The Offshore Group Value Proposition


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Learn how The Offshore Groups enables manufacturers in Mexico to increase their bottom-line by initiating and maintaining low-cost manufacturing centers under its Mexico Shelter Plan.

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The Offshore Group Value Proposition

  1. 1. The Offshore Group Innovative Outsourcing Presented to: Nissan Purchasing World-Class Support For Manufacturers Our Team Of Over 500 Experts Working For You
  2. 2. Presentation Objectives: <ul><li>Who we are </li></ul><ul><li>What we do </li></ul><ul><li>How The Offshore Group services can enable companies to reduce their manufacturing costs </li></ul>World-Class Support For Manufacturers The Offshore Group
  3. 3. Who is The Offshore Group? World-Class Support For Manufacturers The Offshore Group <ul><li>Our team of over 500 people are trained, knowledgeable, experienced, and focused on meeting manufacturer ’s non-production needs day-to-day. </li></ul><ul><li>Over 40 software systems to control HR, Payroll, Import & Export, Purchasing, Employee Busing, Building Maintenance, and many other administrative functions have been developed in-house and are continuously being improved, and which provided unmatched value to Clients. </li></ul><ul><li>Cross docking facilities near the U.S.-Mexico border which are focused on eliminating delays, preserving the integrity of goods, maintaining legal compliance … at the lowest possible cost. </li></ul><ul><li>A company driven by its principles, continuously improving, and certified under the ISO 9001-2008 standard. </li></ul>
  4. 4. World-Class Support For Manufacturers The Offshore Group <ul><li>Offshore International, Inc. </li></ul><ul><li>Offshore International, LLC </li></ul><ul><li>Maquilas Tetakawi S.A. de C.V. </li></ul><ul><li>Manufacturas Zapalinamé S.A. de C.V. </li></ul><ul><li>International Logistic Solutions (ILS) </li></ul><ul><li>Vangtel Nearshoring Solution </li></ul>
  5. 5. Legal Structure/Roles Client Maquilas Teta Kawi Manufacturas Zapaliname Offshore International U.S. Mexico U.S. Mexico U.S. Contract <ul><li>Mexican Governmental & Regulatory Entities </li></ul><ul><ul><li>- Fiscal </li></ul></ul><ul><ul><li>- Labor & Unions </li></ul></ul><ul><ul><li>- Social Security & Welfare </li></ul></ul><ul><ul><li>- Customs </li></ul></ul><ul><ul><li>- Commerce </li></ul></ul><ul><ul><li>- Environmental </li></ul></ul><ul><ul><li>- Health & Safety </li></ul></ul><ul><li>Trade within Mexico </li></ul><ul><li>Legal Council </li></ul>Client Operations In Saltillo Client Operations In Guaymas MX Affiliates Legal Presence in Mexico
  6. 6. Our Strategic Locations World-Class Support For Manufacturers The Offshore Group Los Angeles Tijuana Mexicali Tucson Nogales Cd. Juarez Guaymas Hermosillo Chihuahua Houston Reynosa Monterrey Altamira San Luis Potosi Queretaro Guadalajara Mexico City Manzanillo Honduras El Salvador Guatemala Mazatlan Mission Gulf of Mexico Sea of Cortez Asian, European, & South American Ports Brownsville Saltillo
  7. 7. The Offshore Group ’s La Angostura Industrial Park Located in Saltillo, Coahuila Mexico
  8. 8. The Offshore Group ’s Bella Vista Industrial Park Located in Empalme, Sonora Mexico
  9. 9. What we do: World-Class Support For Manufacturers The Offshore Group We enable our clients to achieve overall cost reductions by operating in Mexico; and for our clients to simultaneously preserve or even improve quality and delivery while avoiding financial and operational risks that may be associated with doing business in a foreign country.
  10. 10. What You Do & Control: World-Class Support For Manufacturers The Offshore Group What We Do: Customer Service Manufacturing Technology Training Production Supply-Chain Engineering Quality Human Resources Payroll & Benefits Import & Export Accounting & Taxes Local Procurement Employee Busing Facilities Maintenance Environmental & Safety Labor Union Relations Park Management Corporate Citizenship
  11. 11. Employee Busing La Angostura Industrial Park Saltillo, Coahuila Mexico
  12. 12.
