Output at Border Factories in Mexico Drops 18% in August
Manufacturing output at Mexico’s maquiladoras, the border plants that use low-cost labor to assemble products destined mainly for the U.S. market, fell 18% in August. Manufacturing overall in Mexico declined 6.3% compared with a year earlier.
Mexico’s manufacturers have been hard hit by the U.S. economic slowdown and the Sept. 11 terrorist attacks, which have caused demand to soften. Makers of autos and automotive parts, consumer electronics and equipment are especially affected.
Textile and shoe production also have been hit by a flood of contraband merchandise from Asia, mainly China.
Compounding the problem is a strong peso, making Mexican goods less competitive in domestic and international markets.
Start your day right
Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week.
You may occasionally receive promotional content from the Los Angeles Times.
