Manufacturing in Mexico continues to grow, with rising U.S. demand propelling companies to invest in producing goods in Mexico. According to Reuters, Mexico's manufacturing exports increased by 0.36 percent in October from September, with nearly 80 percent of Mexican-made goods being sent to the U.S. The close relationship between Mexico and the U.S. directly contributes to Mexico's manufacturing success, according to Reuters, but it is also helping Mexico to enter the global big leagues.
The Financial Times reported Mexico is exporting products valuing a total of $1 billion every day. Just 20 years ago, negotiators of the North American Free Trade Agreement wouldn't have thought Mexico could accomplish such a feat, according to the Financial Times. At the time, Mexico's manufacturing industry wasn't as strong as it is now, and NAFTA negotiators hoped Mexico would one day reach exports valuing $10 billion a month. A surge in investment by North American businesses, the development of a workforce highly educated in manufacturing and the establishment of high-tech industrial clusters in profitable manufacturing sectors such as automotive, aerospace and electronics have all helped Mexico attain status as one of the world's top manufacturing powers, the Financial Times reported.
"We're competing against the best in the world and we're not getting left behind," President Enrique Peña Nieto recently said during a trip to an automotive plant, according to the news source.
In fact, the Financial Times reported in just the automotive sector alone, forecasters estimate Mexico will receive $10 billion in investments for new automotive maquiladoras. The site also noted Mexico's aerospace sector was No. 1 for foreign investment last year, which was the forth time the country won the distinction.