Business opportunities for energy companies interested in oil and gas, eolic and solar energy projects in Mexico.
To learn more go to:
http://www.energybusinessinmexico.com
1. OILAND GAS, EOLICAND SOLAR PROJECTS, LOCATIONSAND CONDITIONS.
Business Opportunities with the Energy Reform in Mexico
BY XAVIER HURTADO
MEXICO’S ENERGY BUSINESS FACILITATOR
FACILITATOR@ENERGYBUSINESSINMEXICO.COM
WWW.ENERGYBUSINESSINMEXICO.COM
2. About the Energy reform in Mexico and what it means for your business
Locations and projects where you can start and grow your business in Mexico
How to start business operations in Mexico
How to find skilled human resources for your project
How much it will cost you to start doing business in Mexico
Contents
4. •KeyregionsinMexicobystate: Chihuahua,Coahuila,NuevoLeon, Tamaulipas,Veracruz,Tabasco, Campeche.
•Keyprojectswhereyoucanparticipate:
•100newindustrialplants
•63marineplatforms
•129marinepipelines
•43terrestrialpipelines
•5On-deckprojects
•17Storage,distributionandPumpterminals
•Explorationprojects
•Amongmanyotherprojectsaccountingforapurchasingpoolof$200,000MillionUSDinthenext10years.
Locations and projects where you can start and grow your business in Mexico: Oil and Gas
Are you ready to participate and take a share of this business?
5. Locations and projects where you can start and grow your business in Mexico: Solar and Eolic Energy
•KeyregionsinMexicoforSolarEnergy: MostnorthernMexicoincludingChihuahua,Sonora,Coahuila,BajaCalifornia,Durango.Thisregionproducesmorethan2timesthesolarenergygeneratedinGermany.
•KeyregionsinMexicoforEolicEnergy: Chihuahua,Coahuila,BajaCaliforniaandsomeregionsintheSouth-EastpartofMexico:Chiapas,Yucatan,Campeche, QuintanaRoo.
•Inthepreviousregionsyouwillbeabletoproduce,generate,transform, distributeandsellenergytoendusersintheindustry,oreventotheStateownedcompany:CFE(ComisionFederaldeElectricidad.
Solar EnergyMap
Are you ready to participate and take a share of this business?
6. ONCE YOUDECIDE TO STARTYOURBUSINESS, WHATMODELWILLBE THEBESTFORYOU?
5 Business models to start business operations in Mexico
7. 5 Business models
•Finding a Joint Venture Partner
•Acquiring an existing operation
•Starting up with a Stand Alone operation
•Contract Manufacturing
•Starting up with a Shelter Program
8. 5 Business models
Finding a Joint Venture Partner
•Acquiring an existing operation
•Starting up with a Stand Alone operation
•Contract Manufacturing
•Starting up with a Shelter Program
–They might be experts to do business in Mexico
–They might speed up the start up process due to local networking
–They might be well connected to help you import & export
–You do not have full control of your operation
–You have the risk of losing your intellectual property
–You will face liabilities in Mexico in case of any mistakes or problems with the operations
9. 5 Business models
•Finding a Joint Venture Partner
Acquiring an existing operation
•Starting up with a Stand Alone operation
•Contract Manufacturing
•Starting up with a Shelter Program
–Employees will already have the needed training for your process
–Legal and operational permits might already be compliant
–High entrance cost
–You will be responsible for all the previous and ongoing legal and operational liabilities
10. 5 Business models
•Finding a Joint Venture Partner
•Acquiring an existing operation
Starting up with a Stand Alone operation
•Contract Manufacturing
•Starting up with a Shelter Program
–You will have full control of your operation
–High entrance cost
–High and costly learning curve
–Lack of local networking
–High risk and liabilities for all legal, labor, fiscal and customs start-up and operational permits (functions that are not your core business)
11. 5 Business models
•Finding a Joint Venture Partner
•Acquiring an existing operation
•Starting up with a Stand Alone operation
Contract Manufacturing
•Starting up with a Shelter Program
–You will never have control of your production
–You risk your intellectual property
12. 5 Business models
•Finding a Joint Venture Partner
•Acquiring an existing operation
•Starting up with a Stand Alone operation
•Contract Manufacturing
Starting up with a Shelter Program
–You will have immediate access to the local networking and know- how to do business in Mexico
–You have full control of your operation
–You can start up in less than 9 weeks
–You can choose to not have a legal entity in Mexico
–No liabilities in Mexico: labor, fiscal, legal and other operational permits
–No VAT effectonyourcash flow
–No Incometaxforthefirst4 yearsof operationsin Mexico
13. Our Value Proposition “Why a Shelter Program?”
Because it facilitates de successful establishment of international corporations in Mexico.
14. “You bring your industrial expertise, the shelter provides you with a comprehensive package of administrative functions required for your business to succeed in Mexico.”
In the Shelter Concept
You Focus on your Business, Let the Shelter Manage everythingelse!
15. Services Covered Under a Shelter Program
Site Selection
Legal, Operational & Environmental Permits
Human Resources
Customs & Duties Optimization –IMMEX PROGRAM SETUP
Accounting &Fiscal
Purchasing of Office Supplies, Consumables & Services
Employee and/or Union Relationship Management
Full Expatriate Support for your employees and their families
Access to AI network & relationships
16. Working Framework
Incorporated
Operations are performed under clients’ Mexican Legal Entity. This requires a more robust organization and income tax obligations.
