China Production Advantage Erodes as US, Mexico Gain

China could lose advantage over the U.S. in five years if freight rates rise 5 percent annually. The cost advantage of manufacturing products in low-cost manufacturing locations in Asia will erode in comparison to the U.S. and Mexico in 2012, according to a new report by global consultancy AlixPartners.

Booming Mexico-U.S. Trade Buoys Kansas City Southern: Freight

Kansas City Southern railcars are rumbling over the Rio Grande as record trade between Mexico and the U.S. buffers the railroad from a slowing global economy. Escalating shipping and labor costs in world manufacturing centers such as Asia have encouraged companies including Nissan Motor Co. and DuPont Co. to shift capital spending to Mexico. Many of the goods produced by their investments will head to the U.S., the destination for about 80 percent of Mexico’s exports.

Year-to-year NAFTA trade up 12% in October

Trade using surface transportation between the United States and its North American Free Trade Agreement partners, Canada and Mexico, was 12.0 percent higher in October 2011 than in October 2010, totaling $79.0 billion, according to the Bureau of Transportation Statistics of the U.S. Department of Transportation. The value increased 1.7 percent in October from September; month-to-month changes can be affected by seasonal variations and other factors.

Audi may lean to Mexico for new auto plant, report says

Volkswagen's luxury brand Audi may be leaning toward Mexico for a North American assembly plant, according to WardsAuto, an automotive industry website. The report cited Mexico's lower labor costs and also said a facility there would allow Audi to export vehicles to South America and even to Europe if necessary, without paying excessive import and export tariffs.