Despite headlines of drugs and danger,in Mexican manufacturing cities and boarder towns like Juárez,American companies are still rushing to do business in Mexico,lured south of the border by low wages,fewer taxes,lower freight costs,and a booming economy.
Big Blue Chip companies are already in Mexico or fast on the way. Johnson & Johnson,Scientific Atlanta,Delphi Automotive and Siemens are filling the El Diario’s (local daily newspapers) with help-wanted ads.
They have already added 27,000 jobs since the beginning of the year in Juarez alone. Nine more major companies in the last month have obtained permits to invest and operate in Mexico,and local industrial parks are already seeing more business landed than in all of last year.
In return for investing in Mexico and building factories,Americans get great tax breaks,low labor costs ($4.21 a day in some cases),and worker training paid for by the government. Johnson & Johnson’s internal marketing research ranks Mexican competitiveness and production even with China,thanks to a skilled workforce,low wages,cheaper freight costs and quicker delivery time due to proximity.
And these companies are coming in droves. Over 18,000 American companies are now investing and operating in Mexico with more obtaining new permits every day. Not surprisingly,the big bridges that connect Mexico and U.S. are reporting record traffic.