"Top Performers are now deciding to stake a position in [China and Mexico] and create a flexible sourcing base that can provide "dynamic redundancies." Here's the irony: despite a high risk perception, fueled by the onslaught of violent press imagery, Mexico offers Top Performers less risk to their supply chains at a globally competitive cost."
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Site Selection Magazine. May 2011
Bloomberg News: Proximity to U.S. pays off, providing edge over China
"Shipping to and from Mexico is easier and faster because it's over land rather than by sea," Cessna Chief Executive Officer Jack Pelton says. "It provides a way for Cessna to become more competitive as we deal with the challenge of the current economic situation."
After years of losing chunks of the U.S. market to China, Mexico has begun taking some of it back. Mexico's share of the products the U.S. imported for the first five months of the year rose more than a percentage point to 12.3 percent, while China's position dropped to 17.3 percent from 18.6 percent.
Average Chinese manufacturing wages at just under $2 an hour are only 14 percent less than Mexican salaries as of this year, according to estimates by Mexico's Finance Ministry. Salaries south of the border were more than three times higher in 2002.
While drug violence may dominate the headlines, Mexico is quietly reclaiming its place as a location where U.S. companies are finding low wages, less expensive shipping costs and reasonable tariffs - at an address a lot closer to home than China.
TeamNAFTA is proud to present our exclusive 2011 Labor and Wage Report for Mexico.
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