Mexico vs China Manufacturing: The Cost Difference
As of April, 2015, Forbes reported that “Average manufacturing labor costs in Mexico are now almost 20 percent lower than in China.”
According to a Boston Consulting Group report released in late 2014, “Average electricity costs are about 4% lower in Mexico vs. China and the average price of industrial gas is 63% lower.” And as the sweeping 2014 Mexican economic reforms continue to take hold, that cost differential is predicted to widen.
In 2014 Investing Daily published an article stating, “The cost of shipping a standard container from China to the US East Coast has risen from just under $3,000 in 2000 to about $7,000 today. Over the same period, the cost of shipping that same container from Mexico to the US only has risen from about $2,000 to $2,800.”
Industrial Lease Space
China’s typical industrial lease rate is more than triple that of Mexico’s.