Gypsy Jan - 8-18-2012 at 05:01 PM
From CNN
By Jonathan Katz
"Mexico is the "China of the Americas," Siemens Mesoamerica CEO Louise Goeser says. Goeser, who leads the Mexico business unit of German industrial
conglomerate Siemens AG (IW 1000/26), made the statement in May at a Siemens metals summit in Mexico City.
The former head of Ford Motor Co.'s (IW 500/6) Mexico operations believes the country is poised to be a global manufacturing leader. Siemens
Mesoamerica has nine manufacturing plants in Mexico and more than 6,000 employees in the country, with its headquarters in Mexico City. The reason
Goeser is bullish on Mexico's manufacturing future has much to do with the nation's workforce. "There's actually more engineers that graduate each
year in Mexico and are highly qualified than there are from Germany, Brazil or Colombia," Goeser says.
Goeser alluded to Mexico as the Americas new China to highlight Mexico's manufacturing cost advantage. The United States' southern neighbor has
free-trade agreements with more than 70% of the world's economy, abundant natural resources and a lower inflation rate than India and China, Goeser
says. Its proximity to the United States is another advantage that has made Mexico the most competitive market for building and shipping to the United
States, Goeser says.
But Mexico's cost advantage does not mean poor quality, Goeser contends. If anyone should know, it's Goeser. Goeser joined Ford in 1999 as vice
president of quality before taking over the company's Mexico operations in 2005. She retired from Ford in 2008 before accepting her current role with
Siemens.
As Ford's quality vice president, she led the company's efforts to implement a companywide "consumer-driven" Six Sigma initiative that focused on
customer satisfaction as the primary criteria for selecting Six Sigma projects. By 2004, Ford had documented about $2 billion in savings related to
the program, reported IW sister publication WardsAuto World.
Consumer-driven Six Sigma begins by identifying a customer need and then applying Six Sigma analytical tools to cut defects, which should result in
improved customer satisfaction. Siemens' Mexico business unit focuses on similar quality standards that Goeser says were critical to Ford's success
during her tenure there. "One of the main ideas behind lean and Six Sigma is standardization of processes and actually having processes that match the
needs of the customer," Goeser says. "I also found Six Sigma was one of the major tools for problem solving and design, but in conjunction with a
really lean process is a very powerful way to run a business."
Beyond lean and Six Sigma, the work ethic of Mexico's workforce also plays a major role in achieving high quality standards, Goeser says. "The people
in Mexico, in my experience, are more grateful for jobs and dedicated to their jobs than almost anywhere I've ever been," she says. "They really
appreciate the job and work very hard. If you give them training, they want to learn, absorb, apply."
As evidence, she points to several Ford Mexico plants earning top J.D. Power & Associates ratings while she was the division's CEO. Unlike other
countries facing a talent shortage, finding talent to drive further improvements in the future shouldn't be an issue, says Goeser.
"There's probably an overskilled workforce right now, which means there's plenty of skilled people for not enough jobs," she says."
[Edited on 8-19-2012 by Gypsy Jan]
LancairDriver - 8-19-2012 at 10:15 AM
This transition is in progress now. Most of the worlds major aerospace manufacturers such as Boeing and Airbus and others have been establishing
facilities in Mexico for the past few years with very satisfactory results. Also much of the automobile manufacturing and other manufacturing is being
done in Mexico or is in the process of transferring manufacturing of components to Mexico.
The current political situation in the US that has caused so much uncertainty among employers is accelerating this transition and it is just
beginning. It will be a game changer in both the US and Mexico with the US loosing even more jobs and tax base.
Welcome to the new global economy in which the winners and loosers will be determined by their competitive talents. Having weight and occupying space
in the US no longer qualifys one for earning a living.
Google the General Motors stockholders video of one of our biggest creditors CEO revealing how little will be done by GM in the US in the future.