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Mexico gets an edge as Chinese wages grow

Monday, September 17, 2012


China's rising wages and slowing growth present a chance for Mexico to wrest back some of the business that chased cheap labor across the Pacific in the past decade, when Chinese wages averaged a quarter of Mexican pay.

Mexico may already be a less-expensive place to make an array of products for the U.S. market, said Boston Consulting Group, which estimates that China's average manufacturing wage topped Mexico's this year.

Mexico also is attractive for items that are bulky or costly to transport. Auto production in Mexico has hit record levels, and a number of non- U.S. car makers, including Nissan Motor Co. and Volkswagen AG, are planning multibillion-dollar factories there.


Source: Wall Street Journal