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Joe Hage
🔥 Find me at MedicalDevicesGroup.net 🔥
August 2018
NAFTA, AMLO, and you: Would you manufacture medical devices in Mexico?
2 min reading time

Group member Alma Denisse Martinez submitted a discussion that warrants a larger audience. She posted an article, “Mexico’s new President-Elect Lopez Obrador and the future of NAFTA and Mexican Manufacturing.”

Some excerpts (paraphrased for brevity):

  • Leftist Andres Manuel Lopez Obrador (AMLO) won in a massive landslide… [in a] mandate to change the country. What does this mean for manufacturing in Mexico and the future of NAFTA?
  • Rivals’ propaganda and memes said AMLO would be disastrous for Mexican business.
  • In his post-victory, AMLO said he’d sign NAFTA, affirmed practical economic policies, and the independence of the Bank of Mexico. (As former mayor, he had been a stauch NAFTA critic and has since adjusted his views, championing better wages and working conditions within existing trade agreements.)
  • The US will resume NAFTA negotiations after the November elections, giving AMLO some time.
  • Commentators suggest AMLO wants to put money into infrastructure, to be fiscally responsible, to gain investor confidence. They saw possible public-private investments, particularly in energy and power.

The unabridged article at https://medgroup.biz/AMLO.

For the group:

  • Do you have experience manufacturing in Mexico?
  • Do you believe NAFTA and/or the election will impact conditions materially?
  • If you produce outside your country, was Mexico ever in your consideration set and rejected for some reason?

+++

Agnitio’s take on an interesting BCG study at https://medgroup.biz/medtech-commercial-model. “Clinician-focused models generate revenues per sales rep 35% to 50% of those generated by companies targeting administrative decision makers.”

The demise of our LinkedIn group

The inside scuttlebutt among owners of big LinkedIn groups like mine say today (Tuesday, August 28, 2018) is the day LinkedIn starts the conversion to new groups.

This is the content of my last announcement to the group: “I SEE DEAD GROUPS.”

And yes, I am quite pleased with my little meme here.

Thank you for being part of our Medical Devices Group community.

Make it a great week.

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Joe Hage
Medical Devices Group Leader

P.S. So you know how I say my 10x events are fun?

This is one of the between-session clips I played. Still makes me laugh.

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From my knowledge point (please correct me if I am wrong), the prospect of manufacturing medical products (and other industries) in Mexico (and Canada) and importing them into the US, has long been favored by the US Government (with low or no tariffs and favorable trade status). It now appears that with the new trade policies being initiated by President Trump that the low costs of manufacturing in Mexico (and Canada) may become less favorable through import duties/tariffs and other measures.

So the jury is still out on this…

I personally do not favor moving more jobs out of the US.

However, “Practically speaking” (with my business hat on) I would not move nor expand manufacturing in Mexico or Canada until the Trade Negotiations by President Trump are somewhat completed (timeframe is unknown) and the total cost (plus return on the initial investment) is known!

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