A few years ago I wrote a blog about Chinese manufacturers in Mexico
putting the made in China label on products in Spanish. These were
Chinese products partially made in Mexico.
A decade before that I had a client in the Imperial Valley that bordered on Mexico and I encouraged my client to become a shipping and assembly center for the products made in Mexicali (just the other side of the border) for distribution in the United States. It was a very big business at the time. My client followed my advice.
Today that Mexican border business has become gigantic.
There are two reasons. First the level of technological competence of the workers in Mexico on the American border has become first rate. Mexican graduate schools are turning out top-flight engineers and business managers. In large numbers.
Second, the prices of Mexican labor are equal to or less than the current Chinese labor market.
The consequence is that more Chinese companies are moving their production to the Mexican border.
Just so you know. We can now outsource to a country on our border. We are doing it in increasing volume.
A decade before that I had a client in the Imperial Valley that bordered on Mexico and I encouraged my client to become a shipping and assembly center for the products made in Mexicali (just the other side of the border) for distribution in the United States. It was a very big business at the time. My client followed my advice.
Today that Mexican border business has become gigantic.
There are two reasons. First the level of technological competence of the workers in Mexico on the American border has become first rate. Mexican graduate schools are turning out top-flight engineers and business managers. In large numbers.
Second, the prices of Mexican labor are equal to or less than the current Chinese labor market.
The consequence is that more Chinese companies are moving their production to the Mexican border.
Just so you know. We can now outsource to a country on our border. We are doing it in increasing volume.