Japan to move part of hi-tech production to Mexico in wake of disaster

[Turborama]

Source: RIA Novosti

09:28 03/18/2011

MEXICO CITY - A number of large Japanese electronics companies damaged by the strong earthquake and tsunami last week plan to move part of their production lines to Mexico in the near future, President of the National Chamber of Electronics Industry Fernando Sierra Ortiz said.

Ortiz said the decision to move production lines to Mexico stems from the necessity to immediately renew the production and constant equipping of elements to the North American market.

"The disaster that hit Japan has forced Japanese electronics and computer technologies producers to move part of their production to Mexico where there are already highly qualified personnel. Our proximity to the United States also plays an important role in this as this will significantly decrease production costs," Ortiz said.

He said that by 2013, Mexico would produce $15 billion worth of hi-tech equipment.

Read more: http://en.rian.ru/business/20110318/163069929.html

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UPDATE 1-Global manufacturers wrestle with Japan supply gaps

Source: Reuters

Fri Mar 18, 2011 1:06am EDT

Several parts of the new version of the popular iPad tablet PC come from Japan, including the battery and the flash memory used to store music and video on the device.

"Logistical disruptions may mean Apple could have difficulties obtaining this battery, and it may not be able to secure supply from an external, non-Japanese source," iSuppli said.

=snip=

ELECTRONICS BOTTLENECKS

Japan's grip on the global electronics supply chain is causing particular concern. Japan exported 7.2 trillion yen ($91.3 billion) worth of electronic parts last year, according to Mirae Asset Securities.

"Should the Japan crisis be prolonged, I expect a shortage of electronic parts in the second quarter," said James Song, an analyst at Daewoo Securities, noting that Japan provides 57 percent of global needs for wafers, which are key materials used to make chips.

Full article: http://www.reuters.com/article/2011/03/18/japan-supplychain-idUSL3E7EI0AR20110318?pageNumber=2

[gateley]

1. Why Mexico, I wonder. It has earthquakes, too. nt

[nadinbrzezinski]

4. While there are unions down there and all that

The minimum wage is that much lower.

Oh and the maquiladora infrastructure is already there.

Of course they could move it to the SONY factory in San Marcos, for example... oh wait they closed that one a few years back

[gateley]

21. Yeah, that was my hunch - $$$ it's always the money. Although I understand

they've been hit hard, we've had good relations with Japan for a long time, it would have been nice if they threw us a bone. But maybe, for whatever reason, they can get up and running down there more quickly. And then again, maybe not. :eyes:

[Pacifist Patriot]

15. My understanding is there are manufacturing capabilities readily available.

and see above.

[gateley]

22. Then I'll forgive them - that's understandable. nt

[Liberty Belle]

2. Well, that should help slow illegal immigration, if Mexicans can have jobs in Mexico.

[AlphaCentauri]

18. very true n/t

[timo]

26. it wont

wont even make a dent

[Dramarama]

33. Ilegal immigration

has dramatically decreased recently due to the bad economy and lack of jobs here. I imagine this will decrease much more
http://www.miamiherald.com/2010/09/01/1803885/illegal-immigration-in-sharp-decline.html

[timo]

36. I live on the border

in deep south Texas and they open new maquila plants all the time and it never stops or even slows down much,part of my farm is ON THE RIVER, I dont give a shit what some jerk off in the miami hearld thinks!!!, I KNOW WHAT I SEE WITH MY OWN TWO EYES!!

"Mexicans remain the largest number of undocumented immigrants, at about seven million, the report said."

they come up from down south and the mountains, they reach the border work in the maquilas to scratch up enough dough to get a coyote to bring them across.....nothing new here!!!

[amandabeech]

3. What's wrong with putting the jobs here?

We're the ones who are sending emergency pumping equipment and out military into this thing.

What's Mexico done?

Is this the thanks we're getting?

[nadinbrzezinski]

5. Mexico has sent Search and Rescue personnel

and helped take one of our teams across, to reduce the aircraft footprint.

You might want to read something else than just US Press.

The presence of FOREIGN teams is not just Fairfax and LA County.

[dkf]

9. To me it's not that Mexico doesn't deserve it, but that we have missed yet another opportunity.

Does our Govt care about putting Americans to work? This should have been an obvious play for them.

This one I DO blame on Obama.

[groundloop]

12. How can you possibly blame President Obama - it's not his decision ....

Individual Japanese manufacturing companies are making decisions on where to manufacture their products. President Obama has nothing whatsoever to do with those decisions. Geeze!!!!

[dkf]

13. Yep Obama had nothing to do with those decisions. That is the problem.

If he wants the jobs to come here he has to be aggressive about it. That is what the Governors are doing. Hasn't your Governor done anything to attract employers?

