2. 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.
3. • 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
4.
5. 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
11. 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
12. 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
13. 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
21. 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
22. Source: INEGI / Social Security as of March 2012
IMMEX Workforce
Source: INEGI / IMSS
2,241,000
356,707
222,040
27. 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.
28.
29. Business Environment
Foreign Direct Investment in Chihuahua
75%
17%
2%
1%1%
1%3%
JUAREZ
CHIHUAHUA
CUAUHTEMOC
PARRAL
CASAS GRANDES
DELICIAS
OTHERS
30. 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
31. 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.
32. It is no longer U.S. versus Mexico.
It is Mexico and U.S. competing together as
partners.