Reply #11: Lots of candy that used to be made here is made in Mexico now [View All]

[sybylla]

In the 80's, companies figured out that automation eliminated costly jobs and saved money. By the turn of the century (2000-2001) companies figured out that depressed, unregulated labor across the border and away from the watchful eyes of OSHA and other regulatory agencies was cheaper than automation.

My business subcontracted on just such a job in 2002 (before we knew all the details :blush: that won't happen again) that involved moving a candy manufacturing plant to Mexico - about 100 miles from the border. The plant is semi-automated. Completion involved several weeks in Mexico. The working conditions were pitiful compared to our standards, but it was far and away the best job in that town.

I suspect that they will find over the long term that the plant isn't as profitable as they would have hoped for. The "Protestant Work Ethic" does not exist in Mexico (not a judgement call, just an observation). They will probably have to pay three people to get the same amount of work equivalent to one US worker.