The list of reasons why Mexico is quickly gaining even greater success on a global scale continues to grow at a dizzying rate, as this dynamic nation attracts more global investment in autos, aerospace and household goods.
Mexico Is the Future of Manufacturing
For starters, Mexico boasts 44 free trade agreements (more than any country in the world, including twice as many as China and four times more than Brazil); a skilled young workforce that is rapidly increasing the number of engineers and laborers graduating from its schools and universities; cheap energy resources; and lower transportation costs. All of this considered, it’s really no surprise that Mexico is taking back manufacturing market share from Asia and attracting a record amount of new foreign investments in its booming automotive, aerospace and household goods industries.
“Today, Mexico exports more manufactured products than the rest of Latin America put together,” points out Pulitzer Prize-winning Journalist Thomas Friedman in an article for the New York Times following a visit to Mexico’s flourishing industrial and innovation center in Monterrey. “What struck me most here in Monterrey, though, is the number of tech start-ups that are emerging from Mexico’s young population – 50 percent of the country is under 29 – thanks to cheap, open source innovation tools and cloud computing.”
Mexico’s Manufacturing Boom Benefits U.S.
Better integration of Mexico and America’s combined innovation prowess is a win-win for both nations. For example, it is making U.S. companies more profitable and competitive, which allows them to expand both at home and abroad, creating jobs in on both sides of the border.
“We do $1.5 billion a day in trade with Mexico,” writes Friedman. “U.S. companies are expanding here, which is one reason Mexico grew last year at 3.9 percent, and foreign direct investment in Monterrey hit record highs.”
Mexico’s growing strength in auto production is also improving the bottom lines for American automotive giants, such as Ford Motor Company and General Motors, according to a recent article by Yahoo! Finance. And the growing number of auto manufacturers who operate plants in Mexico has also created a robust community of both domestic and international suppliers and vendors throughout the country.
Finally, BBVA Compass Bank predicts that the U.S. state of Texas and the surrounding U.S.-Mexico border regions stand to add at least 217,000 jobs by 2018 from Mexico’s opening up of its energy sector to foreign and private investments, increasing state revenues by at least $3.4 billion and the Texas economy by around $45.4 billion.
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