Issue link: https://iconnect007.uberflip.com/i/1521713
JUNE 2024 I SMT007 MAGAZINE 25 Some companies have been somewhat hes- itant to consider Mexico because there is a historical reputation that Mexico struggles with political and economic instability. How has that changed? Stoehr: In that Deloitte report, you'll see that Mexico is fih in the world in annual GDP growth right now. When the economy is growing, there are jobs, factories are produc- ing, and things look pretty good. Mexico is enjoying some stability because people are employed and getting good wages. A graph in the Deloitte report shows the record pace of wage growth. at's a challenge for us and oth- ers in Mexico because that cost advantage of 10–15% is getting more challenging to main- tain as wages increase. I believe Mexico will have at least a couple more golden years. But if the peso continues to appreciate and wages go up significantly, that may start shiing business elsewhere. I don't know what that region would be, but that could be a time when there's less stability. Gentleman, thank you for this eye-opening and interesting conversation. We wish you continued success and growth. Stoehr: ank you, Nolan. SMT007 References 1. Mexico Economic Outlook, 2023, Deloitte Insights.