Not long ago, Mexican factories couldn’t compete with the “China price,” the ridiculously low cost of production in the Asian nation.
But sometime this year, with rock-bottom wages soaring in China, the average cost of factory labour in the two nations will be roughly the same. This is a boon to Mexico, and its industrial parks are swelling.
The trend has caught the attention of chief executives such as Rob Moser, the president of Casabella Holdings, who recently started adding up the pros and cons of where to make the housewares that his New York firm designs and sells.
China was cheap — really cheap — when he first started buying there in 2003. But labour costs have climbed at a double-digit pace, and there were other factors that made China less convenient.
“You’ve got to get a visa to China, and that takes time. It’s a 16-hour…
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