Transcript Slide 1

Business Outlook
Opportunities & Resources for
Doing Business in
Mexico
IMTS2006 International Breakfast
Carlos G. Mortera
General Manager
Mexico Office & Tech Center
Index
200
190
180
170
160
150
140
130
120
110
100
90
80
70
60
Mexico
Capital Equipment Investment Index
All Manufacturing
Base Index: 1993=100
%
197
172
166
161
154
148
151
135
115
110
100
40
30
20
10
0
-10
86
70
-20
-30
-40
93 94 95 96 97 98 99 00 01 02 03 04 05*
* Index up to August 2005
Source: Created with data from INEGI.
Million Dollars
Consumption of Machine Tools
$1,200
60%
$1,000
50%
$800
40%
$600
30%
$400
20%
$200
10%
$0
Consumption
US Penetration
0%
2000 2001 2002 2003 2004 2005
Source: AMT/SIR Dept
Cars & Trucks Assembly Plants
Mexicali
Hermosillo
Saltillo – Ramos Arizpe
Monterrey
San Luis Potosi
Silao
Aguascalientes
Puebla
Guadalajara
Toluca
Cuernavaca
Global Automotive Production
Autoparts Industry Production
(millions of dollars)
Projection
60,000
50,000
40,000
23,7
30,000
27,4
32,5
38,1
44,3
51,2
20,000
Projects
under
evaluation
Growth driven by
components outsourcing
seeking process
automation
Establishe
d projects
10,000
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Autoparts Production Breakdown
(% of shipment value)
Motor Parts
24%
Electric Parts
41%
Gas Motors
15%
8%
Transmissions & Gears
12%
Others (Oils, Textiles,
Glass, etc.)
Source: Projected by Secretary of Economy with data from AMIA
From 40 trucks to 60 a day in 2006
"Maquila" Industry Value Added
$30,000
Millions
$25,000
$20,000
$15,000
$10,000
$5,000
$0
1998
1999 2000
2001
2002
2003
2004 2005
2006
Year
Gross Production US $120b projected for 2006
Why does it continue to grow?
Technology Intensive Products are the new wave
Electronics And Home Appliances
Ship to U.S. more than $87 b/year
ELECTRONIC SECTOR
EXPORTS 1998-2005
60
50
46,248
40
36,548
30,464
30
27.1%
10.8%
7.4%
20
22.8%
23.8%
10.3%
21.9%
10.5%
10.4%
47,398
42,978
22.4%
39,871
15.4%
8.9%
7.4%
16.5%
19.6%
25.8%
30.9%
9.0%
24.6%
40,036
10.7%
7.3%
9.7
3.0
9.2
18.5%
26.9%
14.3
49,648
9.9
3.5
10.4
11.8
33.6%
10
32.0%
32.3%
30.3%
26.4%
26.6%
29.8
11.1
1998
1999
2000
2001
2002
2003
2004
14.1
0
Parts and components
Electromedical
IT
Audio and video,
2005
Telecomm equip.
Source: Bancomext
Navojoa
Sensing Solutions
Acuña
(IS)
Juarez
Tijuana
Lighting Products (CP)
Capacitors (IS)
Electric Sensing Components
Saltillo
Electric Motors (IS)
(IS)
Washing Machines JV (CP)
Control Devices (IS)
Transmissions JV (IS) Monterrey
Nogales
Data Processing Site (Capital)
Light Fabrications JV (IS)Washing Machines JV (CP)
ED&C Components
IT Comps. (MS)
Control Boxes (IS)
Electric Motors JV (IS)
(IS)
Electric Harnesses (AE) Lighting Products (CP)
Caborca
Lighting Components (CP)


Data Processing Site
Industrial Motors (IS)


(Capital)
Control Boxes (IS)

Transformers JV (IS)
Fuji Drives JV (IS)
Reynosa
Chihuahua
Electric Motors (IS) X Ray Tables/Tubes (MS)
Locomotive Services (TS)
Turbine Buckets JV (PS)

 
Tampico
Torreon
Traction Motors (TS)

Locomotive Services (TS)
Engineering Resins Project Engineering JV (IS)
 
(PL)
San Luis Potosi

Compressors JV (CP)
Gas Ranges JV (CP)
Electric Ranges JV (CP)
Locomotive Services (TS)
High Performance Comps (PL)





Meters JV
(IS)
Guadalajara
Locomotive Services (TS)
Celaya
Appliances JV (CP)
Plastics Molding JV (CP)
Queretaro

