Why to choose for my event the City of Monterrey?
Transcription
Why to choose for my event the City of Monterrey?
Nuevo Leon SECRETARIAT OF ECONOMIC DEVELOPMENT MORE REASONS TO CHOOSE OUR STATE Nuevo Leon INDEX MORE REASONS TO CHOOSE OUR STATE 1) Labor Force Environment…………………………………… 2) Education…………………………………………………………… 3) Connectivity and Infrastructure……………………........ 4) Utility Costs…………………………………………………………. 5) Industrial Clusters……………………………………............. 6) Quality Of Life………………………………………………………. 7) Government Support………………………………………...... 8) Additional Information………………………………………… Secretariat of Economic Development Nuevo Leon, Mexico Nuevo Leon …………………………………………………………………………………………………………………………..………………………….. >> Nuevo Leon at a Glance …………………………………………………………………………………………………………………………..………………………….. 4.1% Of Mexico’s total population (4.6 million inhabitants) Nuevo Leon represents 7.7% of the country’s total GDP, equivalent to $ 79.8 Billion USD (2010) Producer of 10.2% of all Mexico’s manufactured goods. $17,274 USD- GDP per capita (2010) The total amount of Nuevo Leon’s exports were 26.1 Billion USD (2010) Foreign investment hosted by our state reached $ 2 Billion USD last year (2010). Home to 30 Universities with world-class academic programs. Secretariat of Economic Development Nuevo Leon, Mexico 1) Labor Force Environment …………………………………………………………..………………………………………………………………………………………….. >> One of Nuevo Leon´s Major Assets ……………………………………………………………………………………………………………………………………………………… Stable, productive, and highly qualified labor force. Although home to only 4.1% of Mexico´s population, in 2010 Nuevo Leon contributed with 7.7% of the country´s GDP, a clear indication of our productive labor force. Our young workforce is 2.1 million (45 % of Nuevo Leon´s total population). As part of a developing country, our state´s labor force is characterized by a unique combination: highly skilled and quality-oriented labor force. Based on the ¨ Triple Helix System¨, our State has reached an efficient collaboration between the state government, universities and the industry, which translates into the consolidation of 9 efficient clusters. …………………………………………………………..………………………………………………………………………………………….. >> Labor Force Availability …………………………………………………………..………………………………………………………………………………………….. Population 2010 Total Nuevo Leon National Men women 4,653,458 2,320,185 2,333,273 112,336,538 54,855,231 57,481,307 Source: INEGI Technical and Higher Education (2009-2010) Number of students Technicians Professionals 3,857 154,166 Nuevo Leon Number of Institutions Economically Active Population (EAP), 2010 PEA Nuevo Leon 2,106,031 Economic Participation Rate 61.7 % National 47,137,757 58.1 % Source: INEGI Average Level of Education of Labor Force (EAP), 2010 Total Men 126 276 Source: INEGI Technical Education (2008) Students Institutions Graduated Mexico 352,015 1,484 208,980 Nuevo Leon 19,408 133 19,435 Source: INEGI Women Nuevo Leon 10.3 10.2 10.5 Metropolitan Area 10.3 10.2 10.5 Source: Data Nuevo Leon. Secretariat of Economic Secretariat of Economic Development. Development Nuevo Leon, Mexico. Nuevo Leon, Mexico 4 1) Labor Force Environment Students in Nuevo Leon by Education Level Education Level 2005-2006 2006-2007 2007-2008 2008-2009 Middle School 31,994 31,061 29,394 30,142 High School 100,554 102,121 108,394 115,935 Bachelor’s Degree 117,852 122,471 125,098 129,458 Masters 12,020 11,142 11,840 11,574 Job training 65,716 70,627 76,626 80,806 Source: SEP. Estadística Histórica por estados del Sistema Educativo Nacional. …………………………………………………………..………………………………………………………………………………………….. >> Higher Education …………………………………………………………..………………………………………………………………………………………….. Students in Higher Education by modality (2009-2010) Level Total Technician Registered Graduated 164,294 23,963 3,857 827 Bachelor’s degree 136,885 18,054 Graduate Studies 13,465 3,164 o Specialty 1,050 274 o Master 11,561 2,778 o Ph.D 854 112 Non-Formal 10,087 1,918 o Technological University 8,039 Postgraduate 2,048 o 2,099 1,000 Source: INEGI. Anuario estadístico de Nuevo León 2010. University and Postgraduate Studies (2009-2010) Students Nuevo Leon National Schools Graduated 154,166 276 21,499 1,705,190 6625 236,844 Source: INEGI. Anuario estadístico de Nuevo León 2010. Secretariat of Economic Secretariat of Development Economic Development. Nuevo Leon, Nuevo Leon,Mexico. Mexico 5 1) Labor Force Environment …………………………………………………………..………………………………………………………………………………………….. >> Skills …………………………………………………………..………………………………………………………………………………………….. Students in University by Specialty. (2009-2010) Agricultural Sciences 1,361 Engineerin g and Technology 43,331 Health Sciences, Natural 14 ,602 Sciences 905 Social and administrat ive sciences 53,731 Education and humanities 3,955 Source: INEGI. Anuario estadístico de Nuevo León 2010. …………………………………………………………..………………………………………………………………………………………….. >> Union Presence …………………………………………………………..………………………………………………………………………………………….. Companies in Mexico can work without having their employees affiliated with unions. However, the unionization of workers is highly recommended. In our country there are two types of Unions: Traditional Unions Independent Unions Excellent relationship between unions and companies which provide a very stable labor force environment. 13 years without a strike Competitive labor wages Highly skilled and educated workers Efficient links between academia, industry, unions and the Government Combination of high tech manufacturing in low cost region Secretariat of Economic Secretariat of Economic Development. Development Nuevo Leon, Mexico. Nuevo Leon, Mexico 6 1) Labor Force Environment …………………………………………………………..………………………………………………………………………………………….. >> Labor Costs 2010 …………………………………………………………..………………………………………………………………………………………….. Average Monthly Salaries in Pesos Base Salary without Benefits Minimum Average Maximum Truck Driver 4,680 6,552 8,112 516 Electrician "A" (skilled) Electrician "B" (semi-skilled) Machine Operator "A" (skilled) Machine Operator "B" (semi-skilled) Machine Operator "C" (not skilled) Forklift Operator Janitor 8,229 9,337 10,603 735 6,014 6,805 7,754 536 6,615 7,560 8,505 595 5,040 5,670 6,300 446 Welder (skilled) UNION Average USD 47,000 59,500 72,000 4,685 28,500 34,500 42,000 2,717 28,000 34,000 40,000 2,677 7,800 11,900 15,000 937 22,500 28,500 36,500 2,244 28,500 33,500 37,000 2,638 17,500 22,000 257,500 1,732 Source: www.prodensa.com.mx,Format:Documentexcel Labor Cost 28 Jul2010 3,623 4,316 4,883 340 4,855 5,638 6,577 444 2,822 3,292 3,762 259 7,754 8,704 9,812 685 Source: www.prodensa.com.mx,Format: Document excel Labor Cost 28 Jul2010 Average Monthly Salaries in Pesos Base Salary without Benefits Minimum Average Maximum Average USD 92,000 120,000 140,000 9,449 Production Manager Production Programmer & Controller Chief Process Engineer 45,000 59,500 73,000 4,685 22,000 29,500 36,000 2,323 23,000 28,500 36,000 2,244 Production Chief 23,000 28,500 36,000 2,244 Shift Chief 18,000 23,000 28,500 1,811 Production Supervisor Industrial Security Chief Quality Assurance Manager Quality Engineer 15,000 19,000 22,500 1,496 17,500 22,500 27,000 1,772 42,000 57,000 68,000 4,488 23,000 29,000 37,000 2,283 Quality Chief 17,000 21,000 27,000 1,654 Quality Supervisor Quality Inspector 14,500 17,500 21,500 1,378 6,800 8,900 9,950 701 PRODUCTION /QUALITY Plant Manager Engineering Manager Plant Engineering Chief