U.S. sales to southern neighbor are on the rise
San Francisco, CA -- (SBWIRE) -- 10/09/2012 -- Mexico’s demand for products “Made in America” is fueling U.S. trade and job growth.
A growing Mexican middle class hankers for U.S.-produced goods, which are seen as bigger and better than those that are locally made.
“The first thing I think when I see (“Made in America”), I think big – quality and big,” Sandra Campos of Mexico City told ABC News.
The Camposes shop at Costco in Mexico City, and the family grocery list looks a lot like an American list. Their Costco offers potato chips from Massachusetts, granola bars from New Mexico and toaster pastries from Michigan.
Sandra Campos’ husband has a taste for Kirkland turkey breast. “It’s almost fat-free,” Antonio Campos exclaimed.
The Camposes pay more for their groceries, but they say it is worth it. Grapes from the United States are “superior quality compared to other kinds of grapes,” Antonio Campos said.
Mexico’s middle class has been growing. More than 50% of the population now is considered middle class, up from only 12% about 20 years ago.
This expanding segment accounts for a 17% growth in trade with the United States, the U.S. Census Bureau found. Sales of U.S. products have doubled over five years, to $198 billion, and those sales are linked to 6 million jobs in the United States.
Costco’s best-selling product is baby wipes, made in Orangeburg, N.Y. The Nice-Pak Products factory that makes the wipes has hired for 2,500 jobs since the recession.
Nice-Pak’s chairman, Robert Julius, demonstrated the advantages of his product compared with a Mexican-made wipe. The Kirkland Signature baby wipes are stronger and larger, but also softer, he said.
“There is a general feeling in almost all international markets (that) “Made in the USA” means great quality and it’s better,” Julius told ABC News.
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