Why Electronics Production is Moving from China to Mexico

There are several reasons why electronics production is moving from China to Mexico. One of the main reasons is the rising labor costs in China. As the Chinese economy has developed and living standards have improved, wages for factory workers have also risen. This has made it more expensive to produce electronics in China compared to other countries with lower labor costs, such as Mexico.

Another reason for the shift in electronics production to Mexico is the trade policies of the United States. Mexico is a major trading partner of the US and has a number of free trade agreements in place that make it easier and more cost-effective for US companies to import goods from Mexico. This has made Mexico an attractive location for electronics production, particularly for companies that want to sell their products in the US market.

Another advantage of labor in Mexico is the country’s skilled and well-educated workforce. Mexico produces over 110,000 engineers each year, and many workers are bilingual, making it one of the world’s most diversified workforces. This can be beneficial for companies looking to tap into Mexico’s technological capabilities and tap into the highly skilled labor pool.

Mexico has a relatively young labor force, with an average age of 29. This can be an advantage for companies looking to benefit from a more youthful and energetic workforce that is more likely to be open to new ideas and technologies.

Futhermore, Mexico has a well-developed infrastructure and a skilled workforce, which makes it a good location for electronics production. The country also has a number of free trade zones, which offer tax and other incentives to companies that set up operations there. The combination of rising labor costs in China, favorable trade policies with the US, and a well-developed infrastructure and skilled workforce make Mexico an attractive location for electronics production.