1. Zidentia's Avatar
    Two problems with that assessment: A) there is no way I can fathom that the overall cost differential would be only 33% (unless they are building the factories in NA VERY differently than the ones in China, ie vastly more robotized), and B) China is no longer the cheapest place to build things. China is a good place to build things because they have the kind of infrastructure and expertise and logistics and various other supporting elements (including lax environmental standards) that is ideal for those kinds of businesses. Labor in Mexico these days is actually cheaper, according to what I've read.
    Not when you compare actuals such as labor cost per unit but when you add in transportation for product and engineers and product managers then yes Mexico is now cheaper as of three years ago.
    12-23-13 07:00 AM
  2. m1a1mg's Avatar
    Not when you compare actuals such as labor cost per unit but when you add in transportation for product and engineers and product managers then yes Mexico is now cheaper as of three years ago.
    There has been a move away from China to places like Vietnam, Cambodia, and even Mexico. Not that China is going to shut down, but from what I've read, they now have a glut of unused manufacturing space.

    This is a pretty interesting blog about Mexican manufacturing: Mexico Manufacturing Looks to Gain Competitive Edge on China - Real Time Economics - WSJ
    12-23-13 09:22 AM
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