Manufacturers Eye Mexico for New Facilities Despite Concerns
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Manufacturers like Foxmark are opening operations in Mexico to address labor shortages and supply chain issues. Wages are much lower in Mexico than in the U.S. or China.
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Shipping costs from Mexico to the U.S. are far lower than from China, giving Mexico a competitive advantage for serving the North American market.
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Mexico is hoping for a surge of foreign direct investment as companies look to "nearshore" operations, but so far investment has been flat.
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Major companies like Tesla have announced big Mexico investments but some projects remain stalled over economic concerns.
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Business leaders cite concerns about infrastructure, security, and other challenges in Mexico as potential barriers to nearshoring.