Coming in the Winter 2012 Issue of Area Development Magazine...
It wasn't too long ago that most of North America, including Mexico, was beginning to believe that China would eventually capture all the manufacturing to be had. It was true that many companies fled Mexico for the lower labor costs of China.
In a report released in August 2011, The Boston Consulting Group (BCG) noted that by 2015, wages in Mexico will be significantly lower than in China, pointing out that in 2000, Mexican factory workers earned more than four times as much as Chinese workers.
A recent study by Alix Partners says U.S. manufacturers could face challenges if they continue to rely on China for their supply base and don't adopt a flexible sourcing strategy. The study ranks Mexico as the Lowest-Cost Country for U.S. Outsourcing.
It wasn't too long ago that most of North America, including Mexico, was beginning to believe that China would eventually capture all the manufacturing to be had. It was true that many companies fled Mexico for the lower labor costs of China.
In a report released in August 2011, The Boston Consulting Group (BCG) noted that by 2015, wages in Mexico will be significantly lower than in China, pointing out that in 2000, Mexican factory workers earned more than four times as much as Chinese workers.
A recent study by Alix Partners says U.S. manufacturers could face challenges if they continue to rely on China for their supply base and don't adopt a flexible sourcing strategy. The study ranks Mexico as the Lowest-Cost Country for U.S. Outsourcing.