Industrial Engineering Chief Industrial Drawing Product Engineering Maintenance Chief Maintenance Supervisor Average Monthly Salaries in Pesos Base Salary without Benefits Maximum Average USD 4,100 4,900 323 4,700 5,400 6,200 425 5,600 6,200 6,800 488 Secretary 5,900 6,600 7,000 520 Executive Secretary Bilingual Secretary 7,500 8,300 9,400 654 9,000 9,700 10,800 764 GENERAL AND SECRETARIAL SERVICES Internal Messenger External Messenger Receptionist Minimum Average 3,350 Source: www.prodensa.com.mx,Format:Document excel Labor Cost 28 Jul 2010 SecretariatSecretariat of Economic ofDevelopment. Economic Nuevo Leon, Mexico. Development Nuevo Leon, Mexico 7 1) Labor Force Environment Average Monthly Salaries in Pesos Base Salary without Benefits MARKETING AND SALES Minimum Average Maximum Average USD National Sales Manager 79,000 105,000 136,500 8,268 Regional Sales Manager 48,000 63,000 79,000 4,961 Sales Chief 31,500 48,000 58,000 3,780 Sales Supervisor 23,000 31,500 39,000 2,480 Salesperson 16,000 20,000 24,500 1,575 Source: www.prodensa.com.mx,Format:Document excel Labor Cost 28 Jul 2010 Average Monthly Salaries in Pesos Base Salary without Benefits PURCHASING AND TRAFFIC DEPARMENT Purchasing and Traffic Manager Purchasing Chief Minimum Average Maximum Average USD 66,000 4,409 44,000 56,000 25,500 29,500 36,500 2,323 National Buyer 18,000 19,500 21,500 1,535 International Buyer 20,000 24,500 29,000 1,929 Buyer Auxiliary 12,500 13,500 15,000 1,063 Warehouse Chief 17,000 21,000 25,500 1,654 Warehouseman 6,400 8,300 10,000 654 Traffic Chief 16,500 19,500 24,500 1,535 Warehouse Supervisor 12,000 16,000 18,500 1,260 Source: www.prodensa.com.mx, Secretariat of Economic Development. Secretariat of Economic Nuevo Leon, Mexico. Development Nuevo Leon, Mexico 8 1) Labor Force Environment …………………………………………………………..…………………………………………………………………………………………. >> Benefits and Medical Attention (Labor) …………………………………………………………..…………………………………………………………………………………………. Benefits Direct labor Staff/Management Christmas Bonus 17 days of base salary 30 days of base salary Vacation Bonus 35% of the workers vacation period. 50% of the workers vacation period. Social Security Tax (Health, Life, Day Care, Aging) 15 % - 30 % 10 - 25 % Workers Housing Fund 5% 5% Retirement Fund 2% 2% OTHER CUSTOMARY BENEFITS Direct labor Savings Fund 8 - 13 % 8 – 13 % Food Bonus 8 - 12 % 8 - 12% Health Insurance No, only Social Security Coverage Yes, additional to Social Security Coverage Life Insurance No, only Social Security Coverage Yes, additional to Social Security Coverage Assistance and Absenteeism Bonus 10 % of base salary No Staff Source: www.prodensa.com.mx, Format: Document excel Labor Cost 28 Jul 2010 Contact: Rogelio Soto [mailto:rsoto@prodensa.com.mx] Optional company benefits regarding medical attention Number of workers 1. Ensure that the facility has the appropriate First Aid equipment as well as the appropriate training for its use Less than 100 2. When the facility has more than 100 employees, an Infirmary with all appropriate equipment must be established to attend to any medical emergencies. Between 100 and 300 3. When the facility has more than 300 employees, a contract with a local Hospital near the area must be established More than 300 Note: Any time an accident occurs, it must be reported to the Secretariat of Labor within 72 hours. Source: Prodensa, Shelter Group. Secretariat of Economic Secretariat of Economic Development. Development Nuevo Leon, Mexico. Nuevo Leon, Mexico 9 Critical Factors 2) Education …………………………………………………………..…………………………………………………………………………………………. >> Distinguished Universities ………………………………………………………………………………………………………………………………………………………. Nuevo Leon’s key to success throughout the years has been its investment in education. From the youngest to the eldest, continuous education has been the standard for generations. The process of better educating the citizenship begins at the elementary level. Monterrey is home to very prestigious private schools that offer their education in languages like English and French. English is taught as a second language in the primary levels in public and private schools. This combination of education at all levels has brought the State’s educational average to 9.8 years, compared to the median educational level of 8.6 years for the rest of Mexico. Monterrey is home to 93 colleges and universities and 213 technical degrees. It is home to some of the most prestigious universities of the nation. The first campus of the Instituto Tecnológico y de Estudios Superiores de Monterrey (ITESM) originated in our city, and is one of the most prestigious colleges in all of Latin America, It has international recognition due to its high academic levels and investigations. Furthermore, there is also the Universidad de Monterrey (UDEM), and the Universidad Regiomontana (UR), and together these institutions are considered the 3 best private colleges in the northeastern region of Mexico. In the field of public education the Universidad Autonoma de Nuevo Leon (UANL) has been ranked as the best public university in all the northern region of the country. Currently, Monterrey receives thousands of students throughout Mexico and abroad to pursue their studies in these institutions. In advanced education, we are home to three of the best graduate schools in the country. The IPADE, EGADE, and EGAP are three world class graduate schools that focus on Business Management and Public Administration. Secretariat of Economic Development SecretariatNuevo of Economic Development. Leon, Mexico Nuevo Leon, Mexico 10 3) Connectivity and Infrastructure ………………………………………………………………………………………………………………………………………………………. >> Highway and Railroad Network ………………………………………………………………………………………………………………………………………………………. Availability of efficient railrod and highway networks. Direct access to Highway 57, the Mexican Highway route that connects to Interstate 35 upon crossing into the United States. A railway system operated by private companies with connections to major land ports and large cities in the United States. Source: Powerpoint Document FactoresGeoServNL, in Folder Critical Factors –MAPAS Secretariat of Economic Secretariat ofDevelopment Economic Development. NuevoLeon, Leon,Mexico Mexico Nuevo 11 3) Connectivity and Infrastructure ……………………………………………………………………………………………………………………………………………………… >> Colombia International Bridge (CODEFRONT) ………………………………………………………………………………………………………………………………………………………. Minimizes the time and the cost of exploring and importing goods due to its record bordercrossing time in both directions. Greatest bi-national infrastructure (500 hectares) specialized in trafficking of merchandise with an international port of 8 lanes, showing record efficiency. Capacity for 12,000 trailers per day. Efficient technology that allows the constant flow of merchandise at the border. ISO-9001 Certificate to assure the quality of service. The highest technology used by United States Customs, equipped with X-ray and Gamma Pay tunnel system for the rapid control of loaded trailers, which facilitates the flow of Mexican exports. Biggest fiscal precinct in the northern front of Mexico with a privileged location at the geographic center of the United State. 