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Between 1989 and 1994, 564 new plants opened; in the five years following, 1460 plants opened. However, the maquiladora growth is largely attributable to growth in US demand and devaluation of the peso, not NAFTA itself. [11] [12] [13] In the 1970s, most maquiladoras were located around the Mexico–United States border. By 1994, these were ...
A quickly growing fifth option for foreign companies to set up manufacturing operations in Mexico is to "Outsource" their manufacturing operation to an independent Corporation "Maquiladora". The manufacturing outsource option is a hybrid of both the "shelter" system and traditional " contract manufacturing or subcontracting".
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[1] [2] Mexico was the first Latin American member of the Organisation for Economic Co-operation and Development (OECD), joining in 1994. It is classified as an upper-middle income country by the World Bank [ 3 ] and a newly industrialized country by several analysts.
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The Maquila Decree, established in 1989, lays out the legal requirements for foreign operations in Mexico.As described by the Bancomext Mexican Showroom, an organization to promote foreign investment in Mexico, this program allows foreign companies to build and operate factories in virtually any Mexican location of their choosing.
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The Matamoros Strike in Matamoros, Tamaulipas is a strike of tens of thousands of Maquiladora workers that began in January, 2019 and is ongoing. The workers, whose manufacturing activity on the Mexico–United States border is tightly linked to the American manufacturing economy, have low wages relative to local living costs and have demanded 20% pay increases and bonuses.