Unlock the Potential of eSignature Lawfulness for Manufacturing in Mexico

How to eSign a document: e-signature lawfulness for Manufacturing in Mexico

this chart shows the US trade in Goods with China since 1985 and for the last 5 to 6 years the United States which used to be heavily reliant on Chinese Imports began to be skeptical about its trade relationships searching for Alternatives and diversification out of fear that China might soon run the global [Music] order during the first 6 months of 2023 us Goods imports from China fell ically to 25% in this ongoing trade War Saga Mexico saw clear business opportunity and right now China is no longer at the top Mexico has claimed the crown the rise of inflation because of the pandemic Rising tensions because of the Russia Ukraine war and increased tariffs and policies created by trade war with China have all helped Mexico climb to the number one position you see Mexico enjoys a strategic geographic location and acts as a Transit platform to North North America and Latin America with the US it shares a 2,000m border with 47 active land fors of Entry which eventually allowed for shorter Supply chains reduced logistical complexities and quicker response times every minute over 1.2 million in products cross the border making it the busiest in the world let's look at some specifics to understand this better the distance from China's main port in Shanghai to Los Angeles a major entry point for Asian Goods to the United States is very long at 6,500 mi in contrast the distance from fort's car manufacturing plant in himo Mexico to Los Angeles is much shorter at 664 Mi it takes less than 12 hours to truck goods from Mexico to the United States so transporting goods from Mexico is faster and cheaper compared to China there are many manufacturing facilities in Mexico located just miles from the US border this makes it easier for us companies to move production to Mex Mexico and significantly reduce the distance between manufacturing and destination goods made in Mexico can reach anywhere in the US within 5 days by truck Chinese Imports would have to be flown in my plane to match that delivery time which is not coste effective as an effect of NAFTA Mexico has consistently been among the top three trading partners with the United States Mexico's name and Global manufacturing was built on what are known as makas or factories that emerged as early as the 1960s mostly along the US border because of its Dynamic vast mineral resources favorable demographics cheaper prices Work Force availability and presence of Key Parts suppliers it was a lucrative assembly line production model well it seems Mexico just beat China for its Geographic advantage that's not quite actually true you see Mexico has been always portrayed as a country of cartels criminals and an unstable economy with struggling poverty and poor infrastructure after the arrival of the Trump Administration economic uncertainty increased due to his America First ideas and Loud rhetoric which called into question the US Mexico economic and political relationship and began to damage investor confidence this resulted in a sharp depreciation of the pzo which fueled severe inflation throughout 2017 internally when leftist populist politician amlo took the presidency in 2018 brought an additional layer of uncertainty to its economy for his us emony despite all of the obstacles people don't really know that over the years Mexico showcased remarkable economic resilience through its willingness to adapt thanks to more than 25 years of Mexico's integration with the productive region of North America the country has an extensive national network of world-class suppliers linked to global manufacturing Supply chains since 2017 us dependence on Mexican Goods has increased which exponentially grew following the implementation of the US Mexico Canada agreement in 2020 to illust UST rate in the first 3 months of 2023 inward FDI in Mexico experienced a remarkable 48% surge compared to 2022 notably the manufacturing sector saw its share of the country's FDI double from 24% to 53% with five out of 10 new dollars invested in Mexico during the first quarter of 2023 originating from Canada and the United States investment in heavy machinery in Mexico has hit an all-time high over 200% in just 2 years across the border from California you'll see the vehicle Aerospace and Plastics Industries are growing Tesla is already planning to build a new $15 billion gigafactory in noev Leon Monteray just about 137 mi from the Texan border beating rival offers from Germany the Netherlands Colombia and Indonesia other car makers such as General Motors Kia Motors and BMW have announced EV Investments since the start of 2021 in Monteray dust from the day is everywhere as new plants are setting up warehouses are sold before the ceilings by multinational companies industrial parks are also playing a key role in getting foreign investment in Mexico industrial parks have become an essential factor for FDI because they offer quality infrastructure that includes Urban Works worldclass real estate operating Services common areas and an internal Administration responsible for the maintenance and security of the properties over the past two decades Mexico built around 400 industrial parks where more than 3,700 National and foreign companies from more than 40 countries operate over 3 million jobs are in automotive Logistics Metals Electronics Plastics beverages chemicals construction Pharmaceuticals paper textiles medical devices and Aerospace these industrial parks make Mexico a highly attractive country for global companies looking for the ideal place to start new production plants or supply chain Logistics centers in a globally competitive way this goes only to Mexico's North part the South part is still untouched but has potential public Investments are emerging in the South including a rail link between the Gulf of Mexico and the Pacific which goes by the grand name of inter Oceanic Corridor at the railway level the project proposes to modernize 309 km of Railways to the ismos of tantek that connects the ports of quad aalos in verac Cruz with Selena Cruz in oaka Port Highway and Rural Road infrastructure will be improved furthermore there is a plan to modernize the current gas pipeline in the isos and 10 industrial parks with fiber optics are planned to ensure good connectivity this is a designated geographical area in southern Mexico that provides the conditions for attracting foreign investment and developing productive capacity in order to stimulate Regional economy and Social Development but can really Mexico keep the number one position for the long term you see China has long been the world's leading manufacturer but the pandemic High trade tariffs and Rising wages of Chinese workers have caused some manufacturers to look for Alternatives some us companies such as Walmart Samsung Amazon and Dell also have decided to move their supply chains to Mexico as an alternative to China for some companies The increased tariff created by the trade war was enough to shift meanwhile some Chinese companies moved their production outside of China to avoid us tariffs while other companies their products abroad for processing hiding their Chinese Origins as a result some products once made by Chinese companies at factories in China now arrive in the United States from Chinese factories in Mexico or Vietnam this allows Chinese exporters to adjust their International Supply chains getting closer to the US and avoiding supply chain problems moreover China is investing heavily in Mexico and augmenting Supply chains there to get around us trade curbs into the American Market Chinese Enterprises have poured about $20 billion into Mexico based projects since 2008 and about 8 billion dollars has arrived since 2018 China's Network Hardware providers oil drillers garment manufacturers and electric car inventors already liked Mexico because of its availability to natural resources and low labor costs so still the question arises is China losing in any way some economists are saying countries like Mexico India and Vietnam are taking advantage of global supply chain disruption and taking a small China's share in World manufacturing but will not fundamentally alter its dominance anytime soon accounting for 31% of global manufacturing value added China Remains the world's Factory it still possesses advantages that no other country can match such as advanced ports roadways and high speed rail as well as industry clusters that can quickly adapt to changing conditions Chinese vendors will keep dominating marketplaces for goods whether inside or outside of China not to mention Mexico's infrastructure is still in a poor State and won't be fixed anytime soon however there's no denying that Mexico's manufacturing sector is expanding and developing at a rapid Pace leading to a greater sense of resilience and a greater degree of competitiveness for the entire North American region as a whole so in conclusion robust Regional value chains are great for the United States Mexico and Canada by working together The Three Amigos can find areas where their country skills reinforce one another and establish supply chain networks that are more reliant on local and Regional sources