Maquiladora Industry• The Border Industrialization Program, enacted in1965 by the Mexican government, gave birth to themaquiladora industry. (today IMMEX)• The main objective was reduction of highunemployment rates in communities along theborder following the abolition of the Bracero farmlabor program by the U.S.
• 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 andUSA border.• The seventh largest manufacturer center in North America.Maquiladora Industry
InfrastructureCiudad Juarez offers a solid infrastructure with remarkablequality at a competitive cost and through reliability.World Class Infrastructure:Ground TransportationRailroad NetworkTelecommunications and flightsPorts of Entry
Railroad Network3 Service Providers: Union Pacific, Burlington-Santa Feand FerromexInfrastructure
Telecommunications and FlightsAccess to 2 international AirportsCd. Juarez – El PasoInfrastructure
Regional Ports of Entry / Border Crossings(AnnualTotals)789,283TrucksInfrastructure
Business EnvironmentCiudad Juarez is the logical option to many companies dueto:• Outstanding quality of life• World-class infrastructure• Highly qualified labor force• Diversified professional services
El Paso del Norte Region• + 50,000 jobs in El Paso tied to Mexico• 3,400 executives, engineers, live in El Paso / work inJuárez• +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 opportunitiesBusiness Environment
Maquiladoras established in Juarez(by country of origen)68.3%8.7%12.2%9.6%0.9% 0.3%USAEUROPEMEXICOASIACANADASOUTH AMERICABusiness Environment
Source: INEGIIMMEX PlantsMEXICOState of CHIHUAHUACD. JUAREZ5,074482326Source:INEGI
New IMMEX Permits2005 2006 2007 2008 2009 2010 2011 2012 Mar-132028335139 3522 235Source: Secretary of Economy
0%12%1%3%62%0% 13%5% 4%AGRICULTURE, FORESTRY,FISHING AND HUNTINGCOMMERCE TRADEIND. ELECTRIC AND WATERHARVESTING AND POTCONSTRUCTION INDUSTRYTRANSFORMATION INDUSTRIESEXTRACTIVE INDUSTRIESSERVICES FOR BUSINESS PEOPLEAND THE HOMECOMMUNITY AND SOCIALSERVICESTRANSPORT ANDCOMMUNICATIONSJuarez WorkforceSource: Social Security
Source: INEGI / Social Security as of March 2012IMMEX WorkforceSource: INEGI / IMSS2,241,000356,707222,040
Source: Social SecurityIMMEX Workforce in JuarezEne-12Abr-1212-JulAgo- 1212-NovDic-12Ene-1313-Feb13-Mar199,556206,334213,552212,926215,331213,478219,765 222,741222,040
Largest Manufacturing Centers in North America517,700418,900361,500254,800241,717235,700 230,061212,400197,700185,800 178,700150,200122,800 112,800# EmployeesSources:•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.
Business EnvironmentForeign Direct Investment in Chihuahua75%17%2%1%1%1%3%JUAREZCHIHUAHUACUAUHTEMOCPARRALCASAS GRANDESDELICIASOTHERS
Mexico will become the seventh largest economyin the world in 2020and contribute 7.8% of Global GDP, more thanRussia and India.Jim ONeill. (Director of Investment Funds at Goldman Sachs
Mexico Maquiladora industry proven platform to buildhighly-competitive industrial products U.S. and MexicoNatural trade partners, to compete as a region in globalcompetition.
It is no longer U.S. versus Mexico.It is Mexico and U.S. competing together aspartners.