Supplier opportunities with manufacturers in the Southern California/Baja California mega region. By Flavio Olivieri - Tijuana EDC

1. Supply Chain
Opportunities in
Calibaja
November, 2013
Flavio Olivieri
Tijuana EDC, CEO

2. Click to s Free Trade Agreements
Mexico edit Master title style
Network
• Click to edit Master text styles
– Second level
• Third level
– Fourth level
1994 Mexico’s pro-international trade policies have created a world-wide
» Fifth level
network of free trade treaties with 44 countries, including:
11/19/2013
2

3. Mexico s Global Competitiveness
•
•
•
•
•
Total U.S. cost to market
Stable economy
Ease of doing business
Speed to market logistics
Strong IP protection
“Mexico is in a strong position to be a significant winner from shifts in the global economy.
That is good news not only for Mexico, it’s also good for America, since products made in
Mexico contain four times as many U.S.-made parts, on average, as those made in
China.”, Boston Consulting Group

4. Why Mexico by the numbers
Competitive Countries
Total Landed Cost in the U.S.
Technological Sophistication Index
2.96
OECD
Latin America
3.25
2.49
Brasil
Argentina
Chile
Engineering students
2.16
Mexico
2.06
1.58
750,000
115,000
graduates every
year

5. 76 airports
133K
kilometers of roads
27K
kilometers of railroads
117 seaports

6. Imports
Exports
From Philippines to
Mexico
From Mexico to
Philippines
Food processing
Telecommunications
equipment
Manufacturing of
plastic products
Manufactured goods
Semiconductors
Chemical products
Sugar based
products
(Million dollars)
Mexico is Philippines´ 3rd trade partner in America, after
U.S. and Canada.

8. Tijuana´s industry
Employment by Economic Sector
5%
4% 1%
6%
11%
47%
26%
Manufacturing
Profesional Services
Other Activities
Mining
Commerce
Construction
Transport/ Communications
Agriculture

9. Tijuana´s industry
Manufacturing companies and employment
Tijuana’s Manufacturing Industry 2000-2013p
900
200.000
800
180.000
700
160.000
140.000
600
120.000
500
100.000
400
80.000
300
60.000
200
40.000
100
20.000
0
Plants
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
819
725
590
562
575
578
568
567
569
587
599
569
540
563
Employees 189.6 150.0 138.7 141.9 159.2 169.4 173.7 170.4 170.5 149.4 136.9 148.2 154.41 164.90
Source Inegi, IMMEX companies
-

10. Tijuana Key Industrial
Sectors
Electronics
Medical
Automotive
•114 Companies
• 55.000 employees
Aerospace
•42 Companies
• 32,000 employees
#1 North America
• 27 Companies
• 7,300 employees
• 40 Companies
• 18,000 employees

11. Supply Chain Opportunities
Aerospace and defense industry
Value of imports $1.2 billion annually
Product area:
Metal structures
Castings and forges
Composite materials
Plastics
Optical fiber
Fiber glass
Wires and harnesses
Services:
Precision machining
Heat treatment
Metal Stamping
Anodized
Aerospace design
Thermoforming

12. Supply Chain Opportunities
Medical Device Industry
Value of imports $1.5 billion annually
Product area:
Plastic and rubber parts
Electronic components
Microparts (screws)
Metallic components
Foam
Services:
Sterilization
Precision micro machining
Microbiological laboratories
Calibration
MRO (Industrial Maintenance
Service, repair and operation of
machines).
Rotational molding of plastic
parts.

13. Supply Chain Opportunities
Electronics Industry
Value of imports $6.5 billion annually
Product area:
Printed circuit boards (PCB)
Microprocessors
Plastic injection molding
Packaging
Cable & harnesses
Services:
MRO
Labeling services
Recycling

14. Supply opportunities
Automotive Industry
Value of imports $1 billion annually
Product area:
Composites
Iron & alluminium
Cable & harnesses
Valves, Hoses
Services:
Precision machining
Metal plating
Diecastings, welding, stamping,
finishing, etc.
Plastic Molding (thermoforming)

15. Supply opportunities
Plastics Industry
Estimated annual demand $1 billion
Source SEDETI 2011 survey
Product area:
Resins
Corrugated card board
Services:
Molding services (Contract
manufacturing)
Industrial design services
Powder coating

16. Supply opportunities
Medical Device and Aerospace
Supplier Development Events:

17. About Tijuana EDC
• Non-profit business
organization with over 20 years
of experience in industrial
promotion.
• The Tijuana EDC facilitates the
establishment of manufacturing
and business operations in
Tijuana, Mexico.

18. Investors Services
Information on
regulations, accounting,
customs
Site Selection Support
Facilitate
Government incentives
Business Services
One-Stop-Shop
Facilitate initial
recruiting

19. Trade- Strategic Alliances

20. Thank you!
folivieri@tijuanaedc.org
www.tijuanaedc.org