Manufacturing in Mexico with The Offshore Group


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Shelter companies in Mexico enable manufacturers to start up and maintain low cost and low risk production facilities at reduced cost. The Offshore Group is the leading shelter company in Mexico. This presentation explains why.

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Manufacturing in Mexico with The Offshore Group

  1. 1. The Offshore Group Innovative Outsourcing World-Class Support For Manufacturers Our Team Of Over 500 Experts Working For You
  2. 2. Who is The Offshore Group? <ul><li>The Offshore Group is the largest shelter service provider in Mexico with over 13,000 people employed in Mexico today on behalf of 55 foreign manufacturers and 5 foreign BPO, ITO, & Contact Center providers. </li></ul><ul><li>Over 24 years, The Offshore Group has developed an unmatched support infrastructure of leaders, experts, processes, and state-of-the-art systems that small, medium, and large manufacturers (clients) leverage every day. </li></ul><ul><li>The Offshore Group enjoys the highest client retention rate in the industry. </li></ul><ul><li>The Offshore Group provides unparalleled facilities support within secure and strategically located industrial parks totaling nearly 4 million square feet of construction. </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 An integrated group of U.S. and Mexican companies that provide peace of mind to foreign manufacturers and service providers through U.S. based contractual agreements and a solid reputation for operational excellence and regulatory compliance in Mexico.
  4. 4. Presentation Objective: <ul><li>Explain the cost and performance benefits that foreign manufacturers of any size attain by operating in Mexico under The Offshore Group ’s Shelter Program. </li></ul>World-Class Support For Manufacturers The Offshore Group
  5. 5. Our Challenge: World-Class Support For Manufacturers The Offshore Group For 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.
  6. 6. World-Class Support For Manufacturers The Offshore Group Four Ways Our Shelter Model Meets The Challenge: <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>
  7. 7. What Are Some of The Benefits Our Shelter Program Provides? 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>
  8. 8. 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>
  9. 9. Our Core Competencies World-Class Support For Manufacturers The Offshore Group Labor Management Recruiting, Selection, Hiring, Severance, Payroll, Benefits, Labor Law Compliance, Union Relations , Workforce Transportation Import & Export Management Importing and Exporting, Cross Docking, Warehousing, Distribution, International Freight Management Facilities Management Construction Management, Tenant Improvements, Building Maintenance, Environmental, Security and Safety. Regulatory Compliance Accounting, Tax Compliance, Government Reporting, Local Vendor Management, Purchasing, VAT Reimbursement
  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. A Close-up At Our Labor Management Service: <ul><li>Executive recruiting </li></ul><ul><li>Recruiting ads in local media and web </li></ul><ul><li>Maintain candidate databases </li></ul><ul><li>Recruiting of direct, indirect, and salaried labor </li></ul><ul><li>Recruiting of specialized labor </li></ul><ul><li>Offsite recruiting </li></ul><ul><li>Applicant prequalification </li></ul><ul><li>Applicant testing </li></ul><ul><li>Applicant background check </li></ul><ul><li>Hiring (per client requirements and approval) </li></ul><ul><li>New hire orientation </li></ul><ul><li>In-plant HR representation </li></ul><ul><li>Employee records upkeep </li></ul><ul><li>Attendance monitoring </li></ul><ul><li>Employee counseling </li></ul><ul><li>On-site child care services G </li></ul><ul><li>Employee termination </li></ul>World-Class Support For Manufacturers The Offshore Group <ul><li>Workforce redeployment </li></ul><ul><li>Employee dispute resolution </li></ul><ul><li>Labor statistics and analysis </li></ul><ul><li>Labor union negotiations </li></ul><ul><li>Labor dispute resolution </li></ul><ul><li>Day-to-day labor union interaction </li></ul><ul><li>Mexico labor law compliance </li></ul><ul><li>Mexico labor law reporting </li></ul><ul><li>Local community leaders alliance </li></ul><ul><li>Education activity coordination </li></ul><ul><li>Skills training program facilitation </li></ul><ul><li>Alliance with local trade schools </li></ul><ul><li>Employee satisfaction surveying </li></ul><ul><li>Recreational activity coordination G </li></ul><ul><li>HR field services </li></ul><ul><li>In-Park Medical Services </li></ul>
  12. 12. Manufacturers We Serve Today: 55 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>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>
  13. 13. Client Retention:
  14. 14. 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
  15. 15. 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
  16. 16. The Offshore Group ’s La Angostura Industrial Park Located in Saltillo, Coahuila Mexico
  17. 17. Employee Busing La Angostura Industrial Park Saltillo, Coahuila Mexico
  18. 18.
  19. 19.
  20. 20. The Offshore Group ’s Bella Vista Industrial Park Located in Empalme, Sonora Mexico
  21. 21. 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
  22. 22. Exchange Rate History: World-Class Support For Manufacturers The Offshore Group Mexico Inflation Rate History:
  23. 23. <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 We Help You Or Your Suppliers Understand The True Cost of Operating in Mexico World-Class Support For Manufacturers The Offshore Group
  24. 24. 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
  25. 25. <ul><li>For more information: </li></ul><ul><li> </li></ul><ul><ul><li>Eduardo R Saavedra </li></ul></ul><ul><ul><li>VP Business Development </li></ul></ul><ul><ul><li>The Offshore Group </li></ul></ul><ul><ul><li>Email: </li></ul></ul><ul><ul><li>Ofc: (520) 889-0022 </li></ul></ul><ul><ul><li>Cell: (520) 360-6644 </li></ul></ul>Sunset at Los Algodones Beach Located in San Carlos, Sonora Mexico