Sunday, March 26, 2023

Mexico

As the US continues the process of re-shoring (bringing manufacturing back home) Mexico will play a key role. The US can manufacture in Mexico at less overall cost than in Asia but there are not enough Mexicans so the US will still rely on places like South Korea and Vietnam until such time as automation can replace labor. The first expansion of NAFTA will be to build manufacturing facilities in Columbia. Columbia is where Mexico was a few years ago but only has about one/third the population but they can help move some production from Asia. The drug cartels in Mexico can interfere with the growth of US businesses in Mexico and this could be the incentive for the Mexican government to take on the cartels.

No comments:

Post a Comment