8.6 miles of border with Texas Situated 14.9 miles west of Bridge 3. I-35 global connection Third place in value of imports and exports of 21 bridges. >> Colombia International Bridge has the following characteristics: Strategic Supervised Precint: The Customs Law allows the establishment of a free trade zone: a strategic supervised precint, creating an area free of taxes for foreign trade and alloting benefits of merchandise management, custody, storage, transformation, repair, elaboration, exhibition, distribution, and sale. Safe Export Patio: This construction can be described as a paved patio with a cyclonical or bradded fence, lighting, closed circuit and a high resolution image network, and with independent entrances for each company, all of which require exclusive business certificates of production, like C-TPAT, to monitor exports. This procedure prevents the international contamination of the containers which are headed for the United States. Multimodal Cargo Terminal: A multimodal cargo terminal is a complex with different transportation layouts, equiped with advanced logistic systems, infrastructure and technology, wich are combined for merchandise collection and distribution. Laboratory analysis equipment for meat products: Colombia Port has the technical equipment that is necessary to conduct food, agriculture, and meat products analysis that pass through the border. This facility will help companies that import raw materials improve their transfer time in accordance with their supplier´s demands. Secretariat of Economic Development Secretariat of Economic Development. Nuevo Leon, Mexico Nuevo Leon, Mexico 12 3) Connectivity and Infrastructure …………………………………………………………..………………………………………………………………………………………….. >> Industrial Legacy ………………………………………………………………………………………………………………………………………………………. Late in the nineteenth century, on October 9, 1890, Nuevo Leon began its industrial legacy with the first steel concession in Mexico; the first of its kind in all of Latin America, Financed in part by foreign investment, the steel industry gave the State of Nuevo Leon a progressive and stable economic environment that lead to the birth of Nuevo Leon’s beer industry in 1889, with one of the first joint ventures in the State’s history. This was made possible with the cooperation and transfer of knowledge from aboard. This particular industry required many raw materials that were unobtainable in the northeastern part of Mexico at the time, so as direct consequence, the glass industry was born to service the beer factory in 1899. Continuing in the industrial trend, the first brick factory was founded in the 1890s. This company directly benefited from the growth of the northeastern region due to the use of this material for construction of roads and buildings at the time. As history clearly points out, Nuevo Leon was built with local industry and international cooperation. International exchanges with industrialized nations have played a fundamental role in the economic development of the region and specifically Monterrey. Secretariat of Economic Development Secretariat of Economic Development. Nuevo Leon, Mexico Mexico Nuevo Leon, 13 3) Connectivity and Infrastructure ………………………………………………………………………………………………………………………………………………………. >> Telecommunication Services ………………………………………………………………………………………………………………………………………………………. Easy access to the latest telecommunication technologies. Extensive T1 and DSL fiber optic network services operated by private groups: Telmex, Alestra (AT&T) and Avantel (MCI WoldCom). Distribution of communication infrastructure in Nuevo Leon Telephone lines in operation Districts communicating by rural telephones Restricted Television subscribers TV Radio Post offices Telegraph Offices 1,249,431 793 366,252 32 69 778 535 Source: INEGI. ………………………………………………………………………………………………………………………………………………………. >> Industrial Resources and Infrastructure ………………………………………………………………………………………………………………………………………………………. Monterrey has an abundant natural gas supply. The main sources are located just 180 km from the city. Power surplus exceeds the demand. Availability of recycled water for industrial usage. ( Monterrey treat s 100% of its wastewater) To transfer electricity from the production plants to the final consumers, CFE operates an extensive transmission and distribution network integrated by high, medium and low conduction line. The city of Monterrey, the industrial capital of Mexico, is considered to be one of the urban areas with the most natural gas usage in Latin America. Secretariat of Economic Development Nuevo Leon, Mexico 3) Connectivity and Infrastructure ………………………………………………………………………………………………………………………………………………………. >> Industrial Parks ………………………………………………………………………………………………………………………………………………………. Nuevo leon has more than 120 Indsutrial Parks throughout the State. The map below shows only the ones inside the Metro area. Secretariat of Economic Development Nuevo Leon, Mexico 3) Connectivity and Infrastructure ………………………………………………………………………………………………………………………………………………………. >> Industrial Costs ………………………………………………………………………………………………………………………………………………………. >> Transportation Costs , Freight Services (2010) >> Costs by Truck from Monterrey (USD) 48'' or 53'' Container Domestic City Volume Max. Capacity 160m3 1720ft3 Weight Max. Capacity 22,000Kg. 48,500lbs 400 20'' Container Volume Max. Capacity 36m3 390ft3 Weight Max. Capacity 22,000Kg. 48,500lbs 40'' Container Volume Weight Max. Max. Capacity Capacity 160m3 22,000Kg. 1720ft3 48,500lbs 400 Miles Kms Nuevo Laredo, Tamaulipas 140 225 Altamira, Tamaulipas 320 515 1,200 1,200 1,200 Reynosa, Tamaulipas 140 225 500 500 500 México, D.F. 614 999 1,200 1,200 1,200 Guadalajara, Jalisco 481 777 1,100 1,100 1,100 Manzanillo, Colima 666 1072 2,000 2,000 2,000 Colombia, Nuevo León 154 248 400 400 400 400 Source: Excel Documents: Freight Service Dicex- SEDEC-NL -2010, and Freight Cost Ports to Monterrey. 48'' OR 53'' CONTAINER International City MILES KMS Volume Max. Capacity. Weight Max. Capacity. 160m3 22,000kg 5,680ft3 Cleveland, Ohio 1840 2961 3,100 Kansas City, Missouri 1370 2103 2,100 Detroit Michigan 1850 2977 3,200 Nashville, Tennessee 1313 2113 2,400 Chicago, Illinois 1620 2607 2,800 Los Ángeles, California 1653 2660 3,100 Oklahoma City, Oklahoma Dallas, Texas 961 1546 1,800 567 912 1,450 San Antonio, Texas 370 595 1,050 Houston, Texas 445 716 1,250 Brownsville, Texas 199 320 N/A Laredo, Texas 140 225 400 45,500 lbs Source: Estimated cost by Fletex Mex, S.A. de C.V., one air suspensión truck single trip, tranfer included, flue surcharge not included, not value added tax. Prices may fluctuate. Contact (52-81) 8369.4581 raymundo_ramirez@fletesmex.com.mx Secretariat of Economic Development Nuevo Leon, Mexico 3) Connectivity and Infrastructure ………………………………………………………………………………………………………………………………………………………. >> Main Road Connections ………………………………………………………………………………………………………………………………………………………. Highway 85 stretches from the north to the southeast, connecting Nuevo León with the cities of Laredo and interstate 35 in Texas. Highway 40 unites the east with the west of Nuevo León, which connects Monterrey to the city of Saltillo in the State of Coahuila and with Reynosa in Tamaulipas. Highway 281 also connects to Interstate 37 in Texas. Highway 53 connects the city of Monterrey to the city of Monclova, Coahuila. Highway 54 joins Monterrey with the city of Miguel Alemán in Tamaulipas, which then connects to Rio Grande City in Texas. Source: cf Spanish (2009) Sea cost from Monterrey (USD) Ports Country Transit days 20" Container Volume Max. Capacity 160 m3 1720 ft3 Weight Max. Capacity 36m3 390ft3 40" Container Volume Max. Capacity 22,000kg 48,500lbs 40" HC Container Weight Max. Capacity 73m3 385ft3 Volume Max. Capacity 22,000kg 48,500lbs Le Havre France 15 1,850 2,600 2,600 Felixstowe U.K 23 1,900 2,700 2,700 Amberes Belgium 24 1,750 2,400 2,400 Rotterdam Holland 28 1,950 2,650 2,650 Bremenhaven Germany 27 1,750 2,450 2,450 Hong Kong China 22 2,500 2,700 2,700 Shanghai China 23 2,500 2,700 2,700 Keelung Japan 24 2,800 3,200 3,200 Buscan Korea 25 2,500 2,700 2,700 Kobe Japan 27 3,050 6,400 6,400 Santos Brasil 32 2,250 3,184 3,184 Weight Max. Capacity 73m3 790ft3 Source: http://www.transplace.com Rail Cost From Monterrey (USD) City 50" wagon 60" wagon Volume Max. Capacity. Weight Max. Capacity Volume Max. Capacity 140m3 1,500ft3 25,000kg 165m3 1,750ft3 55,200lbs Weight Max. Capacity. 