September 12, 2010

Mexico is taking back manufacturing work • Proximity to U.S. pays off, providing edge over China

MONTERREY, Mexico — When Cessna Aircraft Co. sought a low-wage country in 2006 where it could manufacture airplane parts, its first instinct was to go to China. After struggling to find a way to ship supplies to the Asian country in less than a month, the Wichita, Kan.-based producer of light airplanes discovered a better solution just across the border: Mexico. "Shipping to and from Mexico is easier and faster because it's over land rather than by sea," Cessna Chief Executive Officer Jack Pelton says. "It provides a way for Cessna to become more competitive as we deal with the challenge of the current economic situation." Now, Cessna is completing a fourth expansion, in the city of Chihuahua, that will bring factory floor space to 10 times its initial size.
Continued ... Read More: Chron.com

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