Border businesses weathering fallout of auto-workers strike, cheap Mexican peso and labour shortage
The first few weeks of 2024 have seen a gradual maquiladora industry, which means fewer jobs and less money being circulating, according to Thor Salayandia, a panel member of the Mexican Chamber of Industry and organizer of the frontier business bloc in Juarez. “It’s not just ( assembly ) operators; it ’s professionals, suppliers, everyone associated with cost facilities. ”
According to Salayandia, Juarez manufacturing facilities have reduced payment over the past eight months and eliminated 1,900 positions in March. The worst came during the United Auto Workers ’ six-week attack at GM, Ford and Stellaris flowers. Some council plants for electrical components reduced the number of employees at one shift or cut back on that time, according to Salayandia.
A enhancing peso also makes working in Mexico more costly, he said. One penny bought U.S., according to Federal Reserve Bank information. S. -based enterprises 18 28 rupees in October; Then all it takes is 16 66.
Despite recent difficulties, cross-border business in the Juarez-El Paso region is still in the billions, and fresh maquiladoras are starting to profit from near-shoring, which is the process of companies moving their production from Asia to countries further away from the United States. S. , experts say.
“Juarez is one of the settlements benefitting the most from near-shoring. There’s four major Taiwanese campus programs and the vacancy rate is still low ( at Juarez industrial parks ) – it ’s booming, ” said Jerry Pacheco, president and CEO of the Border Industrial Association.
That’s not to say there’s no flipside.
Juarez-Maquiladoras are battling to replace openings. Due to the expansion of manufacturing facilities in Central Mexico that serve the same U.S., that craze has been going on for years. S. firms as Juarez. In Juarez, it is said that the Bajio area north of Mexico City has become extremely developed, with a lot of people that now providing jobs that would otherwise have been unavailable.
There’s even such a thing as too much development.
The electronic system is the main concern in Juarez. What place does the program hit a wall when all the design is happening? ” Pacheco observed.
Federal authorities from Mexico and the city of Jaura are working on that problem.
Things are put in view by the most recent statement from the University of Texas at El Paso’s Borderplex Business Barometer. The economic policies in the U.S. are addressed in the March review titled” Not bad for a slowdown.” S. and Mexico, rising transport costs, a declining economy, and fewer Americans purchasing automobiles whose components are assembled there. Transnational trade volumes are described in the report as being “flat. ”
However, the strong peso could encourage more residents of northern Mexico to visit and visit El Paso if the dollar does n’t go as far as it did south of the border.
And experts from UTEP concur. S. New plants are being planted along the frontier as a result of China’s trade tensions.
According to the Borderplex Business Barometer, “Trade-related descriptions has led to significant investment in manufacturing in Juarez and Chihuahua City.” Further economic growth is anticipated for the area in 2024 and 2025 because the downturn is proving to be moderate. ”
