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NEWS
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 Italian aerospace sector interested in investing in Mexico
Mexico - Considering Mexico's recovery in manufacturing parts and components for aerospace industry, 15 Italian companies are interested in investing in this sector, informed Mexican Foreign Trade Bank (Banco Nacional de Comercio Exterior - Bancomext).
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Auto parts manufacturing company to establish in Mexico
Behr America, the American auto-parts manufacturing company, will open. a plant in Saltillo to produce engine cooling modules and several components, where the Company will invest US$13 million and employ 250 people...
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UE to review trade agreement with Mexico in 2006
Mexico City - The European Union is confident to complete the review of the Free Trade Agreement entered with Mexico, going over agriculture, services and investments before 2006 is over and the Mexican Government changes, assured Mendel Goldstein, Ambassador of the European Commission Delegation in Mexico.
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Cars give impulse to manufacturing
The growth of Mexican manufacturing sector by state in 2005 was led by Puebla,. Aguascalientes and Sonora, mainly due to the dynamism of their automotive industry, according to data from the Mexican Statistics Agency, Instituto Nacional de Estadistica, Geografia e Informatica (INEGI)...
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GM plant might establish in Saltillo
Saltillo, Coahuila - The State Government held meetings with General Motors' executives to discuss the possibility to install a plant in Ramos Arizpe or Saltillo, which could generate around 2 thousand jobs.
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Drop in cars production reported
Mexico City - Vehicles production in Mexico dropped 2,1% in April, while exports went up 14,7% when compared to the same month the previous year, the Mexican Automotive Industry Association (Asociacion Mexicana de la Industria Automotriz - AMIA) said last Tuesday.
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NL negotiating inexpensive land for investment
Monterrey, Mexico - If Electrolux and Bombardier changed Nuevo Leon for Ciudad Juarez and Queretaro due to incentives such as having free land, companies that consider establishing in the State from now on will be able to establsih in some municipality outside the metropolitan area.
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ARTICLE OF THE WEEK
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How did the USA lose competitiveness?
The origin competitiveness' loss |
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By Ramiro Villeda, El Norte
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 The impact of outsourcing. A phenomenon that worsens US competitiveness' loss is outsourcing.
Transference of factories or projects abroad not only generates a huge loss of jobs, but also a drop in funds that would have been used for research.
Impressive statistics reported by the US Department of Commerce in July 2005 was that American multinational companies (producers of both goods and services) between 2000 and 2003 did not create one single job. On the contrary, these companies eliminated 2.2 million jobs!
A sample of this transference of resources abroad to be used in research is the following data from the Chinese Ministry of Science and Technology (S&T). In 2003, 15% of manufacturing companies with foreign capital established in China had their own S&T institutes. In addition, 31% of these companies developed S&T activities.
This Ministry also reports patents applied for and obtained by foreign companies in China. In 2000, foreign companies applied for 30 thousand 343 patents, and in 2003 applications amounted to 57 thousand 249, an 89% increase. Patents obtained in 2000 were 10 thousand 109 and in 2003 they were 32 thousand 638, a 223% increase!
An example of the loss of jobs and investment in S&T: in 2004 there was only one petrochemical plant with a cost over US$1 billion being built in the USA, while in China 50 were being built.
 Where in the world should or attention and exports focus?
US weakening is not taking place in a vacuum, this means that the US are getting weaker because another region in the world is growing stronger. This region is Southeast Asia and India. There are many factors that are paving the way for and accelerating this region's economic and technological growth. Some of them are:
- Critical population mass. A survey made by McKinsey, in 2003, reports that in an area within a 621 miles radius circle, placing Seul, Korea in the center, there were more than 200 cities with more than one million inhabitants. In mid 2005, the USA had only nine cities with more than one million inhabitants.
- In earlier times we could have argued that this was irrelevant, because the region was poor. But things have changed, and population in that region has today (jointly) a larger purchasing and savings power than the USA. In June 2005, Asian countries had 64% of all of currency reserves in the world; while the USA had only 2%.
- By the end of 2005, Chinese people had in savings accounts (at 1% interest rate), US$1.74 billion!
- China has had a consecutive average growth of Gross Domestic Product over 9% in the last 27 years (average growth in 2003, 2004 and 2005 was over 10%).
- The article China's Wild Swings Can Roil the Global Economy, published by The Wall Street Journal on October 24, 2005, said that in 2004 China contributed more to the world's economic growth than the USA, the European Union and Japan all together.
 - Last year, China was the first receiver of Foreign Direct Investment from Japan, displacing the USA.
We are aware that the medicine is bitter, but we do need to stop seeing Asia only as a rival. A head-on competition against them is suicidal; strategies for participating in this market must be based on alliances, on a careful and intelligent work to identify their market niches.
Some lessons for Mexico from the transformation Ford is implementing
In the last 10 years Ford has tried deep restructures, which have generally failed. In its last attempt, Ford is learning the lessons from its previous failures. Some of these lessons could also apply to Mexico.
- Transmit to ALL a feeling of crisis, but not of panic.
- Use fear as a great motivator and make people understand that nowadays: "You change or you die."
- In the control core for this transformation, its War Room, Ford displays its war motto in a highly visible place: "Culture Eats Strategy for Breakfast".
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MEXICO'S WEEKLY HEADLINES
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| » Foreign investment increases in Mexico |
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| » Eastprint will open a plant in Ciudad Juarez |
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| » Exports of Mexican cars grow 51% |
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| » Flextronics will offer 1,700 jobs in Juarez |
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| » Mexico obtains the greater surplus of its history with the US |
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