According to a story in the Los Angeles Times, more U.S. companies are opening high-tech factories in Mexico, a practice called nearshoring. Between 2009 and 2012, Mexico experienced a 50% increase in foreign investment, which now totals $7.4 billion. According to the article, exports from foreign-owned factories also grew 50%, to $196 billion.
American companies are locating factories across the border in cities such as Tijuana, Guadalajara, and Mexico City. Assembly plants owned by foreign companies are called maquiladoras, and the maquiladora industry is one of Tijuana’s biggest employers, behind border-crossing-related businesses. Rising prices in China are reportedly causing companies to consider switching continents. Even the auto industry has found a skilled workforce in Mexico, with the number of auto-related jobs increasing over 100,000 since 2010. Nissan, Honda, General Motors, and Ford have all announced plans for future expansions.
