5. Vietnam ? ? ? "Off-shore" "Near shore" China " Near-shore " "Off-shore" "On-shore" vs. vs. 1 st Wave: Manufacture as close as possible 2 nd Wave: China positions itself as a low cost manufacturing location 3 rd Wave: Search different locations from China China U.S. Manufacturing Tendencies & Opportunities Mexico USA USA Mexico USA
6.
7.
8. Corporate Tax Rate In fiscal matters, Mexico has significant savings compared with Brazil, India and the Unites States. Companies with productive activities in the US could benefit with a 11.5% tax rate reduction by transferring operations to Mexico. Open economy / Free Trade Agreements A fundamental issue for choosing off-shore locations is the ease in which a country does business abroad. Mexico has advantageous Free Trade Agreements and very few export-import procedures. Mexico’s network of 11 agreements covers 43 countries on three continents. This is a unique opportunity for international commerce and investment because it gives strategic access to a potential market of over one billion consumers which represents close to 60% of the world’s GDP. Why Mexico?
9.
10.
11. The Aerospace Industry in Mexico In the last five years, the Mexican aerospace industry has experienced a two-digit growth rate, enabling it to become a key supplier in the global market. The number of aerospace companies established in Mexico has tripled in the same period and exports have more than doubled. Strategic Industries
12. The Automotive Industry in Mexico Mexico is among the world’s top 10 leading manufacturers of automobiles, trucks, auto parts and components. In 2008, over two million light and heavy vehicles were manufactured in the nation, 4% more compared to 2007. Furthermore, Mexican automobile exports for 2008 were 3% higher than the previous year. Strategic Industries
13. Electrical-Electronic industry in Mexico The electrical-electronics industry is the country’s main exporting productive activity, since it accounted for more than 30 percent of total exports in 2008. The industry contributed around 8 percent of manufacturing GDP in 2008. Mexico is an attractive investment destination in the electrical-electronics sector. Between 2000 and 2007, foreign investment in this industry totaled US $ 3.52 billion, which were mainly directed toward production of high technology television sets, television decoders and cellular telephones. Strategic Industries
14. The Life Sciences Industry in Mexico In this industry, Mexico is distinguished by its specialized human resources, competitive costs, quality and large domestic market. According to Business Monitor, the value of the health sector in Mexico 2008 reached US$13.48 billion, placing it as the second most important market in Latin America. The Life sciences industry is made up of the pharmaceutical, medical devices and biotechnology sectors. Strategic Industries
15.
16. Mexico’s Investment Map MIM http://mim.promexico.gob.mx/ • With this tool, developed specially for site selection professionals, you will find, in a quick and simple manner, the main drivers that make Mexico an excellent location to start-up a business or relocate production capacities to Mexico. • Information concerning Mexico’s infrastructure and production base, In a wide variety of economic sectors, will also be at reach. Our database contains detailed information at the state and regional level, which is greatly relevant for companies that are evaluating the best location alternative within Mexico.