Mexico's Two-Track Recovery
Bloomberg Businessweek|September 27, 2021
A U.S.-powered rebound along the northern border has left much of the country behind
Max de Haldevang and Maya Averbuch
Mexico's Two-Track Recovery

Diana Rivapalacio didn’t expect to be back on the factory floor two weeks after the pandemic hit. When the Tijuana facility of Tokyo-based SMK Corp. shut down in April 2020, quality-control manager Rivapalacio and the business’s 800 machine operators, inspectors, and administrators headed home to uncertainty. But many returned to work that same month.

They had their city’s location on the U.S. border to thank. Like many manufacturers, SMK avoided a longer lockdown by convincing Mexican authorities that one of its products, a tiny location tracker, was essential since it could be used to trace shipments of vaccines or medical equipment.

Spurred by U.S. demand for Mexican-produced goods, which had been supercharged by stimulus payments, scores of companies across Tijuana found reasons to stay open—as did businesses in the rest of Baja California and other northern states. “On the border we’re doing international business,” Rivapalacio says. “They depend on us, and we depend on them.”

Other parts of Mexico haven’t been so lucky. “Every sector is having a very bad time,” says Sergio Baños, mayor of Pachuca, the capital of Hidalgo, a state near Mexico City where wholesaling, retail, and services dominate. Hidalgo’s economy contracted more than twice as much as Baja California’s last year. Formal employment in Pachuca was down 12% in the second quarter of 2021 from the beginning of 2020. In Tijuana, it rose 8%.

This story is from the September 27, 2021 edition of Bloomberg Businessweek.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.

This story is from the September 27, 2021 edition of Bloomberg Businessweek.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.

MORE STORIES FROM BLOOMBERG BUSINESSWEEKView All
Instagram's Founders Say It's Time for a New Social App
Bloomberg Businessweek US

Instagram's Founders Say It's Time for a New Social App

The rise of AI and the fall of Twitter could create opportunities for upstarts

time-read
4 mins  |
March 13, 2023
Running in Circles
Bloomberg Businessweek US

Running in Circles

A subscription running shoe program aims to fight footwear waste

time-read
3 mins  |
March 20 - 27, 2023
What I Learned Working at a Hawaiien Mega-Resort
Bloomberg Businessweek US

What I Learned Working at a Hawaiien Mega-Resort

Nine wild secrets from the staff at Turtle Bay, who have to manage everyone from haughty honeymooners to go-go-dancing golfers.

time-read
10 mins  |
March 20 - 27, 2023
How Noma Will Blossom In Kyoto
Bloomberg Businessweek US

How Noma Will Blossom In Kyoto

The best restaurant in the world just began its second pop-up in Japan. Here's what's cooking

time-read
3 mins  |
March 20 - 27, 2023
The Last-Mover Problem
Bloomberg Businessweek US

The Last-Mover Problem

A startup called Sennder is trying to bring an extremely tech-resistant industry into the age of apps

time-read
10+ mins  |
March 20 - 27, 2023
Tick Tock, TikTok
Bloomberg Businessweek US

Tick Tock, TikTok

The US thinks the Chinese-owned social media app is a major national security risk. TikTok is running out of ways to avoid a ban

time-read
10+ mins  |
March 20 - 27, 2023
Cleaner Clothing Dye, Made From Bacteria
Bloomberg Businessweek US

Cleaner Clothing Dye, Made From Bacteria

A UK company produces colors with less water than conventional methods and no toxic chemicals

time-read
3 mins  |
March 20 - 27, 2023
Pumping Heat in Hamburg
Bloomberg Businessweek US

Pumping Heat in Hamburg

The German port city plans to store hot water underground and bring it up to heat homes in the winter

time-read
3 mins  |
March 20 - 27, 2023
Sustainability: Calamari's Climate Edge
Bloomberg Businessweek US

Sustainability: Calamari's Climate Edge

Squid's ability to flourish in warmer waters makes it fitting for a diet for the changing environment

time-read
4 mins  |
March 20 - 27, 2023
New Money, New Problems
Bloomberg Businessweek US

New Money, New Problems

In Naples, an influx of wealthy is displacing out-of-towners lower-income workers

time-read
4 mins  |
March 20 - 27, 2023