Mexico is one of the most important trading partners with the United States. The total magnitude of this trade was $614.5 billion in 2019 according to US census data released earlier this year. The sheer quantity of products from many industries made in Mexico and cross border shipped into the US is truly astounding. While many products such as agricultural goods, clothing, and auto parts are known to be made in Mexico, most do not know the magnitude and diversity of these imports and just how many very common items are produced there.
Let’s take a look a look at some of the most common items that you might not have known were made in Mexico.
1. Chevrolet, Ram, Ford and GMC pickup trucks
Pickup trucks are a distinctly American fascination with few full size trucks being sold in Europe or Asia. What many don’t know is that many pickup trucks, including the Chevrolet Silverados/Sierras, are actually made in Mexico or partially made in Mexico then shipped to the United States via cross border logistics companies that utilize specially designed railroad cars to move huge quantities of the trucks from Mexico to US distribution centers.
Other common vehicles made in Mexico are many US bound Ram trucks, GMC Terrains, some GMC Sierra 1500s, Ford Fusions, Toyota Tacomas, Chevrolet Equinoxes and Chevrolet Cruzes.
Interestingly enough in 2019, according to Cars.com, the most “American made” pickup truck is actually the Honda Ridgeline, which is assembled in the United States and relies on mostly US made parts and components. Honda in total assembles around two-thirds of their model lineup sold domestically in the United States as compared to a little over half which is the industry standard.
2. Smart TVs
Normally you wouldn’t think of Samsung electronics such as TVs, LCD assemblies and computer chips as being made in Mexico but they are, along with many Samsung appliances. Like other products these are shipped to US distribution centers or final assembly centers then ultimately shipped mostly by truck to stores.
3. John Deere Tractors
John Deere tractors are another American staple, everyone knows what a John Deere is even if you grew up in the suburbs of Manhattan. John Deere has a truly global supply chain with factories spread across the globe, but a substantial amount of their farm tractors are built in Mexico.
4. Airplanes and Aviation Components
You might think that commercial aircraft are so large that they are simply built in one factory then flown to their customer’s location. This however is not typical. Airplane manufacturers rely on a very complex supply chain that involves suppliers around the world. Mexico’s aviation industry is growing fast with both Boeing and Bombardier relying on Mexico’s factories for key components for various commercial jet models. These parts are then shipped to the final assembly center which is typically in the US. Even entire fuselage sections are sometimes transported on railroad flat cars.
5. US Military hardware
Even the US military relies heavily on Mexican suppliers and subcontractors. When the US department of defense awards procurement contracts to companies like General Electric, Honeywell, or Lockheed Martin, certain assemblies and parts they use for finished products are built in Mexico then shipped to the US for final assembly.
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6. NASA Flight Suits
The clothing our astronauts wear on missions is a highly specialized fabric that requires niche knowledge. Fortunately, a company in Mexico that has vast experience producing clothing for chemical companies is able to effectively make the NASA jumpsuits.
7. Oreo cookies
Oreos are made by Nabisco foods, which operates a major facility in Mexico that produces America’s beloved sandwich style snacks. Other common grocery store staple brands such as many Nestle items, Doritos, Cheetos and Tostitos are also produced in Mexico then cross border truck shipped to the United States.
8. Medical Devices
Many medical devices are made in Mexico such as catheters and defibrillators. Much of this Medical device production is centered in or around Tijuana, which is just a short distance from San Diego, CA. While not house hold brand names, companies such as CareFusion and Medtronic provide a lot of the equipment you see in a hospital or doctor’s office.
9. Railroad Equipment
Railroad transportation is a huge industry in the USA alone, supporting nearly 1.5 Million jobs and moving around 40% of total gross ton miles of freight in the United States with much of this being bulk commodities such as grain and coal. Many of the railroad cars you see moving on America’s railways are actually built by a number of companies operating facilities in Mexico.
10. Clothing
It’s rare to see clothing manufactured in the US, while much of US clothing is made in countries such as Bangladesh, China or Pakistan, a lot of it is also made in Mexico. Companies such as Levis make their famous jeans in Mexican factories then ship them to US distribution centers.
The less obvious complication from having factories in countries around the world, and certainly for firms that build components at many separate factories and then ship to an assembly plant, is the reliance on a very complicated supply chain. Without the robust infrastructure and coordination of literally thousands of logistics companies this would not be possible. Coordinating a global supply chain like that of John Deere or Boeing is an expensive and critical task managed by hundreds of people, as the absolute last thing any company wants to happen is an entire plant with 4,000 employees to shut down because they ran out of a certain type of screw. The average person has no idea the true complexity or the shear amount of thought that goes into figuring out the best way to get that box of kitchen sponges to your local Wal-Mart. It’s actually pretty impressive.
Recommended for further reading:
https://qz.com/1682861/mexico-is-now-americas-number-one-trading-partner/
https://www.census.gov/foreign-trade/index.html
https://www.aar.org/wp-content/uploads/2018/05/AAR-Overview-Americas-Freight-Railroads.pdf
Top “American Made Vehicles” Cars.com
Top Percentage American Made Vehicles
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