The Eagles album South of the Border got me thinking about the late 60’s and the end of the bracero program which did away with jobs and income for unskilled Mexicans. In time the Border Industrialization Program AKA the Maquiladora Program came to be.
U. S. companies looked to it as a low cost solution in product manufacturing and assembly. Why? Inexpensive labor, duty-free importation, favorable U. S. tariffs, and reduced freight costs vs. the overhead of wages, workman’s compensation, property taxes, and lease taxes here. Its factories became an in-bond industry for 1.3 million Mexicans. To this day there are many major companies manufacturing in Mexico.
Parting thought: As experts criticize Mexico for constraints like unions, the environment and wages, Mexico manufacturing is booming. Those televisions, silicon chips, and toys many got from Christmas probably were MADE IN MEXICO as opposed to the good, old U. S. A. Even the bankrupt Chrysler plans to launch 18 new vehicles and rebuild 70% of its parts from there.
What are your thoughts on companies here using manufacturers in Mexico?