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Manufacturing in-mexico-presentation
1. The Offshore Group
Innovative Outsourcing
World-Class Support
For Manufacturers
Our Team
Of Over
500 Experts
Working
For You
Saltillo, Coahuila
October 14, 2010
2. The Challenge:
World-Class Support
For Manufacturers
The Offshore Group
For foreign manufacturers of all sizes to achieve
overall cost reductions by operating in Mexico,
while maintaining quality and delivery
requirements and avoiding risks and costly
learning curves that may be associated with doing
business in a foreign lower-labor-cost country.
3. What is a manufacturing shelter?
World-Class Support
For Manufacturers
The Offshore Group
Standalone
(100% control and risk)
Shelter
(Shared control and
risk)
Subcontracting
(100% outsourced)
Production
Activities
Foreign
Company
Foreign
Company
Subcontractor
Non-
Production
Activities
Foreign
Company
Shelter Subcontractor
4. World-Class Support
For Manufacturers
The Offshore Group
Four Ways Our Shelter Model Meets The
Challenge:
1. Locations. Operate within our flexible, scalable, secure, and
strategically located industrial parks in Mexico; or choose a location
that better meets your site requirements.
2. Focus. The manufacturer focuses its resources on productivity,
efficiencies, quality, innovation, and on-time delivery. We focus our
resources on non-production-related functions.
3. 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.
4. Presence. With The Offshore Group, manufacturers have
no need to establish a legal presence in Mexico resulting in:
• Virtually no administrative startup costs.
• Greatly reduced risk and exposure.
• No burden associated with maintaining a legally and fiscally compliant company in
Mexico.
5. Who is The Offshore Group?
• We are the largest shelter service provider in Mexico.
• Today, we employ approximately 12,000 people in Mexico on
behalf of 54 foreign manufacturers.
• Over 24 years, The Offshore Group has developed an
unmatched support infrastructure that small, medium, and large
manufacturers leverage every day. Our core competencies are:
– Labor Management
– Import & Export Management
– Facilities Management
– Fiscal, Tax, & Regulatory ComplianceWorld-Class Support
For Manufacturers
The Offshore Group
6. 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
through U.S. based contractual agreements and a
solid reputation for operational excellence and
regulatory compliance in Mexico.
7. World-Class Support
For Manufacturers
The Offshore Group
• Our team of over 500 people are trained, knowledgeable, experienced,
and focused on meeting manufacturer’s non-production needs day-to-
day.
• 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.
• 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.
• A company driven by its principles, continuously
improving, and certified under the ISO 9001-2008
standard.
Who is The Offshore Group?
8. 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.
Fiscal, Tax, &
Legal
Compliance
Accounting, Tax Compliance,
Government Reporting, Local
Vendor Management,
Purchasing, VAT
Reimbursement
12. The Offshore Group’s Bella Vista Industrial Park Located in Empalme, Sonora Mexico
13. Day Care Facility located at The Offshore Group’s Bella Vista Industrial Park in Empalme, Sonora Mexico
14. What Offshore Group Clients Do & Control:
World-Class Support
For Manufacturers
The Offshore Group
Customer
Service
Manufacturing
Technology
Training
Production Supply-Chain
Engineering Quality
What We Do:
Human
Resources
Payroll
& Benefits
Import
& Export
Accounting
& Taxes
Local
Procurement
Employee
Busing
Facilities
Maintenance
Environmental
& Safety
Labor Union
Relations
Park
Management
Corporate
Citizenship
15. A Close-up At Our
Labor Management Service:
• Executive recruiting
• Recruiting ads in local media and web
• Maintain candidate databases
• Recruiting of direct, indirect, and salaried labor
• Recruiting of specialized labor
• Offsite recruiting
• Applicant prequalification
• Applicant testing
• Applicant background check
• Hiring (per client requirements and approval)
• New hire orientation
• In-plant HR representation
• Employee records upkeep
• Attendance monitoring
• Employee counseling
• On-site child care services G
• Employee termination
World-Class Support
For Manufacturers
The Offshore Group
• Workforce redeployment
• Employee dispute resolution
• Labor statistics and analysis
• Labor union negotiations
• Labor dispute resolution
• Day-to-day labor union interaction
• Mexico labor law compliance
• Mexico labor law reporting
• Local community leaders alliance
• Education activity coordination
• Skills training program facilitation
• Alliance with local trade schools
• Employee satisfaction surveying
• Recreational activity coordination G
• HR field services
• In-Park Medical Services
16. What Are Some of The Benefits Our Shelter Program
Provides Foreign Manufacturers in Mexico?
The Offshore Group
• Fast startup and no upfront fees • Assurance of Mexican Customs compliance
• Experienced direct labor recruiting • Expert logistics support & coordination
• Experienced management talent recruiting • Assurance of environmental compliance
• Reduced labor turnover • Access to local vendors and service providers
• Improved labor attendance • Secure and safe industrial parks
• Effective labor union relations and
negotiating
• Quick and expert response to building
maintenance, repair, and utilities issues
• Ensures market wages and benefits • Flexible building location/size/feature options
• Expert employee problem resolution • No government reporting
• Reduced border crossing costs • No income tax in Mexico
• Reduced border crossing delays • Reimbursement processing of value added
tax
17. World-Class Support
For Manufacturers
The Offshore Group
Guaymas / Empalme
(Across 35 companies, 2009 Actual Costs in USD)
Cost Per Direct Labor Hour
Direct Labor Overtime
Total Direct
Labor
Overhead
Total
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
(Across 15 companies, 2009 Actual Costs in USD)
Cost Per Direct Labor Hour
Direct Labor Overtime
Total Direct
Labor
Overhead
Total
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
Cost Overview:
Labor Cost
Variables:
• Labor skill
• Labor availability
• Overtime
• Turnover
• Absenteeism
• Severance
• Exchange rate
Major Overhead
Variables:
• Mexico purchases
• Electricity
• Freight
• Customs
19. • 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)
• Assist in site selection
• Assist in conducting what-if logistics scenarios
• Assist in electrical power and special utilities provision
• Assist in identifying suppliers in Mexico
How We Help You Or Your Suppliers Understand
The True Cost of Operating in Mexico
World-Class Support
For Manufacturers
The Offshore Group
20. Our Value Proposition
• By outsourcing non-production-related
functions to us, a company’s resources are
focused on productivity, efficiencies, and
innovation; on meeting product quality and
delivery commitments; and on operating at
the lowest possible cost in Mexico.
• By leveraging our resources, infrastructure,
expertise, economies of scale, and legal
presence in Mexico, a company achieves a
competitive advantage from day one.
World-Class Support
For Manufacturers
The Offshore Group
21. For more information:
www.offshoregroup.com
Chuck Yahn
Director, Midewest Operations
The Offshore Group
Email: chuck.yahn@offshoregroup.com
Ofc: (262) 275-3632
Cell: (804) 301-2805
Sunset at Los Algodones Beach Located in San Carlos, Sonora Mexico
