TMASC Executive Summary Jan. 2010

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This presentation is the latest executive summary of the regional initiative to develop the Texas-Mexico automotive region. For more information visit www.txmxautomotive.com.

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TMASC Executive Summary Jan. 2010

  1. 1. The Texas-Mexico Automotive SuperCluster (TMASC) Bexar County Economic Development, Strategic Initiatives Division January 2010 Copyright ©2010 Bexar County
  2. 2. TMASC Update Section I: Recognizing Opportunity Section II: Building Upon Regional Assets and Resilience BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES Section III: Attracting New Investment and Growth Section IV: Positioning the Region for Future Trends Section V: TMASC efforts & next steps
  3. 3. A Courtship of Over Two Decades... Toyota Motor Manufacturing, Texas (TMMTX) BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES “If we could attract the crown jewel of manufacturing, an automobile manufacturing plant, we would dramatically change our local economy.” Judge Nelson W. Wolff
  4. 4. The Cluster Effect Suppliers to the 2007 Toyota Tundra Source: Automotive News, July 23, 2007
  5. 5. Changing Geography of Assembly * Radius centered on 430 mile main transportation corridor from Laredo to A SOURCE: ELM Guide, TIP Strategies, Inc., research
  6. 6. Global Manufacturers BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES NOTE: Shaded region represents the NAFTA Highway. SOURCE: ELM Guide, TIP Strategies, Inc. research
  7. 7. Global Vehicle Assembly Plants 9 Global Vehicle Manufacturers Almost 900,000 Units Annually BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES 18,000 OEM Workers • Marcopolo • General Motors • Chrysler • Daimler - Freightliner • Navistar - International • BAE Systems • PACCAR - Peterbilt • Toyota • Caterpillar
  8. 8. Tier 1 Automotive Suppliers Over 200 Tier 1 supplier plants Over 133,000 workers Approx. 37 million square feet of facilities BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES 74 Tier 1 suppliers (37%) employ 500 or more workers
  9. 9. Sourcing by Geography Predominantly Texas Predominantly Predominantly Texas & Northeastern Mexico Northeastern Mexico SOURCE: ELM Guide, TIP Strategies, Inc., research
  10. 10. Vehicles Manufactured in the TMASC Region Cars, SUVs, and Trucks BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES Industrial, Military, and Recreational Vehicles
  11. 11. Regional Employment Assembly Plants and Suppliers • Approximately 151,000 employees BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES Legend Number of Employees Suppliers Assembly Plants * Radius centered on 430 mile main transportation corridor from Laredo to Arlington. SOURCE: ELM Guide, TIP Strategies, Inc., research
  12. 12. TMASC Update Section I: Recognizing Opportunity BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES Section II: Building Upon Regional Assets and Resilience Section III: Attracting New Investment and Growth Section IV: Positioning the Region for Future Trends Section V: TMASC efforts & next steps
  13. 13. The Historically Integrated NAFTA Economy Volume of Trucks per Day To/From Mexico, 1998 BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES Source: U.S. Department of Transportation, 1998
  14. 14. The Historically Integrated NAFTA Economy Northbound Daily Truck Crossings, Laredo 1995-2009 Trucks per Day 5000 4,294 4,302 4,073 4,102 4,162 3,988 3,846 3,950 3750 3,705 3,710 3,824 3,789 BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES 3,428 2,791 2500 2,047 1250 0 1995 1997 1999 2001 2003 2005 2007 2009 (October) Truck crossings in Laredo = 48% of TX Total Source: U.S. Customs and Border Protection, 2009
  15. 15. Infrastructure Seaports •Manzanillo: 1/3 of Mexico Container Traffic BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES •Lázaro Cárdenas: Alternative to CA for Pacific Freight Port of Manzanillo Port of Lázaro Cárdenas
