Mexico's manufacturing sector continues to grow

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The ongoing debate about sourcing locations continues in this in-depth article from US thinktank Stratfor, via Forbes, which makes the rather remarkable claim that in some cases Chinese wages are now 20% higher than in some parts of Mexico. The growing strength of Mexican manufacturing, especially compared with the sluggish economies of Brazil and Argentina, is also leading to geographical specialisation, with export-oriented middle- and high-end manufacturing centred on Monterrey, a major steel producing area; the electronics industry increasingly favouring northern states like Chihuahua, Baja California and Tamaulipas; and low-end manufacturing of goods like clothing and textiles expanding in the south, in cities like Veracruz, where labour is considerably cheaper.