Transcript Praktische aspecten van het zakendoen in Mexico

Guy Vleugels
President International Business Partner
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Industrial Engineer
20 years North-Mexico (manager, director, CEO)
Board Member of various companies
Consultant ( Industrial clusters, linkage education industry,…)
• Honorary Consul Belgium
Why Mexico?
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Geographic location
Population growth, +25% is -15 jaar
AVG age 27 year = India (Ch 36 ; Br 29 ; D 45)
TLC with +40 countries (#1 world)
Infrastructure (water-land-air)
Transparency customs
New technologies
Supply chain integration
Quality culture (ISO, AS, NADCAP,..)
• Support technical training (high tech training centers,
R&D, Engineering & Design)
• Fiscal benefits
• Legal protection of “intellectual property”
• Availability of soft landing, fast track/risk free shelter
programs
- New policital culture: + competitiveness
( hiring/firing personnel, elimination public and
private monopolies, unions )
- Hourly wage cost; flexibility hours and shifts; low
cost extra time; young, eager, ambitious population
who wants to succeed and climb up
- De-globalisation, regionalisation of "manufacturing“;
Mexico is "low cost" operation for USA.
Important Industrial Sectors
* Auto : Production growth of 1,2 Million units 2009, to 3,2
Million 2014.
Mazda, Honda, Audi, VW, Chrysler, Ford, Daimler Trucks,
GM, Nissan, 7th position producer and 4th exporter.
* Electronics : Increase Asian investers
Motorola, Foxconn, Yazaki, Sumitomo,…
* Airspace : clusters in Queretaro and Chihuahua, Baja
California, Sonora, Nuevo Leon.
Bombardier, Embraer, Boeing, Honeywell, Cessna, Fokker,
Safran, Zodiac, Eurocopter, Hawker Beechkraft, GKN
Aerospace, Textron, GE ...
290 comp. in 2013, est. 340 in 2015, est. 450 in 2020
- Conclusion :
GDP - PPP, output adjusted by purchasing power parity ….
Mexico = ranked 11th world !
Country
GDP(PPP)/capita
US
53000
Belgium 40760
Mexico 17390
China
11868
India
5450
How to lead an operation in Mexico
Indicators:
• Annual inflation : stability !!
Wage Inflation
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
Minimum wage
Loon inflatie
80.00
60.00
40.00
20.00
0.00
Minimum loon
“Rigid regulation with flexible application, vs flexible regulation
with rigid application”.
• Import/export companies, (Maquiladora), options :
- no legal “footprint”, Shelter company (fast, efficient, cheap, no
red tape, risk free…ideal to start)
- partly legal footprint
- full “SA de CV”
For inst. 10% annual profit to co workers , time structure (48
hours week, 6 working days initial holiday)
Local legal structure based on lawyer and notary (more
participating function).
Philosophy of Trade Agreements
• Internal market weak ( depending on petro – tourism
– foreign investments– “remesas”)
• Dependence USA.
• Lack of technology.
• Demographic problem (how to create work for
growing population and high educated youth)
How to trade in Mexico
• “Made in Mexico” , adapt products to local
market/demands and taste.
• Culture of negotiation, balance between correct and
sufficient; “Everything has its price” and “everything
is negotiable”; to create positive feeling by
negotiation thinking you outmastered the
counterpart.
• Mexican inferiority (due to past): foreign products
are seen as superior compared to national
• High consumption need: self image depends on
material possessions
Conclusions
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Not a far-flung culture
Warm, open, flexible, skilled and hardworking people
Language = English (if Spanish is no option).
Perfect road network North-South, East-West is a bit
difficult (geography, mountains)
- All roads lead to Mexico City, +/- 25 Million habitants and
central location, still central distribution point.
* Safety (also transport)
* Time consuming transport
* Competition illegal import China (shoes and textile).
Alternatives:
- Guadalajara, “Silicon valley”, but also trade.
- Monterrey, classic steel industry.
- Bajio = valley around Mexico City (Queretaro, Guanajuato,
San Luis Potosi, etc.) growth region, close to Mexico but
without discomforts of big city.
- North (Chihuahua, Baja California, Nuevo Leon,
Tamaulipas, etc.), very industrialized and based on US
model, aimed at US market.
No comments needed…