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Mexico is Becoming the New China

February 2, 2013
Plain English Version

Tijuana, Mexico is becoming a manufacturing center for products sent to the United States. In that respect it is a lot like China. But there are important differences.

Tijuana is growing as North America’s place for assembling electronics – from TVs to medical devices. Its educated workforce is a big factor.

The phrase “quick sourcing” captures Tijuana’s importance. It is near companies and consumers in the U.S. The short supply line gives companies more flexibility in design and marketing. Changes in manufacture and inventory can be made quickly and inexpensively.

U.S. manufacturers say it has other advantages. They can more carefully watch their products being made. This means better quality control. There is less political risk. Shipping is much faster.

U.S. companies located near the Mexican border are beginning to look closely at Mexico. This trend could easily spread to companies in other parts of the U.S.

Changes in China are also taking place. Wages are rising and are closer to those of Mexico.

The New York Times

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