  13. 13.
  14. 14. Benefits of The Offshore Group Shelter Program. The Offshore Group <ul><li>No upfront costs, no need to form and maintain a legal entity & fast startup </li></ul><ul><li>Experienced labor recruiting </li></ul><ul><li>Experienced leadership/mgmt. recruiting </li></ul><ul><li>Reduced labor turnover </li></ul><ul><li>Improved labor attendance </li></ul><ul><li>Effective labor union relations & negotiations </li></ul><ul><li>Ensures market wages and benefits </li></ul><ul><li>Expert employee problem resolution </li></ul><ul><li>Reduced border crossing costs and delays </li></ul><ul><li>Assurance of Mexican Customs Compliance </li></ul>World-Class Support For Manufacturers The Offshore Group <ul><li>Expert logistics support </li></ul><ul><li>Assurance of Mexican Environmental Compliance </li></ul><ul><li>Access to local vendors and service providers </li></ul><ul><li>Secure & safe industrial parks </li></ul><ul><li>Fast response to building maintenance, repair, and utilities issues </li></ul><ul><li>Building upsize / downsize flexibility </li></ul><ul><li>No government reporting </li></ul><ul><li>No income tax </li></ul>
  15. 15. World-Class Support For Manufacturers The Offshore Group Four Ways Our Shelter Model Enhances Manufacturers ’ Competitiveness <ul><li>Locations . Operate within our flexible, scalable, secure, and strategically located industrial parks in Mexico; or choose a location that better meets your site requirements. </li></ul><ul><li>Focus . The manufacturer or service provider focuses its resources on productivity, efficiencies, quality, innovation, and on-time delivery. We focus our resources on non-production-related functions. </li></ul><ul><li>Leverage . Manufacturers immediately leverage The Offshore Group ’s world-class administrative infrastructure and economies of scale in Mexico that reduce costs and eliminate long and costly learning curves. </li></ul><ul><li>Shared Risk . With The Offshore Group, foreign companies have no need to establish a legal presence in Mexico resulting in: </li></ul><ul><ul><li>Virtually no administrative startup costs. </li></ul></ul><ul><ul><li>Greatly reduced risk and exposure. </li></ul></ul><ul><ul><li>No burden associated with maintaining a legally and fiscally compliant company in Mexico. </li></ul></ul>
  16. 16. Manufacturers We Serve Today: 56 1 Companies with both stand alone and shelter operations <ul><li>Headcounts range from 7 to 4,000 people </li></ul><ul><li>Years in shelter range from 3 to 14 </li></ul> Automotive & Transportation Manufacturers: Electrical, Electronic, & Medical Device Manufacturers: Aerospace Manufacturers: Other Industry Manufacturers: <ul><li>Tyco Electronics 1 </li></ul><ul><li>Cooper Standard Automotive 1 </li></ul><ul><li>St. Clair Technologies </li></ul><ul><li>Intec Group </li></ul><ul><li>Unlimited Services </li></ul><ul><li>Mico </li></ul><ul><li>DCM </li></ul><ul><li>Jyco Sealing Technologies </li></ul><ul><li>Waukesha Bearings </li></ul><ul><li>Neapco </li></ul><ul><li>Powerbrace </li></ul><ul><li>Phillips Industries </li></ul><ul><li>Gemini Plastics </li></ul><ul><li>Liberty Steel </li></ul><ul><li>Precision Interconnect (Tyco) </li></ul><ul><li>Medtronic 1 </li></ul><ul><li>Gyrus Medical (Olympus) </li></ul><ul><li>Avalon Labs </li></ul><ul><li>Younger Optics </li></ul><ul><li>C&M Corporation </li></ul><ul><li>Novacap </li></ul><ul><li>The Phoenix Company </li></ul><ul><li>Electronic Evolution </li></ul><ul><li>Arc-Tronics </li></ul><ul><li>Huber-Suhner </li></ul><ul><li>Whitepath </li></ul><ul><li>Turck </li></ul><ul><li>CBC Connect </li></ul><ul><li>Blickman </li></ul><ul><li>Goodrich