Type: Process Essays
Sample donated: Don Dunn
Last updated: May 26, 2019
Roads – is an important factor to Mexico’seconomy. It relies on a system of 370,000 km of roads which connects thecountry from north to south with their freeways, highways, roads and trailsthat permit access to almost all places of the country.The road system contains 50,000 km of road ofnational authority which nearly 9,000 are toll roads, as well as about 80,000km of national highways, 170,000 km of country roads and little more 70,000 kmimproved gaps. (see appendix for a map) Airport – Mexican airport system contains of85 airports and 1,385 airfields.34 facilities are administered byconcession-holders. The government – owned Airports and Secondary Services,which also functions as numerous fuel depots throughout the country, manages orpartially runs 26 airports, while 26 additional airport facilities are run bythe Ministry of Defense, the navy and community authorities. (see appendix fora map) Seaport – Mexico’s shoreline is opened toboth the Atlantic and the Pacific oceans, it is at the focus of trade routes worldwide.
Mexican ports have gone through a development of modernizing that allowed themto significantly increase their cargo transportation.There are 117 kinds of port facilities andvocations, which includes the harbor, oil, commercial, tourism, fisheries,military and national safety purposes. The common shipping is commercial andoil, Mexico creates a growing activity out of the international exchange of goodsand merchandise with practically every country. (see appendix for a map) Telecommunication – The telecommunications businessis mostly dominated by Telmex (Teléfonos de México) and América Móvil.
Telmexhas diversified its operations by assimilating Internet service and mobile phones.Their operations have extended to Colombia, Peru, Chile, Argentina, Brazil,Uruguay, Ecuador and the United States. (see appendix for a map)According to the 2nd Pillar Infrastructure,Index ranking indicator Mexico is ranked 62 in 2017, 57 in 2017 and 59 in 2015Information TechnologyMexico has revamped their infrastructure toappeal to businesses to start up their manufacturing operations across thecountry. Though the electronics, aerospace and motorized industries succeeds inthe nation, the information technology segment is quickly developing as well.A chunk of Mexico’s push, is through ensuringthat its people are well educated. With numerous products being mass-producedin Mexico, a high level of technological skill is required, it is important to havethe necessary skills that allows foreign businesses the assurance to considerMexico a destination to set up operations. This is especially true for IT industries inMexico that need not only a extremely capable workforce, but also staffs to be accustomedwith the ever-changing worldwide of information technology. There are 600,000people or more in Mexico that has IT jobs due to the 65,000 yearly graduatesfrom the nation’s engineering and technical institutes.
There are 2,000 IT corporationsdoing business in Mexico. Mexico’s dedication to education has becomethe reason for their quick development in the IT sector in the country.Despite the distinguished growth, the ITsector in Mexico is still secondary to manufacturing. As companies continue toview the country as an ideal location for manufacturing rather than for theirIT services. Education has the most importance, and the government hasunderstood that in order to become competitive in the global marketplace,technical ability is becoming a requirement.
Skill level of workforceExpanding to Mexico has been a focus for manymanufacturing companies. Due to the North American Free Trade Agreement andmore than 40 countries has made deals with Mexico which allows productionmaterials and finished goods to enter in and out of the country, tariff free.Also, the Government made it easy for companies to enter and either build theirown factory or operate through an offshore shelter.One of the biggest benefits for companiesoperating in Mexico is, that Mexico offer highly skilled and technicallyproficient workforce. Mexico used to be a country that produced T-shirts andjeans and shoes, however, now it’s a country that produces cars and airplanes.China used to be the first destination ofchoice for companies looking to capitalize on low-cost, high-qualitymanufacturing in a foreign land. However, over the last few years, China hasbegun to lose its grip as Mexico aggressively positions itself to be the firstchoice for foreign companies looking for an offshoring home.
Nissan is one of the many recognizable automanufacturers that has a presence in Mexico and is currently in the process ofexpanding its operations in the country. Customer Experience Report wrote thatas much as $10 billion is being invested by automakers to improve Mexico’soverall vehicle production infrastructure. Audi is also in the process ofconstructing a $1.3 billion factory to produce its vehicles in San Jose Chiapa.This underscores how pleased theseorganizations have become with the ability of the labor force in Mexico toproduce finished goods that are of exceptional quality on a consistent basis.
According to the 5th pillar Higher educationand training, Mexico is rank 80 in 2017, 82 in 2016 and 86 in 2015.Technological readiness According to the 9th pillar TechnologicalReadiness ranking indicator Mexico is ranked 71 out of 137 in 2017, 73 out of138 countries in 2016 and 73 out of 140 countries in 2015. Mexico’s technologicalreadiness is around average capered to the overall GCI which 1-7 and 7 beingthe best among other countries.