As I see it —Why not Mexico?
A lot of manufacturing has gone from the -US to Asia. First it was Japan manufacturing
cheap junk, then Japan got smart and introduced Nikon Cameras, Sony Radios, Hondas and Toyotas. Japanese quality began to be recognized as equal to American or even German, at a better price. It came with a people price though. Japanese workers were expected to perform above their pay grade for long bours and little family life. Japan had to sublet some of the work to its neighbors. China, Korea, Taiwan and Vietnam became subcontractors to Japan. China with its inexhaustible labor supply and unlimited government capital became the workshop of the world. America used to be, with decent wages. Taiwan specialized and became the world leader in micro-electronics, they sublet much of the actual work to plants in China and even the US. Korea has become dominant in home-appliances, an industry the Japanese never seemed to understand. Countries most people can’t find on a map are doing a lot of the labor-intensive work that China used to dominate.
American corporations slowly have started to sublet work to Mexico, why has it taken so long? China’s main advantage, low labor rates, has largely disappeared. Mexico has some huge advantages, to start with its right next door. Product and materials can easily be shipped between the US and Mexico. Work in progress can even go back and forth if necessary. A load can go from shipper to receiver in one short trip on the surface, with no interchange hassles. US executives can commute to a plant in Mexico and some Mexican managers can live in the US. Some high-quality international products are already made in Mexico, Kenmex (Kenworth) trucks, Volkswagen, Ford, Audi, Nissan, Toyota, LG, Samsung, Sony. They make some great stuff of their own like Bimbo baked goods and DINA trucks and busses.
Mexican workers and families can, and do shop in the US and buy US products. Witness the border traffic at San Ysidro, El Paso or Tecate. Factories in Mexico are a ready market for good, but used, American machinery from sewing machines to trucks to sawmills. Our cultures are more similar than different. Christian majorities, the same alphabet and 40,000 words that are basically the same. Half of Mexicans speak or at least comprehend some English and many Americans are fluent in Mexican Spanish. Tourists can travel across the US-Mexican border with hardly a change in diet. Tex-Mex food is popular in both countries. Their beers are some of the best too, from light weight Corona or Tecate to dark Negra Modelo or in-between XX (Dos Equis). Tequila and Mescal liquors are popular in the US.
Pemex has vast oil holdings that could be much more productive with American cooperation and market, independent of foreign sources. During the Enron induced crisis Pemex sold electric power to San Diego and kept the lights on. They do need better banking and easier access to capital.
Most manufacturing jobs can be done in Mexico if someone builds a factory. Good jobs in Mexico can take the immigration pressure of the border. Why risk life, liberty or property to enter the US if you can supportyour family near home. It won’t pay quite as well, but the cost of living is lower and the ninos can visit abuela (grandma). With good jobs in Mexico there is less incentive to engage in smuggling that creates crime. No country has totally stopped smuggling, not even shoot-on-sight East Germany.
Mexican poverty is unusual. It’s not the typical poverty of not enough, it’s the poverty of producing more than they can sell. Never mind the cartoon image of lazy Mexicans, they are hard workers willing to do whatever it takes to feed their families. Sixteen hours a day seven days a week is not uncommon; neither is service with a smile.
Feedback encouraged at obenskik@gmail.com Ken Obenski is a forensic engineer, now safety and freedom advocate in South Kona. He writes a biweekly column for West Hawaii Today.
