Maquiladora industry has much life, says Deutsche Bank Research report
16 Feb '06
2 min read
Consumer electronics are Mexico's second most important export manufacturing industry (6% of manufacturing GDP). Centres are Baja California (Tijuana, Mexicali) and Guadala-jara.
Improved investor confidence in Mexico as reflected in the 2005 A.T. Kearney FDI Confidence Index is apparently partly due to improved confidence in the electronics sector.
In this segment, Mexico soared from 21st to fourth most attractive FDI location. By contrast, clothing exports have been on the decline in recent years (see chart 29) and we expect the industry to contract further going forward.
A recent DB Research study identified Mexico as one of the countries to be most negatively affected by the expiry of textile trade quotas at the end of 2004 and the resulting stronger competition from countries like China and India41.