Maquila overview 2013 eng
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Maquiladora Overview 2013
Maquiladora Industry
• The Border Industrialization Program, enacted in
1965 by the Mexican government, gave birth to the
maquiladora industry. (today IMMEX)
• The main objective was reduction of high
unemployment rates in communities along the
border following the abolition of the Bracero farm
labor program by the U.S.
• Maquiladora Industry was born in Ciudad Juarez in 1965
• Chihuahua is the largest employer in Mexico
(26% of the country)
• The biggest bi national metropolitan area of Mexico and
USA border.
• The seventh largest manufacturer center in North America.
Maquiladora Industry
Infrastructure
Ciudad Juarez offers a solid infrastructure with remarkable
quality at a competitive cost and through reliability.
World Class Infrastructure:
Ground Transportation
Railroad Network
Telecommunications and flights
Ports of Entry
Infrastructure
Ground Transportation
(Highways)
Railroad Network 3 Service Providers: Union Pacific, Burlington-Santa Fe
and Ferromex
Infrastructure
Telecommunications and Flights Access to 2 international Airports
Cd. Juarez – El Paso
Infrastructure
Regional Ports of Entry / Border Crossings
(Annual Totals)
789,283
Trucks
Infrastructure
Business Environment
Ciudad Juarez is the logical option to many companies due
to:
• Outstanding quality of life
• World-class infrastructure
• Highly qualified labor force
• Diversified professional services
El Paso del Norte Region
• + 50,000 jobs in El Paso tied to Mexico
• 3,400 executives, engineers, live in El Paso / work in
Juárez
• +14,000 direct jobs in El Paso related to maquila
• +30,000 indirect jobs in El Paso related to maquila
• $ 8 billion annual purchases creates other opportunities
Business Environment
Maquiladoras established in Juarez
(by country of origen)
68.3%
8.7%
12.2%
9.6%
0.9% 0.3%
USA
EUROPE
MEXICO
ASIA
CANADA
SOUTH AMERICA
Business Environment
Call Center 3%
Packaging 9%
Plastics / Metals
9%
Other 20%
Automotive 29%
Electric 7%
Electronics 18%
Medical 5%
Industrial Sectors
Automotiv
e Leather
Automotive
Electronics/Electric Sector
Source: INEGI
IMMEX Plants
MEXICO
State of CHIHUAHUA
CD. JUAREZ
5,074
482
326
Source: INEGI
New IMMEX Permits
2005 2006 2007 2008 2009 2010 2011 2012 Mar-13
20 28
33
51
39 35
22 23 5
Source: Secretary of Economy
0%
12% 1%
3%
62%
0% 13%
5% 4%
AGRICULTURE, FORESTRY, FISHING AND HUNTING
COMMERCE TRADE
IND. ELECTRIC AND WATER HARVESTING AND POT
CONSTRUCTION INDUSTRY
TRANSFORMATION INDUSTRIES
EXTRACTIVE INDUSTRIES
SERVICES FOR BUSINESS PEOPLE AND THE HOME
COMMUNITY AND SOCIAL SERVICES
TRANSPORT AND COMMUNICATIONS
Juarez Workforce
Source: Social Security
Source: INEGI / Social Security as of March 2012
IMMEX Workforce
Source: INEGI / IMSS
2,241,000
356,707
222,040
Source: Social Security
IMMEX Workforce in Juarez
Ene-12 Abr-12
12-Jul Ago- 12
12-Nov Dic-12
Ene-13 13-Feb
13-Mar
199,556
206,334
213,552 212,926
215,331 213,478
219,765 222,741
222,040
Electrical
9%
Electronics
28%
Other
7%
Plastic/Metal
3%
Packaging/Services
3%
Call Center
4% Medical
9%
Automotive/Aerospace
37%
Sectors Workforce
Maquiladora in Cd. Juárez:
Imports 22.6 Billion USD
Exports 43.0 Billion USD
Largest Manufacturing Centers in North America
517,700
418,900
361,500
254,800 241,717
235,700 230,061
212,400 197,700
185,800 178,700
150,200
122,800 112,800
# Employees
Sources: •SAE Databases: Employment, Hours, and Earnings — State and Metro Area (Current Employment Statistics — CES(May 2012) U.S. Bureau of Labor Statistics.
•INEGI Industria Manufacturera maquiladora y de servicios de exportacion (May 2012) IMMEX. •Cd. Juárez figures collected internally - Asociacion de Maquiladoras A.C. (AMAC) (May 2012)
Updated: August 2012.
Business Environment
Foreign Direct Investment in Chihuahua
75%
17%
2%
1% 1%
1% 3%
JUAREZ
CHIHUAHUA
CUAUHTEMOC
PARRAL
CASAS GRANDES
DELICIAS
OTHERS
Mexico will become the seventh largest economy
in the world in 2020
and contribute 7.8% of Global GDP, more than
Russia and India.
Jim O'Neill. (Director of Investment Funds at Goldman Sachs
Mexico Maquiladora industry proven platform to build
highly-competitive industrial products U.S. and Mexico
Natural trade partners, to compete as a region in global
competition.
It is no longer U.S. versus Mexico.
It is Mexico and U.S. competing together as
partners.
Maquiladora Overview 2013