Industrial Manufacturing in Mexico
Industrial TACNA Manufacturing in Mexico is found in all the eastern states of Jalisco, Baja California, Colima, Nuevo Leon, Guerrero and San Miguel. Some of these textile mills in Mexico which have been established to cater for this growing demand in industries like garments and textiles have also been constructed in Mexico City’s former textile factory, the Irapuato. This textile factory is said to have closed down due to financial problems but has left a huge impact on the local textile industry by bringing in skilled textile workers from other countries. These industries have received a boost by the construction of textile mills and factories in Mexico.
Textile manufacturing in Mexico is geared more towards apparel and light industrial production rather than heavy industrial production. The main reason behind this is that the textile mills of Mexico tend to outsource some of their work to countries like India and China. This has helped the country to develop its own textile products with localisation being the key factor. Many of the Mexican textile mills have set up their own export outlets and import capabilities to enable them to tap into the market in textile products which are comparatively cheaper than those available in developed countries like the US.
Many American companies who had set their eyes on Mexico as a preferred location for their operations now feel that the Mexican scenario suits their requirements better. There has been a steady rise in trade between the United States and Mexico since the 1980s. US exports have risen rapidly, while those of Mexican companies have steadily increased too. This has enabled many American companies to buy shares in Mexico’s textile manufacturing facilities which they can utilise for their production requirements. With increasing demand for garments and other items in Mexico, the prices of these products have come down sharply, which have helped the Americans to purchase much more of these items from Mexico than they previously did.
The development of industries in Mexico has led to the growth of American businesses as well. Several of these businesses have set base in Mexico and set up operations there. Some of these have even moved their entire operations there and employ hundreds of thousands of people. There is a lot of commerce going on between the United States and Mexico. The main reason for this is the implementation of the North American Free Trade Agreement or NAFTA. This has made Mexico one of the most important economic partners in the north American continent.
The economic benefits of this agreement were well known in the United States before the implementation of NAFTA took place. The new industry set up in Mexico due to the rise in demand for clothing was established by American and Japanese companies. Many of these companies were set up in areas where the population was dense. The rise in population in these areas made it necessary for businesses to be set up in these areas. There was no such thing as industrial manufacturing in Mexico before the implementation of the NAFTA Agreement. Some of these industrial facilities were set up in the same location today as they were decades ago.
Industrial manufacturing in Mexico has many benefits to it. It is a great opportunity for the United States and Mexico. Many businesses are set up here that produce items that can be exported all over the world. Some of these businesses have become very successful and large corporations employing thousands of people all over the globe have set up operations in Mexico.