Mexico's one big advantage over the US right now could stall the 'Made in America' push
Mexico's one big advantage over the US right now could stall the 'Made in America' push
"There aren't any people to do the work," Ulbrich told Business Insider editor in chief Matt Turner at the recent World Economic Forum.
Some corporations, like General Motors and Intel, have — to the delight of the Biden administration — already announced plans to shift more of their supply chains and manufacturing back to US shores, often called "on-shoring" or "re-shoring." The US government is also investing billions of dollars to boost the domestic production of electric vehicles, semiconductor chips, and batteries.
Since 2020, the COVID-19 pandemic, Russia's invasion of Ukraine, the world's changing climate, and, more recently, the attacks by Houthi rebels in the Red Sea have thrown a wrench in global supply chains. These factors, along with mounting fears of a possible Chinese invasion of Taiwan, have persuaded some US businesses to bring the production of their goods closer to home.
On the other hand, Susan Golicic, a supply chain professor at Colorado State University, said that the types of manufacturing jobs created by on-shoring have typically paid more than many service industry jobs — and thus should be attractive to many Americans, whether they already have jobs or not.
Due in part to this near-shoring shift, Mexico eclipsed Canada and China last year to become America's top trade partner, accounting for over 15% of goods exported and imported by the US. Last May, Mexico's global exports were the second highest on record.
The labor costs of manufacturing in Mexico are also less expensive than in China, where manufacturing wages have risen in recent years, Andres Abadia, chief Latin America economist at Pantheon Macroeconomics, told BI. Mexico's median age is roughly 30, he added — compared to nearly 40 in China — which has contributed to a strong labor supply.
But if the US wants to move the needle toward domestic manufacturing in the years ahead, there are a few steps it could take to boost its labor supply. Colorado State's Golicic said businesses can provide competitive pay and benefits to attract workers — and may also need to resort to more contract or subcontract employees.
So am I wrong to say that the same folks who pushed for business and manufacturing to move to Mexico are now saying that they shouldn’t use the made in America label?
Isn't Mexico in America?
What is with this lately? I really don't understand. I know you're not actually confused when someone says America because no one uses America/American for anything but the people/place of the USA, and they never have. So what exactly are y'all trying to achieve? All I know is that some people get a strange smug satisfaction from pointing it out, but why?
You're right, I'm not confused, I can guess from the headline that made in America means not the continent America. But that makes it so strange. Why don't you say made in the USA if that what it means?
Maybe other American, non-US, people are tired of it? Mexicans are Americans. Chileans are Americans. Canadians are Americans. Gringos are Americans.
America is a continent, not a country. As a non-gringo, I am still American.
But the United States like to think they are unique and stand alone in the world, so they have cooped up the “American” name.
That’s the weird part. Not people saying the objective truth that the United States are not “America”.
Isn't Germany in Afroeurasia?
Yes, Mexico is a part of the Americas. Seems to always mean the United States only.
PAY PEOPLE MORE!