CNN Money Reports on Mexico

Manufacturing in Mexico is gaining in popularity as China falls to the wayside. Mexico is emerging as the number one low cost country to manufacture goods for the US market reports CNNMoney. While costs related to manufacturing in Mexico have gone down in order to compete for  the US market costs have been steadily rising in China. “The index showed that China, once the lowest cost supplier … has now dropped to number three in LCC (low-cost countries) rankings, behind India and the new number one, Mexico,” according to the AlixPartners 2009 Manufacturing-Outsourcing Cost Index. cloud hosting info . In addition; as the Chinese currency has risen close to 20% against the US dollar costs to manufacture in Mexico have declined as the peso dropped approximately 20 % against the dollar.

In addition to the emerging competitiveness of manufacturing in Mexico from a currency perspective, proximity to the US markets must be taken into account as well. Mexico is well poised from a geographic stance to be very competitive in both price and lead time to it’s customers in the US.

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