Mexican foreign direct investment flows northward
It is a well known fact that the United States is the preeminent source of capital inflows into Mexico. FDI statistics for 2012 indicate that Mexico received 55.7% of an approximate USD $12.66 billion of external capital from U.S. sources. More that half of total FDI in Mexico during that calendar years was directed toward the manufacturing sector. Twenty percent of funds received were channeled into retail activities, and just under 13% was poured into the construction sector. The remainder of funds received by Mexico were targeted at investments in miscellaneous activities.
Although the focus of economists and other interested parties is predominately on the flow of captital to Mexico from the U.S., Mexican foreign direct investment has been and is making an increasing incremental impact on the U.S. economy and private sector job creation. Between the years 2006 and 2011, Mexico invested USD $8.4 billion in the United States. The following year, 2012, however, was a noteworthy year, in that, Mexican investment increased by a factor of 11% over the prior year’s numbers.
Mexican foreign direct investment in the United States in 2012, was the mainly the result of billionare Mexican business owners seeking to take advantage of their proximity to the United States and to the world’s largest consumer market. Companies that led the Mexican charge north to its neighbor and economic partner’s home turf included
- Grupo Bimbo, which is the owner of well-known US brands such as Sara Lee, Earthgrains, Oro Wheat, Entenmann’s, and Arnold
- Gruma, which is the world’s largest tortilla manufacturer. Gruma’s best known US brand is Mission.
- Cemex, which is the Mexican cement and building materials giant, controls a bit over 10% of this highly competitive market in the United States.
The above are just a few of the more noteworthy examples of Mexcan foreign direct investment that has been directed towards the United States over the last several years. The website usmexicobusiness.com hosts an EXCELLENT infographic entitled “Bridging the Border.” The image is an excellent presentation that demonstrates that Mexican foreign direct investment in the United States has created in excess of 81,000 for Americans producing a diversity of goods and lending a variety of services for and to US consumers.