Mexico More Attractive Than China

Mexico, more attractive than China


The cheap labor and benefits similar to those of Asia attract more foreign firms.

Mexico in the U.S. market recovers
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The Mexican cheap labor has made the foreign industry begins to look more to the country. (Photo: Adam Gutierrez)
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Mexico has begun to seem more attractive than China for the industry abroad, thanks to the supply of cheap labor .
"Every year that passes, we'll see how Mexico is becoming more attractive and becomes a real alternative to China," said the head of Flextronics, Michael McNamara, during a conference call with analysts on July 22, 2010 .
Flextronics International, based in Singapore, which manufactures mobile phones , auto parts and medical products for other companies, is paying more attention to the country as they close the wage gap with China, says McNamara.
The company's plant in Jalisco not only enjoys a reputation for profitability, but is an example of manufacturing worldwide for good manufacturing practices that are performed there.
After years of losing segments of the market of EU to China, Mexico has begun to recover part of it.
The share of Mexican products that the U.S. imported during the first five months of 2010 rose more than one percentage point to 12.3%, while China's position fell from 18.6 to 17.3% .

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American Company Migrate to Mexico Just Across The Border Not Across The Sea

Northern 'migrate' south


Cessna Aircraft and aerospace companies moved their operations to Mexico and logistics costs. (Photo: SXC)

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The cost of hiring workers is expensive, as it could accelerate the growth of the country.

In addition to Flextronics International, companies like Cessna Aircraftm, Whirlpool and Polaris Industries have also paid more attention in the manufacturing advantages offered by Mexico .



When in 2006 the company was looking for Cessna Aircraft countries low wages which could manufacture aircraft components, their first instinct was to go to China , and started a whole machinery of research in this country.



But soon the producer of light aircraft based in Wichita, Kansas, found that Mexico, just across the border, not across the sea, "was the most easiest and quickest in the field of shipping supplies .



In 2008, when the company Whirlpool, based in Benton Harbor, Michigan, decided to cut production due to the decline in consumer demand , closed a plant in Evansville, Indiana, and shifted more work to Monterrey, NL .



Polaris, meanwhile, is closing a plant in Osceola, Wisconsin, but chose Monterrey to build off-road vehicles and sent to the southern U.S..

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