Here’s Why Mexico Is Increasingly Becoming A Crucial Global Manufacturing Hub

China’s low-cost labor force wages, weak yuan, and high investment helped make it a manufacturing and exporting hub.

But over time, as the yuan appreciated, wage inflation ticked up, and supply chains became more complicated, multinationals started exploring other options.

In what’s been dubbed the American manufacturing renaissance, many U.S. companies have been reshoring operations.

However, another big beneficiary of rising Chinese labor costs and U.S. economic growth has been Mexico. This has come despite concerns about crime and safety.

Mexico benefits from the North America Free Trade Agreement (NAFTA). At 44, it also has more free-trade agreements than any other country. Mexico also benefits from having its natural gas prices tied to those in the U.S. where prices are substantially lower relative to the rest of the world.

via Mexico Becoming Manufacturing Powerhouse – Business Insider.