Manufacturing in Mexico grew to never before heights as it did in the past two decades. We got to witness remarkable progress in steel, motor vehicles, aerospace, tobacco, food and chemicals among others. For manufacturing companies, Mexico has emerged as a world class destination.
Companies from different locations started to look at Mexico as a low cost production location. Mexico offers and excellent choice for manufacturing to companies whose end market is America. Mexico’s established operations were home for manufacturing and assembling of labor intensive processes.
Due to the stability and low turnover in workforce, Mexico has increasingly become attractive for manufacturing. Many multi national companies have found success in training highly motivated workers in Mexico.
The North American Free Trade Agreement and the experienced workforce became advantageous for manufacturing in Mexico. The implementation of North American Free Trade Agreement has created many opportunities for business and investment between United States and Mexico.
Companies can export duty free due to North American Freed Trade Agreement and other free trade agreements. Mexico’s status has changed from a low cost labor location to one that offers sophisticated and complete services.
Mexico arose as one of the preferred manufacturing destination in the world because of its largest free trade agreements network, manufacturing standards, competitive operating costs and labor pool among others.
Mexico Manufacturing has been focused around the re-export processing industry. The re-export processing units were located near the Mexico-US border. Most of those re-export units were possessed by United States corporations. The work contracted to these units were assembling and processing of goods imported from United States and later to be exported to United States as duty free finished products.
Manufacture in Mexico originated balanced regional and economic development. The infrastructure provided by government and the technological support provided by suppliers and companies was remarkable.
Focus was applied on training and human resource development for providing equal opportunities for people from all the regions of Mexico.
Mexico manufacturing industry in 2003 faced the worst crisis ever. With cheaper workforce offer, China posed a threat to Mexico’s manufacturing interests. Mexico’s electronics and apparel industries got effected badly. At one point of time, United States realized China and other Asia Pacific regions as better options.
Gradually Mexico’s geographical proximity, availability of cheap raw materials, skilled workforce and competitive pricing regained the confidence of U.S companies. Mexico manufacturing processes and the industry’s preparedness to adapt new technologies also qualified Mexico to do more business with United States.
Eventually, Mexico manufacturing got out of the downturn and started to focus on aerospace, automotive, food processing and other sectors.
By DEZALB from Pixabay