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Foxconn, the global electronics manufacturing giant, announced that it will move its large-scale production line from China to Mexico! As one of the world's largest electronic foundry manufacturers, Foxconn has a large workforce and global production bases, with hundreds of thousands of employees in Chinese mainland. As a result, Foxconn has provided employment opportunities to millions of people and solved a large number of jobs. How will Foxconn's relocation to Mexico affect employees? Want to know why Foxconn chose Mexico? Read on!
Challenges that employees will face
With the deepening of globalization and the continuous adjustment of the industrial structure, the original manufacturing industry is facing unprecedented challenges. As the backbone of the manufacturing industry, we believe that the first priority for our employees in the face of this change is to improve their skills and adaptability. Only by continuously improving their soft and hard power can they go more steadily and further on the road of employment in the future.
And if upskilling is about better adapting to industrial change, Foxconn's latest decision to move production from China to Mexico is a product of global competition. If our employees are still stuck in the original production system and technical level, it will be difficult to adapt to the future work challenges.
From this decision, we can see that Foxconn employees will face multiple challenges in the future. As the world's largest electronics foundry, if all its production lines are relocated to Mexico, employees in Eastern countries are likely to face transfer or direct layoffs. Even if there will be some compensation in the process, I believe that most employees do not want to be forced to leave their original positions because of industrial upgrading.
Even if it doesn't create jobs further away from home, there is a risk that the construction of a new factory will have an impact on the supply chain. If the production line is relocated, the original parts supplier and shipment system will change greatly, and if the process is not well controlled, the order may not be completed on time due to unstable supply, which will lead to a decline in the company's trust in employees.
At a time when the manufacturing industry is already sluggish, Foxconn's decision will have an exemplary effect on the entire industry. As more and more companies choose to relocate their production lines to areas with lower labor costs, the manufacturing industry, which was still able to survive in the East, will no longer exist. At this time, even if you manage it carefully, it will be difficult to occupy a place in the global competition.
Cost considerations in Mexico
Faced with such a decision, many people will wonder, why not open up another territory in China? After all, even if it is suppressed by labor costs, China has natural advantages in terms of management level, supply chain and overall stability. And if you really want to migrate, why not choose Southeast Asian countries with lower labor costs and more flexible management systems?
Foxconn's choice of Mexico was not a spur-of-the-moment, but a deliberate decision. As a manufacturing industry, cost has always been one of the most important factors in business operations. From labor costs to overall manufacturing costs, they are directly related to whether enterprises can be invincible in the future competition.
Compared to China's high labor costs, Mexico's labor costs are much lower. And because it is an emerging market, the local manufacturing cost is not high. It can be said that the reason why Foxconn was able to sweep all its competitors on a global scale was mainly due to the relatively high manufacturing costs of Eastern countries. If this is abandoned, then Foxconn will be more comfortable in the future competition.
We know that Foxconn's main business is OEM production for major brands around the world. In particular, customers like Apple occupy a very important position. If these brands can better grasp the market opportunity, it will also be a huge opportunity for Foxconn. Therefore, the U.S. market has always been the focus of Foxconn's attention.
Mexico and the United States are geographically connected, and the trade relationship between the two countries is very close. If a factory is established in Mexico, it will be extremely convenient to ship directly to the U.S. market. In contrast, if you choose to set up a factory in Southeast Asia, it is difficult to be recognized by American customers even if the labor cost is low.
In addition, there is another important reason to choose Mexico to better meet the needs of the US market in the future. Especially in the current era of e-commerce, the ability to quickly deliver products to customers often determines the size of sales. If you choose to set up a factory in Asia, it can take days or even weeks at the earliest. This is obviously unacceptable for some customers who are in dire need of a product.
It's the cost of shipping. Even large companies like Foxconn have to pay high shipping costs when shipping from Asia. And if the product is produced in Mexico, then this part of the cost will be greatly reduced.
epilogue
Foxconn chose to relocate its production lines to Mexico, not only considering cost factors, but also to better adapt to global market demand. In this era of global competition, companies need to constantly adjust their strategies to meet the challenges, and it also makes us wonder how we can improve our adaptability and go further and steadily. What do you think? Leave a comment to share your thoughts!