30,000kg 66,000lbs Laredo, Tamaulipas 238 238 Dallas, Texas 1138 1138 Indianápolis, Indiana 1364 1364 Detroit, Michigan 2261 2261 Chicago 1364 1364 NYC 2245 2245 Atlanta 1922 1922 Los Angeles 1743 1743 Source: http://www.transplace.com Secretariat of Economic Development Nuevo Leon, Mexico 3) Connectivity and Infrastructure ………………………………………………………………………………………………………………………………………………………. >> Railroad Connections ………………………………………………………………………………………………………………………………………………………. The railroad system is operated by private companies and has connections to major ports and cities in the US and in Mexico. Nuevo Leon is one of the two States in Mexico where the two main carriers merge. (Kansas City Southern and Ferromex) Main Routes: Laredo, TX Manzanillo Lázaro Cárdenas Brownsville, TX Matamoros Mazatlán Eagle Pass, TX Veracruz Guaymas El Paso, TX Estado de México Querétaro Presidio, TX San Luis Potosí Chihuahua Calexico, CA Guadalajara Mexicali Altamira / Tampico Puebla Cargo Terminals Service Cargo Companies NATIONAL NUEVO LEON 23 98,106 1 8,850 ………………………………………………………………………………………………………………………………………………………. >>Airports ………………………………………………………………………………………………………………………………………………………. Two world-class international airports: One commercial and cargo and the other private. World-class commercial airport in Apodaca, N.L. Up to 700 monthly flight to ten cities in United States (Atlanta, Dallas, Houston, Las Vegas, San Antonio, Detroit and Miami) International Airports in Nuevo Leon: Mariano Escobedo (Comercial and Cargo) Del Norte (Corporat Secretariat of Economic Development Nuevo Leon, Mexico 3) Connectivity and Infrastructure Mariano Escobedo Airport Location : Carretera Miguel Alemán km 24, Apodaca, NL. C.P.66600 It is at the forefront of airfreight facilities in Mexico, with 60,000 m2 for cargo operations. Cargo area location. Features: In-bond zone Two platforms: Import / Export Confiscation Warehouse Merchandise inspection platforms Parking for 359 cars and 59 trailers These facilities offer: X-ray zone Each platform can handle 9 trailers at a time Excellent roads for trailers and cars Utilities Fire extinction equipment Traffic lights Water treatment plant Source : Word Document: Ports of Entry Location and Hours of Service >> Local/International Flights Frequency, 2011 Average Number of Flights per month Departing international flights Departing national flights Arriving national flights Arriving international flights 730 2,679 2,716 696 Monterrey Airport cargo Capacity Potential SIZE (M2) 60,000 Source: Calculated from internet website: http://www.oma.aero/es/aeropuertos/monterrey/ >> International Departures: Operating Airlines in Nuevo Leon(2011) Nacional Aeroméxico Connect Aeroméxico Interjet Magnicharter Vivaaerobus Volaris International American Airlines American Eagle Continental Delta Direct Flights to International Airports Atlanta, Georgia Los Angeles, CA Chicago, Illinois Dallas/ ft Worth, TX Miami, FL La Habana, Cuba Houston, TX Nueva york, NY Las Vegas, Nevada San Antonio Detroit Calgary Source: Internet website: Secretariat of Economic Development Nuevo Leon, Mexico 3) Connectivity and Infrastructure …………………………………………………………..………………………………………………………………………………………….. >> The Research and Technology Innovation Park (PIIT) ………………………………………………………………………………………………………………………………………………………. The Research and Technology Innovation Park (PIIT) is one of the key strategies within the Monterrey, International City of Knowledge Program. It consists of a total surface area of 70 Ha (172 acres); committed to R&D centers and for businesses that meet the Park’s objectives. Of the areas to be developed in the Park, the five priority areas are: Biotechnology Nanotechnology Mechatronics Information and Communications Technologies Health The Institutions taking part in this project are: Consejo Nacional de Ciencia y Tecnologia, ( CONACYT) Universidad Autonoma de Nuevo Leon, (UANL) Instituto Tecnologico de Monterrey, (ITESM) Universidad de Monterrey, (UDEM) Gobierno del Estado de Nuevo Secretariat of Economic Development Nuevo Leon, Mexico 3) Connectivity and Infrastructure …………………………………………………………..………………………………………………………………………………………….. >> Interpuerto Monterrey ………………………………………………………………………………………………………………………………………………………. Interpuerto Monterrey is the largest logistics platform in Mexico that promotes the national and international trade in a safe, secure and efficient way. The government of Nuevo Leon and a group of visionary business leaders created an integrated logistic platform to develop competitiveness. The Interpuerto provides the infrastructure for a better communication between Nuevo Leon with the U.S. border, the Gulf of Mexico and the Pacific Ocean. It also includes a program that decentralizes and streamlines the rail industry, promoting airport projects and developing a multimodal inland port. Logistic benefits of Interpuerto Monterrey: Gain of market share from cargoes coming from Asia and Europe thru the main Mexican ports. Eliminate traffic congestions generated in the west coast ports, creating a logistics hub in the Northeast Mexican region. Reduction of supply chain cost for final users. Facilitate the transport equipment interchange thru a safe and secure way. Social Benefits of Interpuerto Monterrey: The development of the project is included in the National Infrastructure Plan from the Mexican Federal Government. Foresees a 2 billion USD investment. Creation of more than 50,000 new direct & indirect jobs. Mexico Competitiveness in a world wide scenario The creation of a new urban and economic pole. Secretariat of Economic Development Nuevo Leon, Mexico 3)Connectivity and Infrastructure …………………………………………………………..………………………………………………………………………………………….. >> Well Developed Supply Base ………………………………………………………………………………………………………………………………………………………. This program is focused on the identification,approach, and integration of the supply chain for foreign and national companies. How It Works: Identification of companies demanding the service Identification and evaluation of Mexican suppliers Visits to evaluate the facilities Certification,improvement and training programs Follow-ups to negotiations Symposiums and match-making Objective: The main objective of the program is to create a win-win situation: Client-Company Mexican Industry Cost Reduction Time efficiency in developing a supply chain Supplier support to meet international standards Government support on import-export activities Development of the industry through new technologies Creation of jobs Promotion of exports New technology and quality processes Improve quality of life Web page: www.supplyhub.nl.gob.mx Secretariat of Economic Development Nuevo Leon, Mexico 4) Utility Costs …………………………………………………………..