Manufacturing in Mexico – Industry News

Mexico & China


Nearsourcing to Mexico Improves Operational Efficiency

For years, Asia was the location of choice for low-priced manufacturing. The Asian shipping market was hit hard by the global recession in late 2008 and 2009, however, and the region became less appealing as a manufacturing site when labor costs began rising.  “Nearsourcing” to Mexico allows companies to address these issues. In addition to meeting the challenges posed by manufacturing in and shipping from Asia, Mexico has evolved into a business-friendly environment.  Read more:

Nearsourcing to Mexico Improves Operational Efficiency

China’s Wage Hikes Could Benefit Americas

Good news for Latin America: wages in China, Vietnam and other Asian countries are rising faster than expected, leading growing numbers of multinational firms to move their manufacturing plants to Mexico and other countries closer to the U.S. market.  And the trend is likely to continue beyond 2015. A growing appreciation of the Chinese currency, higher education standards and a declining workforce will drive Chinese salaries up for decades to come, economists say.  Read more:

China’s Wage Hikes Could Benefit Americas

Chinese Labor, Cheap No More

Thanks to China’s rising labor costs and shortages, it looks as if America might be back in the manufacturing game sooner than expected.  In addition to a shortage in the sheer number of available workers, China’s labor problems are further exacerbated by a shift in the quality and character of its work force.  While the wages might be slight more than China, other logistics make Mexico more attractive especially when companies from China are looking to come back to North America.  Read more:

Chinese Labor, Cheap No more

China Production Advantage Erodes as U.S., Mexico Gain

The cost advantage of manufacturing products in China might not be as high in comparison to the U.S. and Mexico in 2012, according to a new report by global consultancy AlixPartners.  China, which is experiencing negative pressure as an exporter because of wage inflation, exchange-rate pressures and higher freight rates, could lose its cost advantage.  Read more:

China Production Advantage Erodes as U.S., Mexico Gain

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

Signs of Mexico’s Ascendance Versus China

Over the past two decades China emerged as a manufacturing powerhouse, dominating production in industries ranging from textiles to solar panels, semiconductors to wind turbines. Among the countries hardest hit by China’s rise – and ascension to the WTO in 2001 — was Mexico. In its wake, Mexico’s maquila industry shed thousands of jobs.  But the decade long status quo seems to be shifting again, this time back in Mexico’s favor. More and more plants are opening in Mexico – a mix of new businesses as well as some returnees.  Read more:

Signs of Mexico’s Ascendance Versus China

Study: Three Million Jobs Could Return to the U.S. from China

Mexico could prove to be a lower-cost alternative to the United States as a production center. Rising wages in China and increasing transportation costs could result in a mass return of jobs to North America, says Chris Kuehl, an economic analyst for the Fabricators & Manufacturers Association.  Wages in China have been rising at a rate of 15% to 20% per year, according to the Boston Consulting Group. Read more:

Mexico on the Rise?

There’s Hope for Mexico, Central America

A new phenomenon is turning out to be a blessing for manufacturing in Mexico and Central America — China’s rising wages. The appreciation of China’s currency and China’s increasingly skilled labor force are driving up Chinese salaries, moving growing numbers of U.S. companies to relocate their manufacturing plants to Mexico, and to a lesser extent to Central America.  Read more:

There’s hope for Mexico, Central America

Why Top Performers Continue To Choose Mexico

Companies tend to review total costs of goods for both global competitiveness and the reduction of risk to their supply chain. Despite a high risk perception, due to violent press, Mexico offers  less risk to their supply chains at a globally competitive cost.  “Site Selection” discusses the risks associated with China in comparison to Mexico manufacturing.  Read more:
Why Top Performers Continue To Choose Mexico

Latin America: Trade With China Grows

China’s trade in Latin America accounted for just one-fifth of that of the U.S in 2008. Currently, China´s major trading partners in the region are Brazil, Mexico, Chile, Argentina and Peru. Read more:

Latin America: Trade With China Grows