Everyone has heard about the violence which has rent Northern Mexico in the last year. A war between the rival drug cartels has spilled over into thousands of killings, kidnappings, extortion, and general violence. Mexican people are fleeing their homes and towns in the thousands. Many people, who previously traveled extensively in Mexico, are afraid to cross the border.
How is all this affecting Mexican businesses and cross-border trade with Mexico? What is happening to the factories along the border? Is it still possible to do business in Mexico?
You have to realize that the news media concentrates on the sensational. While the violence that you see reported is real, it isn’t everywhere, and it especially isn’t everywhere at once. You can go in and out of Mexico a number of times, without seeing a single sign of all this violence. On the other hand, there are those who see it on their first trip across.
The Mexican economy has suffered from this violence. Most specifically, the tourist industry has suffered; not bringing much needed American dollars into Mexico. But Mexican manufacturing has suffered as well. Factories along the border, which produce a myriad of products for offshore companies, are suffering due to loss of contracts.
It is actually a good time to approach a maquiladora and start doing business in Mexico. The loss of business has made them hungry. They are more open to negotiations than ever before. Not only that, but they can probably start manufacturing your products almost immediately, as many have capacity that is currently going unused.
Yes, there is risk in working in Northern Mexico in these days; but that doesn’t mean that there is risk in doing business with their companies. Many have offices on the U.S. side of the border and will gladly meet with you in that comfort and security.
