Manufacturing In Mexico: The Latin Giant Awakens
Manufacturing In Mexico is clearly coming of age. In fact, any early manufacturer in Mexico can attest to its inception in the early 1970s when petroleum production sparked a new era. Remarkably, even after the 9/11 slowdown, manufacturing in Mexico has returned to a five percent annual GDP growth over the last 6 years. The Entrada Group witnesses anecdotally what economists have now documented: that over half of Mexico’s 100 billion dollar industrial output is exported to the United States.
Since oil’s early days, manufacturing in Mexico has expanded to include multiple goods and services. Newcomers to the burgeoning markets include food and beverages, textiles, iron and steel production, motor vehicles and tourism, among others. Currently, about 24% of Mexico’s labor force works in industry, enjoying a per capita GDP of $8,500USD.
The Entrada Group supports the notion that U.S. companies have increased opportunities by drawing on favorable trade agreements, geography, customs benefits, and a substantial infrastructure vitalization. Furthermore, the Calderon government continues to modernize the energy sector offering increased capacity for businesses and civilians alike. Combined with further public-private partnerships and significant increases in public-private lending, prospects for a vigorous ‘5th-largest-economy-in-the-world’ projection by year’s end, will support even greater manufacturing in Mexico for U.S. companies.