China's rising wages give Mexico edge, says Flextronics chief
Submitted by mexbiznews on Mon, 08/30/2010 - 3:36am
Bloomberg
China’s rising wages are cutting the country’s cost advantage over other manufacturing centers such as Mexico, according to Flextronics International, the world’s second-largest custom electronics maker.
“As China moves up, up and up and up, for five straight years, it’s been moving up heading towards Mexican pricing,” Flextronics CEO Mike McNamara said in an interview.
Rising wages in China won’t spur an exodus or prompt Flextronics to move all of its production bases in the country, however.
