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POPULATION
The city of Campeche has an estimated population of 218,433, which equates to 31.83% of the state’s population.
STATE DESCRIPTION
The state of Campeche is the 18th largest state in Mexico occupying 21,952 square miles. Campeche, with 326 miles along The Gulf of Mexico, offers a diversity of geographical characteristics along with it’s tourist attractions, archeology and oil production, not to mention it’s fishing and agriculture. The state of Campeche’s climate is tropical with rain in the summer and the fall. Campeche is mostly flat, due to its large area of coastline, with hills in some areas. Campeche’s neighboring cities include Ciudad del Carmen, Champoton, Escarecega, Hecelchakan and Calkini.
LOCATION
The state of Campeche is located along the coast of the Gulf of Mexico in the southwestern region of the Yucatan, bordering the states of Yucatan, Quintana Roo, Tabasco and Guatemala. Because of its proximity to the Gulf of Mexico, Campeche is strategically located to deal with North American markets particularly with the states of Louisiana, Mississippi, Texas, Alabama and Florida as well as markets in southeast Mexico and Central America.
REGIONAL INFLUENCE
Campeche produces 51.45% of the oil, and 26.53% of the natural gas produced in Mexico. Major Fruit growing activity in the region currently focuses on mango, citrus, watermelon, cantaloupe and papaya. Other crops raised here include corn, rice, beans, sorghum, soy, jalapeno peppers, peanuts, and squash. Major animal production in the state is concentrated in cattle, pigs and goats, with bee keeping also being important. An excellent fishing industry infrastructure already exists, with shipyards, freezers, docks and landing spaces for small vessels, aquaculture farms, refrigerated warehouses and fishery training centers. Campeche offers great potential for archaeological, colonial and eco-tourism. Industrial projects that are related with these industries benefit from the state’s support for their realization.
PROXIMITY TO U.S. CITIES
(Distances by land and sea to the principal ports of the Gulf of Mexico)
The Workforce
DEMOGRAPHIC IMPACT
Twenty new companies were established in 1999 with an estimated investment of over $250,000 usd.
EMPLOYMENT CONSIDERATIONS
Recently investors have seen the value of Campeche and have expanded or started operations in Campeche. So far, these investments have generated 1,400 jobs and will generate 9,000 more jobs over the next several years. Ten of these investments were made in the Maquiladora industry, six of them now in operation and four in the construction stage. Six of the remaining investments were agro industrial and four were industrial
UNEMPLOYMENT PERCENTAGE
- The open unemployment rate averages 3.8%, per year representative of its growing number of maquila jobs. (Source INEGI 1999)
- The Mexican Government considers an employed individual, anyone who is 12 years of age or older and who has worked 1 hour or 1 day during the reference week.
- During the second quarter of 1999, 3.8% of the economically active population either was out of work or earned less than the minimum wage of $55 pesos/day or $5.90 U.S. dollars per day, excluding mandatory benefits. (Source INEGI 1999)
AVAILABILITY of LABOR
There is an ample availability of labor, composed primarily of graduates from the state’s universities, technical schools and public schools. A projected 9,000 jobs must be generated annually in the next 10 years due to current market needs.
SKILL RANKING
Workers are described as bright and easily trained. Campeche possesses the labor; infrastructure and natural resources needed to establish competitive operations.
EDUCATION and TRAINING
Campeche has 1,626 schools for all levels of education. This includes 502 preschool, 788 primary, 167 secondary, 66 medium superior and 23 superior. At a basic medium technical level (secondary), the following studies are offered; refrigeration and air conditioning; machinery and tools; carpentry; electricity; sewing; accounting; secretarial; computer programming and agriculture. Training Centers for industrial work (CECATI) offer various courses in electricity, welding, design, auto mechanics, food preparation and carpentry. There are 14 technical schools that offer 34 different career studies, mainly about the agro industry and the fishing industry. The city of Campeche is home to the following well-known schools:
- Autonomous University of Campeche
- National Pedagogical University of Campeche
- Institute of Campeche
- Technological Institute of Campeche
- Technological Agricultural Institute of Campeche
- Technological Institute of the Sea.
