Why Chihuahua

By José NuñezManufacturing Facilitators in Chihuahua, MexicoChihuahua@AmericanIndustriesGroup.comChihuahua.AmericanIndustriesGroup.com

About American Industries Group

American Industries Group is a

private Mexican company that has

helped over 200 global companies

to successfully establish and run

manufacturing operations

throughout Mexico since 1976

through Site Selection,

Administrative “Shelter” Services

and Industrial Real Estate.

7 Reasons to start manufacturing in Chihuahua

What we’ll review

1. Strategic Location & local facts2. Business environment: Manufacturing

companies, Industrial supply base, associations, Unions & Government

3. Workforce and Education4. Transportation Infrastructure, accessibility

and connectivity5. Industrial real estate infrastructure6. Climate & quality of life7. How to start up manufacturing operations in

Chihuahua

Get a local business agenda for your company!

1. Chihuahua: Strategic Location & Facts

• Fast access to the NAFTA CORRIDOR: I-10 & I-25 highways in the US and Panamericana Highway in Mexico

• State Population 3.4 million • City of Chihuahua Population

825,327• EAP 53.%• GDP 30 Million USD• 350 k people are employed in the

manufacturing sector

Chihuahua: one stop industrial city

Automotive Industry

Aerospace Industry

Teamwork between State and Federal Government

•Local Investment•Foreign Investment

Metal-Mechanic Industry

•Manufacturing Association•Industry Association

•Supplier Development Association

Chihuahua Industry highlights

• Ranked 1st place in IMMEX employment rate

• Ranked 1st place in IMMEX value added generator

• Ranked 3rd place in foreign investment receptor

• Ranked 3rd place in IMMEX manufacturing establishments.

• Strong aerospace cluster• More than 20 years of

Automotive and Electronic expertise.

• Metal Cutting and Plastic Injection capabilities and labor force availability.

1. Chihuahua Strategic Location

City Km Miles

Distance fromChihuahua to:

Ciudad Juarez 346 215

El Paso 348 216

Midland 536 333

Tucson 615 382

Monterrey 658 409

Laredo 660 410

San Antonio 744 462

Phoenix 782 486

Austin 830 516

Leon 938 583

Forth Worth 954 593

2. Chihuahua Business Environment

• Manufacturing base in hi-tech sectors

• OEM s location preferred (Aerospace, Automotive)

• + 80 manufacturing operations• Strong skillset for CNC machining,

electrical harnessing and assembly. • Engineering & design capabilities:

Catia, Solid Works. • Mature supply base • Union free operations• Local Manufacturing Association:

Index Chihuahua• Pro business culture in State

government

2. Chihuahua Business Environment

Industries in Chihuahua• Aerospace• Electronics &

telecommunications• Automotive & autoparts• Medical devices• Information Technologies• Agro-Industry & food products• Furniture• Apparel

So, where is the opportunity?

All of the companies established in Chihuahua are integrating their supply chains.

Are you a supplier of these industries?

Do you provide any of the following …

Processes: • Stamping, die-cutting• Plastic injection molding• Die casting• Machining• Sheet metal• Forging• Welding• Product finishing

Products: • Electronic components• Wire harnesses• Cable• Metals• Resins• Packaging• Hardware• Labels• Injection molded parts• Springs

Then there is an opportunity for you as a supplier

3. Workforce and Education

• Skillset: – Manufacturing: CNC Machining,

high precision welding, wire harnessing (automotive and aerospace), assembly.

– Engineering & design: Catia V5, Solid Works and starting to develop Unigraphics.

• Unemployment rate 3.5%• Available qualified workforce 77,000• NO strikes for more than 16 years• 43,000 k people in employed in manufacturing

sectorAcademic infrastructure• 7 public universities• 8 private universities• 4 technical schools• Average of 3,000 new engineers and 1,500

technicians graduate every year

A skilled, available and affordable labor is

eager to make your project work!

3. Chihuahua’s High Technology Training Center

Chihuahua’s government offers a scholarship for

workers that need to be trained in order to be

incorporated into high technology processes of the

aerospace and automotive industries in this

institution named CENALTEC.

Here is a list of the different tailored training

programs that they offer:

•CNC Machining

•Welding

•Plastic injection molding

•Aircraft structure assembly

•CNC Machining

4. Infrastructure

Electric Power• 7 Energy generator centrals with a

capacity of 1862 MW• Produced energy: 10,338 GW/Hr• Delivered energy: 10,011 GW/Hr• 19 transmision substations with a

capacity of 6,852 MVACommunications• Telephone lines in operation: 658,709

, T1 and DSL fiber optic networkserviceoperated by private companies.

• Railroad 2654 Kilometers• Highways : 650 Kilometers

4. Highways Connectivity

4. Infrastructure : Airport

General Statistics of the International Airport of Chihuahua

LOCATION: Long.: 105 58' W // Lat.: 28 42' N DISTANCE FROM CITY: 18 kilometers CATEGORY: Fifth CLASSIFICATION: International TYPE: regional SURFACE AREA: 921.43 hectares ELEVATION ABOVE SEA LEVEL: 1,360 meters

COMMERCIAL AERONAUTICAL ZONE

NUMBER OF RUNWAYS: 3 PRINCIPAL RUNWAY: 2,620 X 45 meters SECONDARY RUNWAYS: 2,420 x 45 m2

1,100 X 30 m2

TYPE OF COVERING: Asphalt

TERMINAL ZONE CAPACITY: (Pass. x Hour) 356 TOTAL SURFACE: 4,275 m2

2 daily flights to Houston & Dallas, TX.

