News Default Manufacturers Turn to Mexico for Cheap Labor and U.S. Access

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Manufacturers Turn to Mexico for Cheap Labor and U.S. Access

by Anonymous Contributor

Published on May 15, 2024

Technology, cultural differences, and global trade intersect in the Foxconn factories along the Mexican border with the United States. As the world's largest electronics manufacturer, Foxconn employs 30,000 workers across seven campuses in Mexico, with major production centers in Juarez, Tijuana, Guadalajara, and Chihuahua City. Their product range includes desktop computers, servers, components for electric vehicles, and other electronic devices.

Nearshoring Strategy

In this region, Foxconn epitomizes "nearshoring," a global trade approach that focuses on manufacturing near, but not within, a given country. While the company builds about four out of every ten consumer electronic devices worldwide, it remains discreet about its clients. Industry analysts estimate that Foxconn manufactures approximately two out of every three Apple iPhones.

Advantages of Mexico

Foxconn's Mexican operations have thrived for two decades, positioning the company ahead of some Asian manufacturers that recently entered the country. Unlike rigid and harsh working conditions found in certain Asian factories, Mexican workers appreciate better treatment. The company's 493,000-square-foot Juarez plant, with around 2,500 employees, exemplifies this trend.

Border Proximity

Adjacent to the U.S. border, Foxconn's 10,000-employee campus in Juarez facilitates seamless transportation of products into Santa Teresa, New Mexico. The company's "War Room" maps out production strategies, while video conferences connect managers with leadership in Taipei, Taiwan. The plant also features a "God's Room" temple, honoring Taiwanese culture, and a shrine to the Virgin of Guadalupe, symbolizing Catholicism throughout Latin America and the United States.

Continued Growth

Foxconn anticipates further expansion in Mexico, having invested $500 million in the state of Chihuahua alone. As nearshoring trends persist, the company recognizes the importance of enhancing capabilities in this strategic location.

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