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On the "Made in America" label and the invisible integration: According to Robert A. Pastor (The North America idea. A vision of a continental future), some products cross the Mexican-American border up to 7 times, until they are finished. Shannon O'Neil (Two Nations indivisible. Mexico, the United States and the road ahead) cites a study by the National Bureau of Economic Research stating that imports from Mexico are, on average, 40% "made in America", far more than the 4% in Chinese imports. "This back-and-forth of parts and products across the U.S.-Mexico border through the expansion of North American supply chains has been good not just for Mexico but also for the United States, revitalizing companies and supporting the jobs of some 6 million U.S. workers". (Detroit Free Press, Nov 27, 2012: "Mexico isn´t a gangland gunbattle"). Made in America is back, only in a way that many have not noticed nor can explain while seeing Mexico through the negligent media eyes. J. Becerra

  • - .202.
  • 03, Jul 2013 08:22 PM

"Mexico’s gains will be limited [...] especially in higher-value work now done in China. Because of concerns over personal safety, skill shortages, and poor infrastructure". Here, some considerations and updated facts: 1. Personal safety is still a challenge Mexico will have to overcome, yes. But most of the workers-to-be in Mexico already live there. They will not have it as a decision to make whether or not to work in the country. 2. Manufacturing skills are growing: according to Siemens CEO, Louise Goeser (CNN Expansión, feb 19, 2013), Mexico graduates more engineers than Germany or Brazil (her whole statement depicts a very different scenario for Mexico than this in BCG). 3. Manufacturing and supply infrastructure will steadily grow at an investment pace of around 8 bn dollars a year for the next 6 years. By 2013 Mexico is a world class manufacturing platform for cars, aerospace, tv screens, medical and computing equipment, or house appliances. J. Becerra

  • - .202.
  • 03, Jul 2013 07:44 PM

"But these nations’ ability to absorb the higher-end manufacturing that would otherwise go to China will be limited by inadequate infrastructure, skilled workers, scale, and domestic supply networks, as well as by political and intellectual-property risks." I believe this is about to change. Several progressiv MNCs (Nokia, Siemens) have already shifted R&D to China. We will see a shift in the value chain components performed by the Chinese. These tasks are actually even more critical to a nations success or failure, since they are requisite for wealth creation. However, even if the analysis concerning manufacturing is right, the labor will still not come back. Other countries with even lower labor costs are about to emerge and will be grateful for every FDI and order.

  • - David
  • 27, Nov 2011 02:47 AM

While the overall conclusion may be in the right direction, it is difficult to imagine that China and other low labor economies will standby and watch. I think in 10 years, we will be reading scholarly analytical articles based on Sun Tzu's Art of War how China converted certain disadvantages into advantages by opening up another front. I believe that there will be other changes in the present day situation that will hit the US from an unexpected direction. Hope I am wrong though.. I have to add that I believe that the shift of manufacturing to China is largely due to lack of sufficient progress in automation of manufacturing processes. Labor costs will have to become insignificant for the shift back to the US.

  • - Tonginchic
  • 20, Oct 2011 10:43 PM

interesting article. I believe that we will certainly see less offshoring of manufacturing from the US and a growing importance of southern states as centers for low cost production.

  • - etimluc
  • 19, Oct 2011 06:33 AM