Carlsbad, California based Callaway Golf Corp announced today that it is moving manufacturing operations to Mexico. Callaway, one of the world’s most recognized golfing companies, will soon start manufacturing state-of-the-art golf balls, the number one rated golf irons and the famous Big Bertha line of clubs, south of the border.

Lured to Mexico by cost savings, Callaway expects to save $35 million to $45 million over the next 3 years. Although some folks are “teed off” at the announcement, many investors realize that Mexico is now the cheapest place to manufacture products bound for the U.S. In fact, many Chinese companies are currently relocating their manufacturing facilities to Mexico.

Over 18,000 American companies are currently operating and investing in Mexico including GM, GE, Ford, Home Depot, Starbucks, Kimberly Clark (Kleenex), Xerox, Bristol-Myers Squibb to name a few, with over $20 billion in direct investment by American companies already committed for 2010-2011.