………………………………………………………………………………………….. >> Basic Input ………………………………………………………………………………………………………………………………………………………. Water (USD)/200m3 Metropolitan rates Natural Gas (USD)/10,500 Gcal per year) 590.5 22,323 Source: Servicios de Agua y Drenaje de Monterrey, 2011 and GasNatural Mexico. …………………………………………………………..………………………………………………………………………………………….. >> Industrial Water/Sewage (2011) …………………………………………………………..………………………………………………………………………………………….. 3 Consumption m per month Consumption price including 25% sewage in Pesos 25 138.81 50 702.81 100 2,243.00 200 7,086.75 More than 200 7,086.75 +36.48 per additional m3 Source: Servicios de Agua y Drenaje de Monterrey LP.D, PDF Document Servicios de Agua y Drenaje de Monterrey 1,2 (2011). Treated Water for Industrial use (2011) Monthly consumption range in m3 1 130,000 Average use (liters per second) Tariff (Pesos/m3) up to 50 7.63 132,200 389,000 From 51 to 150 7.36 391,400 777,600 From 151 to 300 7.08 More than 300: for high consumers who have own conduction infrastructure 4.68 777,600 more Source: Servicios de Agua y Drenaje de Monterrey LP.D, PDF Document Servicios de Agua y Drenaje de Monterrey 4 (2011). Nuevo León has several reservoirs which supply water: - Rodrigo Gómez “La Boca” (41 Mm³) La Juventud (1.05 Mm³) El Cuchillo (1,123 Mm³) Agualeguas (9.8 Mm³) Cierro Prieto (300 Mm³) Sombrerillo (1 Mm³) Salinillas (19 Mm³) Los Mimbres (30 Mm³) El Porvenir (5.28 Mm³) Note: Nuevo León holds the highest ranking in the country in water treatment facilities; 100% of water in Monterrey is treated for industrial use. Monterrey tap water meets international standards and the service is available 24 hours per day. Some companies prefer to have their own deep wells. Secretariat of Economic Development Nuevo Leon, Mexico 4) Utility Costs …………………………………………………………..………………………………………………………………………………………….. >> Telecommunications (2010) …………………………………………………………..………………………………………………………………………………………….. More than 1.3 million telephone lines installed (2010) Fiber optic Capacity:2.5 gigabytes per second Dedicated lines Service Extensive telephone services Telephone Lines Density National 20,667,736 19.3 Nuevo Leon 1,315,858 29.8 Source: Inegi …………………………………………………………..………………………………………………………………………………………….. >> Electricity …………………………………………………………..………………………………………………………………………………………….. Medium Tension (HM) Electricity Costs (Mexican pesos) Region- Mexico Cost per kilowatt (Energy) Peak load electricity* Intermediate energy* Base load electricity* Baja California 239.38 1.9573 0.9863 0.775 South Baja California 230.07 1.5703 1.3688 0.9685 Central 165.88 1.876 1.0923 0.9131 Northeast- Nuevo León Northwest 152.52 1.7328 1.014 0.8306 155.77 1.7429 1.0062 0.843 North 153.26 1.7451 1.0238 0.8329 Peninsula 171.41 1.8351 1.0262 0.8452 South 165.88 1.8372 1.0437 0.8685 (*) Cost per kilowatt-hour. Source: Comisión Federal de Electricidad (CFE). Excel Document Electricity Cost 2011. http://www.cfe.gob.mx/negocio/conocetarifa/Paginas/Tarifas.asp Peak, Intermediate and Base Periods. Days Base Intermediate Peak Monday Friday 0:00 - 6:00 6:00 - 20:00 20:00 - 22:00 Saturday 0:00 - 7:00 7:00 - 24:00 Sunday and Holidays 0:00 - 19:00 19:00 - 24:00 22:00 - 24:00 Source: Comisión Federal de Electricidad (CFE). Excel Document Electricity Cost. http://www.cfe.gob.mx/negocio/conocetarifa/Paginas/Tarifas.aspx Note: This may vary depending if it is summer or winter time. Secretariat of Economic Development Nuevo Leon, Mexico 5) Industrial Clusters …………………………………………………………..………………………………………………………………………………………….. >>Clusters In Nuevo león …………………………………………………………..………………………………………………………………………………………….. Throughout the years our State has developed important clusters in the following industrial sectors: automotive, autoparts and components; home appliances and components; software and IT services; specialized medical services; multimedia; aerospace; biotechnology; nanotechnology; agriculture, and housing. As of 2011 Nuevo Leon has 10 formalized clusters. …………………………………………………………..………………………………………………………………………………………….. >>Household Appliance Industry - CLELAC …………………………………………………………..………………………………………………………………………………………….. Currently Mexico is the main supplier for the household-electronic industry in the United States, Canada, and Central America, thanks to a wide network of qualified suppliers in plastic fields, thermodynamics, thermoelectrical processes and metallic printings, among others. Nuevo Leon has become an interesting option for foreign companies that are looking for a place to expand their possibilities of production around the world. Nowadays, Nuevo Leon has a consolidated industrial cluster that is continuously growing. It is a network integrated by more than 100 qualified companies that have allowed companies like Whirlpool, Friedrich, Carrier, York, Phillips, LG Electronics, and Mabe, among others, to establish their operations in Nuevo Leon. In adition, the household-electric productive chain of the sector is fortifies, supported and integrated through the mos consolidated industries of Nuevo Leon, like metal mechanics, the elctrical industry, electronics, plastic, etc. Companies suas as Collis of Mexico, Criser, Danfoss, Epm Plastics, Estrosa, and Kentek, among others, offer the products and basic services for the industry, like plastic injection, electronic components, printings, manufacturing, packing, etc. Most of them guarantee the quality of their products since they have quality certifications like ISO 9000, ISO 9000:2000 and TS 16949. Secretariat of Economic Development Nuevo Leon, Mexico 5) Industrial Clusters …………………………………………………………..………………………………………………………………………………………….. >> Aerospace Industry – Monterrey Aerocluster …………………………………………………………..………………………………………………………………………………………….. Through join efforts, their goal is to develop the region into a major aeronautic supply hub. In order to define its long term vision, the Aerocluster receives counseling from Systems Integrators located in Monterrey as Honeywell, GE Aviation and Hamilton Sundstrand. The Aerospace Industry in Nuevo Leon generates around 1,490 direct employments Mission: Develop and Promote the aerospace industry in the State of Nuevo leon as an integrated supply chain for international OEMS and System Integrators. Vision: Transform Monterrey and its metro area into a center of excellence in innovation, engineering and supply of aeronautical parts and components in North America Monterrey Aerocluster is a non-for-profit association gathering 22 members from the private sector, the government and the academia from the State of Nuevo Leon, Mexico. There are some aeronautic parts currently manufactured in Monterrey: Rolled rings and machined parts for turbines (FRISA AEROSPACE, JAITER) Light helicopters fuselages (MD HELICOPTERS) Metallic parts for cabins (EZI METALES, TECMAQ) Electric wire and cable (VIAKABLE) …………………………………………………………..………………………………………………………………………………………….. >> Specialized Health Services – Monterrey Ciudad de la Salud …………………………………………………………..