Mexico Manufacturing Proximity Is Everything

Mexico Manufacturing has steadily been expanding its overall capabilities thereby benefitting U.S. companies who seek to control production and transportation costs.  In fact, Mexico manufacturing has facilitated substantial increases in intra-regional trade by nearly nine percent over the past decade.  Entrada Group’s facility in Zacatecas serves just such a benefit for American companies looking for off or near shore advantages.  Initiated originally by China’s re-contextualization of the global economy, a critical component to Latin American expansion is the bi-lateral deals which have leveled the playing field between trading partners, though that’s only a part of the story.

Some economists believe manufacturers in Mexico are giving China a run for their money since ‘proximity is everything’.  Notably, there are additional contributing factors in Latin America’s efficiency gains.  The Entrada Group support economist’s beliefs: that the well-educated work force in Mexico manufacturing, cultural compatibility and a well-developed infrastructure (along with substantially lower transportation costs) provides private business networks with reliable and ‘economic muscle’ that U.S. businesses require.  With the end-of-year completion of the Inter-Oceanic Highway, connecting the Americas from top-to-bottom with a modern road system, the infra-structure improvements will help for even greater potential and increased growth in the coming years.

Source: http://www.businessweek.com/autos/autobeat/archives/2010/06/labor_unrest_in_china_could_be_mexicos_gain.html


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