Many Mining industries too. NAFTA creates a place for this and our own labor and facilities are not paying attention to it. We now have another reason, the costs of steel and other metals with Import taxes up.
Monterey Mexico has capacity and labor to do these jobs and the parts are cheaper and the railroad delivers. Finishing touches can be done there and the trucks and frames built there, fiberglass and painting laws for environmental issues make it needed, I cannot see a single reason that companies like Winnebago that are hungry to shave price and keep their newly rocketed stock at the all time high after 9-11 as people chose motor homes to travel rather than risk air flight.
The media has scared people into not flying and keeps issuing warnings of terrorism, and the steel prices and other factories that make the chassis are already there or moving there, why wouldn t they move. Even many Canadian companies are cutting rather than building into the market to help with the dwindling inventories, which I expect will occur soon. As large car dealerships in many markets with access to consumer credit on long term loans as second home motor home loans are readily available to AARP members and two people working families. As more and more consultants stay independent rather than take the Chainsaw AL risk again, we will see small business people hitting the road more than ever.
With the next winter being a possible El Nino we will see climates change again and colder weather in North Mid West and Ice storms in the NE. So more people will be headed to FL, TX, AZ, NM, NV and Southern CA (if they can find space to park). We have watched as Canadians and Mexicans meet in places like El Paso, Yuma, Tucson and Brownsville, the Canadians to stay warm and the Mexicans for a better life entering the country through immediate family ties or illegally or visas. When these two meet we will see the entrepreneurial minds of the Canadians find opportunity in the Mexican labor and see manufacturing done in Canada where it is less government regulated than US and less hostile towards manufacturing.
With the border crossings at Laredo, and Brownsville and El Paso completed, we will see a lot more flow of commerce and Mexico continue to take off with respect to economics. This will help other US industries sell to Mexico due to the fact they will be able to buy our best products to increase their quality of life. So the manufacturers of motor homes are next and I will go and pick up some of their industry literature to see how much is already started. I know as far as interiors are concerned a lot of people take their motor homes and aircraft and boats to be re-upholstered in Mexico already.