………………………………………………………………………………………….. In recent years , Nuevo Leon has become a hub for hospitals, clinics and a series of companies related to the specialized health services sector that provide world class services to both the state´s local abd foreign communities. Hospitals like the Christus Muguerza, Santa Engrancia, San Jose Tec de Monterrey, University Hospital of the State University of Nuevo Leon (UANL), Oca Hospital, Doctors Hospital, Zambrano Hellion Hospital, and the Osler Medical Center, among other,s have been categorizeg high quality health services providers. There are plenty of clinics and laboratories like the Vitro clinic, Nova, Cuauhtemoc and Famosa, as well as research and innovation centers in fields such as applied biotechnology, sponsored by the main universities. This has encouraged the development of an industrial cluster for specialized medical services. Secretariat of Economic Secretariat of Economic Development. Development Nuevo León, México. Nuevo Leon, Mexico 5) Industrial Clusters …………………………………………………………..………………………………………………………………………………………….. >> Automotive Industry - Claut …………………………………………………………..………………………………………………………………………………………….. Nuevo Leon has always been a competitive State, strengthening core industries through cluster development. One of the most important clusters is the one related to the automotive industry. The Automotive Cluster in Nuevo Leon accounts for 17.4% of the total Gross Domestic Product of the automotive industry in Mexico. Number one State in automotive exports; 2010 exported $5,000 MUSD, representing 27% of the State’s total exports. Highest employer with more than 50,000 people employed in this industry. Nuevo Leon is home to 2 OEM: Daimler (Heavy Truck and Buses) and International Navistar (Heavy Trucks); in addition hostess 23% of the autopart companies throughout the country, making of Nuevo Leon the 2nd State with the greatest number of companies in the automotive industry. Nuevo León ranks first in Mexico in the production of cylinder heads, engine blcks, car batteries, glass and harnesses, and is second in the production of truck and bus manufacturing, electric and electronic equipment and plastic parts. The automotive cluster also produces bodies, transmissions, brakes, seats, metal stamping, rims, direction ans suspension systems, among others.The cluster gathers more than 50 companies, such as: NEMAK JOHNSON CONTROLS VITRO XIGNUX INTERNATIONAL-NAVISTAR MERCEDES BENZ DENSO CARPLASTIC TAKATA METALSA QUIMMCO ANCHOR LOCK FICOSA The automotive cluster in Nuevo Leon has generated a lot of employment, and has also contributed to the economic growth and progress of the State. Secretariat of Economic Secretariat of Economic Development. Development Nuevo León, México. Nuevo Leon, Mexico 6) Quality Of Life …………………………………………………………..………………………………………………………………………………………….. >> Nuevo Leon: A Great Place To Live …………………………………………………………..………………………………………………………………………………………….. In addition to the great business advantages that our States has, it also offers a great quality of life. Nuevo Leon has 12 golf courses, 184 hotels including 36 Five Star travel & Luxury tourism hotels , 20 shopping centers, 20 museums in the metropolitan area, 700 medical units, and is the only State in the country with 6 hospitals certified by the Joint Comission International. It also has two great convention centers (Convex & Cintermex). Economic Development • • • • Most competitive State 2010 -Source: IMCO In creation of jobs 2010 - Source: IMSS Main State Receiver of IED 1999-2010 - Source: Secretariat of Economy The State with the major level of productivity in the country. Source: Centro de Investigación para el Desarrollo (Cidac) • • • Public finance and Stability - Source: Secretariat of Economy GDP Growth - Source: Secretariat of Economy Better capacity of negotiation union – company- Source: Secretariat of Economy R+D+I Larger number of patent’s application - source: AMPI 2009 1255 certified companies with ISO 9000 and 14001 during the period 2000-2009 - SourceConacyt The first integral park in Latin America on technological development and innovation has been established in Nuevo Leon (PIIT) Education • • Number of researchers of the National Research System Enrolled Students in Graduate Degrees & Phd´s in Engineering and Technology -Source: INEGI • • • • • • • More than 60 bilingual schools. 213 technical careers with 52,000 students 5,000 engineers graduated per year (avg.) Workforce: 2.1 million, equals to 45% of the total population 13 years without any strike Stable, productive and highly qualified labor force Secretariat of Economic Secretariat of Economic Development. Development Nuevo León, México. Nuevo Leon, Mexico 6) Quality Of Life …………………………………………………………..………………………………………………………………………………………….. >> Hospitals …………………………………………………………..………………………………………………………………………………………….. 1. 2. 3. 4. 5. 6. 7. 8. Ginequito OCA Hospital* Clinica VITRO Hospital San Jose Tec de Monterrey* Christus Muguerza* Hospital Universitario de Monterrey Doctors Hospital* Hospital CIMA Monterrey* Medical Units External Consultation 672 General Hospitalization 18 Specialized Hospitalization 10 Total 700 *Certified by the Joint Comission International …………………………………………………………..………………………………………………………………………………………….. >> Shopping in Nuevo Leon …………………………………………………………..………………………………………………………………………………………….. Plaza Fiesta San Agustín Galerías Valle Oriente Galerías Monterrey Plaza Comercial Sendero Plaza Bella Plaza La Silla Plaza San Pedro Plaza Kinta Plaza Comercial La Fe Plaza México Interplaza Shoptown Plaza Real Monterrey Plaza Comercial Morelos Plaza XO Plaza Garza Sada 1892 Paseo San Pedro Las plazas outlets Monterrey Plaza Tanarah …………………………………………………………..………………………………………………………………………………………….. >> Cultural and Sports Activities …………………………………………………………..………………………………………………………………………………………….. >> Museums Casa de la cultura de N.L. Centro Cultural Alfa Centro de las Artes de N.L MARCO Museo de Historia Mexicana Museo del Centenario Museo Metropolitano de Monterrey Museo de Vidrio Museo Regional de N.L. Casa Cultural San Pedro Museo del Acero Museo del Noroeste Museo del Palacio del Gobierno Secretariat of Economic Development Nuevo Leon, Mexico 6) Quality Of Life …………………………………………………………..………………………………………………………………………………………….. >> Sports Teams in Nuevo Leon …………………………………………………………..………………………………………………………………………………………….. Team Sport Rayados Tigres Fuerza Regia Sultanes de Monterrey Soccer Soccer Basketball Baseball …………………………………………………………..………………………………………………………………………………………….. >> Golf Courses …………………………………………………………..………………………………………………………………………………………….. Campo de Golf de Monterreal Club Campestre Monterrey Residencial y Club de Golf La Herradura Club de Golf Valle Alto Club Refinería Cadereyta Hacienda El Mirador Club de Golf Las Cruces Golf & Country Club Real del Desierto Golf & Country Club Las Misiones Country Club Tierra Dorada Club de Golf El Sol del Vergel Espacio San Pedro (Tee Practice) …………………………………………………………..………………………………………………………………………………………….. >> Hotels …………………………………………………………..………………………………………………………………………………………….. The number of hotels in Monterrey metro area has grown consistently over the last decade. Monterrey is now home to over 184 hotels. Number of Hotels in Nuevo Leon YEAR TOTAL 5 STARS 4 STARS 3 STARS 2 STARS NONEcar 2007 2008 2009 2010 167 172 178 184 31 33 35 36 43 43 45 47 30 31 33 35 31 30 28 27 32 35 37 39 Source: Secretariat of Tourism of Nuevo Leon Secretariat of Economic Development Nuevo Leon, Mexico 7) Government Support …………………………………………………………..…………………………………………………………………………………………. >> Federal Suport Programs for Investors …………………………………………………………..