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Mexico's Manufacturing Base Rebounds
“As companies expand their capabilities, Mexico’s advantages—and proximity to its biggest export market—will become evident and its manufacturing base will expand even further,” according to a recent article from Area Development Online. The article cites a report from Boston Consulting Group which says that by 2015, wages in Mexico will be “significantly lower than in China…the fully loaded cost of hiring Chinese workers will be 25 percent higher than the cost of using Mexican workers.”
The article also discusses the health of Mexico’s three primary manufacturing industries—automotive, aerospace and medical devices. It notes that according to a recent report, “auto production in Mexico is expected to reach 2.4 million units annually by 2014, with a projected growth rate of 5.5 percent per year. Regarding the aerospace industry, the article cites a CCN Mexico Report which finds that “during the next 5 years, the sector is expected to create 35,000 jobs. In addition, it references a Geo-Mexico report that predicts the number of aerospace companies in Mexico to grow from 232 in 2010 to more than 350 in 2016. “Exports of aerospace parts were worth $3.1 billion in 2010, and that is expected to jump to $5.7 billion by 2015.”
Read the article here.