  16. 16. Infrastructure Railroad •3 Class I Railroads Serve Texas •12,000+ Miles of Track in Texas BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES •Class I Track in Northeastern Mexico: Kansas City Southern Mexico and Ferromex
  17. 17. Infrastructure Multimodal Ports, Foreign Trade Zones •31 Foreign Trade Zones in Texas BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES •8 multimodal (rail, truck, and air cargo) ports in the TMASC region ZONA DE CONECTIVIDAD GOMEZ PALACIO Foreign Trade Zones
  18. 18. BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES Research & Development Assets
  19. 19. A Pro-Business Environment BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES States with “Right to Work” Laws Source: National Right to Work Legal Defense Foundation, 2009
  20. 20. Affordable Wages for Automotive Manufacturing TX AL GA IN KY MI MS MO NJ NC OH OK SC TN VA Helpers--production workers $9.78 90% 95% 86% 84% 81% 89% 89% 90% 89% 84% 94% 90% 89% 93% Laborers and freight, stock, and material movers $10.56 102% 93% 89% 96% 80% 103% 85% 86% 95% 87% 101% 96% 96% 90% Team assemblers $11.26 72% 91% 74% 80% 82% 95% 88% 90% 89% 82% 94% 77% 76% 90% Production workers $12.12 91% 95% 61% 96% 69% 109% 86% 79% 85% 77% 118% 99% 101% 89% Cutting, punching, and press machine setters, operators, and tenders $12.41 96% 95% 84% 94% 76% 98% 85% 90% 99% 86% 97% 91% 91% 90% Industrial truck and tractor operators $12.57 93% 94% 82% 93% 71% 100% 91% 80% 94% 85% 96% 91% 92% 91% Assemblers and fabricators $12.84 105% 83% 73% 77% 56% n/a 61% 87% 79% 69% 115% 106% 96% 85% Structural metal fabricators and fitters $14.28 90% 100% 82% 96% 84% 84% 87% 80% 87% 86% 98% 85% 88% 94% Inspectors, testers, sorters, samplers, and weighers $15.48 112% 108% 96% 101% 87% 113% 90% 93% 108% 93% 88% 103% 103% 93% Computer-controlled machine tool operators $15.54 113% 97% 98% 99% 91% 113% 106% 81% 98% 94% 102% 95% 100% 97% Machinists $16.43 95% 103% 89% 98% 86% 96% 96% 79% 98% 95% 101% 102% 82% 91% Welders, cutters, solderers, and brazers $17.04 110% 112% 103% 110% 93% 106% 107% 93% 104% 103% 111% 105% 109% 96% Painters, transportation equipment $17.12 102% 93% 95% 80% 77% 102% 82% 89% 91% 91% 112% 96% 73% 76% Electricians $19.24 102% 97% 76% 92% 70% 98% 75% 64% 107% 83% 104% 108% 96% 92% Tool and die makers $20.46 94% 99% 86% 97% 77% 90% 87% 88% 104% 88% 103% 99% 97% 97% First-line supervisors/managers of production workers $25.6 106% 108% 100% 108% 90% 116% 105% 90% 107% 102% 108% 100% 113% 99% Sales Representatives, Wholesale $28.18 114% 98% 101% 103% 95% 111% 102% 83% 111% 95% 118% 106% 102% 87% Industrial Engineers $38.69 109% 110% 116% 119% 101% 119% 113% 99% 114% 112% 116% 112% 117% 101% Mechanical Engineers $41.38 111% 117% 125% 126% 109% 133% 118% 102% 123% 127% 121% 115% 119% 97% Texas Avg. Hourly Wage as % of State’s Avg. Hourly Wage Source: Bureau of Labor Statistics Occupational Employment and Wage Estimates, 2009
  21. 21. Growth Outpacing Other OEM States Net Change in Population by State, 2000-2009 600,000 500,000 400,000 300,000 BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES 200,000 100,000 0 -100,000 0 1 2 3 4 5 6 7 8 9 200 200 200 200 200 200 200 200 200 200 Texas AL GA IN MI MS MO NJ NC OH OK SC TN VA Texas led US in net population increase for 2009 Source: U.S. Census Bureau Population Estimates, 2009 Note: Each state included in this graphic hosts two or more OEM plants, with the exception of Mississippi (one plant)
  22. 22. Strength Amid Recession Unemployment BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES September 2009 May 2009 September 2009 Source: Bureau of Labor Statistics; NYTimes.com; FlowingData.com
  23. 23. Strength Amid Recession Resilient Metro Areas BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES Source: Brookings Institution MetroMonitor, December 2009