………………………………………………………………………………………….. PROSOFT Fund The Prosoft Fund is an instrument of temporary support for the development of the software industry and other services related to the information technology industry. It is provided by the Secretariat of Economy, other federal institutions along with the State. In this way, resources are combined to be applied for the development of the IT industry, according to specific regulations. Objectives: Contribute to the conversation and creation of formal job opportunities in the software and IT sectors; Promote regional economic development; Promote the creation of companies in software development and related industries, and strengthen the existing companies. Promote opportunities of productive development in the IT sector; Stimulate the innovation, development, and technologicalmodernization in the IT sector; Contribute to the improvement of productive processes in the IT sector; Contribute to the level of training of human resources in the IT sector; Promote the integration and strengthening of productive chains in the IT sector; Contribute to the development of physical infrastructure as well as that of high technology parks to favor the integration of technical, operational and commercial capabilities in IT companies. Priority Criteria for PROSOFT projects: Jobs Created Jobs improved Companies attended to Investment per job created First Job Program The First Job Program will grant a subsidy to companies during a maximum period of 12 months, destined to cover the part of the employee-employer quotes that must be paid to the Mexican Institute of Social Security when new employees are hired for the first time in their life. Base Salary Less than 10 Minimum Wages* 10-14 Minimum Wages 15-19 Minimum Wages More than 20 minimum wages Maximum Subsidy Percentage 100% 60% 20% 10% *Minimum wage valid in the region corresponding to the geographical location of the employer Secretariat of Economic Development Nuevo Leon, Mexico 7) Government Support The IMMEX Program The Immex Program, is an instrument that allows temporary importation of certain goods that are used in the transformation, elaboration or repair of merchandise for further export, without requiring paymentof the general importation duty. (IGI- Impuesto general de importación) The Value Added Tax (IVA) and any dumping duty (cuota compensatoria) are required to be paid. It is important to consider that the benefits of this program are provided specifically to the authorized entity, which in both cases are Federal programs. Good Subject To Temporary Importation There are four categories of goods that are subjects to temporary importation under this program.The time periods in which each category of goods receive the benefits of the Immex Program depends on the category of such goods. Categories and time periods are provided below: 1. Raw materials, parts and components, bottles, packing materials, lubricants, gasoline, diesel, and other energy sources used in the production process of the merchandise that is going to be exported. These goods can be in mexico for up to 18 months. 2. Containers and trailer boxes can be in Mexico for up to 24 months. 3. Tools, equipment and research accessories, industrial security items and all products require hygiene, environmental protection, work manuals, industrial plans, and communication equipment. These goods can be in Mexico for the duration of the Immex Program. 4. Machines, instruments and spare parts used in the productive process, laboratory equipment, measurement equipment, sample products and quality control items, items for personnel training and the equipment required for the administrative development of the entity. These goods can be in mexico for the duration od the Immex Program. For further information regrding Immex program please visit http://www.economia.gob.mx/?P=2792 Secretariat of Economic Development Nuevo Leon, Mexico 7)Government Support …………………………………………………………..………………………………………………………………………………………….. >> CONACYT mixed fund- State of Nuevo Leon- Programs that apply for R&D activities …………………………………………………………..………………………………………………………………………………………….. CONACYT-FOMIX of Nuevo Leon is a trust fund for allocation to scientific and technological development. It was founded in the year 2000 with funds from the Nuevo Leon State Government and Federal Government through CONACYT (National Comission for Science and Technology). Objective: To promote the development and consolidation of scientific capabilities and technologies in strategic sectors for the State of Nuevo Leon. Candidates: Institutions, centers, laboratories, private and public companies and people that are registered in the National Registry of Institutions and Scientific or Technological Companioes (RENIECYT). For Further information, see: www.conacyt.mx or http://www.economia.gob.mx/?P=asp_gen_immex Incentive Scholarships Description • • 3 masters degrees or PHD (Approx. Value = $186,000 USD) Through the CONACYT – I2T2 Training Program, employees can have access to scholarships for postgraduate studies. High Added Value Technological Innovations for IDTI projects that are presented by a small company or SME and have a clear impact in their competitiveness and/or INNOVAPYME work together with R&D centers and educative institutions. • Project support from 50 to 90% depending if it is presented by a University or the SME Company. Organization Institute of Innovation and Technology Transfer (I2T2) I2T2- Conacyt PROINNOVA Development and Innovation in Forerunner IDTI Projects that: • Presented by a SME or big company • Work together with R&D centers and/or educative institutions • Project support of 50 to 75% for big companies, 50-90% for SME. I2T2- Conacyt INNOVATEC Technological Innovation for Competitiveness in IDTI projects that: • Are presented by a SME or a big company. • Boost competitiveness between companies. • Propose investment in R&D technology infrastructure. • Priority for companies linked to an R&D center or educative institution. • Project support of 30-75% for big companies. I2T2- Conacyt FONLIN Fund that promotes the innovation in Nuevo Leon: -Promotes consolidation and creation of new companies in the State Supports up to $2.5 million pesos/ project I2T2 FOMIX Mixed Fund for the Promotion of Scientific and Technological Research • Tool to support the economic development of the State of Nuevo Leon in the field of Science and Technology. • Supported by the State and Federal government (through CONACYT) I2T2- Conacyt Secretariat of Economic Development Nuevo Leon, Mexico 7) Government Support …………………………………………………………..………………………………………………………………………………………….. >> Incentives …………………………………………………………..