Posts by Juan Arvilla
North American Economic Integration Grows in the Era of Trump
Despite protectionist speech from the current US president, North American economic integration deepens. Product trade flows (exports plus imports) between Mexico, Canada, and the United States have continued in a growth trend during the first two years of Donald Trump’s presidency, despite his threats of tariff actions. In 2018, intra-regional trade totaled more than US […]
The Automotive Industry is The Driver of Robotics in Mexico
Robotics in Mexico is increasingly becoming commonplace technology A substantial part of modern manufacturing requires the utilization of automation solutions that include robots. Since 2010, the demand for this emerging technology has accelerated due to a continuous trend of automating complex industrial processes. As is the case with the rest of the industrialized world, robotics […]
The United States-Mexico-Canada trade agreement chapter on environmental issues
The recent United States-Mexico-Canada trade agreement (USMCA), which updates the prior North American Free Trade Agreement (NAFTA), aims to modernize and strengthen the environmental obligations defined in the NAFTA and the North American Agreement on Environmental Cooperation (NAAEC). This brief article summarizes the most important points found in Chapter 24 of the text of the […]
Low Cost Manufacturing Labor in Mexico’s Automotive Industry
Low cost manufacturing labor represents about 10% of the operating costs in Mexican automotive assembly plants. This represents the lowest in the North American region. Low cost manufacturing labor, Mexico’s proximity to the United States and a broad network of free trade agreements make the country one of the world’s most profitable platforms from which […]
Six out of Ten Vehicles Manufactured in Mexico are Trucks and SUVs
The change in demand for light vehicles manufactured in Mexico is leading the country’s automakers to produce more trucks and SUVs for the US market. Last January, Fiat Chrysler Automobiles (FCA) announced that it will move its production of pick-ups from Mexico to the United States. This move appears to be the result of the […]
Five Reasons Donald Trump Wants to See Higher Wages in Mexico
Wages in Mexico are the lowest in Latin America One of the original purposes of the NAFTA was to create a middle class in Mexico that has the acquisitive power necessary to purchase goods imported from its two neighboring trading partners. In practice, however, and under certain circumstances, low wages in Mexico has proven to […]
Four industries in Mexico are the Future of its Workforce
Emerging Industries in Mexico will Require More Trained Workers As industries in Mexico continue to develop and grow, finding the needed talent to fill increasingly sophisticated and plentiful job descriptions will become more of a challenge for companies with operations there. This is particularly true in sectors that are gaining momentum in Mexico. In particular, […]
Why are Manufacturing Companies Moving to Mexico?
Why Are Manufacturing Companies Moving to Mexico? Global commerce, market competition, and reduced costs among other factors, have explained U.S manufacturing companies moving to Mexico. With their own budget plan, each company has to constantly modify and adjust to changes in the world economy. When it comes to competition, CEO’s have to think strategically when […]
Mexico Labor Costs Continue to Benefit Manufacturing
Mexico Labor Costs Continue to Benefit Manufacturing Twenty years ago, US manufacturers headed for China in an effort to take advantage of lower labor costs and improve their bottom line. But since then, Mexico labor costs have been steadily decreasing, resulting in continued profitability for those companies who choose to re-shore just south of the […]
Tecma Receives Great Place to Work Award
Tecma Receives Great Place to Work Award Tecma Receives Great Place to Work Award for the third year in a row of being recognized as one of the top 100 workplaces in Mexico by the Great Place to Work Institute (GPTW) for 2017. We are honored to now be number 34 out of 100 for […]
Mexico Aircraft Manufacturing is On The Rise
Mexico Aircraft Manufacturing is On The Rise Mexico aircraft manufacturing and the attending support systems is yet another growth industry for Mexico. The Latin American country is experiencing a boom within the aerospace and defense (A&D) industry, and aerospace investments in the country are announced routinely as aircraft manufacturers seek to take advantage of the […]
Tijuana Manufacturing – An Exciting New Executive Lifestyle
Tijuana Manufacturing – Executive New Lifestyle Opportunity In recent years, Tijuana growth has become quite noticeable. The city has blossomed into a booming center for manufacturing, tourism, and commerce. Tijuana Manufacturing has enabled American executives to experience the appeal of a foreign country with the convenience of being ‘just across the border. Though once considered […]
Borderplex Alliance Fostering Cross-Border Community Growth
On the border between Texas and New Mexico in the US and Chihuahua in Mexico is a unique alliance known as Borderplex Alliance working with both private and public sectors to encourage bi-national economic cooperation and industrial growth. About the Alliance With the mission of recruiting industry to the border region to maintain a healthy, […]
Nearshoring manufacturing to Tijuana, Baja California
Cost savings and ease of doing business is found close to home by companies that are nearshoring manufacturing to Tijuana. Tijuana is well-placed for many manufacturers Global manufacturing companies have a multitude of varying reasons for choosing specific geographic locations for their Mexican manufacturing operations. Among the variables that are taken into consideration when making a […]
Increased demand creates growth opportunity for plastic injection molding in Mexico
As the global economy becomes more and more competitive, the appeal of doing business in Mexico has grown for plastics OEMs around the world. Given this development, there has been a proliferation of plastic injection molding in Mexico. Mexican Manufacturing Since the signing of NAFTA over two decades ago, Mexico’s industry has grown to rely […]
Efforts made to integrate domestic firms into the maquiladora supply chain promote economic growth
Boosting the amount of local content and value-added into manufactured end products is about meeting the challenge to integrate domestic firms into the maquiladora supply chain. As of January of 2015, domestic content incorporated into products manufactured in Mexico by foreign manufacturers under the maquiladora, or IMMEX program, represented a total of twenty-eight percent of […]
Maquiladora employer obligations in Mexico
Maquiladora employer obligations are the same as those other employersin Mexico, and are governed by: Mexican Federal Labor Law Mexican Social Security Law Mexican Safety and Hygiene regulations Under Mexican labor law, one of the fundamental maquiladora employer obligations is that written agreements in the form of an “employment contract” exist between the company and […]
Business travel to Mexico basics
Manufacturing personnel planning to engage in business travel to Mexico should have an understanding of the immigration rules and regulations that govern their visit(s). Business travel to Mexico requires one of two principal documents: FMM – Forma Migratoria Multiple (Multiple Migratory Form) DRT – Derecho de Residencia Temporal (Right of Temporary Residence) Before obtaining and […]
Sourcing in Mexico is a growing trend
Increasingly, given labor, as well as logistics and transportation cost considerations, companies located in the Americas are seeking to do more sourcing of the material inputs that go into manufactured products closer to home. Sourcing in Mexico is becoming a topic of ever growing interest given contemporary trade patterns and tendencies, economic conditions and constraints, […]