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The China of the Americas

By Kren, Lawrence
Publication: Machine Design
Date: Thursday, February 3 2005

China undoubtedly is becoming the world's manufacturing Mecca.

Everything from T-shirts to calculators, PC boards to Christmas ornaments now carry a "Made in China" tag. Other countries simply haven't been able to compete with China on cost. Consider Mexico, for example. In 2003. it lost over 200 manufacturing companies to China, despite the fact it takes products 45 days to arrive in stores from overseas versus a week or less from Mexico.

But there is an alternative to sourcing from China. Central America combines the cost benefits of China with the proximity of Mexico, which is why it is fast becoming an option for a number of manufacturers in this hemisphere. Banana and coffee plantations in Central America are being replaced by manufacturing parks that make industrial products, ranging from microchips and electronic switches to textiles and apparel. Nicaragua alone experienced a growth in manufacturing exports of nearly 35% during 2003, and as of October 2004. had surpassed the 20% mark for the year.

In addition, make sure to read these articles:

The Value of Selling to China
Interview with Dr. John Sullivan, Director of the Center for Advanced Manufacturing at Purdue University