Man Wah Furniture, a Chinese company, has established a manufacturing base in Monterrey, Mexico, funded by Chinese investment. Their products, including reclining armchairs and leather sofas, destined for major US retailers like Costco and Walmart, are proudly labeled as “Made in Mexico.” This strategic move reflects the emerging trend of nearshoring in Mexican business, driven by the intricate relationship between the US, China, and Mexico.
Numerous Chinese enterprises, including Man Wah, have relocated to industrial parks in northern Mexico, aiming to shorten the distance to the lucrative US market. By manufacturing in Mexico, these companies not only benefit from reduced shipping costs but also circumvent US tariffs and sanctions imposed on Chinese goods amidst ongoing trade tensions. Man Wah’s general manager, Yu Ken Wei, highlights the economic and logistical advantages of this shift, expressing plans to significantly expand production in Mexico, potentially tripling or quadrupling output.
Despite arriving in Monterrey only in 2022, Man Wah already employs 450 workers in Mexico, with plans to increase to over 1,200 employees and introduce new production lines in the near future. Yu Ken Wei praises the Mexican workforce for its diligence and adaptability, emphasizing their high productivity. This sentiment resonates with the broader impact of nearshoring, which has been credited with bolstering Mexico’s economy, evident in the 5.8% increase in total exports to $52.9 billion by June of the previous year.