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Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
Texas-Mexico Automotive Update
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Texas-Mexico Automotive Update

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An update on the Texas-Mexico Automotive SuperCluster (TMASC), created by the Strategic Initiatives Division of Bexar County Economic Development

An update on the Texas-Mexico Automotive SuperCluster (TMASC), created by the Strategic Initiatives Division of Bexar County Economic Development

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  • 1. Strategic Regional Economic Development The Texas-Mexico Automotive SuperCluster (TMASC) Update David Marquez, Executive Director Bexar County Economic Development November 13, 2009 The Mexico Group Developed by Bexar County in Collaboration with TMASC Strategic Partners
  • 2. Strategic Regional Economic Development 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. 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. Suppliers to the 2007 Toyota Tundra Source: Automotive News, July 23, 2007
  • 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. Global Manufacturers BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES NOTE: Shaded region represents the NAFTA Highway. SOURCE: ELM Guide, TIP Strategies, Inc. research
  • 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. 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. BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES Global Suppliers in the Region
  • 10. Sourcing by Geography Predominantly Texas Predominantly Predominantly Texas & Northeastern Mexico Northeastern Mexico SOURCE: ELM Guide, TIP Strategies, Inc., research
  • 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. Strategic Regional Economic Development 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. The NAFTA Economy Volume of Trucks per Day To/From Mexico BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES Source: U.S. Department of Transportation, 1998
  • 14. The NAFTA Economy Daily Truck Crossings, Laredo 1995-2009 Trucks per Day 5000 4,073 4,102 4,162 4,284 4,273 3,988 3,846 3,950 3750 3,705 3,710 3,824 3,637 BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES 3,428 2,791 2500 2,047 1250 0 1995 1997 1999 2001 2003 2005 2007 2009 (July) Truck crossings in Laredo = 48% of TX Total Source: U.S. Customs and Border Protection, 2009
  • 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. 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. BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES Multimodal Infrastructure LAREDO PORT OF
  • 18. BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES Research & Development Assets
  • 19. Labor Flexibility BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES States with “Right to Work” Laws Source: National Right to Work Legal Defense Foundation, 2009
  • 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. 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
  • 22. Strength Amid Recession Recovery BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES Source: Moody’s Economy.com; MSNBC.com, June 2009
  • 23. Strength Amid Recession Resilient Metro Areas BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES Source: Brookings Institution MetroMonitor, September 2009
  • 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. Strength Amid Recession CNBC’s Top States for Business 2009 State Economy Tech & Transportation Workforce (Overall) (Rank) Innovation 1. Virginia 7 10 12 8 BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES 2. Texas 1 1 3 14 3. Colorado 5 36 11 12 4. Iowa 4 31 24 21 5. Utah 14 34 26 9
  • 26. Strategic Regional Economic Development 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
  • 27. Corporate Investment in the Region Select Texas FDI 2009 • Caterpillar Inc. in Seguin; $170 million • Medtronic in San Antonio; $23 million • Tianjin Pipe Company in Corpus Christi; BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES $1 billion; 300-600 new jobs • Union Pacific San Antonio Intermodal Facility; $120 million • Albany Composites in Boerne; $42 million • General Dynamics Advanced Information Systems; $1.9 million • L-3 Communications in Waco; $10 million • Baker Petrolite in Kilgore; $20 million
  • 28. Corporate Investment in the Region Select Northeastern Mexico FDI 2009 • Hitachi Chemical auto parts manufacturing in Nuevo Leon; US $155 million • Sanyo solar panel manufacturing in Nuevo Leon; US $15 million, 600 new jobs BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES • Golden Dragon copper pipe manufacturing in Coahuila; US $100 million, 550 jobs • Speco Aeolian towers manufacturing in Coahuila; US $30 million • Hilti mining & construction tools manufacturing in Tamaulipas; US $40 million, 250 new jobs • Whirlpool refrigerator manufacturing in Nuevo Leon; US $55 million, 1,100 new jobs • Johnson Controls Industries auto battery manufacturing in Nuevo Leon; US $105 million, 250 jobs Source: MPBulletins.com, September-October 2009
  • 29. Continued 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)
  • 30. Continued 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
  • 31. Continued 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
  • 32. Strategic Regional Economic Development 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
  • 33. Younger Population Vs. Other OEM States Median Age July ‘08 Median Age 2030 (est.) NJ 38.7 SC 41.3 OH 38.1 MS 41.1 MI 38 AL 41.0 KY 37.7 NJ 40.8 TN 37.7 OH 40.2 SC 37.6 MI 40.2 BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES 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 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, http://esa.un.org/unpp
  • 34. Population Growth in Mexico 2005 Population 2005 Population Mexican State Aged 0-14 Aged 15-59 Nuevo León 1,181,971 2,600,253 BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES Tamaulipas 880,440 1,813,632 Coahuila 764,458 1,495,796 San Luis Potosí 805,289 1,360,302 Source: INEGI Conteo de Poblacion y Vivienda 2005
  • 35. Growth in Driving Age Population (16-85) BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES Source: IHS Global Insight, 2009
  • 36. BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES First Time Buyers New Consumers, New Expectations
  • 37. The Rise of the Hybrid & Electric Car BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES • Prius and Civic Hybrid among best-selling hybrids • Escape & Highlander lead hybrid SUV sales • GM began producing hybrid Tahoe, Yukon, Escalade in Arlington, Texas • Rise of Microcar Sales
  • 38. BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES Safety Features and R&D Potential
  • 39. Asian Interest BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES • China and India OEMs in the US market a reality • Potential FDI for TMASC • Automotive News Oct 2009 “Chinese seen as buyers of U.S. suppliers”
  • 40. BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES Source: Marklines, 2009 Auto Industry Growth in Asia
  • 41. BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES Source: CSM Worldwide, 2009 North American Output
  • 42. North American Emerging Manufacturers Tesla V-Vehicle Magna Fisker Wheego BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
  • 43. Strategic Regional Economic Development 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
  • 44. Preserve & grow Recruit foreign existing industry direct investment BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES Spur innovation in Develop a next- new technology generation workforce
  • 45. www.txmxautomotive.com
  • 46. twitter.com/tmasc
  • 47. LinkedIn TMASC Group
  • 48. Regional Collaboration BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES • Support BAE FMTV production in Sealy, Texas • Partners: Sealy EDC, Katy EDC, Greater Houston Partnership
  • 49. BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES Strategic Relationships
  • 50. Preparation for Robust Growth and Development • State survey to identify target zones for automotive BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES manufacturing • Launch results in Spring 2010 • Strong tool to meet regional development goals
  • 51. Visit www.txmxautomotive.com for more information David Marquez Executive Director BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES Bexar County Economic Development Department T: (210) 335-0667 dmarquez@bexar.org www.linkedin.com/in/marquezdavid Special thanks to T.I.P. Strategies and the City of San Antonio

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