Mexico Manufacturing: Moving Forward without Relent
Commentary by Doug Donahue
As this recent blog post in the Financial Times points out, the Mexican economy continues at full steam ahead, despite a challenging worldwide fiscal environment. Economic growth in Mexico last year is predicted to be about 4% when the final data is tallied – a number the US would be pleased with – and the country’s Purchasing Manufacturers’ Index (PMI), a survey among businesses of items like new orders, production and employment in the sector, rose to an all-time high of 57.1.
But what do these stats look like ‘on the ground’?
I think using Entrada Group as a way to illustrate the strength in the Mexican economy can help put the macroeconomic situation into context. Our clients in Mexico are likewise moving full steam ahead. Their footprint at our manufacturing facility in Fresnillo, Zacatecas continues to grow dramatically – despite a challenging global environment. In 2009 our 11 clients employed 1200 workers. At the start of 2013, they more than doubled their workforce. Furthermore, three of these clients are in the process of making investments of more than $1 million each to expand their production capabilities. All of this is being done in the midst of a global economy that is uncertain at best, gloomy at worst.
But does a 150% staff increase and millions of dollars in investment sound uncertain or gloomy? Mexico continues to buck downward trends.
Source: Financial Times