May 11th, 2012
The central region of Mexico has experienced substantial growth in the automotive industry due to a peak in interest from Japanese auto manufacturers, such as Nissan, Mazda and Honda and German auto manufacturers such as Audi and Volkswagen. Cities in the central region are closer in proximity to each other, which makes it advantageous for suppliers to shorten the supply chain to the larger manufacturers.
With over 20 years of experience, North American Production Sharing (NAPS) is an expert in the industry, identifying industry trends and providing administrative support services for companies interested in manufacturing in Mexico. As a result of the influx of larger auto manufacturers and the increased demand for suppliers in the central region, NAPS opened an office in Guanajuato to better serve the industry demands.
NAPS recognizes the opportunities available for automotive suppliers and can help evaluate which area is best to install your manufacturing since Mexico’s border and central region hold its own strengths and advantages. NAPS is able to provide flawless customer service to clients, continuously serving areas of growth and opportunities in Mexico.
Press Release
April 5th, 2012
The NAFTA Commission Meeting held on April 3rd in Washington DC issued a joint statement that outlines continued cooperation of Canada, the U.S. and Mexico to increase economic competitiveness and trade among the 3 nations. Since NAFTA was signed in 1994 trade has more than tripled from $288 billion to $1 trillion.
Among the significant agreements reached at this meeting are to continue to combat challenges to Intellectual Property Infringement (IPR) to fight piracy and counterfeiting. The U.S. and Canada are among the six countries that have joined the Anti-Counterfeiting Trade Agreement (ACTA). Mexico is in the process of working on comprehensive reform to its legal system to enable it to achieve the high standards pursued under ACTA.
A focus of this meeting was the challenges faced by small and medium enterprises (SMEs), including lack of access to information and reducing unnecessary barriers and costs for these enterprises.
Press Release
March 19th, 2012
On March 13 North American Production Sharing, Inc. (NAPS) was honored at a ceremony for those members of AIM, the National Association for the Maquiladora Industry, who qualify as an “ INFONAVIT Empresa de 10”. These are companies that have met 100% of their contribution obligations in the past 10 bimonthly periods.
The “Empresa de 10” Award recognizes a company’s commitment to fulfilling payroll tax obligations in a timely manner, along with showing social responsibility to its workers. Joaquin Escamilla Orozco, Deputy Director for Tax Collection at Infonavit delivered the recognition awards at the monthly meeting of AIM in Tijuana. The three corporate entities under NAPS management that are members of AIM and entitled to this recognition are JAE, Filtec and NAPS.
Press Release
March 19th, 2012
According to the article released by Emerging Markets, Mexico has become more competitive and in turn more attractive to manufacturers. Labor costs in China have continued to rise and therefore has narrowed the gap between wages in the two countries. Increased fuel prices have also made it more expensive to manufacture in China and then ship to North America. “The moment has come to change our perception of Mexico. The reality is that many macro figures place Mexico in a better place than the U.S.,” stated Richard Fisher, CEO of the Federal Reserve Bank of Dallas and part of the Federal Open Market Committee (the Fed’s principal monetary policymaking group).
Mexico’s geographical proximity to the U.S. is valued higher than ever before, making it a much more attractive place to relocate manufacturing for export. Its state-of-the-art facilities and modern infrastructure, combined with a young population, has created a vast pool of highly skilled technicians and engineers whose labor costs have remained stable.
“Mexico is consolidating its vocation as a world-class exporter,” says Sergio Martín, chief economist for Mexico at HSBC in Mexico City. The article also touches on how the July election might impact Mexico’s economy. Read more from Emerging Markets:
MEXICO: Out of the Shadows
March 7th, 2012
Promexico, the governmental agency that promotes FDI in Mexico as well as exports by Mexican manufacturers is updating the Mexico Aerospace Route Map. The map not only depicts the location of current aerospace manufacturing operations, it maps out a strategy for Mexico to increasingly become a leader in this sector.
