Outsourcing

[rogpodge]

I saw Mick’s discussion of his family’s food processing business succumbing to NAFTA and outsourcing pressure. My question is, why not outsource to El Salvador now that Bukele has made the country safe? It’s on the West Coast, so no need to transit the Panama Canal, it has three major ports, and is starting to bring corruption under control. There seems to be opportunity here.

[Mick1]

Possibly, assuming you can deal with the criminal elements.

It used to be that 85% of the fruit was grown in California with 12% in France and 3% in Yugoslavia. It’s now down to 39% in CA, Chile has 26%, France has increased to 24% and Argentina is 9%, with Italy, Australia and South Africa all between 1% and 2%.

My family’s business (started by a ’42 Stanford grad) used to export to 48 countries. Went BK about two years ago, thanks to high labor costs, high taxes, poor strategic decisions, management infighting, etc.

e14ef-country-statistical-reports_ipacongress

Audaces fortuna iuvat

[rogpodge]

https://www.statista.com/statistics/947781/homicide-rates-latin-america-caribbean-country/

Bukele has made El Salvador the safest country (well, by murder rate) in Latin America. It is midway between Chile and California, and I assume looking for foreign investment. I believe they just rolled out an investment / special skills visa program. Did they do chapter 7 or 11 bankruptcy?

[Mick1]

Chapter 7. There are inter- and intragenerational lawsuits flying between my cousins and two uncles. Thankfully, I was never in the business, my granddad passed 16 years ago, and my dad retired 20 years ago.

Audaces fortuna iuvat

[Author]

Posts