Answer to Question #30596 in Economics for Nhatnguyen Tran

Question

Name a few examples of industrial products/services assembled/manufactured in Mexico. Are skilled workers available in Mexico/Tijuana?

Answer 1

For US-based companies, nearshore manufacturing in Mexico under a shelter services company has many advantages. Rather than shifting manufacturing to a distant location like China, by transitioning to manufacturing in Mexico, companies are realizing cost savings that make the NAFTA-member country competitive with China due to very affordable labor, while benefiting from Mexico’s closer proximity as well.

More and more American companies, large and small, are taking advantage of Mexican manufacturing, where close proximity, more similar culture and language, more manageable travel distance and time zones make nearshoring very attractive. Here are some of the advantages of manufacturing in Mexico.

The quality of engineering and technical education is vastly improved, and the Mexican government has indicated a commitment to education within technical and engineering disciplines. Since the end of 2006, the government has launched more than 70 institutions of higher education and has helped more than 30 existing institutions to expand their student enrollment. This is in response to a growing need for engineers and technicians in Mexico, a need the government is eager to meet.