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Cd. Acuña is a second tier manufacturing market on the border, but is experiencing a growing level of interest from new companies moving into Mexico. It offers a small, but stable manufacturing base with good access to the U.S. and fair labor pool. A main disadvantage is Acuña’s relative isolation from other maquiladora markets and lack of major transportation services. However, for self sufficient operations Acuña is an excellent place to start in Mexico.
Market Overview
Cd. Acuña is a second tier manufacturing market on the border, but is experiencing a growing level of interest from new companies moving into Mexico. It offers a small, but stable manufacturing base with good access to the U.S. and fair labor pool. A main disadvantage is Acuña’s relative isolation from other maquiladora markets and lack of major transportation services. However, for self sufficient operations Acuña is an excellent place to start in Mexico.
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LOCATION
Cd. Acuña is located in the northern part of the State of Coahuila, which is the third largest Mexican state after Chihuahua and Sonora. Situated in the northern part of the Mexican territory, the State of Coahuila shares a 318 miles border with the state of Texas in the United States. Coahuila is surrounded by the States of Nuevo Leon to the East, Durango and Coahuila to the West, and Zacatecas to the south.
Cd. Acuña sits on flat and rolling terrain near the banks of the middle portion of the Rio Grande River, at an altitude of 919 ft. It shares a common border with Del Rio, Texas, across the Rio Grande, and has a territorial extension of 4,435.8 sq ft. The climate is hot and humid during most part of the year, with heavy rains at times, as the city is affected by the Gulf streams and the hurricane season in Southern Texas.
PROXIMITY TO KEY CITIES
Acuña is 153 miles southwest of San Antonio and it is fairly accessible from the Texas highway system.
Market Profile
KEY INDUSTRIES
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Electronics
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Auto and auto parts
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Plastics
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Leather products
MAIN COMPANIES
Recent Activity
ADVANTAGES
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Lower labor costs than other border locations
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Some of the lowest turnover rates along the border
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Adequate resources of water and electricity
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Calm, peaceful community with abundant outdoors activity options
DISADVANTAGES
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Remote location adds to transportation costs
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Harvest season may negatively impact availability of labor
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Small, but stable real estate market
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Small supplier base
INDUSTRY SNAPSHOT
The city of Acuña was traditionally a trading center at the edge of the desert where ranchers would exchange goods. Historically, the city has been devoted to livestock, agricultural (corn, wheat, and cotton) and mining activities. Nowadays, the city has become one of the major gateways for entry into Eastern Mexico; developing considerable maquiladora activity, particularly in the electronics and automotive parts sectors.
Cd. Acuña is likely grow its maquila community as more companies seek lower wages for labor intensive operations that do not require a very specialized labor force nor extensive service and support.
The Workforce
DEMOGRAPHICS
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AGE DISTRIBUTION
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EMPLOYMENT CONSIDERATIONS
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UNEMPLOYMENT AND SUB-EMPLOYMENT
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SKILL LEVEL
Ciudad Acuña’s workforce is mainly specialized in the automotive, textile and electronics industries. A number of mid-sized maquilas have located into the area since the late-1990's, many of which provide training to the local workforce. It is expected that the aggregate skill level will continue to increase as more maquilas in the electronics and automotive industries establish in the city.
EDUCATION AND TRAINING PROGRAMS
Acuña’s educational pool consist of 4 universities, most of which offer post graduate courses, and 4 technical and vocational schools with courses specifically designed for industrial/manufacturing careers. Training programs offered by state government and educational institutions are flexible to the needs of industry.
(Source SEPC 2003)
TURNOVER RATES
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The Operations
WAGE RATES
Wages are the key driver of Mexico’s manufacturing industry. It is, therefore, one of the first and most important topics any company expanding in Mexico will consider. TeamNAFTA touches on the overall wage issues in our Info Center, but we have also provided some sample wages for Cd. Acuña below. While we have access to more detailed wage information, we typically present that information in a tailored report addressing a company’s specific labor needs.
Average hourly wages paid in Cd. Acuña: 2003 - 2004
U.S. dollars/hr. includes all mandatory and average optional benefits for this market
Source: Area industry wage studies and interviews with local managers, $11.00 pesos/USD
INDUSTRIAL COSTS dollar @ 11 pesos/USD
*CFE.-June 2004, ** CRE.-June 2004, *** Pemex June 2004
INDUSTRIAL REAL ESTATE
AVAILABLE SPACE
There are three industrial parks in Cd. Acuña: Acuña Industrial Park, Amistad Acuña Industrial Park and La Paz Industrial Park, with adequate available space in each. A current survey of industrial parks in Cd. Acuña, with a variety of site options, reveals the following average USD prices.
