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Curious Realities of Trade, Manufacturing & Jobs for Mexico & USA


snowyco

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  • 2 weeks later...

One factor that not a lot of people realize is that many US companies have manufacturing plants in Mexico so they can export to other central and South American countries because Mexico has many free trade agreements with these countries and the US does not. Recent example is Ford's planned manufacturing plant in SLP. As for the NAFTA trade agreement, the amount of trade going back and forth between Mexico and the US has gone up about 10 times in the 21 years since enacted. That means a lot of jobs, both in Mexico and in the US have been created since 1995. Yes, the US has a trade deficit with Mexico but that isn't a bad thing. You would expect that with the wealth in the US being able to afford a lot of consumption. Just for fun, go on Youtube and search for Milton Friedman on trade. You will see him explain that.

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And, Ford, GM, etc. that do bang-up business in Mexico. If those businesses were in the USA, think of the extra tax base and employment opportunities available to the USA.

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Mexico now exports something like 20% of the cars sold in the USA, overtaking Canada, and that number is growing. Their plants are ultra-modern and very robotic, with suppliers nearby, or on-site; some innovations that US unions fight against, forcing costs higher.  Business always chases efficiency, and it is more efficient to build new plants, without having to tear down old ones in crowded locations.  Most car and truck manufacturers are represented in Mexico, where they can ship to the world, and where they can find good workers at competitive rates. The USA is not particularly inviting to either tourists or foreign manufacturers. In contrast, Nissan has three plants in Mexico, making many of their models and the Infinity. Aguascalientes now has a Japanese school, restaurants, etc.  The employment rate is excellent. I get a chuckle when I hear the US objection to Mexican trucks, since many of them, including Freightliner, a Daimler-Benz company, are made in Mexico too.  Anyone in doubt may visit a car lot and look at VIN numbers. Those starting with 3 are made in Mexico, the new Detroit of North America.

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Guest bennie2

hookenhorn, ofcause i would choose the US. thats where my loyalities are. the american corps take advantage of the mexican workers. they do not pay a living wage & are guilty of human rights violations. its no great op to be a factory worker in mexico.

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I think it is a good thing that many of the global automotive and aerospace firms are setting up shop here.  Finally some meaningful jobs are coming which helps to grow a middle class so that people here can afford to buy the things they make.  The NET effect is more TOTAL market size so all NAFTA realizes the benefit.  The statistic quoted above doesn't give the statistic for what the NET flow of cars is that are sold in this market.  You have to look at the delta between total export vs. total import to understand this.  It is about time the US & Canadian auto and aerospace workers unions ceased to exist - they are dinosaurs.  VIVA MEXICO!!!

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Guest bennie2

working in a factory for minimal mexican wage is poverty. do you think they really want these jobs? who would want to work in a polluted industrial place for 8 hours a day?

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FWIW....Last week on a flight between Houston and Queretero, about half the passengers were Japanese men.  On our drive from QRO to San Miguel de Allende, I asked the driver how the local economy was doing.  Very good he said, thanks to the new Honda plant.   

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Hey Bennie,

Nissan‘s Aguascalientes plants are probably the cleanest and greenest that the world has to offer.  The videos taken inside the plant show a spotlessly clean environment with both robots and enthusiastic humans.  Some call it progress, and the Mexican workers sure seem to flock to those new jobs. The unemployment rate in Aguascalientes is negligible; anyone with a bit of education can get a job. 

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17 hours ago, bennie2 said:

working in a factory for minimal mexican wage is poverty. do you think they really want these jobs? who would want to work in a polluted industrial place for 8 hours a day?

It appears you know nothing about how auto workers are paid in Mexico.  They are paid between $8 and $10US per hour ($148- $185 Pesos) and get good benefits too.

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42 minutes ago, El Saltos said:

It appears you know nothing about how auto workers are paid in Mexico.  They are paid between $8 and $10US per hour ($148- $185 Pesos) and get good benefits too.

Google Translation:

 

"Monterrey, NL. The automaker Nissan Civac, located in Cuernavaca, has the highest salary of the automotive industry in Mexico with a daily average of 419.29 pesos [$2.83 USD per hour for 8 hours] , said the explosion study of the Automotive Industry in Mexico, its current to its transformative potential linkages, researcher College of Sonora, Alex Covarrubias.

A Japanese plant followed the Volkswagen in Puebla, with 398.39 pesos a day; Chrysler Toluca, with 344.87 pesos; Chrysler in Ramos Arizpe, with 340.46 pesos; and General Motors in Toluca with a wage of 321.93 pesos daily average.

The national average of the auto industry is at 305.9 pesos per day, according to the study.

By contrast, in the last places in the ranking are Chrysler Saltillo, with 254.23 pesos; Honda of El Salto, Jalisco, with 245.78 pesos; Nissan Aguascalientes with 225.42 pesos and General Motors in San Luis Potosi with 217.32 pesos, according to the document published by the Friedrich Ebert Foundation."

http://eleconomista.com.mx/estados/2016/05/10/nissan-cuernavaca-planta-que-paga-mas

 

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the conditions in one factory is not the same for many. thuse people were farmers & many were independent. the women who work those factories are victims of abuse, especially near the border. natfa is bad for u.s. & mex. i hope that agreement is dissolved. untill then, tax those cars as they are exported. 

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58 minutes ago, bennie2 said:

the conditions in one factory is not the same for many. thuse people were farmers & many were independent. the women who work those factories are victims of abuse, especially near the border. natfa is bad for u.s. & mex. i hope that agreement is dissolved. untill then, tax those cars as they are exported. 

You need some facts not just opinions.

If conditions are that bad workers rebel just like those Wells Fargo workers did.

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It is important to note that in many industries today, an "average" wage is deceiving. The smart Mexicans, including your own children/grandchildren have to learn how to code and maintain these very expensive automated robots. These are very well paying jobs, in demand all over the world. I remember that a B.C. sawmill went fully automated, from 45 workers, down to 8 - and that was over ten years ago. Manufacturing jobs are not disappearing because of a lack of entry level workers, but by increasingly sophisticated, robotic machines which can run 24 hours a day, in the dark. Maybe a revival of the Luddites movement might help - but I doubt it.

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