………………………………………………………………………………………….. State Incentives STATE INCENTIVES CHART Incentive Description Organization Comments: Payroll Tax Grant Up to 100% for 3 yrs State Treasury Payroll Tax in NL; 2% exemption applies only for new employees Training – Grant up to US$600 / new employee State Labor Council 2 minimum wages (US$8.94) / 45 days Depending on the training complexity Special Training Up to US$1,200 / new employee State Labor Council 3 minimum wages (US$13.42) / 90 days CNC, aluminum welding, others R&D Activities Land grand and cash for construction Land value: $90 sq. mt Construction cash grant up to US$500,000 Cash grant up to U$500,000 Innovation and applies only for the Technology Transfer construction of the Institute Tecnology Center Limited for companies establishing within the PITT R&D Scholarships PhD and Master Degree Up to US$186,000 / 3 employee / per company Innovation and Individual Scholarship value: Technology Transfer US$62,000 Institute Applies for companies involving R&D Activities *Minimum wage, Zone B, 2011: $58.13 Mexican pesos *Exchange rate reference: $13 MXP / USD PIIT; Innovation and Technology Transfer Park Business Agenda The Secretariat of Economic Development (SEDEC) will create an agenda tailored to the company´s requirements during the evaluation and pre-establishment phase. SEDEC will arrange business meetings and will provide all the necessary information to facilitate the company´s decision. SEDEC will make all arrangements so that your visit to our State is higly successful. Intergovernmental Relations Every foreign company interested in establishing operations in Nuevo Leon has the assistance of an experienced executive from SEDEC, who will contact all the government officials involved in the company´s project. SEDEC will lobby with federal and/or municipal authorities on behalf of the company. Ex. This executive will make contacts and give information to the business executives involved so that the companys analysis, conclusions, and start-up operations in the State proceed as quickly and easily as possible. Supplier Development Program Foreign companies interested in contacting qualified Mexican suppliers can locate them through SEDEC´s Supplu Hub Program, which has certified over 1,500 companies in different industries in Nuevo Leon and Mexico, all of which have enough potential to supply international companies. Ex. This free-of-charge portal is a match-making service which according to the company´s specific needs will find the right supplier and even provide quote on-line (www.aupplyhub.nl.gob.mx) Secretariat of Economic Development Nuevo Leon, Mexico 7)Government Support Mixed Labor Force Training Program The government hires new workers for a three month training period; every employee receives an amount equal to 1.5 times the Mexican minimum wage. The company´s main commitment is to hire 70 % of the trainees by the end of the program. Ex. If the company has 200 trainees, the government will be paying a total of $105,500 USD (exchange rate of 11.00 pesos/ dollar) for the whole period Payroll Tax Reduction Incentive Payroll tax in the State of Nuevo Leon is 2%. The State will grant uo to 100% reduction for companies established. This discount is granted for one year and can be extended for additional years based on new employment creation. Ex. For 200 trainees working in a company outside the Metropolitan area, the government will deduct a total of $12,200 USD ( exchange rate 11.00 pesos/ dollar) for the whole year. University and Government Programs There are strong business links between government, companies, and academia. Universities and technical schools are open to modify their courses so that their students can join a company at the completion of their studies. In addition, educational institutions with R&D Centers look forward to assist companies to develop new products or processes. Ex. A company can develop a specific educational program with any university or technical school to pretrain its future labor force. Municipal Incentives Real Estate Acquisition Tax (ISAI) Purchase of land and buildings are eligible for tax reduction. A Real Estate Acquisition Tax of 2% applies to the largest value between the value of the transaction or the catastral value (total amount paid for a property); a discount might apply according to each company´s project and impact on the municipality. Ex. For a warehouse with a $2,000,000 USD value, the company will have to pay a total of $40,0000 USD to the municipal government; a 15% reduction can be granted reducing the company´s payment by $6,000 USD. The company will make a total payment of $34,000 USD for this municipal tax. Construction Permit. Reduction in the tax payment Real estate Ownership Tax (PREDIAL) Apply to any owned land or property. A Real Estate Ownership Tax must be paid yearly to the municipality in the amount of 0.3% of the real estate value. *Each project must be evaluated individually by the proper authority. In some cases funds are limited and grants will depend on fund availability. Some examples are based on hypothetical scenarios; they are merely examples of how these incentives would work in case of approval. SEDEC is not liable to respond to every case as the example states. Secretariat of Economic Development Nuevo Leon, Mexico 8) Additional Information …………………………………………………………..………………………………………………………………………………………….. >> Establishing Your Company …………………………………………………………..………………………………………………………………………………………….. In the State of Nuevo Leon there are a series of basic steps necessary to establish a company. Procedure Organization Time (Days) Land use permit Municipality 20 Company constitution permit Ministry of Foreign Affairs 1 Permit for constituting a company Notary Public 5 Registration in the Federal Taxpayers Registry Secretariat of Finance and Credit 1 Inscription of the Company charter 4 Registration in the Employer's Registry Public Property and Commerce Registry direction Mexican Institute of Social Security Inscription of the Payroll Tax System State Treasury and Finance Department 1 Registration in the Mexican Business Information System Notice of Operation Employer Chambers 1 Secretariat of Public Health 1 Importers Census Enrollment Secretariat of Finance and Credit 20 Foreign Investment Registry Secretariat of Economy 20 1 …………………………………………………………..………………………………………………………………………………………….. >> Yearly Average Exchange Rate in Mexico (MXN/USD) …………………………………………………………..………………………………………………………………………………………….. 20.0 12,1214 15.0 10.0 5.0 0.0 …………………………………………………………..………………………………………………………………………………………….. >> National and State Inflation …………………………………………………………..………………………………………………………………………………………….. 12.0 10.0 National 10.5 Monterrey 8.0 6.2 6.0 6.9 6.1 4.9 4.0 4.1 4.1 3.3 2.0 2.9 3.1 2.4 0.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Secretariat of Economic Development Nuevo Leon, Mexico 8) Additional Information …………………………………………………………..………………………………………………………………………………………….. >> Taxes …………………………………………………………..………………………………………………………………………………………….. Taxes Rate Income tax (ISR) 30% Tax on Assets (IA) 1.80% value Added Tax (IVA) 0%, 10%, 13% and 16% Payroll Tax(ISN) 2% Real Estate Ownership Tax (IP) 0.30% Real Estate Acquisition Tax (ISAI) 2% …………………………………………………………..………………………………………………………………………………………….. >> Elevation, Temperature and Rainfall …………………………………………………………..………………………………………………………………………………………….. Elevation Typical Weather Precipitation 540 meters above sea level Dry and warm 585.3 milliliters Source: Bancomext e INEGI …………………………………………………………..………………………………………………………………………………………….. >> Service Directory …………………………………………………………..………………………………………………………………………………………….. Please visit our website: www.supplyhub.nl.gob.mx On this website you will find information regarding Industrial Parks, Customs Brokers, Human Rsources Agencies, Shelter Companies, Industrial Plant buildwers, Arquitects, Machine Installation, Real estate Agencies, Consultants, Business Incubators,Chambers of Commerce, Expat communities, and other associations, among other useful infromation Secretariat of Economic Development Nuevo Leon, Mexico