Turbomachinery 1 </li></ul><ul><li>BAE Systems </li></ul><ul><li>Parker Hannifin </li></ul><ul><li>GE-Unison Industries 1 </li></ul><ul><li>Esco Turbine Components </li></ul><ul><li>Benchmark Electronics 1 </li></ul><ul><li>Sargent Controls </li></ul><ul><li>Williams International </li></ul><ul><li>Senior Aerospace </li></ul><ul><li>Ducommun Aerostructures </li></ul><ul><li>G.S. Precision </li></ul><ul><li>Paradigm Precision </li></ul><ul><li>Horst Engineering </li></ul><ul><li>Vermillion </li></ul><ul><li>Trac Tool </li></ul><ul><li>Waukesha Bearings </li></ul><ul><li>Precision Products </li></ul><ul><li>CRS Aerospace </li></ul><ul><li>Bodycote Thermal Processing </li></ul><ul><li>Arc-Tronics </li></ul><ul><li>Meco </li></ul><ul><li>Hydro Aluminum </li></ul><ul><li>Minco </li></ul><ul><li>APSM Systems </li></ul><ul><li>Greenheck Fan </li></ul><ul><li>Camfill Farr </li></ul><ul><li>Kromet </li></ul>
  17. 17. Client Retention:
  18. 18. World-Class Support For Manufacturers The Offshore Group Cost Overview: <ul><li>Labor Cost </li></ul><ul><li>Variables: </li></ul><ul><li>Labor skill </li></ul><ul><li>Labor availability </li></ul><ul><li>Overtime </li></ul><ul><li>Turnover </li></ul><ul><li>Absenteeism </li></ul><ul><li>Severance </li></ul><ul><li>Exchange rate </li></ul><ul><li>Major Overhead Variables: </li></ul><ul><li>Mexico purchases </li></ul><ul><li>Electricity </li></ul><ul><li>Freight </li></ul><ul><li>Customs </li></ul> Guaymas / Empalme, Sonora Mexico (2009 Actual Costs in USD for 35 companies) Cost Per Direct Labor Hour Direct Labor (Fringed) Overtime Total Direct Labor (Fringed) Mexico Overhead Total Mexico Operating Cost Min. $1.51 $0.18 $1.90   $6.63 Max. $4.85 $1.98 $5.36   $29.06 Average $2.47 $0.67 $3.14 $6.05 $9.19 Saltillo, Coahuila Mexico (2009 Actual Costs in USD for 16 companies operating in La Angostura) Cost Per Direct Labor Hour Direct Labor (Fringed) Overtime Total Direct Labor (Fringed) Mexico Overhead Total Mexico Operating Cost Min. 2.24 0.11 2.76   7.25 Max. 4.85 1.21 5.30   40.62 Average $2.91 $0.58 $3.77 $7.54 $11.31
  19. 19. <ul><li>Conduct a customized cost model to arrive at expected total operating costs in Mexico using actual and current cost data (not from government agencies, consultants, or surveys) </li></ul><ul><li>Assist in site selection </li></ul><ul><li>Assist in conducting what-if logistics scenarios </li></ul><ul><li>Assist in electrical power and special utilities provision </li></ul><ul><li>Assist in identifying suppliers in Mexico </li></ul>How The Offshore Group can enable Nissan suppliers to reduce their manufacturing costs World-Class Support For Manufacturers The Offshore Group
  20. 20. Our Value Proposition <ul><li>Focus on what you do best. By outsourcing non-production-related functions to us, you focus on productivity, efficiencies, and innovation; on meeting product quality and delivery commitments; and on operating at the lowest possible cost in Mexico. </li></ul><ul><li>Achieve a competitive advantage from day one . By leveraging our resources, infrastructure, expertise, economies of scale, and legal presence in Mexico . </li></ul>World-Class Support For Manufacturers The Offshore Group
  21. 21. <ul><li>For more information: </li></ul><ul><li> </li></ul><ul><ul><li>Todd Nelson </li></ul></ul><ul><ul><li>Business Development </li></ul></ul><ul><ul><li>The Offshore Group </li></ul></ul><ul><ul><li>Email: </li></ul></ul><ul><ul><li>U.S. (956) 802-0796 </li></ul></ul><ul><ul><li>Mexico (81) 8342 4741 </li></ul></ul><ul><ul><li>Skype: Todd Nelson </li></ul></ul>Sunset at Los Algodones Beach Located in San Carlos, Sonora Mexico