When Plante & Moran LLC, a certified accounting, tax and business consulting firm, held a seminar in March regarding manufacturing in Mexico, they were hoping to get 40-50 people. Scott Sneckenberger, partner Global Services for Plante & Moran who led the seminar, told PlasticsToday that they were totally surprised when 87 people showed up for the Detroit-area event.
Granted, there’s a lot of automotive business in Michigan and the automotive industry is the second-largest employer in Mexico behind the government, and the largest industry in Mexico, with aerospace coming in at number two and electronics at number three. Mexico itself hasn’t been immune to the offshoring trend over the past several years as many OEMs found China labor to be much cheaper. Mexico is now seeing resurgence in foreign direct investment and the pace of manufacturing there is picking up. But why this renewed interest in manufacturing in Mexico?
“I think that in spite of all the talk we hear about security there, the OEMs continue to invest heavily in Mexico,” Sneckenberger said. “We don’t hear a lot about new plants here, but they’re [global automotive OEMs] building new plants in Mexico, and the Japanese can’t buy land fast enough.”...