A few manufacturers that moved production to China from Mexico have returned to Mexico, for a variety of reasons. Mexico still lost as much of its manufacturing base proportionately as the United States did, if not more, when China ramped up its capacity in the 1990s.

Mexico is on the upswing, however, this year. In the first six months of 2007, Mexico's foreign direct investment reached $13.24 billion, which is a good year by itself. The surprised Mexican government has raised its 2007 projection to $23 billion from $18.3 billion.

If U.S. companies are investing more in Mexico, it is likely they also are investing in additional U.S. plants and expansions. U.S. manufacturing orders rose in five of the first seven months of 2007, according to government statistics.