Pasteje
Mexico City
Refrigerators JV (CP)
Gas Ranges JV (CP)
Appliance Components JV (CP)
Technology and Development JV (CP)Refrigerators JV (CP)
CIAT Advanced Engineering Ctr. (GET/GEE)
1,000
employees
GE in Mexico
•
•
•
•
•
•
35 Plants
5 Service Shops
2 Engineering Center
29 Warehouses
24 Sales Offices
35,000 Employees
Industry continues to diversify...
The Largest GE Operation Outside the US
Aircraft Components Industry
Oportunities
• Global companies demanding local presence
from suppliers
• Quoting Ford: “Supply chain in automotive
must go beyond Tier 1…”
• Intelligent Automation and increased
technological value.
Aircraft Components Manufacturing
Areas of Opportunity
 Components & Sub-Assemblies:
 Turbine,
Landing Gears,
Hydraulic components.
 Sheet metal fabrication of super alloys
Bombardier in Queretaro demanding technology
A snapshot of opportunities…
Nissan
Whirlpool
Electrolux
INVESTMENT
LOCATION
(US Million)
25/01/2006
$1.6 Aguascalientes
12/07/2006
$100 Apodaca/Ramos Arizpe
10/02/2006
$130 Cd. Juarez
Flextronics
29/09/2005
Honeywell
Cessna
Honda
Kenworth
MD Helicopters
Celestica
LG
Bombardier
Irizar
Macimex
Mahle
Aventec
GM
Laird
Toyota
Chrysler
Windsor
Ahresty
26/05/2006
16/12/2005
13/03/2006
19/05/2006
11/07/2006
07/06/2006
09/12/2005
25/10/2005
29/01/2006
15/03/2006
21/04/2006
05/12/2003
13/06/2006
28/03/2006
23/01/2006
13/03/2006
07/07/2006
01/03/2006
COMPANY
DATE
Total
$20 Cd. Juarez
$40
$12
$64
$78
$15
$500
$40
$200
$2.50
$70
$31
$14
$650
$1
$35
$1,000
$4
$66
$3,074
Chihuahua City
Chihuahua City
Jalisco
Mexicali
Monterrey
Monterrey
Monterrey
Querétaro
Querétaro
Ramos Arizpe
Ramos Arizpe
Ramos Arizpe
San Luis Potosí
Tamaulipas
Tijuana
Toluca
Yucatán
Zacatecas
DESCRIPTION
Plant Expansion
Manufacture refrigerators and washing machines
Laundry products
Plastics injection, metal, stamping, electronic design,
PCB assembly, systems integration
Turbine components (structures, static components,
impellers, blades, gears)
Manufacturing metal and electric parts
Automotive parts
Production volume from 40 to 60 units per day
Helicopters Fuselages
Electronic components
Expand refrigerators production
Manufacture components
Expansion of passenger buses mfg plant
Automotive axles
Plant expansion
Stamp components
Capacity for 30 units/hr
Antennas for cell phones and blockers
Plant Expansion
Plant Expansion
Motorcycle mfg
Cast Iron and machining of automotive components
Board Mission to Mexico
Feb 26th. – March 3rd. ’06
Recommendations
•Provide Application Engineering Support;
• Explore opportunities in auto parts and appliance industries
•Address the growing aircraft components industry;
• Increase visibility of available resources;
•Increase support in Central Mexico;
• Identify financing options;
Applications Engineer at AMT Mexico
Gather
Market
Intelligence
Market
Requirement
(Identify Need)
Process
Requirement
(Identify Solution)
Recommended
Equipment
(Identify Possible Suppliers)
Match
Member with
Customer
Announce
Trade
Opportunity
Market Penetration Review Session
Arms YOU to develop Sales & Marketing Strategy
In depth discussions regarding:
Product Launch
Distribution & Agents
Promotion
Markets
Cultural awareness
Follow the yellow lane road…
Resources
Manufacturing Tech Center:
 Showroom
 Import Logistics for in-bond machinery
 Spaces for Technical Training
•Exposure to new customer base
•Linkage to Service & Integration
organizations
•Open Houses
Open House 2005
350 guests to the reception, 56 members present, 4 committee meetings
Exhibition
Technical Seminars
26 members participated
9 machines under power running demos
350 visitors
3 days event
20 Technical Seminars
16 members participated
4 Academic Lectures
240 Attendants
Mexican Shows
Join the AMT Pavillion in 2007!
In Summary
Capital Investment growing at 6% a year
Automotive trending to produce 3,5m units by 2010,
autoparts market US$25b/year
“Maquila” Industry growing at 15%/year
Must connect to Small and Mid enterprises
Let us help you!
Mexico is the Place to
be in 2007 and beyond
Your contact in Mexico:
Carlos G. Mortera
General Manager
AMT MEXICO OFFICE AND MANUFACTURING TECH CENTER
Monterrey, Mexico
E-mail: [email protected]
Phone: 011 52 81 8359 1232