With its combination of modernity and poverty, Mexico provides lessons for all emerging markets.
Mexico is beginning to beat China as a manufacturing base for many companies despite its higher crime rate, according to a new report from Boston Consulting Group. Mexico’s gain is a plus for the U.S. because Mexican factories use four times as many American-made components as Chinese factories do, says the consulting firm.
Robert Moser moved the manufacturing of his company’s lines of cleaning products and kitchen gadgets to China during the last decade. Now his company is moving its manufacturing again—to Mexico. “When you look at total costs, you’re pretty much at parity,” says Moser, president of Casabella, based in Congers, N.Y.
Manufacturing Mexico allows American companies to save costs and use a greater portion of their profits for research and product development. This, in return, would increase more production to be manufactured in Mexico. The maquiladora industry provides Mexico with good employment, economic stability, and foreign exchange. A win-win relationship, indeed.
If you have enjoyed prosperity with competitive goods from your business, and care about the future of American manufacturing, you should be supporting NAFTA (now USMCA). It’s just that simple: NAFTA countries and the American manufacturing industry have benefitted so greatly from their mutual partnership, and are tied so closely together, to have one without […]