Quote:
Originally Posted by Posh 08
What did your company pay the Mexican workers compared to US workers?
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First to make sure you understand, my company closed two facilities and a number of operations within others. As I recall, the difference with pay was about 25% + (a significant plus in some cases) less in Mexico, however that was not the largest savings. Not an accountant so be gentle....but the biggest savings was with incentives from the community, not the Mexican government now but local communities,, Also, the environmental rules were getting really heavy duty in Illinois and Pennsylvania where they were located. The company faced the situation.....either raise prices and cease to be competitive or make a move like this.
I also have to add. It was a different time and much has changed since then relative to the economics of that kind of move. Also, for my company it worked well logistically because they had facilities in Texas and it saved greatly on transportation costs.
Not a great comparison because of the time, HOWEVER, the general premise is they went to the friendliest environment they could find to satisfy stockholders. Having sat in on many meetings, the decision was made with great turmoil but they had very little in options.