In a guest commentary for CNBC’s series on Investing in Mexico, Brazeway CEO and CNBC Chief Executive Network Member Stephanie Boyse describes her viewpoint on the rising state of Mexico’s economy. Boyse’s perspective is valuable because she actually moved to Mexico back in 1996 after the Peso was devalued and interest rates rose dramatically as a result.
At the time, Boyse’s company was investing in a Greenfield manufacturing facility for the appliance industry that was located on a piece of Mexico real estate just outside of Monterrey. From her perspective, the educational and social gaps were substantial back then and Mexico was considered to be a third world country with infrastructure that left much to be desired. My how things have changed.
“Today, our two largest plants are in Mexico and 60 percent of our global manufacturing employment is based there,” writes Boyse. “Management and engineering capabilities have gained sophistication, fueled by the shift from high labor content businesses, to advanced manufacturing like aerospace, and development of competitive service industries.”
In addition, the federal government in Mexico is “business friendly” and working hard to create incentives that will attract and retain foreign investment dollars. But perhaps most importantly,Mexico’s demographics include a young, entrepreneurial majority who remains competitive and eager to embrace new opportunities.
“As China becomes more expensive,Mexico has done well to curb its inflation and create stability in its cost structure,” writes Boyse. “We find that our facilities in Mexico have a cost structure that can compete successfully on a global basis, as a key exporter to the U.S.,but also to markets and low cost rivals such as Brazil and China.”
Boyse also expressed a high level of confidence in Mexico’s ability to meet and exceed the financial and social expectations of businesses and to create high quality products at a great value.