Those Manufacturing Mexico Electronics Gaining On China
Businesses Manufacturing Mexico electronics and component parts are elevating their profile and prowess as compared to China. A recent Charlie Barnhart & Associates report revealed a startling challenge to China’s previous preeminence in the electronics production. And While China still tops Mexico in “high volume manufacturing” and “continuous flow” for OEM’s, Mexico’s electronic industry beats China in all other categories. Both American and Canadian markets continue to rank below both countries. The even wider regionalized trend is that manufacturing is moving from the U.S. to Mexico, from Western to Eastern Europe and from China to Mexico and Southeast Asia.
Several factors contribute to the shift from China to Mexico. Rising labor costs and freight/logistics expenses continue to reduce China’s previous advantage while those manufacturing Mexico electronics are capitalizing on a drop and labor costs, among other factors. For example, the relative costs in American production’s labor prices at $39.32, China’s is at $11.83 (and rising) while Mexico’s is fallen to $11.26. According to CBA analysts, even with China’s more sophisticated electronic designs, they don’t exactly compete in the same fields. China targets communications, computers and consumer markets while Mexico continues expanding production in the heavier electronics industries of aerospace, automotive and appliances.