manufacturing costs, while maintaining
U.S. standards of quality and efficiency.
In 2014 the foreign direct investment
reached $22.6 billion, including the
relevant sale transaction of Comex, the
largest Mexican paint company, on $2.6
Bill to the US Company PPG Industries.
In 2013 Mexico drew a record reaching
$35.2 billion in foreign direct investment
(FDI), nearly double the level seen in
2012. The record high seen in 2013 was
mainly due to Belgian brewer Anheuser-Busch InBev's acquisition of Mexican
beer giant Grupo Modelo, the “Corona”
producers, which brought in about
Mexico and the United States share
nearly 2,000 miles of borderland. The
country itself is laced with over 80,000
miles of highway and dotted with 76
airports, along with a good number
of ports at the Gulf of Mexico and the
Pacific. Here’s something impressive:
A truck bearing manufactured goods
can drive from Mexico and deliver its
cargo to any point in the continental
U.S. within 24 hours, aided by proximity
to the U.S.’s infrastructure system.
This can help lower costs as oil prices
continue to climb. It also makes for
easier monitoring of the manufacturing
process from across the border.
WELL NET WORKED
Nearly 81 percent of Mexico’s
exports— 30 percent of its GDP—is
comprised of manufactured goods. This
type of exporting has risen significantly
since Mexico entered into the North
American Free Trade Agreement of
1994. The economic performance during
the past 18 years has been remarkable
with the free trade agreements with 44
countries, including the U.S., Canada,
the European Union, and several
Latin American countries to compete
with the current global. Today, we
compete around the world with high-class products through our free trade
agreements — more than any country
in the world — which, according to The
Financial Times, is more than twice as
many as China and four times more
COMPETITIVE LABOR FORCE
Manufacturing in Mexico has never
been more ideal for foreign companies.
The country boasts an expanding
skilled labor force owning the technical
proficiency to assemble a wide range of
products. Currently, 60 percent of the
population is under 35, while only 6. 5
percent is over 65. The country is also
reaping the benefits of a demographic
bonus, in which working-age people
comprise the greatest chunk of the total
population. But it’s not just cheap labor.
Mexican universities graduate some
111,000 engineering and tech students
every year, and the population overall
is fairly healthy, with life expectancies
close to those in the United States.
In terms of costs, Mexico is highly
competitive in comparison to investment
alternatives in the Americas, Europe and
Asia. Recently it became fashionable to
talk about the potential of Mexico over
China to attract foreign investment,
given the unusual increase in labor costs
in China. On an economic report Bank
of America Merrill Lynch (BofA) states
that labor cost in Mexico are now 19. 6
percent lower than China’s labor cost,
which has increased the competitiveness
in our country. In 2003 the salaries in
Mexico were 189 percent higher than
China salaries, this gap is now reversing.
LOCATION, LOCATION, LOCATION...
Mexico shares a border of more than
3,000 km with the biggest economy in
the world: the United States. In 1993,
Mexico signed the North American Free
Trade Agreement (NAFTA) with the
U.S. and Canada. Since then, Mexico
has increased its exports by fivefold and
its imports have risen by more than 300
percent. The flows of foreign investment
have also increased significantly.
• Mexico is the second to top destination
for all U.S. exports.
• Mexico buys 1/8 of the goods and
services exported by the U.S.
• Twenty-six U.S. states depend on
Mexico as a main destination for their
• Eighty percent of Mexican exports are
destined for the U.S.
• Fifty percent of Mexican imports come
from the U.S.
• Trade volume between both countries
surpasses a billion U.S. dollars every
The transportation times from Mexico
(Puerto Manzanillo) to Los Angeles
are, by a large scale, less (four days of
maritime transport) than from Brazil
Mexico City & Toluca
San Luis Potosi
Queretaro & Bajio
Major Industrial Markets
Major Sea Ports
Major Industrial Markets and Sea Ports
Source: Cushman & Wakefield