American Industries is able to offer the same scope of services in either framework. Sales in Mexico can be done in both scenarios.
Not Incorporated
Operations are performed under American Industries’ Mexican Legal Entity. It simplifies the compliance with Mexican regulations, translating into important cost savings. Client is exempt from income tax during the first four years of operation.
17. Responsibilities under a Shelter Program
•Management to direct operations.
•Machinery & equipment.
•Raw materials.
•Full control over
production and quality.
Manufacturing
Maintenance
Client
American Industries
Engineering
Design
Quality
Scheduling
Raw Materials
Inventory
Management
Purchasing
Direct Mat
Purchasing
Indirect Mat
Import & Export
Customs
Duties Optimization
Logistics
Operational
Permits
Accounting
Fiscal
Accounts Payables
& Receivable
Human
Resources
Recruitment
& Selection
Training
compliance
Salary & Benefits
Administration
Payroll
Labor
Management
Union Relation
Plant Manager
General
Administration
Environmental
compliance
Expat Support
18. Flexible Terms
Typical Shelter Terms:
•AmericanIndustrieshaswell-definedprocedurestohaveasmoothtransitionwhentheclientmovesoutsidetheShelterProgram.(Service#37)
•No entrance or exit fee.
•All size of projects.
•Most customers renew all or some services.
Start-up1 year
Start-up & Run2 years
Start-up & Growth> 3 years
19. Start Up Program
In summary…
You can count on American Industries expertise to start and maintain a successful operation by avoiding unnecessary problems and costly mistakes.
20. 10 things to look for in a Start up Partner or Shelter Program
Makesureyougetthefollowingbenefits:
1.Free CostModelSimulationcomparingdifferentregions
2.Flexible commitment: on any size project (headcount or Sq. Ft.)
3.No entrance or exit fee at the termination of your contract (with coordinated exit strategies)
4.Fast and worry free start-up operations (9 weeks)
5.Flexibility on how to operate in Mexico: incorporated or not Incorporated
6.Tax Savings: No VAT and no INCOME TAX for the first 4 years of operations.
7.Billing transparency & no mark ups on purchasing in Mexico
8.Full Compliance Assistance: fiscal, customs, labor and environmental (no red tape and no administrative risk or liabilities)
9.CustomsCertifiedProgram: quickprocessingoncross-bordertransactions
10.Ask forfull administrativesupport: itwillallowyou to concentrate 100% on your operation, not on human resources recruitment, looking for suppliers and so on.
21. LEVERAGING ON EXISTING INDUSTRIES THROUGHOUT MEXICO
How to find skilled human resources for your project in Mexico
22. Finding skilled human resources for your project in Mexico
Dependingontheregionwhereyoudecidetoestablishyourbusiness,youcanleverageontheacademicprogramsalreadyestablishedtoserveotherindustriesoryoucanevenrequesttogetatailoredtrainingprogramforyouroperationasagovernmentincentive.
Theseisasampleofwhatyoucanfindinoneoftheregionsthatwementionedasakeyregionforthe3energybusinessopportunitiesinMexico(shalegas,solarandeolicenergy)
Skillset:
•–Manufacturing:CNCMachining,highprecisionwelding,wireharnessing(automotiveandaerospace),assembly.
•–Engineering&design:CatiaV5,SolidWorksandstartingtodevelopUnigraphics.
•Unemploymentrate3.5%
•Availablequalifiedworkforce77,000
•NOstrikesformorethan16years
•43,000kpeopleinemployedinmanufacturingsector
Academicinfrastructure
•7publicand8privateuniversities
•4technicalschools
•Averageof3,000newengineersand1,500techniciansgraduateeveryyear
23. 1 STEP TO GET A FREE COST MODEL SIMULATION FOR MEXICO
Howmuchwillitcostyouto operatein Mexico?
26. AboutAmerican IndustriesGroup
American Industries Group is a private Mexican company that has helped over 200 global companies to successfully establish and run manufacturing operations throughout Mexico since 1976 through Site Selection, Administrative “Shelter” services and Industrial Real Estate.
27. 1) Site selection:we will help you find the right location to start your operations or we will help you get it built for your specifications. 2) Administrative start up:we will help you with all the legal, operational and environmental permits to start your operation 100% compliant. 3) Human resources recruitment:we will help you find the right human capital with the skills you need to run your operations in Mexico. 4) Payroll:we will help you process payroll, from getting your time and attendance movements to getting your personnel paid on time. 5) Customs: we will help you to import all your machinery, equipment and raw materials as well as to export the finished goods (if it applies). 6) Fiscal and accounting: we will help you with all your taxation processes and reports. 7) Expatriate relocation: we will help you to relocate your project managers, engineers and their families, including finding housing, schooling, and all they will need to have a great stay in Mexico.
Howwehelpenergycompaniesto startdoingbusinessin Mexico
28. OurLocations& Score Card
Shelter& Start-up Services
Real Estate
•50 Customers.
•Over 8,500 Customer’s headcount
•Over 30,000 trouble-free import and export transactions per year.
•We builta 12 M Sq. Ft. Portfolio.
•Full Mexican Market Coverage
•9 Industrial Parks
•90 Buildings
•89 Customers
29. What are the Next Steps?
Request a FREE Cost Model Estimate of how much it would cost you to operate in Mexico
Join a commercial mission or request a tailored agenda
Request your free cost model today at:
http://www.EnergyBusinessInMexico.com/request-help.html