Photo credit: Manufacturing plant in Nevada by Jeff Barnes

In a move that is exactly surprising to industry leaders and economic growth experts, Mexico’s manufacturing sector is bringing back jobs to North America that left the continent for China in the 1990s and 2000s.  What is partially responsible for the boom, other than the industriousness of Mexicans and their solid work ethic, is the Spanish-speaking country’s concerted effort to ensure that infrastructure can provide the factories with inexpensive and plentiful energy along with the transportation networks to get the manufactured goods to market.

Wages in Mexico are now a little bit higher than the wages that their counterparts in China receive; however, the highly skilled workers can produce higher quantities of quality goods, which is one thing that is influencing companies to set up base there.  Mexico has now become the go-to country for industries like automotive manufacturers and automotive parts makers.  But the one thing that is seriously making business owners want to go to Mexico is the fact that the country is scrambling to implement energy infrastructure projects in order to take advantage of one thing China doesn’t have: cheap oil and gas that is found in Mexico and also is imported from new energy giant the United States.  While the price of energy has gone up considerably in the world, this energy bonanza is making Mexico more attractive than ever for investors in the manufacturing sector.

The energy reserves of both Mexico and the United States are said to be large enough to handle growth for well over a century, and both countries are building new pipelines in order to get those manufacturing jobs back to North America as quickly as possible.

But that’s not all; other massive infrastructure projects that are benefitting Mexico’s manufacturing are transportation projects.  Rail lines connecting manufacturing powerhouses in Mexico to markets in the United States and Canada are being built in order to keep up with the manufacturing output.  Expansion in the transportation infrastructure will let the manufacturing industries grow with next to no limits; in other countries that lack the roads and rail links, goods get held up in warehouse facilities and cannot get to market quickly enough.  Furthermore, some experts are saying that Mexico will also be improving public infrastructure such as national roads as well in order to fuel economic growth in the domestic markets.

Deregulation may also occur in another of Mexico’s key industries:  telecommunications.  As of now a single company holds a monopoly on this key sector; if proposed deregulation occurs, manufacturing could enjoy another massive boost in telecom equipment as international telecom companies also pour in to set up shop in what could be a massive market.

Opportunities abound in Mexico right now; along with a booming manufacturing industry, transit links between Mexico, the United States, Central America and South America need to be further developed; railways, roads, trucking and maritime links are all being upgraded or will be upgraded in the future.  All of this construction of the infrastructure need to support the manufacturing boom will also need energy, as mentioned above.  Telecoms could also prove to bring handsome profit to smart investors.

Mexico is growing and is poised to become the next economic powerhouse in Latin America; those who do not invest now will be bound to regret it when it’s too late in the next few years.

Follow

Get every new post delivered to your Inbox

Join other followers:

Pin It on Pinterest

Shares
Share This
%d bloggers like this: