HomeNewsBriefLarge US Companies Still Investing Heavily in Mexico: Report
BRIEF

Large US Companies Still Investing Heavily in Mexico: Report

MEXICO / 6 FEB 2012 BY JAKE HARPER EN

Despite rising crime in northern Mexico, large US companies have continued to invest billions in the region, reports the Houston Chronicle.

According to the newspaper, companies such as Baker Hughes and the supermarket giant H-E-B are still investing heavily; Texas companies alone accounted for $3.5 billion in investments in Mexico in the last last five years.

While direct foreign investment fell by as much as 20 percent in troubled northern border states such as Nuevo Leon, close to 2 million workers are still employed in 5,500 US-owned factories, the article adds.

States such as Nuevo Leon and Tamaulipas along the Texas border have seen significant spikes in violence in the last two years, making them some of the most dangerous places in Mexico. Most of the homicides and fighting are blamed on fighting between the Zetas and their progenitor-turned-rival the Gulf Cartel.

InSight Crime Analysis

Why is investment continuing? The article says cheap labor and proximity to US markets remain a strong lure for these companies. What's more, spikes in killing, assault, theft, burglary, and kidnapping in large industrial hubs such as Monterrey are seen as temporary, and do not outweigh the apparent financial benefits of operating in the region.

Mexico will remain an attractive investment and growth market for US companies, especially for those in the oil and gas sector who are accustomed to working in difficult, violent and politcally volatile environments and have the money to pad their security.

And as InSight Crime has reported, most of the victims of this type of crime are smaller companies with fewer than 50 employees, who do not have the money or the connections to obtain extra security. These businesses are often forced to pay extortion and, in some cases, close because of these pressures.

share icon icon icon

Was this content helpful?

We want to sustain Latin America’s largest organized crime database, but in order to do so, we need resources.

DONATE

What are your thoughts? Click here to send InSight Crime your comments.

We encourage readers to copy and distribute our work for non-commercial purposes, with attribution to InSight Crime in the byline and links to the original at both the top and bottom of the article. Check the Creative Commons website for more details of how to share our work, and please send us an email if you use an article.

Tags

Was this content helpful?

We want to sustain Latin America’s largest organized crime database, but in order to do so, we need resources.

DONATE

Related Content

COVID AND CRIME / 19 AUG 2021

The number of human trafficking victims in Mexico is growing, as traffickers target vulnerable people hit hard by the COVID-19…

COVID AND CRIME / 22 JUL 2021

After peddling fake tests and vaccines for the coronavirus, criminals are now selling counterfeit vaccination certificates in Mexico City, allowing…

COCAINE / 13 APR 2022

The arrest of yet another alleged Sinaloa Cartel emissary in Colombia has once again raised questions about the extent of…

About InSight Crime

THE ORGANIZATION

All Eyes on Ecuador

2 JUN 2023

Our coverage of organized crime in Ecuador continues to be a valuable resource for international and local news outlets. Internationally, Reuters cited our 2022 Homicide Round-Up,…

WORK WITH US

Open Position: Social Media and Engagement Strategist

27 MAY 2023

InSight Crime is looking for a Social Media and Engagement Strategist who will be focused on maintaining and improving InSight Crime’s reputation and interaction with its audiences through publishing activities…

THE ORGANIZATION

Venezuela Coverage Receives Great Reception

27 MAY 2023

Several of InSight Crime’s most recent articles about Venezuela have been well received by regional media. Our article on Venezuela’s colectivos expanding beyond their political role to control access to…

THE ORGANIZATION

InSight Crime's Chemical Precursor Report Continues

19 MAY 2023

For the second week in a row, our investigation into the flow of precursor chemicals for the manufacture of synthetic drugs in Mexico has been cited by multiple regional media…

THE ORGANIZATION

InSight Crime’s Chemical Precursor Report Widely Cited

THE ORGANIZATION / 12 MAY 2023

We are proud to see that our recently published investigation into the supply chain of chemical precursors feeding Mexico’s synthetic drug production has been warmly received.