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Growth Factors in the Maquila Industry

Edward Y. George, Wilma Hoffman

Abstract


The maquila industry has been experiencing rapid growth for the last two decades. In order to assess the prospects for future growth, it is necessary to identify those factors that have encouraged this growth. To identify those factors, a sample of maquilas in the fastest growing segment of the industry was chosen. A sample of twenty-four maquilas, sixteen in Cd. Juárez and eight in Cd. Chihuahua, were selected as representing the fastest growing segment of the maquila industry. The manufacturing categories represented in the sample included apparel and other textile products, furniture and fixtures, transportation equipment, electric and electronic machinery, electric and electronic parts and accessories and other manufacturing operations. The maquilas included in the sample represent 82.5 percent of the manufacturing structure of the industry and 86.6 percent of the employment in the second generation of maquilas (Table 1). During the past two decades the maquila industry's manufacturing structure has remained relatively stable. Therefore, the data analysis should provide a basis for determining the potential for further growth in the maquila industry and the motivations for locating American plants in Mexico.

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Print ISSN: 0886-5655
Online ISSN: 2159-1229

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