Category Archives: Manufacturing

Mexico transitions to high-value manufacturing site

JOC – With an increasingly skilled Mexican workforce and a rapidly growing middle class, many international companies are investing in facilities that manufacture higher-value products for the U.S. and Mexico’s domestic market, and still more are planning to invest there.

Mexico’s manufacturing sector continues to grow

Auto factoryForbes – Mexico’s economy has performed well relative to other major Latin American economies in recent years, largely because of its thriving manufacturing sector. Unlike Brazil and Argentina, whose manufacturing sectors are slumping, Mexico has continued to see solid growth because of its integration with and dependence on the U.S. market.

Why auto makers are building factories in Mexico, not the U.S.

The wave of investment has turned Mexico into the world’s seventh-largest producer of cars.
The wave of investment has turned Mexico into the world’s seventh-largest producer of cars.

By Dudley Althaus and William Boston / Wall Street Journal

A barren patch in the rugged hills along the Tennessee River is a sign of how Mexico has accelerated past the U.S. South in the global competition for auto investment.

The tract of cleared woodland lies alongside a factory Volkswagen set out to build in 2008. But four years later, when Audi decided to move global production of its Q5 SUV to North America, the prize went to Mexico.

“Mexico had more than 40 different free-trade agreements,” said Rupert Stadler, Audi’s chief executive. The pacts give exporters from Mexico duty-free access to markets that contain 60% of the world’s economic output.

While the bulk of Mexico’s auto exports go to the U.S. and Canada, its partners in the North American Free Trade Agreement, auto makers increasingly are turning to Mexico as a platform for selling world-wide.