Category Archives: Manufacturing

Mexico vs. China: How the manufacturing hubs stack up

Sometime in 2011 or 2012, from a labor-cost perspective, it became cheaper to put manufacturing capacity in Mexico than in China.
Sometime in 2011 or 2012, from a labor-cost perspective, it became cheaper to put manufacturing capacity in Mexico than in China.

Quartz

With wages rising rapidly in China, Mexico once again has become an attractive manufacturing hub—even to the Chinese.

On Oct. 27, the state-owned China Communications Construction Co. signed a preliminary agreement with Jalisco to build an industrial park that would potentially house dozens of Chinese manufacturers, Reuters reported.

The deal underscores the big shift in production costs across the two countries.

In 2000, workers in Mexico’s manufacturing sector earned nearly 60 percent more than their Chinese counterparts.

Now they earn 11 percent less.

http://qz.com/538056/the-country-china-outsources-to-when-chinese-labor-gets-too-expensive/

71% of maquiladora job candidates not qualified

El Economista – Of the candidates for maquiladora jobs requiring technical work, 71 percent have educational or physical health deficiencies, a survey revealed. The results, covering surveys in 250 factories, showed that 42 percent cannot read, write or handle mathematical or have the  ability to follow directions.

http://eleconomista.com.mx/industrias/2015/08/21/ven-deficiencias-71-prospectos-tecnicos-industriales

Mexico’s falling electricity rates draw manufacturers

CNBC – A number of factors influenced Mexico’s slow but steady rise as a manufacturing hub for multinational corporations, including NAFTA, other trade agreements, cheap labor costs and proximity to the United States. But observers point to another recent development that they see accelerating investment in Mexico and boosting economic productivity: Electricity is getting cheaper.

http://www.cnbc.com/2015/08/10/mexicos-falling-electricity-rates-draw-manufacturers.html

Caterpillar is moving operation from Mexico to Texas

Business Journals – Caterpillar plans to move its vocational truck manufacturing operations from Escobedo, Nuevo Leon, to a plant in Victoria, Texas. Caterpillar opened the Victoria plant in 2012 and produces hydraulic excavators there. Now, it will expand the plant to design and manufacture vocational truck products.

http://www.bizjournals.com/sanantonio/news/2015/08/03/caterpillar-moving-manufacturing-from-mexico-to.html