Posts tagged ‘NAFTA’
Analysis by Crossborder Group Finds Tijuana #1 City in North America for Medical Device Manufacturing Employment
New data from several major automotive manufacturers signals a recovery, and a shift toward expansion and increased foreign direct investment into Mexico’s automotive industry.
Mexico’s automotive sector experienced a steep decline in production and investment in 2009 due to the global economic downturn. In fact, by January of 2009, production of cars and light trucks had fallen to less than half of January 2008′s levels — a trend which continued throughout most of 2009. However, several major OEM’s have recently announced plans for production or supplier expansions in Mexico over next few years.
We’re proud to announce that one of the world’s largest manufacturer of miniature ball bearings — and a major supplier of cooling fans, precision motors and electrical component — has retained Crossborder Group for a country-wide analysis of Mexico’s manufacturing markets, and new sales opportunities. While not new to the Mexican market, this California-headquartered subsidiary of a major Asian company has contracted Crossborder to provide a state-by-state review of key manufacturing sectors (including both maquiladora/IMMEX and domestic manufacturers), regional industrial insights and strategic guidance, as well as survey-based feedback from potential customers companies in order to facilitate their growth in Mexico.
While most elected (and wanting-to-be-elected) officials in Washington D.C. and some US States continue to portray illegal immigration as virtually the only topic of interest we potentially share when it comes to talking about Mexico and our border region (we’re thinking of you, Arizona, and California gubernatorial candidate Steve Poizner’s Prop 187-style ads), the new 2010 World Competitiveness Yearbook was released today by the Switzerland-based IMD School of Business. The most striking news from this annual study: the US has dropped from the leading to the third-ranking position (behind Singapore and Hong Kong). While not necessarily surprising to many, certainly the news was big enough for BusinessWeek to headline their story: “Asia Gains, U.S. Drops in Competitiveness” (in case you didn’t get the point).
This news comes on the same day that Presidents Obama and Calderon are meeting in Washington D.C., talking about some of the very issues that are critical to increasing North American competitiveness, and growing jobs (and wealth) in our region…[read more]
As California’s unemployment rate actually edged up a few more notches to 12.5%, and the overall employment picture in the U.S. continues to be one of cautious optimism, Crossborder’s review of North American employment data through the end of December 2009 underscores the broad nature of job-losses throughout this interconnected economy.
Our most-recent CrossborderInsights brief (below) notes…[read more]
New data released in mid-February shows Mexico’s IMMEX (“maquiladora”) industry employment was on the increase, adding an average of just over 14,000 jobs each month since July 2009. The IMMEX industry (the new, regulatory term for what is widely considered the “maquiladora industry”, covering both former “maquiladora” operations and “PITEX” companies) has been hard hit by the U.S. economic downturn, losing nearly 365,000 jobs in this sector from a near peak in November 2007 to its low-point of 1.58 million employees in July, 2009. Some key findings are presented in our downloadable Crossborder Insights brief…[read more]
Our Two Pesos: $50.2 Million in USDOT TIGER Grants for Border Crossing Infrastructure….Thanks. Gracias. Más?
Today, US Transportation Secretary Ray LaHood announced $1.5 billion in funds for the Department’s TIGER (Transportation Investment Generating Economic Recovery) Grants — targeting 51 “high-priority, innovative transportation projects” around the United States. These are projects that were funded under the American Recovery and Reinvestment Act (ARRA), and competed against nearly 1,400 total transportation-related project submissions.
Of the 51 projects that were announced today as receiving FY2009 funds, two specifically are for improving border crossing infrastructure: $30 million toward a $79 million project to replace the Black River Bridge (connecting Port Huron, Michigan, with Canada); and $20.2 million toward the nearly $450 million project to construct the new SR-905 freeway connecting San Diego (and Otay Mesa) with Tijuana, Baja California….[read more]
On February 12, 2010, President Felipe Calderón of Mexico met with Prince Andrew of the United Kingdom to both reiterate Mexico’s interest in stronger trade and investment relationships with the UK, as well as to restate an ongoing Mexican goal of reducing their “dependence” on the United States as an export market.
In Mexico, the trade relationship with the U.S. is, by many, considered a mixed blessing: while NAFTA and the increasing integration with the U.S. economy has attracted significant foreign investment, created stronger commercial relations (and job growth), and has likely helped infrastructure modernization – it has come at the cost of Mexico being highly dependent on U.S.’ economic health. In 2008, President Calderón himself repeated the old phrase: “When the US catches a cold, Mexico gets pneumonia.”
The benefit and weakness of this relationship can be seen in Mexico’s trade data – the most recent of which covers January-November of 2009. CrossborderBusiness.com has analyzed this data, and provides a few brief observations about Mexico’s export trends in our new Crossborder Insights briefing…