global player in the lighting sector.
Why Entrada Group? Why Guanajuato?
Lumitex could have opted to enter Mexico independently and develop a greenfield facility, but partnering with Entrada Group provided significant advantages. As a smaller player competing with industry giants, Lumitex needed a partner that would allow it to focus on what it does best: designing and manufacturing innovative lighting solutions. Entrada Group took care of the complexities of operating in Mexico—compliance, labor force, infrastructure management and compliance —allowing Lumitex to concentrate on product development and client satisfaction.
Additionally, Entrada’s manufacturing campus in Celaya, Guanajuato offered Lumitex the convenient access it would need to both Mexico’s automotive industry, as well as to the talented engineers and technicians who would be required for medical device production. Lumitex wasn’t in Mexico solely for cost-competitive labor. It would need that regular pipeline of talent that the Guanajuato/Queretaro corridor and Entrada Group could offer.
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A Global Growth Strategy
Lumitex’s expansion into Mexico was not born out of necessity or client pressure; it was a proactive, strategic investment in the company’s future. The leadership team at Lumitex saw the opportunity to “build a better mousetrap”—to make its products more desirable by being in the right places, with the right capabilities, to serve global clients.
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Protecting Innovation Through IP Safeguards
One of the critical challenges that any innovative company faces when expanding internationally is protecting its intellectual property. For Lumitex, technologically cutting-edge lighting solutions are its competitive advantage. Ensuring that its ideas were safeguarded was non-negotiable. Partnering with Entrada Group, Lumitex developed a robust system of IP protections that were both enforceable and tailored to Mexico’s legal landscape.
These protections ensured that Lumitex’s innovative designs would not be misappropriated, even if employees transitioned out of the company. These protections were crucial to maintaining Lumitex’s reputation as a high-end manufacturer and gave leadership peace of mind as they expanded operations.
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Continued Innovation and Growth
Since entering Mexico, Lumitex has continued to innovate and expand its offerings. Recently, Lumitex and Entrada Group have partnered to install a cleanroom at the Celaya manufacturing campus, a necessity for manufacturing medical devices to the highest standards and to meet regulatory requirements.
Lumitex’s investment in Mexico has also opened doors to new clients and industries. Their facility at Entrada’s Celaya manufacturing campus is more vertically integrated, with an engineering team that takes part in both implementation and production, as well as engineering onsite. Celaya, with its proximity to automotive and medical device clients, has proven to be a strategic hub for Lumitex, offering a showcase location where clients from around the world can travel for site visits and inspections.
A Bright Future Ahead
Lumitex’s journey from a regional player to a global leader in the lighting industry is a testament to its vision, strategy and commitment to building a better mousetrap. Thanks to Mexico and the Entrada partnership, Lumitex now has a vibrant, vertically integrated, scalable manufacturing campus in a cost-competitive nearshore location. It has access to key customer and talent markets in two key industries, IP protection, and the ability to support future expansion into new vertical and geographical markets.
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