  24. 24. Strength Amid 1 2 Austin-Round Rock Killeen-Temple-Fort Hood TX TX Recession 3 Salt Lake City UT 4 McAllen-Edinburg-Mission TX Performance 5 Houston-Sugar Land-Baytown TX 6 Durham NC 7 Olympia WA • Milken Institute Best 8 Huntsville AL Performing Cities Index 2009 BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES 9 Lafayette LA • Job Creation 10 Raleigh-Cary NC • Job Stability 11 San Antonio TX • Wage Growth 12 Fort Worth-Arlington TX • Technological Innovation 13 Dallas-Plano-Irving TX 14 El Paso TX 15 Wichita KS • 9 out top 20 cities in Texas 16 Corpus Christi TX 17 Seattle-Bellevue-Everett WA 18 Baton Rouge LA 19 Tulsa OK 20 Greeley CO Source: Milken Institute, November 2009
  25. 25. TMASC Update Section I: Recognizing Opportunity Section II: Building Upon Regional Assets and Resilience BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES Section III: Attracting New Investment and Growth Section IV: Positioning the Region for Future Trends Section V: TMASC efforts & next steps
  26. 26. Corporate Investment in the Region Select Texas Projects 2009 Capital Jobs Corporation Location Investment Created Toyota Assembly Plant Expansion San Antonio $100 Million 850 Caterpillar Inc. Manufacturing Facility Seguin $170 Million 1,400 Medtronic Diabetes Care Center San Antonio $23 Million 1,400 BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES Tianjin Pipe Company Manufacturing Facility Corpus Christi $1 Billion 300-600 Union Pacific Intermodal Facility San Antonio $120 Million 75 Albany Composites Manufacturing Facility Boerne $42 Million 337 L-3 Communications Aircraft Repair Facility Waco $10 Million 100 Caterpillar Inc. Manufacturing Facility Waco $30 Million 60 Grifols, Inc. Manufacturing Facility San Marcos $76 Million 190 Kalmar RT Center Manufacturing Facility Cibolo $18 Million 200 Source: Texas Comptroller, 2009
  27. 27. Corporate Investment in the Region Select Northeastern Mexico Projects 2009 Capital Jobs Corporation Location Investment Created Hitachi Chemical Manufacturing Facility Nuevo León US $155 Million Sanyo Solar Panel Manufacturing Facility Nuevo León US $15 Million 600 BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES Golden Dragon Pipe Manufacturing Facility Coahuila US $100 Million 550 Speco Aeolian Tower Manufacturing Facility Coahuila US $30 Million Hilti Tool Manufacturing Facility Tamaulipas US $40 Million 250 Whirlpool Manufacturing Facility Nuevo León US $55 Million 1,100 Johnson Controls Manufacturing Facility Nuevo León US $105 Million 250 Luvata Pipe Manufacturing Facility Nuevo León US $40 Million LG Electronics Manufacturing Facility Tamaulipas US $100 Million 200 Source: MPBulletins.com, 2009
  28. 28. Continued Automotive Investment Toyota Moves Future Tacoma Production to San Antonio BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES • Preserves and stabilizes existing regional suppliers • New direct investment - $100 million • New direct jobs created - 850 • Job multiplier - 1:5 (including suppliers)
  29. 29. Continued Automotive Investment Chrysler to Produce Fiat 500 Subcompact in Mexico BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES • Chrysler likely to expand Toluca plant for production of 100,000 units • Target market: new-car shopper, 20-35 age bracket • W. Hemisphere market access: plans to sell 75% in NAFTA, 25% in S. America
  30. 30. Continued Automotive Investment Ford to Produce Fiesta Hatchback in Cuautitlán BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES • Ford re-tooling Cuautitlán assembly plant formerly producing F-Series pickups • Production to begin in early 2010 • $3 billion investment by Ford and suppliers • 4,500 Ford jobs • Guanajuato transmission plant, expansion of engine plant in Chihuahua planned
  31. 31. TMASC Update Section I: Recognizing Opportunity Section II: Building Upon Regional Assets and Resilience BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES Section III: Attracting New Investment and Growth Section IV: Positioning the Region for Future Trends Section V: TMASC efforts & next steps
