Brexit Impact on Mexico Manufacturing: Better Value Than Ever

06.28.16

It’s no secret that the Brexit vote outcome has sent global markets tumbling wiping out over $3 trillion dollars in just two days. Britain is already facing the specter of spending cuts and higher taxes. So what does it mean for the rest of the world, and in particular Mexico?

 

Since Monday U.S. companies with already established manufacturing operations in Mexico have gotten a 5 -6% increase in the value of their investment with the peso falling significantly against the dollar. While there is a great volatility still in the marketplace, current forecasts are predicting that the peso will settle somewhere in the low 20’s to the dollar providing a long term opportunity for U.S. companies to cut manufacturing costs.

 

Due to the stable trade position between Mexico and the U.S. which is lower than 1%, the fall of the peso will not seriously impact the general economy. What it does offer however, is a modern times unprecedented opportunity for American manufacturers to experience greater cost savings and make themselves more globally competitive than ever.

 

Already well established operations in Mexico exist for all major industries including aerospace, automotive and medical device manufacturing with millions of square feet of industrial space devoted to the effort in Baja California alone. For information on how your company can benefit from this current economic situation please contact Rebecca Amroian of IVEMSA at rebeccaa@ivemsa or call 760-533-7571.

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