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American businesses are setting up shop in Mexico instead of China. China, which was the number one location for manufacture of goods bound for the U.S., has fallen into third place. Mexico is now number one, followed by India.
Several factors have converged to make Mexico an attractive place for manufacture. Daniel Silva of the Mission Economic Development Authority said: "Compared to China, Mexico offers better access to North American markets with a shorter, faster and cheaper transportation route to move products and supplies by truck, rather than over thousands of miles by ship, rail and truck combined."
Mexico is cheapest for manufacturing. According to the Alix Partners 2009 Manufacturing Outsourcing Cost Index, manufacturing in Mexico costs around 68%, in India around 73%, and in China 91%, compared to the United States.
In addition, currency fluctuations have favored Mexico over China. China's currency appreciated 20% against the dollar while the peso has dropped 20% against the dollar. Payment for assembly, operating costs, and labor costs is in pesos.
U.S. Fortune 500 companies are setting up shop in Mexico to manufacture automobiles, electronics, apparel, and many other goods designed for the export market. Chinese companies are even moving to Mexico to take advantage of the benefits of NAFTA.
So, now when you look at the manufacturers' label, you'll no doubt see more of "Made in Mexico."
What is your reaction to this change?
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Reader Comments (Page 1 of 1)
11-05-2009 @ 2:27PM
clikdawg said...
Yeah ... bought a pair of 505 Levis on Monday -- "Made in Mexico". (Last year's purchase was "Made in Egypt".)
Took 'em home, tossed 'em in the wash.
Put 'em in the dryer; heard a tiny little rattle in there near the "Damp Dry" mark; took 'em out and found one of the celebrated rivets had popped off.
This has never happened in some fifty years of buying, wearing, thrashing and abusing Levis jeans -- never, under the most extreme provocation, has any rivet on any pair of them popped off, let alone under the "stress" of a single washing.
"Made in Mexico".
You have been warned: "Let the Buyer Beware".
11-05-2009 @ 2:43PM
thedude said...
Don't forget to thank Bill Clinton for his trade policies.
I have not bought Levi's since they frist began out sourcing.
As a matter of fact ALL the clothes I wear are made in the USA. Surf the internet for Made In The USA and you will find plenty of products to get you through your everyday life. The funny thing is that you can get US made jeans for less than you can get Levi's for - you are paying for that brand name which is "Genuine"-ly worthless. The execs at Levis are still rolling in dough though
Americans need to make a stand and demand for all consumer products be made in the USA. It's time to do to Levi what Levi did to Strauss and what Sears did to Roebuck - give them the boot.
11-05-2009 @ 7:05PM
Tammy Pyle Fuji said...
Yulp! Thank the Bill Clinton years for the trade policy...IT SUCKS BILL CLINTON> So, you autographing to shut down Fort Chaffee....It SUCKS TOO>>>
THANK YOU>>>I AM KNOW A REPUBLICAN>>>