Despite Violence, U.S. Firms Expand in Mexico

We keep getting asked how the violence in Mexico effects our business. Here is an interesting article in the New York Times.

Excerpt below:

“Despite the bleak outlook the drug war summons, the Mexican economy is humming along, not without warning signs, but growing considerably faster than that of the United States.

Even as drug organizations battle for turf around them, more TV sets are being assembled, car parts boxed up and electronic widgets soldered together in the large manufacturing plants here known as maquiladoras. The result is a boomlet in jobs in some of Mexico’s hardest-hit cities, a bright spot in an otherwise bleak stream of shootouts, departing small businesses and fear of random death.

Over all, jobs in Mexico’s manufacturing sector increased 8.2 percent to 1.8 million as of January, the most recent figures available, driven mostly by what Mexican officials called regaining health in the auto and electronics industries, the engine of the economy along the border. Even Ciudad Juárez, which has both the highest level of violence and the largest number of maquiladoras, added 1.3 percent more jobs, to 176,824.”

Click here to read full article in the New York Times

2 thoughts on “Despite Violence, U.S. Firms Expand in Mexico”

  1. This is a nice article about the Mexican economy, but I would like to know how you personally are being affected. Is it safe to stay there right now? Is the violence high near you? Can you safely go shopping or sightseeing without worry? Do you have security on the grounds?

    1. Female Nomad thank you for your inquiry.

      Yes, this article does address the Mexican economy but from the viewpoint that even with the media hype about security issues, the Mexican economy is actually thriving despite the bad reputation.

      I provide this article in the area of security to address how large companies are viewing the perceived threat in a manner contrary to the popular notions portrayed by some media. If companies are investing in Mexico, it can’t be that dangerous, right? Articles like this help balance the “if it bleeds it leads” headlines that get more attention. From a more personal perspective, I live in the SF Bay Area and just last month a German Tourist was killed in the cross fire between rival gangs. Does this mean that Germans should not travel to San Francisco, that San Francisco is unsafe for tourists, does this mean that they shouldn’t come to California or even the US. If the German media sensationalized this case as the US Media has sensationalized gang violence in Mexico, then obviously all of the EU should avoid any travel to the USA. This doesn’t diminish the reality of violence anywhere nor should it limit our desire to travel to beautiful places like San Francisco or Playa Viva.

      To answer your questions more specifically. We “personally are being affected” by the media hype that is limiting travelers to Mexico overall. Mexico is a wonderful country with friendly people, great food, the best beaches, wonderful biodiversity and more. So not only are we being personally affected by the reduction in tourism but all of Mexico is being affected. We estimate that tourism is probably down 20% or more as a result of worries such as those outlined by you. Would you ever ask those same questions about San Francisco? Or Miami, Houston or Los Angeles? But I’m sure you would use common sense precautions when traveling in some areas of these cities just as you would traveling anywhere else.

      “Can you safely go shopping or sightseeing without worry?” YES, you certainly can, but like you would in San Francisco or in any location, you should take certain precautions. Do not wear lots of jewelry, use credit cards and do not carry lots of cash, do not take rides from strangers but arrange for guided tours or arrange rides through your hotel. Keep an eye on valuables such as your camera, wallet or purse, etc.

      “Do you have security on the grounds?” YES, we do. We provide guards 24×7 to cover any emergency and to keep an eye on the property and our guests to make sure that they are as safe as we can manage. We provide room safes in every room to guard valuables and we have radio communication with the local turtle sanctuary that patrols the beach. We have arranged for regular visits by the tourism police as well as local and state police. We have a security camera system on site to keep an eye on entry and exit points and in general take security seriously.

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