Mexico, China, and the Travel Advantage
Is Mexico the “new China”? Being adjacent to the United States means lower transportation costs, faster shipping times, and more social and political openness. Being in the same time zones makes cross-border collaboration easy.
Do you live and work in the US and have colleagues and employees in Asia that you have never met in person?
Suppose you want to visit an offshore team in China on December 4. Your journey from New York City to Beijing can take about 30 to 51 hours and cost around $1,600 to $5,600usd. India is cheaper and easier with a travel time of 17 to 30 hours and fares from $900usd to $1,500usd. How often will you make the trip? Once per year if ever for most US-based companies.
Flying from JFK to Mexico City? about 5 1/2 hours direct for about $370usd. Dallas to Monterrey, Mexico takes less than 2 hours. And San Diego to Tijuana? You can walk that route! And you don’t need to apply in advance for a visa anywhere in Mexico provided you stay no more than 180 days.
Source: Google Flights for December 5, 2022, as of November 10, 2022.
New York to Beijing, China
New York to Bangalore, India
New York to Mexico City, Mexico
Interestingly, from New York City, it takes less time to fly to Mexico City than to Los Angeles.
New York to Los Angeles, California
Dallas Texas to Monterrey, Mexico
Are labor costs higher in Mexico than in China and India? Sure. But the total cost of offshoring is rising while the cost of nearshoring is relatively stable. And the convenience of flying to Mexico’s tech hubs will increase as airlines expand regional service.
Mexico Visa Requirements
“Mexico will become the ‘New China’ of Latin America”