The Baja California State Government and ProMexico have collaborated to indicate where aerospace companies are located throughout Baja California. Other key locations for the industry including Chihuahua, Sonora and Queretaro have updated their information. The Aerospace Route map shows where aerospace companies are located geographically, help define strategic objectives and identifies growing trends for future companies looking to establish manufacturing facilities in this sector.
Press Release
January 31st, 2012
Knowledge of labor market benefits companies beyond minimum wage adjustments
Mexico’s minimum wage commission set the increase for 2012 at 4.2% for all three of the country’s geographic zones, bringing the cost of labor to about 62.33 pesos/day. This is calculates to about 4.60 U.S. dollars per day. While the cost of labor has increased in Mexico, the cost of labor has also been increasing in other low cost countries like China.
A wage increase in Mexico is not necessarily a disadvantage. When reevaluating overseas strategies, it is important to assess production costs as a whole, including transportation and shipping costs. A key advantage that Mexico holds about its labor market is that it has focused its resources on developing special training and linkage programs that tie in directly with a specific industry.
Press Release
January 26th, 2012
Nissan Motor Co., the Asian carmaker with the biggest production capacity in Mexico, will spend as much as $2 billion on a third factory in the country as the yen’s strength drives the company out of Japan. Nissan’s current Mexican plants, able to build more than 700,000 vehicles a year, are at their operating limit, Bill Krueger, vice chairman of the company’s operations in the Americas, said in a conference call. “We’ve got more capacity and growth to be developed across the Americas.” Mexico’s proximity to the U.S. makes it an attractive location and viable option for car manufacturers. Read more:
Nissan Plans $2 Billion Plant in Mexico
January 10th, 2012
The Mexican aerospace and defense market alone had revenues of $2.4 billion in 2010, a CAGR of 8 percent between 2006 and 2010.
The defense segment in Mexico’s markets was the most lucrative in 2010, with total revenue of $1.5 billion, equivalent to 65 percent of the market’s overall value. Mexico is expecting its market performance to improve in the 2010-2015 period and reach a total value of $4 billion by 2015. Read more:
Slower Growth in Aerospace, Defense in 2012
January 6th, 2012
The aerospace industry has grown immensely in the Baja California region. In the past five to 10 years, more than 50 aerospace and defense companies have started operations in Baja California. Most companies are American, producing everything from electronic components to steel bolts for commercial and military aircraft. These companies employ more than 10,000 high-tech workers, many of them engineers, technicians and software developers.
Kenn Morris, president of Crossborder Group, a San Diego-based market research firm, explains that a lot of the factories are being built “in such a way these days, and they’re managed in such a way, that they can be put anywhere on the planet. But they’re coming to Mexico.” In this article by PRI’s “The World”, clarity is brought to past assumptions about Mexico and its strategic advantages, such as its proximity to the US. The article also portrays a few companies and their experiences with their factories in Mexico. Read more:
US Aerospace and Defense Companies Set Up Shop in Mexico
January 3rd, 2012
From October 13th through November 18th, 2011, Cook Associates Executive Search polled nearly 3,000 manufacturing executives primarily small to mid-sized U.S. companies. C-level executives and vice presidents in charge of operations, manufacturing and supply chain management participated in the survey. The survey identified that products needing technology improvement or innovation served as the primary reasons for manufacturing returning to the U.S. The survey concluded that 85% of executives are strongly considering moving manufacturing back to the U.S. and 37% of companies specified rising overseas costs as the primary reason.
Companies are finding they are able to retain a high level of competitiveness in today’s changing economy by being strategic as to manufacturing locations. NAPS specializes in offering outsourced administrative support to companies interested in manufacturing in Mexico. NAPS can assist in evaluating manufacturing costs in China compared to the U.S. and Mexico and also develop innovative strategies to lower total production costs. Read more:
NAPS Press Release / Cook Associates Executive Search – Survey Information