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alp227

(32,037 posts)
Sun Jun 3, 2012, 09:15 PM Jun 2012

Mexico most popular for US ‘reshoring’

Source: Financial Times

Mexico remains a far more popular destination than the US for “reshoring” manufacturing to supply North American demand, according to research by a global business advisory firm.

The report, to be published on Monday by AlixPartners, could damp the hopes generated by US cheerleaders for reshoring – where jobs previously outsourced to low-cost emerging economies are brought back home.

US job creation slowed in May, according to official data on Friday that showed employers created 69,000 posts last month, well below average expectations of about 150,000, while the unemployment rate rose to 8.2 per cent from 8.1 per cent.

Barack Obama, US president, has cited reshoring as an example of the country’s increasing economic competitiveness in the face of competition from emerging markets. However, the trend, although real, may not benefit the US as much as some expect, the survey suggests.

Read more: http://liveweb.archive.org/http://www.ft.com/cms/s/0/ec164996-ad23-11e1-bb93-00144feabdc0.html?ft

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Xipe Totec

(43,890 posts)
1. Good news, everyone!
Sun Jun 3, 2012, 09:21 PM
Jun 2012


Now all those repatriated undocumented workers will have jobs to return to, and less incentive to come here!


Huzza!




Be careful what you wish for...

freshwest

(53,661 posts)
3. And hopefully, laid off Americans can emigrate to sunny México!
Sun Jun 3, 2012, 09:32 PM
Jun 2012

I told folks to learn Spanish and see, it'll come in handy now. And this should shut up folks of this side of the border from having hissyfits...

OP reminds me of that scene in the movie, The Day After Tomorrow when all the Americans are lined up trying to cross the border into Mexico as climate refugees...

Hey, the person you're nice to today, may be your patrón in the future...

¡Viva México!

treestar

(82,383 posts)
2. Strange that Mexico was not where they went in the first place
Sun Jun 3, 2012, 09:27 PM
Jun 2012

It's much closer than China and how much it must cost to transport cheap stuff that far.

pampango

(24,692 posts)
4. Sounds like "the higher costs of doing business today in places like China" is what's driving this.
Sun Jun 3, 2012, 09:34 PM
Jun 2012

"Nearly half the manufacturers surveyed by AlixPartners said they saw reshoring as a good opportunity, but half also said Mexico was their top choice for relocating factories designed to supply the US market. However, that is down from 70 per cent last year. In addition, 35 per cent said the US was the most attractive place to reshore production – up from 21 per cent last year." The trend is in the right direction, anyway.

“A lot has been written of late about America’s manufacturing rebound, and there certainly has been a very impressive rebound,” said Foster Finley, co-head of AlixPartners’ transport practice. “However, Mexico still remains the near-shoring locale of choice for companies looking to overcome the higher costs of doing business today in places like China.

"Russell Dillion, his co-author, said Mexico was particularly competitive in low-skill assembly work. “US workers can bring more productivity to the table, so that shrinks the gap between the US and Mexico. But in some industries – such as auto – the productivity and quality gap is not as large as it was two decades ago,” he said. Nice that the US has more high-skilled and productive workers. It would be better if they were paid what their productivity showed they are worth.

 

lib2DaBone

(8,124 posts)
5. Mexico has always been part of the "Screw American Worker" equation.
Sun Jun 3, 2012, 10:42 PM
Jun 2012

Lazy-Boy, Ford, Whirlpool, Amana and countless others... have opted for cheap Mexican Labor. (and a cheap shoddy product)

Why? Because they CAN. Thanks to 30,000 lobbyists...who swarm over Washington day in and day out....our Congress and Senate ENABLE these corporations and allow them to screw the American worker.

Don't even try to start up with the "Union workers vs Mexico workers" cost equation argument. Pure BS.

American workers produce five times what Mexican workers produce.

NAFTA gave us the SHAFTA.. and nothing is going to change.

DocMac

(1,628 posts)
7. How is it that corporations
Sun Jun 3, 2012, 11:07 PM
Jun 2012

feel safe in other countries? What do they know that we don't? That dangerous extraneous variable that is hostility and uncertainty must drive em nuts.

The risk must be enormous!

 

lib2DaBone

(8,124 posts)
8. Exactly. But they are able to shift that risk to the American worker via lower wages.
Sun Jun 3, 2012, 11:22 PM
Jun 2012

Heads they win.. tails we lose. See how nifty that works?

Once they do not have the American Military to protect their Fat Cat foreign factories..it all collapses.

Privatize the profits... Socialize the costs.

DocMac

(1,628 posts)
9. Right!
Sun Jun 3, 2012, 11:31 PM
Jun 2012

How can they be so bold to open an office or facility in places like Pakistan? I saw a list of American companies that are in Pakistan and there was quite a few. It made me wonder how they thought it was a good idea. When I hear this government talk about American interests abroad, I know what they mean.

bhikkhu

(10,718 posts)
10. A healthy next door neighbor is better than a stranger overseas
Mon Jun 4, 2012, 12:54 AM
Jun 2012

Like the Canada/US relation, mutual benefit is possible, and "reshoring" to Mexico is a whole lot better than keeping production on the other side of the planet.

madrchsod

(58,162 posts)
11. wait till the cartels in mexico decide they want a piece of the action
Mon Jun 4, 2012, 08:17 AM
Jun 2012

the cartels are going to use manufacturers as another stream of income.

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