As China’s wages climb, Mexico stands to win new manufacturing business

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It’s already happening. US producers are voting with their feet and relocating sourcing from China to Mexico, particularly to the string of industrial parks located along the US-Mexican border. Security issues aside, Mexican costs are increasingly on a par with those of China, and the proximity makes resolving production issues far easier to deal with. Obstacles remain, however, “Mexico needs to address its underlying issues of corruption, infrastructure and bureaucracy to make this go smoothly,” says one logistics provider.