Manufacturing won’t move to China

The Mex­i­can man­u­fac­tur­ing sec­tor locat­ed near the US border—the maquilado­ra sector—for exam­ple, seems to be recov­er­ing from an ear­li­er wave of ‘out­sourc­ing’ to Chi­na: bq. From ’00–03, about 900 maquilado­ras closed, at a cost of more than 292,000 jobs. But busi­ness picked up in June ’04, export­ing $7.7bn worth of goods, an all-time month­ly high, and com­pa­nies say they’ll invest $4.5bn in new or expand­ed oper­a­tions in ’05, restor­ing or replac­ing some two-thirds of the lost jobs. Ana­lysts attribute the come­back in part to resurg­ing US con­sumer demand, the strong Mex­i­can peso, and prob­lems US man­u­fac­tur­ers have encoun­tered with China’s still-young indus­tri­al infra­struc­ture. (“AP via The Eco­nom­ic Times (India)”:

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