Corporate Relocations to Mexico

United States owned factories in Mexican border towns, or maquiladoras, are nothing new. Large corporations such as major electronics manufacturers and automotive manufacturers have been operating plants in places like Mexicali and Tijuana for decades now. The reason for locating to these locations is cheaper labor relative to U.S. Wages and the ease of crossing goods over the border due to the North American Free Trade Agreement (NAFTA). While American owned factories existed in border towns before the agreement was signed, the agreement paved the way for many more companies to open manufacturing centers there.

NAFTA allows relatively free movement of goods into and out of Mexico. Goods are being transported across the Mexican/U.S border in record numbers every year. U.S. goods imports from Canada and Mexico grew from $151 billion in 1993 to $500.7 billion in 2006, an increase of 231%. Examples of the types of industry that have moved to Mexico include textiles, consumer electronics, medical supply, chemical processing, high tech equipment and biotechnology. Many Americans have found themselves relocating to border towns in order to fill positions that could not be filled by the local labor force.

Relocating components of a company from the U.S to Mexico can range in difficulty depending on the location of the current plant and the size of its operations. Major manufacturing that requires large machinery and highly technical skills can require a lot of coordination and training. A global relocation company that offers corporate relocation can be an invaluable resource to businesses looking to transport some of their operations to Mexico. They can help coordinate and arrange the transport of business supplies and machinery so that company personal can concentrate on getting things up and running once everything is moved.

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