It’s almost become a cliche. Well, it is a business cliche. Companies have been moving jobs out of the US for years because of cheaper labor, etc.
Comes now a report in Friday’s Wall Street Journal–Companies Shun Violent Mexico and the story talks about … companies not expanding their operations in Mexico and keeping jobs here in America. Yes, keeping jobs here in America.
Cases in point–Electrolux AB, chose Memphis, TN over Mexico for a $190 million appliance factory that will employ 1,200 people. Whirlpool Corp. this year also located a plant in Cleveland, TN that will employ 1,600 workers. Yes, that’s only two examples, but that starts to add up quickly. However, Mexico did attract $14 billion in foreign direct investment in the first three quarters of the year, up 20 percent from last year.
But more telling were the comments of executives interviewed for the story: “The escalating violence has led us to be more cautious. We take the safety and security of our employees very seriously.”
This is often a common issue when locating abroad. If you’re going to send middle and upper-management to help run the foreign enterprise to make profit, provide efficiency and to let execs pay their dues before coming home to US-based headquarters, it’s nice to know there is a good chance they’re actually going to be able to come home to the US. Not to mention spouses and dependents. Does it even bare saying that if one’s family isn’t safe, they’re not going to be as focused on the job?
Nonetheless, it’s nice to hear of jobs staying in the US for a change.
- Companies Shun Violent Mexico (online.wsj.com)
- Failed State Watch: How Much Longer for Mexico? (Part One) (pajamasmedia.com)
- Lure Of Low-Cost Mexican Factories Dimmed By Violence (cehwiedel.com)
- Mexican violence hitting America’s salad bowl (msnbc.msn.com)
- Despite Efforts, U.S. Guns Still Fuel Mexico’s Violence (npr.org)
- Moving to Mexico: How-to and why not (sfgate.com)