Since the passing of NAFTA in the 1990s, the economies of Mexico and the US have grown increasingly interdependent. Although Mexico and the US are sometimes painted as economic competitors in political rhetoric, with the loss on the part of one reflecting a gain on the part of the other, the benefits of Mexican manufacturing cannot be overstated.
A recent study has been released answering the question, why are companies exiting California? This troubling trend has been growing for several years, and there are several contributing factors. Once the epitome of commerce and business growth, California is losing companies at an alarming rate. And many of those countries are setting up shop just south of the border.
In an increasingly interdependent and regionally minded world economy, Mexican manufacturing growth, coupled with the rise of an increasingly educated US workforce, is propelling the North American region to prominence as a global manufacturing hub.
Mexico is one of the most popular locations for export manufacturing, due to a number of strategic advantages, such as low labor costs, proximity to the US consumer market, and skilled labor. But another advantage is taking shape in the form of a sliding Mexican peso, an additional incentive for US manufacturers looking to cut costs. The resulting peso devaluation effect is making Mexico’s maquiladoras even more profitable and promising for future investment.
Chinese and other Asian countries are joining in the growing trend to invest in manufacturing in Mexico. New investments or expansions are announced regularly for companies in Europe, South America, and around the world – and now Asian countries like China are seeing manufacturers make the switch. Why are they moving to Mexico?
Mexican trade accounts for approximately 4.9 million jobs in the US. Unfortunately, leaders on the US political front are not always cognizant of the facts governing this highly complex partnership between the two North American countries. Mexico creates US jobs, but those jobs depend on upon a system of cooperation that could disappear without care for a better understanding of this unique relationship.
Mexico has a well-established medical-device manufacturing industry, but growth trends in Tijuana and Baja California are growing at exceptional rates, resulting in new investment and optimism for the Latin American country’s economic future.
By Adina Moloman Source: SEDECO The Baja California state-Asian countries economic and trade relationship continues to steadily expand. Economic diplomacy is at the core of the Baja California Government’s international engagement. During the last ten days of July 2015, the Baja California Governor, together with a short delegation of other state leaders and economic organizations […]
By Adina Moloman Sources: SEDECO Essilor International S.A., which manufactures and designs a wide range of lenses to correct and protect eyesight, is expanding its operations into Tijuana, Mexico. The company, located in Charenton-le-Pont, France, will lease a new building and purchase additional equipment for the production of the corrective lenses for prescription eyeglasses to […]
By Adina Moloman Sources: www.renewableenergyworld.com, California Energy Commission, Ocean Energy Systems-Annual Report 2014, Mexico Now, World Energy Council Wind and solar energy currently dominates the renewable energy sector in Baja California and probably worldwide. Ocean energy is estimated to be one of the fastest growing forms of renewable energy in the next ten years and […]