TURNOVER RATES
Campeche has long had a reputation for harmonious labor relations. The love of the people for their land and their desire for success is reflected in low levels of turnover at Click Here To Register .
The Operation
The wage rates below are the product of a survey done by the state government on certain industrial parks.
Monthly salary for executives and employees in US dollars not including benefits
Source: Bancomext 1999-$9.00/USD
Hourly salary for laborers in US dollars, including obligatory benefits
Source State Government of Coahuila. Exchange rate at $9.50 pesos per $1.00 US
INDUSTRIAL COSTS
Electricity USD @ 9.40
Costs increase 1% per month
Fossil Fuels USD @ 9.40
Costs increase 1% per month
Water USD @ 9.40
Coahuila State Government-1999
INDUSTRIAL REAL ESTATE
A current survey of industrial parks in the city of Campeche with a variety of options, reveal the following average prices per sq. ft. in US dollars.
Exchange rate of $9.40 pesos per dollar
INFRASTRUCTURE
Campeche offers 2,034.68 Km of federal and state highways, 1,716.03 Km. of rural network (paved and coated), 63.09 Km. of concessioned network and 404.00 Km. of railways. It also features the Ciudad del Carmen International Airport and Campeche International Airport. There are 2 medium high seaports: Campeche (Lerma), Cd. Del Carmen (Laguna Azul) and one high sea port known as Cayo Arcas (exclusively used by Pemex). There are 2 private telephone companies (cellular). Electricity is provided to 93% of the urban population and 85.55% of the rural population. Water coverage in the rural areas is 81.0% and with 91.0% coverage in the urban areas. There is a local level of postal service attended via 351 offices. Telegraph service is provided by 20 offices, 5 are centers with integrated services. 18 stations consisting of 5 on FM and 13 AM handle radio broadcasting. Television broadcasting covers 50% of the state’s territory. An Internet service is composed of 3 transmission stations that allow connection to the network and their 100-receiver terrestrial stations (EDUSAT) related to the satellite communication system.
TAXES
Exemption of the 2% payroll tax for up to two years based on the amount of the investment and jobs created. Preferential rates on taxes of legal documents, registration fees and contracts. Application of the minimum rate (0.1%) on property taxes for up to two years. Application of the minimum rate on land acquisition taxes.
The Support
SERVICE and SUPPLIER COMPANIES
Campeche has the necessary industrial zones and infrastructure to host light, medium and heavy industries. Most of the maquilas in the state today are textile operations; however, there is also an agro industrial base as will as a major bottling operation. The oil industry is invested heavily in Campeche; nearly 51 percent of the nation’s oil comes from PEMEX operations in Campeche.
The Politics
UNIONS
Campeche has long had a reputation for harmonious labor realtions.
ASSISTANCE
The state government has already implemented an aggressive program to attract foreign investment known as "Investing in Campeche". The program involves the Department of Industrial and Commercial Development and the Business Coordinating Council. The program includes the promotion of the state at a national and international level and personalized attention to the investor through investment promoters. Incentive packages are offered that are part of the "law for the economic and business development in the State of Campeche" a law that promotes investment.
OTHER BIG NAMES
ADVANTAGES
Campeche has the necessary industrial zones and infrastructure to support heavy, medium, and light industries. Because of its geographical location it is ideal for exporting and shipping intensive operations. Companies looking for nearly virgin territory to establish manufacturing operations might do well to consider the state of Campeche. Other advantages include long term stability and social peace, excellent labor relations, and skilled labor availability. Added advantages consist of, joint support from the public and private sectors, incentives for investment packages and a comprehensive development plan that involves all state sectors.
DISADVANTAGES
Campeche suffers from an infrastructure that was mainly developed to service the petroleum industry, great strides are being taken to adapt it to a modern industrial base. Campeche also is working to improve the education-business link as well. Improvement of Campeche’s supplier development is vital to the maquila industry.
Conclusion
Ten of the companies starting operations in Campeche last year were in the Maquiladora industry, six are now in operation and four are under construction. Campeche has a great potential for light industry, especially the textile manufactring operation. The state government offers enormous advantages to those companies interested in investing here.
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