Production Sharing and Shared Factories

At the beginning of the 80s I presided over the Mexican Association of Industrial Parks, AMPIP, I had the great opportunity to meet the prestigious economist Peter Drucker, who in one of his books (Shared Production, Production Sharing), establishes that the form of power Competing against nations like China is through dividing manufacturing between nations. The case of Mexico and the United States is the maquila.

Today the so-called Fortune 500 have maquila operations in Mexico, these maquiladoras can complement their operations in the United States by establishing their operations, especially those of labor-intensive ones, and thus manage to compete and even win markets. The Maquiladoras program, today called Inmex, create jobs on the Mexican side and on the American side, they also generate income from dollars for Mexico that later returns to the North side of the Border, this is called commercial exchange. Those who talk about preventing more companies in this nation and Mexico from continuing this way of sharing are very wrong. We need to seriously analyze what it means to share production in manufacturing, in that sense Mexico needs to create thousands of jobs to stop migration to the US, and the US requires competing with Asia and other nations.

More damage would be when trying to cancel or prevent companies from settling in Mexico, otherwise they will do so in remote places that would be nothing positive for this nation they want to lead.

Mexico is now the leading partner for most advanced economies and our highly skilled workers are open and able to solve any challenge that this generation requires. By opening more manufacturing in Mexico, this nation will maintain economic leadership.

by Xavier Rivas VP of Business Development Mexicali Industrial Parks

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