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Manufacturing in-mexico-presentation


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Manufacturing in-mexico-presentation

  1. 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. 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. 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. 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. 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. 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. 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. 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
  9. 9. Los Angeles Tijuana Mexicali Tucson Nogales Cd. Juarez Guaymas Hermosillo Chihuahua Houston Reynosa Monterrey Saltillo Altamira San Luis Potosi Queretaro Guadalajara Mexico City Manzanillo Honduras El Salvador Guatemala Mazatlan Mission Gulf of Mexico SeaofCortez Asian, European, & South American Ports Brownsville World-Class Support For Manufacturers The Offshore Group Our Strategic Locations
  10. 10. The Offshore Group’s La Angostura Industrial Park Located in Saltillo, Coahuila Mexico
  11. 11. Employee Busing La Angostura Industrial Park Saltillo, Coahuila Mexico
  12. 12. The Offshore Group’s Bella Vista Industrial Park Located in Empalme, Sonora Mexico
  13. 13. Day Care Facility located at The Offshore Group’s Bella Vista Industrial Park in Empalme, Sonora Mexico
  14. 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. 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. 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. 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
  18. 18. Exchange Rate History: World-Class Support For Manufacturers The Offshore Group Mexico Inflation Rate History:
  19. 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. 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. 21. For more information: Chuck Yahn Director, Midewest Operations The Offshore Group Email: Ofc: (262) 275-3632 Cell: (804) 301-2805 Sunset at Los Algodones Beach Located in San Carlos, Sonora Mexico