For Mexico, an Edge on China

The Wall Street Journal, 9/16/12

China’s rising wages and slowing growth present a chance for Mexico to wrest back some of the business that chased cheap labor across the Pacific in the past decade, when Chinese wages averaged a quarter of Mexican pay.

Mexico may already be a less-expensive place to make an array of products for the U.S. market, said Boston Consulting Group, which estimates that China’s average manufacturing wage topped Mexico’s this year, when accounting for differences in productivity. Mexican workers typically produce more per hour than Chinese workers, and the proximity to the U.S. means companies can ship faster and often at a lower cost to American customers.

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