TRANSPORTATION
Highways
Acuña has an adequate communication network. The city can be reached from U.S. Highway 90, running east-west and U.S. highway 277, running north-south. It is approximately 153 miles from San Antonio to the east. From the Mexican side, the city links to Nuevo Laredo, Piedras Negras, and Tamaulipas via Highway 29; and to Sabinas, Monclova, Saltillo, and Mexico City through Highway 57.
Acuña has one International bridge, “Acuña International Bridge” which has direct access to the U.S. city of Del Rio, Texas. During 2003, 47,492 trucks loaded with cargo crossed northbound from Acuña to Del Rio, TX. However, the bridge is not open 24 hours, which may impose some limits on the ability for companies with heavy shipping requirements to operate in the area. Given its central eastern location, Acuña has access to the two important NAFTA corridors:
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The central eastern corridor which passes through Houston, TX and the largest North American cities and the industrial basins of the central eastern region, as well as through the Great Plains in the U.S. and through the Canadian Prairies. Some of the cities in this corridor include Mexico City, Monterrey, Dallas, Houston, Atlanta, Chicago, Detroit, Toronto, and Montreal.
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The Atlantic corridor which includes the Canada-U.S. East Coast, the Appalachian region, the Province of Quebec and the Gulf of Mexico. Transcontinental trade along this corridor uses the corridor of the Gulf of Mexico or the maritime routes of the U.S. East Coast. Some of the cities in this corridor include New Orleans, Miami, Atlanta, Washington, New York, Boston and Montreal
Railroads
Del Rio is served by the main line of the Union Pacific Railroad and Amtrak; on the Mexican side, Acuña connects to the Allende, Frontera, Saltillo, and México City routes.
Air Transportation
Airport facilities are adequate for commercial cargo, but the city’s remote location adds additional costs. However, companies in Acuña may use the "Piedras Negras" International Airport, which has customs service for handling merchandise.
CUSTOMS
The closest fully staffed Mexican customs office is in Queretaro. Some of the services offered at the Queretaro customs office include:
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Definite imports and exports
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Temporary imports and exports
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Fiscal deposit, for storing of merchandise in authorized general deposit storages under customs authority control
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The transit of merchandise
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Quality System ISO 9000
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Merchandise dispatching
INCENTIVES
The government offers incentives in relation to payroll taxes, training programs, and assistance in the procedures for meeting requirements at three levels of government (federal, state, and municipal). Additional incentives can be negotiated, depending on the location of the new project, type of manufacturing activity, and the creation of jobs. The incentives subject to negotiation include: infrastructure works, fees with the State Public Registry, and construction permits.
STATE OF COAHUILA INCENTIVES:
Payroll Tax Incentive: For a one year period, those companies that perform below the allowed contamination indexes, that do not require water for their productive process and that generate new jobs will be exempted of paying the 100% of the Payroll Tax that is established in the State of Coahuila.
Training Scholarships Program Incentive: The State of Coahuila offers training programs for a period of 30 to 90 days for the non-qualified labor force. The State commits to cover between 1.5 and 3 times the minimum wage for each scholarship holder, while maquilas must commit to hire at least the 70% of the trained personnel.
Sectors offering special opportunities: Automotive and Auto parts, Textile and Garment, Aerospace, Milk products and by-products; Mechanical Metallurgy, Iron and Steel, Mining-Metallurgy, Electric-Electronic, Maquiladora, Commerce and Services
The Support
SUPPORT SERVICE COMPANIES
Cd. Acuña’s small size constricts its support capacities. The lack of services and the added distance to Laredo or San Antonio would drive costs up for any new or specialized operation.
The Politics
Unions
Approximately 30% of the maquila workforce is unionized. As a traditional ranching and agricultural city, the maquila industry is relatively recent; therefore unions do not have a long history in Acuña as they do in other interior cities.
The labor union climate is generally pro-industry. Union leaders are cognizant of oversees competition and thus maintain a harmonious working environment with management. The mayor part of unionized labor force belongs to central worker unions like the Confederation of Mexican Workers (CTM), the Revolutionary Confederation of Workers and Farmers (CROC) and the Mexican Republic Electrical Workers Union (SUTERM).
OTHER COMPANIES IN CD. ACUÑA
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