Manufacturer businesses are a great opportunity for Mexico’s growth
China has been increasing surprisingly slowly, this country is known as the “manufacturer of the world”, and this is a great opportunity for Mexico to increase its manufacturer base, but this country still has many things to work in first, such as low salaries or infrastructure.
Salomon Juan Marcos Villarreal, president of Grupo Denim, a manufacturer company in Mexico gave us his thoughts about this topic:
Interivewer: Do you think 2016 would be good for the manufacturer businesses in Mexico?
Salomon Juan Marcos Villarreal: Yes, I actually believe 2016 would be the key, it is the perfect opportunity to advance and grow on these type of businesses, and the Government is aware of this and has taken the necessary steps to support this sector.
I: How can Mexico be more competitive in front of China?
SJMV: With better infrastructure, low manufacturing costs used to be China’s main advantage but this has changed over the last years as the costs are higher than Mexico’s.
Germany and the United States are moving their manufacturing services off China to other countries offering lower costs, and Mexico is being benefited by this.
Mexico has the necessary environment to capture many of the manufacturing work once the United States starts getting back their work from Asia, but they will only get this working smartly.
An economy who depends of manufacturing, such as Mexico, cannot only develop and increase by keeping low salaries, society is a whole and it cannot let itself base its competitive by having low manufacturing costs only.
“Mexico has taken the necessary steps to change reforms that would benefit Mexicans, and the manufacturing sector would see the benefits of those changes by keeping low energy, communication and logistic costs, which would make us capable to keep low costs to our customers”, added Salomon Juan Marcos Villarreal.