  32. 32. Access to Growing Market Segments A Large and Brand-Agnostic Hispanic Market Texas Population Change in Hispanic Market Share 2007-2008 1% 3% BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES 37% 47% 2.25% 1.5% 4% 12% 0.75% 0% Hispanic Black -0.75% Asian White -1.5% Other Source: R.L. Polk & Co., 2009 Source: U.S. Census Bureau, 2008 Estimates
  33. 33. Access to Growing Market Segments Automaker Success in Mexico 30 Brand Market Share in U.S. and Mexico, 1998-2009 25 20 Market Share (%) BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES 15 10 5 0 98 99 0 0 0 1 02 03 04 05 06 07 08 D) 19 19 20 20 20 20 20 20 20 20 20 t. YT c 9 (O 0 Source: Asociación Mexicana de Distribuidores de Automotores, 2009 20
  34. 34. Access to Growing Market Segments Gen Y Enters US Driving Age Population (16-85) BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES Source: IHS Global Insight, 2009
  35. 35. Access to Tomorrow’s Customer and Workforce Young Population Relative to Other North American OEM Sites Median Age July 2008 Median Age 2030 Canada 39.9 Canada 43.7 NJ 38.7 SC 41.3 OH 38.1 MS 41.1 MI 38.0 AL 41.0 KY 37.7 NJ 40.8 TN 37.7 OH 40.2 BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES SC 37.6 MI 40.2 MO 37.5 KY 40.0 AL 37.5 MO 39.6 VA 37.1 U.S.A. 38.7 NC 36.9 TN 38.3 U.S.A. 36.8 OK 37.9 IN 36.7 VA 37.8 OK 36.1 IL 37.8 IL 36.0 IN 37.7 MS 35.3 NC 36.8 GA 34.9 Mexico 36.2 TX 33.2 GA 35.6 Mexico 27.6 TX 34.6 Source: Population Division of the Department of Economic and Social Affairs of the UN Secretariat, World Population Prospects: The 2008 Revision, (Mexico and Canada figures reflect 2010 and 2030 estimates)
  36. 36. Capacity to Lead the Industry Through Innovation Manufacturing Tomorrow’s Vehicles, for Tomorrow’s Consumer Diverse Vehicle Offerings: Trucks, SUVs, Sedans, Hatchbacks, Subcompacts Regional Expertise in R&D: Consumer Electronics, Vehicle Safety, Telematics, Engine Efficiency, Manufacturing Processes, Alternative Fuel BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES Technologies Proximity to Customers and Innovators: Growing Population, Gen Y Engineering and Design Talent
  37. 37. Attractive Climate for Foreign Investment Asian Interest BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES • Exponential growth of automotive sector in China and India • Chinese and Indian OEMs in the US market a reality • Potential FDI for TMASC • Automotive News Oct 2009 “Chinese seen as buyers of U.S. suppliers”
  38. 38. Ideal Launch Pad for the “New Domestics” Projected North American Output BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES Source: CSM Worldwide, 2009 Note: “Asian 4” refers to Toyota, Honda, Nissan, and Hyundai-Kia; “German 3” refers to Daimler AG, Volkswagon Group, and BMW.
  39. 39. TMASC Update Section I: Recognizing Opportunity Section II: Building Upon Regional Assets and Resilience BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES Section III: Attracting New Investment and Growth Section IV: Positioning the Region for Future Trends Section V: TMASC efforts & next steps
  40. 40. Preserve & grow Recruit Foreign existing industry Direct Investment BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES Spur innovation in Develop a next- new technology generation workforce
  41. 41. www.txmxautomotive.com
  42. 42. twitter.com/tmasc
  43. 43. LinkedIn TMASC Group
  44. 44. BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES Strategic Relationships
  45. 45. Visit www.txmxautomotive.com for more information David Marquez Executive Director Bexar County Economic Development (210) 335-0667 BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES david.marquez@bexar.org www.linkedin.com/in/marquezdavid Jen T. Martinez Strategic Initiatives Manager Bexar County Economic Development (210) 335-0872 jtmartinez@bexar.org www.linkedin.com/in/jenmartinez Special thanks to T.I.P. Strategies and the City of San Antonio

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