Posted on 11/06/2009 12:38:13 PM PST by jimday
Mexico beats China in American assembly for export factories
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."
Wonderful news!
I like this! Cut off commie China from cash and lure the illegals back to Mexico with jobs! We all win!
HOwever, we’d better get that fence up anyway...there will be an implosion of chinese communists living just south of us. Just sayin’.......
And this doesn’t even count the billions upon billions of DRUGS coming here.
Are you kidding, the Chinese are lugging those pesos home like there was no tomorrow.
It’s American companies moving from China to Mexico.
American businesses moving factories from China to Mexico?
Well, that sure solves the 1/2 million lost/month jobs problem in the USA!
The Committee on Foreign Investment is DESTROYING America
The October unemployment rate — reflecting nearly 16 million jobless people — jumped from 9.8 percent in September, the Labor Department said Friday. The job losses occurred across most industries, from manufacturing and construction to retail and financial.
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