5. Industrial Real Estate: Infrastructure & Availability

World class industrial parks with the following services:

• Natural Gas• Railroad & highway accessibility• Land reserves for Build-to-Suit projects

We will show you all the available buildings and land for development in the region. Now we will show you some of them.

• Security• Water• Energy

Inventory Americas IV

59,104 Sq. Ft / 5,490m2

Site Location• Located in an industrial park with all services and security.

• Well connected with transportation infrastructure

• Companies in this industrial park Lear, Xylem, Atlas,

Teleflex, Sofi, Buehler, Alphabet, Textron,

Electrocomponentes, Accel. Petsche and American

Industries.

• Available for lease.

Inventory Hillenbrand

40,000 Sq. Ft / 3,716 m2

Site Location

• Located in an industrial park with all services and security.

• Well connected with transportation infrastructure

Supra Land

Site Location

Lot A: 172,965 Sq. Ft. / 1.6 hasLot B: 327,179 Sq. Ft. / 3.04 hasLot C: 159,425 Sq. Ft. / 1.45 hasLot D: 298,919 Sq. Ft. / 2.77 has

AB C

D

• Located in an industrial park with all services.

• Well connected with transportation infrastructure, right on

Panamerican Highway connecting with US I-10 and US I-25

• Companies in this industrial park: DTR, Zodiac Aerospace:

Amfuel, Aircruisers, Weber, Icore, IDD, Nordam, Yazaki,

• Available land for build-to-suit projects

Tabalaopa Land

Site Location

Lot A: 5,786,640 Sq. Ft. / 53.7 hasLot B: 1,090,484 Sq. Ft. / 10.1 hasLot C: 1,470,903 Sq. Ft. / 13.7 has

AB C

• Located in the Chihuahua’s airport zone.

• Well connected with transportation infrastructure

• Available land for build-to-suit

Complejo Sur Land

Site Location

Area: 760,695 Sq. Ft. / 7.06 has

• Located in an industrial development south of

Chihuahua

• Right next to Chihuahua’s High Technology

Training Center

• Close to industrial manufacturers like: Honeywell,

Beechcraft, Arnprior, Fokker, Superior.

• Available land for build-to-suit facilities.

Complejo Norte Land

Site Location

Area: 760,695 Sq. Ft. / 7.06 has

• Located in the largest industrial zone in Chihuahua

• Well connected with transportation infrastructure

• Companies in this industrial complex: Ford Motors

Company, Honeywell, Interceramic, Veyance,

Labinal, Global Products, Conmed, CAV Aerospace,

Southco,

• Available land for build-to-suit facilities

6. Chihuahua’s Climate & Quality of Life

• Climate: – Average temperature in the summer: 86ºF / 30º C– Average temperature in the winter: 32ºF / 0º C

• Humidity and rainfall: – Dry weather: around 20% humidity– Annual precipitation: 500 mm

• Non seismic location• Quality of life infrastructure:

– 3 private hospitals with international certifications– 2 shopping mall centers– 7 small shopping centers– 5 cine theaters complex – 3 city theaters– 2 country clubs with golf course– 264 kilometers away from Copper Canyon

7. How to start up manufacturing operations in Chihuahua

You can start up in a shelter program protecting your company from risks and liabilities, including: • Start up, operational and environmental permits • Human resources: recruiting & managing skilled labor• Customs: Setting your importation & exportation proper documentation to save

on taxes and duties• Fiscal & Accounting: preparing your company to save on taxes like VAT, and

Income Tax

10 things to look for in a Start up Partner or Shelter Program

Make sure you get the following benefits:

1. Free Cost Model Simulation2. Flexible commitment: on any size project (headcount or Sq. Ft.) 3. No entrance or exit fee at the termination of your contract (with coordinated

exit strategies)4. Fast and worry free start-up operations (9 weeks)5. Flexibility on how to operate in Mexico: incorporated or not Incorporated6. Tax Savings: No VAT and no INCOME TAX7. Billing transparency & no mark ups on purchasing in Mexico8. Full Compliance Assistance: fiscal, customs, labor and environmental (no

red tape and no administrative risk or liabilities)9. Customs Certified Program: quick processing on cross-border transactions10. Ask for full administrative support: it will allow you to concentrate 100% on

your manufacturing operation, not on human resources recruitment, looking for suppliers and so on.

GET A LOCAL AGENDA TAILORED TO YOUR COMPANY

Visiting the region

You can join us on the Local Agendas we organize on a monthly basis in Chihuahua, or we can prepare one for your company where you will be able to visit:

• 2 OEM´s (1 aerospace & 1 automotive)• State Government Secretary of Economy

Chihuahua for an overview presentation• High Technology Training Centers and

Technical universities• Industrial Parks: available buildings and Land

reserves for Build-to-suit projects• Amenities & quality of life in Chihuahua.• Shelter Operation concept ( American

Industries )• Logistics Chihuahua to El Paso

Join us for a local agenda for your company

Join us or Request your free local agenda at:http://Chihuahua.AmericanIndustriesGroup.com

Join us for a local agenda in Chihuahua:http://Chihuahua.AmericanIndustriesGroup.com

By José NuñezManufacturing Facilitators in Chihuahua, MexicoChihuahua@aiig.comChihuahua.AmericanIndustriesGroup.com