If you’re considering launching a product, you’re likely on the search for a quality manufacturing partner. Choosing a stable location is critical and can help you avoid many hiccups. Stability is just one piece of the puzzle, and another element you’ll want to look for is the level of investment an area is benefiting from. One way you can determine manufacturing suitability is by deciding how heavily multinational corporations (MNCs) are investing in the country of your choice. Are you curious about where MNCs are directing their capital? Here, we share a few of the places that these corporations are turning their attention toward:
Mexico
It’s no surprise that Mexico is an increasingly popular choice for investment by MNCs. The country is receiving increased attention from large companies for numerous reasons, especially as contract manufacturing in Mexico expands. Most notably, the labor force here is disproportionately young, meaning there are plenty of available workers for the present and future. Of course, proximity to the United States can’t be overlooked. More than 70% of exports are transported by land, saving shipping costs and simplifying the receiving process. The manufacturing sector thrives as more MNCs invest in this country’s growing economy. Multiple sectors, including technology, automobiles, and consumer goods, are highly successful here.
China
Even as the relationship strains between the U.S. and China, this behemoth of a manufacturing hub remains attractive to foreign investors. China’s economic growth has been surging since the 1970s, mainly from foreign direct investment from the 1990s onward. Even as China grapples with a population crisis and weaker-than-expected economic growth, there’s no denying that this superpower is home to premium supply chains and top-tier talent.
Europe
Multinational corporations invest heavily throughout Europe, including the United Kingdom, the Netherlands, Luxembourg, Ireland, and Germany. As of 2022, data from the Bureau of Economic Analysis shows that the cumulative level of investment in Europe increased by $172.8 billion. When comparing by industry, manufacturing affiliates benefited the most.
Multinational corporations play a significant role in impacting a country’s infrastructure and expanding global markets. While Europe and China remain in the sights of these companies, Mexico is also stepping onto the scene. Contract manufacturing is a major player in Mexico’s economy, and capabilities will only grow as more businesses invest here. If you’d like to explore the possibility of manufacturing in Mexico, we’d love to help. As one of the early contract manufacturers near the border, the CaliBaja team has the expertise to handle many projects. To learn more about our process and determine if we’re the right fit, please contact our team.
