Manufacturing in Mexico – Industry News

Labor Costs in Mexico & Asia

Mexico Wages Undercut China, Fuel Manufacturing Boom

China lost its factory wage advantage over Mexico earlier this year, an ongoing trend that has fueled Mexican economic growth past its neighbors to the north and south.  But whether Mexico can maintain that momentum may depend on how much political will President-elect Enrique Pena Nieto has in pursuing reforms that challenge special interests.  Read more:

Mexico Wages Undercut China

Rising Labor Costs and Quality Concerns Have Companies Reevaluating Overseas Strategies

From October 13th through November 18th, 2011, Cook Associates Executive Search polled nearly 3,000 manufacturing executives primarily small to mid-sized U.S. companies. The survey concluded that 85% of executives are strongly considering moving manufacturing back to the U.S. and 37% of companies specified rising overseas costs as the primary reason. Read more:

Cook Associates Executive Search – Survey Information

Higher Labor Costs Drive U.S. Prices Up

American manufacturers over the past two or three decades shifted production to China and other countries overseas to take advantage of the ample labor pool and low wages. The lower production costs kept down the price of imports, which were passed on to consumers in lower prices and slowed inflation. Manufacturing in Mexico is a strategic alternative to save on shipping costs and be closer to Market. The wage gap between Mexico and China is almost non-existent. Read more:

Higher Labor Costs in China Drive U.S. Prices Up

Hon Hai Net Income Misses Estimates After Raising China Wages

Hon Hai Precision Industry Co., the world’s largest contract manufacturer of electronics, posted profit that missed estimates after it raised wages following a spate of suicides among workers in China. Hon Hai, which makes Apple Inc. iPhones and iPads, Hewlett- Packard Co. computers and Sony Corp. game consoles, increased salaries at factories in China by 30 percent after a spate of suicides prompted clients to investigate working conditions. The effect on profit from wage increases may be offset by a move to lower-cost locations in the country’s interior. Read more:

Hon Hai Net Income Misses Estimates After Raising China Wages

China Labor Cost Increases, Setting the Bar for Others

It’s been clear over the past few months that labor costs are going up in China. That’s now rippling to other manufacturing economies in Asia. Read more:

China Labor Cost Increases, Setting the Bar for Others