Flextronics is based in Singapore and is the world’s second-largest custom electronics maker and its customers include Hewlett-Packard and Cisco Systems Inc.
“As China moves up, up and up and up, for five straight years, it’s been moving up heading towards Mexican pricing,” Flextronics CEO Mike McNamara told Bloomberg.
“Mexico’s been the same labour cost for the past five years, it hasn’t moved up at all.”
Flextronics has been forced to increase wages in China in line with government regulations and growing affluence in the fastest-growing major economy, Bloomberg reported.
“On the other hand, Mexico’s proximity to the US is phenomenal. You start thinking about freight and you think about all the green energy initiatives that are going on. It’s going to put a little bit more emphasis toward doing more products in Mexico,” McNamara was reported as saying.
Source: Bloomberg