[nadinbrzezinski]

20. Actually at a government to government level

pressure can be applied... that is how it works in the real world. And that ahem pressure can spread from the Government, through proper ministries to the companies in question. Sony, for example, closed a plant here in San Marcos. THEY COULD bring it back on line THe plant is still there. Why they didn't do that? The Tijuana Maquiladora does not have the capacity RIGHT NOW, that they will need. Oh yeah, even at close to minimum... it is far more than they pay in Tijuana.

[nadinbrzezinski]

19. Taht is a whole different question

and at this point, they don't want to. If we can keep salaries low, we need to take production where it is low.

Those facilities will not go to Japan either and if it gets too hot in Mexico *war on drugs" they will go where they can find cheap, safe labor.

At this point we need to admit to ourselves. OUR LEADERS do not have our best interests at times. I hate to type this, but that is the case.

But the... Mexico has done nothing is just the typical US Coverage that makes the world go around us.

[gateley]

24. I gotta disagree with you on our leaders not having our best interests at times -

I really believe that Obama does. I don't understand why pressure wasn't applied, but maybe it was and they said 'no'. We can't be bullies, we have to maintain cordial relations. The Republicans would be motivated by profit, fuck our workers. I honestly don't think Obama is of the same ilk, no matter what so many here believe.

My question is do they pay Japanese workers that low? Lower than we'd pay in the US? I know I've seen pieces on how they work them like dogs, but I've no idea if they're fairly compensated. Do you think these jobs are gone from Japan forever? (Kind of like our jobs that went overseas - I don't think we'll ever see those again.)

[gateley]

23. But if it's true that they have facilities down there that are ready to go, then

it's understandable that's where they'd choose.

Now is not the time to strong arm these companies and force them (if that's even possible) to relocate here. Maybe we'll be working with them to transfer some of the work up here if we can get facilities ready.

I think it's important that they begin to manufacture as soon as possible - their products affect a lot of others.

And really, I'm not sure we can give any country an ultimatum - we're just not that powerful any more.

[Sherman A1]

29. My understanding was that some 70 countries had

or were sending some assistance. I may be wrong on the number, but we certainly are not the only ones helping.

[amandabeech]

34. And you might want to notice whose technical people are there

and whose military are there hauling in emergency pumping equipment.

[AlphaCentauri]

40. I don't have to guess but is a fact that those messy nuclear reactors are made in the US

so who is watching for the product liability

[AlphaCentauri]

17. America hates foreigners and Anchor Babies

yeah but not their money

[NickB79]

39. Mexicans will work for lower wages than Americans. NT

[readmoreoften]

6. Hooray for disaster capitalism!!!!

[quakerboy]

7. +1

Why waste a perfectly good excuse to move jobs from a high wage area to a low wage area, just because it will add to the long term suffering?

[OhioChick]

14. Isn't that the truth! n/t

[Ignis]

28. JAFTA!

[dkf]

8. Why not here?

Our govt should have suggested tax breaks or something.

[Pacifist Patriot]

16. It's not like it isn't used to giving those.

;-)

[Arugula Latte]

27. Labor costs.

Gotta have cheap, cheap, cheap, dontcha know.

[Systematic Chaos]

10. They'll end up eating this shit the moment PEMEX's oil production falls low enough.

Won't be long. :P

[Corruption Winz]

11. While I would hope that America could secure these jobs...

At the very least, a country that has helped out is getting some of the benefits from this unfortunate situation.

[gateley]

25. I feel the same. I hope it helps a lot of people in Mexico. We're not the only

country on the planet that's hurting.

[jacquelope]

30. Can America's jobless move to Mexico and get a job?

Or are Americans going completely under the bus here?

[gateley]

31. I'm not the one you should be asking, am I? I would

have MUCH preferred the jobs come here, but since they're going to Mexico, I'm happy some of those people will be helped.

You find fault with compassion?

[jacquelope]

35. Where's the compassion for American workers?

Should people here be happy they're starving to give others jobs?

[gateley]

37. What, I can't feel compassion for more than one nationality of people at a time?

Just because I feel for the Mexicans means I don't care about Americans? What are you talking about?

It's not OUR country who is giving these jobs to Mexico -- what do you expect Obama to do? You sound like as long as America is taken care of, fuck the rest of the world. That's not how I am, so I guess we won't come to an agreement on this. So go ahead and judge away.

[Corruption Winz]

38. Theoretically, yes, they can.

If you take a job from a Mexican national, then you can't get the job. Legally. If you take a job that a company can't fill with the Mexican people they have interviewed or what have you, then you can with a work visa.

In reality, however, plenty of people in America work in Mexico without documentation. English teachers, delivery people, business managers, sales people. You name it.

[boppers]

32. America did secure these jobs.

More specifically, North America, and more specific than that, Mexico.

[Tx4obama]

41. It's APPLE that should have put pressure on Japan to bring the jobs to the USA, but.....

they ain't gonna do that because then the parts would cost more and then Apple would have to either take a loss or charge more for iPads - and when it comes to the bottom line they ain't gonna do that.
So, it's the American workers that get screwed again!