Tijuana the Near-Shore Cost Savings Solution
While already very cost-competitive, the recent decline in value of the Mexican Peso during 2008-2011 has made the cost of doing business in Tijuana even lower, typically more than 50% lower than in the US, and the gap vs China is continuously being reduced given local salary increases and added transportation costs.
According to an Alix Partners Survey of C-Level manufacturing executives across 15 industries, 63% of them responded that Mexico was the most attractive option for near-shoring. Due to advantages related to costs and speed to market, Mexico has positioned itself as the top choice for manufacturing to service the U.S. markets.
