For manufacturers and industrialists; the State of Baja California, Mexico is a major manufacturing and industrial power.

The skilled management of thriving businesses that are developing strategies to capture efficiencies find that Mexico manufacturing results in benefits such as access to major trading hubs, including the Pacific Rim and the Asia-Pacific markets. It also features skilled and trained labor in various aspects of manufacturing, giving a tough time to the Chinese labor.

At the start of the millennium the Mexico manufacturing labor wages were 240% higher than the Chinese labor wages. However, today they are only 12% higher. The major chunk of Mexican exports is now comprised of manufactured goods, which counts for 80% of exports, and the trade for the region is 60% of the GDP.

 

The pace, at which the region is progressing, will very soon help Mexico replace China as the most preferred optimal manufacturing location for the North and South American market products. Companies establishing their manufacturing operations in Baja California, Mexico will not only be able to gain from reduced unit costs, increased productivity and improved reliability, but they will also be able to capture the strategic location advantages. Not only the companies, but nations like America, Europe, Japan, South Korea and China are also keen to invest in Mexico. This jostling for a position in Mexico is fueled by the peso being pushed down to 1,500% against the dollar.

The apprehensive investors distressed by the news of drug and gang violence should notice the fact that the region has its debt standing at 27% of the GDP and the budget deficit at 2.5% which has prepared Mexico for an incredible and absolute growth. While some give more importance to these headlines, others simply look at the bigger picture of capturing more on their canvases of profitability and sustainability by focusing their approaches and logistic strategies to establish a long term competitive advantage.

The state of Baja California, Mexico in the current era is offering the most effective location externalities for companies that are anxious to gain from skilled labor pools, supporting industries and reduced labor cost. Moreover, this region does not have limitations on capital inflows which offer potential opportunities of investment in Mexico so as to tap into the market for gain. The location of this region allows access not only to the Pacific Rim region but also the Asia-Pacific markets. Business companies refined with experience and insight remain unafraid by the much touted region's street crime and are shifting their manufacturing capacities to Mexico to establish a competitive advantage and make the most of this optimally economically efficient manufacturing and industrial location.

By Co-Production International