Mexico Leap Frogs to #1 Place to Invest in the World
WAKE UP! INVEST NOW AND GET WORLD CLASS GLOBAL RETURNS ON INVESTMENT
Mexico is # 14 on the GDP rankings of world economies as posted by the United Nations, IMF, CIA Factbook and the World Bank and moving up fast. Expects to be # 5 by 2030
Everyone around the world is looking and asking “Where do we invest?” and “Where the next big thing?”. Well, it’s Mexico! Now, although it’s a long way from becoming the next China, the growth of the Mexico economy and the manufacturing activity in the region have global companies and investors taking a very close and serious look at the USA’s largest neighbor. Check it out….
Four years ago, according to a report from T. Rowe Price, Mexico was dealing with a series of troubling conditions: a drug war, widespread poverty and political corruption that led the U.S. government to suggest the country was at risk of becoming a “failed economy.” However, things have changed significantly.
“Mexico’s recent success started with a flurry of free-trade deals it signed,” the report cites. “Partly as a result of these deals, an increasing number of multinationals have set up shop in the country to capitalize on its inexpensive labor and proximity to the United States.”
Although it took some time, it appears Mexico has been the biggest winner from the North American Free Trade Agreement over Canada and the United States, and over the years expanded to include other countries. Mexico now has 12 free-trade agreements involving 44 countries.
The manufacturing expansion in Mexico has benefited from conditions in China, where the labor cost equation is moving in Mexico’s favor.
“In 2000, Mexican factory workers earned more than four times as much as Chinese workers. Due in large part to China’s double-digit wage increases in recent years, by 2010, Mexican workers earned only 1.5 times as much,” said Michelle Gibley, director of international research at the Schwab Center for Financial Research.
And the Boston Consulting Group estimates by 2015 the fully loaded cost of hiring Chinese workers may be 25 percent more than hiring Mexico workers.
Another factor favoring Mexico is “near-shoring,” manufacturing products to be exported to regional neighbors, in particular, the United States.
“Near-shoring has helped Mexico’s manufacturing sector, helping to grow the country’s market share in goods that are expensive to ship because of their bulk or weight, such as televisions, major household appliances and automobiles. Furthermore, we expect U.S. demand for cars to remain strong,” said Schwab’s Gibley.
One product, medical devices, has become a big part of the manufacturing activity in Tijuana. Ossur, a global leader in orthopedic products based in Iceland, established a manufacturing facility in Tijuana and has announced plans to significantly expand the operation.
According to the Tijuana Economic Development Corporation, more than 40 medical device companies have operations in the city, hiring more than 31,000 workers, claiming “more manufacturing workers than any other city in North America.”
After years of discussing the geographical links between San Diego and Tijuana, a concerted effort is under way to pool resources to seize the opportunity for international trade.
Plaza Andares, a new city commerce centre in Guadalajara, Jalisco, Mexico
“San Diego and Tijuana are naturally positioned as a hub for global business, travel and idea sharing,” said Mark Cafferty, CEO and president of the San Diego Economic Development Corporation. “There really is no place like this in the world from a business development perspective, and I think you’re going to see more businesses locate and expand here because of all that’s available to them on both sides of the border.”
To take this to the next step, a partnership between six economic development organizations on both sides of the border is being established.
The Cali Baja Bi-National Mega-Region, also known as CaliBaja, “is designed to step up our collective economic development profile by coordinating our marketing and communications around CaliBaja as a pre-eminent place for high-value business investments. With the recent trend toward near-shoring, this makes Baja a much more valuable player,” said Christina Luhn, executive director of the mega-region initiative.
The opportunities in Mexico have not been ignored by Wall Street. The Mexico Fund, a closed-end mutual fund investing in companies based in the region, has participated in the recent rally. The shares had dropped as low as $11 in February 2009, the depths of the recession. In trading last week the shares had more than tripled to more than $38.
This is not your fathers Mexico….time to take a whole new look at the truly Modern coming global powerhouse that is Mexico.
Feeding The Perception
For years now the World Media has been feeding a negative perception about Mexico. The Movies, the TV shows, the National TV news networks and printed media have portrayed Mexico as a war zone and as a country living in poverty. Perception is the truth as we know it. Thus feeding a negative perception of Mexico and Baja, Mexico creates in the minds of the world a reality that is far from the truth. Sensationalizing the negative even though it might only represent a very small percent of the overall creates ratings and drives the content. Thus feeding the perception with the overall reality does also over time make an impact. Slowly more and more positive articles are being written and reported and are having a positive effect. My wife Cathie and I are representatives of the 1 million US citizens who live in Mexico whom share a different reality of what it is like living in Mexico. I have been attempting to feed the true perception of life in Mexico from the perspective of one who visited Mexico for 30 years but discovered after living here full time an entirely different reality portrayed by the World Media.
Google has become the benchmark for researching all subjects via the International Web. If you Google " perception of Baja, Mexico " you will find consistently in the top 5 of my previous articles referring to the Perception of Baja, Mexico presented by the World Media. Many local people have dedicated their maximum efforts to change this perception to reflect the true overall reality.
The Rosario Beach Hotel has been very successful promoting and hosting local events that draw thousands of tourists to help many who used to come but were fearful to come. A significant increase in tourism has been achieved. There has also been an increase in the Baja Real Estate.
Tijuana Innavadora 2012 in October has once again pulled business and political leaders from both sides of the border to promote through the media the growth and technological contribution Tijuana and Baja has provided internationally. With astounding growth in the local and national economy, a growing middle class, improvements in infrastructure such a better roads, a new World Trade Center, numerous new modern upscale shopping centers, ultramodern office buildings, the availability of state of the art technology, a ultramodern Children's Museum, a resurgence of construction in Ocean View condos, an expanded and modernized Border entry into Mexico and most important a major reduction in crime.
Baja is a combination of extreme diversity. In many ways it's like the US 50 years ago., when you got your gas pumped by a uniformed attendant who also checks your oil, your air in your tires, when you drive down the scenic highway smelling locals burning their trash, seeing family members riding in the back of pickups, seeing families camping on the beach, when watching a current movie in an ultra modern theatre with double the leg room at one forth the price and where being friendly and respectful to strangers is common not odd.
The further south you travel, you will not only experience a vast change in scenery as well as a slower pace in lifestyle. If you talk to people who live here, especially for the past 10 to 30 years, you will hear the same story of the reality of what it is like to live in Mexico with a desire to make a positive difference not change it. Their account will be extremely in contrast of what the World Media feeds the public the perception of Baja, Mexico. The long term outlook of quality of life in Mexico is very positive. Value is described the combination of quality at a lower price. If you add less stress to the equation you can expect to live life longer with better quality of life at a lower cost in Baja, Mexico.