Mexico Fares Well in PwC’s 2014 Global CEO Survey
Commentary by Doug Donahue
Every year PwC conducts its annual Global CEO survey, looking at big trends affecting businesses, trying to identify elements that are strategically important to companies and examine growth prospects. The full results are on the PwC website.
Here are some of the key findings from PwC’s 2014 Global CEO Survey that pertain to Mexico manufacturing:
• CEOs are shifting focus back to established markets like the US, UK and Germany
• When asked which emerging markets they’re exploring beyond the BRICs for growth over the next 3-5 years, Mexico, Indonesia, Turkey, Thailand and Vietnam all made the top ten
• This puts Mexico in a unique position in two important ways – well positioned to manufacture products for export to healthy North American, South American and EU markets AND as a solid growth market, as well as FDI target, in its own right
• Wages in Mexico rank near the lowest in the world, with only India and the Philippines paying lower wages to workers.
In a global search for promising growth, CEOs are reconsidering the portfolio of countries where they will focus efforts. Counter to prevailing trends of the past few years, more CEOs are looking to established markets to spearhead growth. When asked which countries would be most important for overall growth in 2014, CEOs again pegged China as the top growth market. But four of the remaining top six nations all represented established markets countries (US, Germany, UK and Japan).
Arguably Mexico is in as good a position as any other country to leverage this shift from emerging to established markets. Free trade agreements with more regions and countries than any other nation will benefit Mexico no matter which economies fare best.