Posted on 09/13/2008 9:49:58 AM PDT by Lorianne
Just as Mexico was becoming the rising star of global manufacturing in the 1990s, China's even cheaper wages turned that country into the world's factory.
But now, with skyrocketing oil prices, escalating labor costs in China, and an appreciating currency there, companies targeting the US market are doing the math and giving Mexico another look. So-called "nearshoring" could generate a reverse globalization that brings manufacturing back to Mexico.
"China was like a recent graduate, hitting the job market for the first time and willing to work for next to nothing," says German Dominguez, who advises companies that are considering producing in Mexico from his base in Ciudad Juárez. Now, China's experiencing the "perfect storm," he says. "It's making Mexico, a country that had been the ugly duckling when it came to costs, look a lot better." The driving factor of nearshoring is high oil prices, which is raising the price of shipping. "In a world of triple-digit oil prices, distance costs money," states a recent report by Canadian investment bank CIBC World Markets. "And while trade liberalization and technology may have flattened the world, rising transport prices will once again make it rounder."
(Excerpt) Read more at csmonitor.com ...
Developing Mexico is the right way to handle their social and economic problems. Their corruption and socialist ways are an impediment, though.
If Mexico can find a way to stop the cartels from beheading the population......
Yes it could send many an illegal back south.
Just as long as they don’t cut corners and lie like the Chinese.
“This could be a good omen for our immigration problem.”
Unfortunately, we’ve been hearing that for about forty years, first in connection with the maquilidora plants in the 1960s, and then on steroids for NAFTA in 1993. Both those initiatives were supposed to make great strives in solving the illegal alien problem in the US.
We now, of course, have more illegals than ever, and both those had the effect of increasing illegal entries, rather than decreasing.
Is Mexico the New Coke?
No. not yet.
Three elements will hinder Mexico from emerging as the next China.
1. Poor skills for production
2. Education levels
3. Drug Cartels
Mexico’s population:
1970 About 51,000,000
2005 107,000,000
http://www.populstat.info/Americas/mexicoc.htm
And I guess that doesn’t include the 20 - 30 million or more who’ve come to the US. There is now way the US can deindustrialize itself enough to solve Mexico’s population/lack of opportunity problems. Mexico must some day undergo drastic reforms and begin to solve their own problems. Enforcing our immigration laws would give them a good incentive to get started.
Yeah, instead of just enforcing borders and Federal laws, lets send what’s left of our factories and manufacturing to Mexico so the greedy biz owners can reap those fat profits from low wage peasant workers. There will be plenty of work at fast food joints for Americans.
Next-generation Ford Fiesta (now just started production in Europe)
Next-generation Opel Corsa (to be unveiled next year and be sold in the USA probably under the Chevrolet label)
Volkswagen's Up! entry-level car (to start production about a year from now in Europe)
...will all be assembled in Mexico, probably for the entire North American market and some South American markets.
Interestingly, Mercedes-Benz said recently that the next-generation versions of the B-class hatchback now sold in Europe could be assembled in the USA at their facility in Alabama.
Hey, if I was a big factory owner I’d go ousdide the country too. Between taxes and unions we hound our companies until they eventually leave.
Our companies? You mean the those poor CEOs that make millions annually? So poor they ship their entire operations to places like Red China and India?
These companies are so broke, they've had to hire tens of millions of illegal low wage workers right here in America, because our workers are so greedy. You bet.
I guess the stupid Americans should have been happy with 7 bucks an hour, little or no benefits or pensions etc.
That'll teach the greedy middle class.
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