Are you concerned about the state of manufacturing in the United States? Well, you’re not alone. The trend of companies moving manufacturing operations offshore to countries like Mexico is on the rise due to various factors like high wages and stringent regulations. And it’s not just small companies either – even big American brands like John Deere are making the move.
At Extreme Investor Network, we understand the impact this shift can have on the US economy and want to provide you with unique insights into the situation. For example, did you know that Mexico is currently leading the pack when it comes to exporting goods to the US? In fact, they surpassed China in 2023, exporting $475.6 billion worth of goods to the US that year.
So why are companies choosing Mexico over the US? Well, for starters, the cost of labor in Mexico is significantly lower than in the US. The average hourly wage for unskilled labor in Mexico is only $4.55 compared to $17.42 in the US. Additionally, Mexico has implemented policies like IMMEX and PROSEC to attract business, offering tax incentives and reducing tariffs for companies that manufacture goods in the country.
But it’s not just about cost – Mexico also boasts a skilled and educated workforce, with more students graduating with engineering degrees than in America. And with sectors like aerospace, automotive, and electronics thriving in Mexico, it’s no surprise that manufacturing contributes 16% to the country’s GDP.
At Extreme Investor Network, we believe in providing you with valuable insights and information that you won’t find anywhere else. So if you want to stay ahead of the curve when it comes to economics and investing, be sure to check out our website for more exclusive content. Join us as we navigate the ever-changing landscape of the global economy and uncover opportunities for growth and success.