TeamNAFTA.com

Because of the rising cost of shipping, Mexico is proving to be a more attractive manufacturing option for many companies.  Since 2000, the cost of shipping a 40-foot container from Asia to the United States has already tripled, with prices looking to increase again.

A recent Wall Street Journal article states the following:

Emerson, the St. Louis-based maker of electrical equipment, recently shifted some production of items such as appliance motors from Asia to Mexico and the U.S., in part to offset rising transportation costs by being closer to customers in North America.

Jeff Rubin, chief economist at CIBC World Markets in Toronto predicts that Mexico will be the “biggest winner of all” as increased transportation costs make China uncompetitive in an ever-growing list of businesses in North America.

Excerpts from June 13, 2008 issue of Wall Street Journal. Click here to view. WSJ subscription required for full online article.