It is cheaper to produce in Mexico than in China.

It is cheaper to produce in Mexico than in China.

The cost of labor in Mexico is now 19.6% lower than in China, which has increased the competitiveness of the country.

produceIn 2003, wages in Mexico were 189% higher than the Asian country, which is already reversed, states the Bank of America Merrill Lynch (BofA) in a report

Stresses that it is an important component of the enthusiasm to Mexico, and also allowed it to increase its market with the United States.

Carlos Capistrán, chief economist at the financial institution in Mexico, says that another factor in favor of the country is the lowest cost in transportation. He Cited as an example that the cost of moving goods per cubic foot between Shanghai and Chicago is 2.19 dollars and takes 25 days, while Monterrey to Chicago is $ 0.40, which means that it is 82% lower, and the time decreases by 80%, transporting by train.

The advantage of location, labor costs, increased productivity in manufacturing, an increase in labor force participation and openness, contribute to sustaining the dynamism of manufacturing exports and stimulate the potential growth of the economy.

This will contribute to raising the competitiveness of Mexico and regain its market share in the world’s largest economy.

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