Because of its proximity to the United States, Mexico is an integral trading partner whose value has only grown over the decades.
Mexico ranks in the top 20 of the world’s largest economies and is more developed than it gets credit for. By purchasing power parity the country has a GDP similar to that of the U.K., France, and Italy.
Mexico & Manufacturing
This development, particularly in infrastructure and supply chain opportunities, is what has attracted a strong manufacturing presence within in the country, with 71 percent of its exports bound for the U.S.
Automobile manufacturing makes up 17.6 percent of its manufacturing sector. Together, the Big Three, Nissan, Fiat, Honda, Toyota, and Volkswagen produce 3 million vehicles in the country each year.
Vehicle production is so central to the Mexican economy the last Volkswagen Beetle didn’t come off the assembly line until 2003.
Mexico’s manufacturing has rapidly grown since the 1960s after the U.S. agreed to the Border Industrialization Program which allowed American companies to enable simple assembly operations south of the border and later developed into complex operations for producing televisions, integrated circuits, appliances, and automobiles.
Since then, Mexico has become an attractive location for U.S. businesses to produce goods. Labor costs are competitively priced, with little difference in the quality of goods made there.
Mexico’s economy is also continuing to rapidly develop. GDP growth is expected to reach 3 percent in 2016, and more people are being lifted out of poverty and entering the country’s expanding middle class, which accounts for almost half the population.
A complex manufacturing sector and comparatively wealthy population means that Mexico has become not only a place to produce goods, but also a market in which to buy and sell them.
The people of Mexico are familiar with American companies and products and are now more able to afford the goods they produce than ever before.
Culture & Coffee
In addition, Mexico is also one of the largest producers of coffee beans in the world.
If Mexico sounds like the next market you or your company want to enter, then what better way to learn essential business and cultural practices than over coffee?
On May 19, the Van Andel Global Trade Center is hosting Culture and Coffee with an emphasis on Latin America and Mexico. There you can learn everything you need to know about communication, negotiation tactics, proper attire and other unique qualities of Mexico’s and neighboring Latin American countries’ marketplace demands.