| Durango Industrial Profile |
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Durango is the fourth largest state in Mexico with an area of 47,561 sq. miles. The state borders with Chihuahua to the north, Coahuila and Zacatecas to the east, Nayarit and Jalisco to the South, and Sinaloa to the west. The state is crossed diagonally from the northwest to the southeast by a tall mountain range with peaks exceeding 10,600 ft. View Larger Map POPULATION The City of Durango has an estimated population of 491,436 inhabitants, which represents 33.9% of the State of Durango’s population of 1,464,000 individuals. This population is growing at an annual growth rate of 1%, much lower than the 1.8% national growth rate. (Source: INEGI 2003) LOCATION Durango is the fourth largest state in Mexico with an area of 47,561 sq. miles. The state borders with Chihuahua to the north, Coahuila and Zacatecas to the east, Nayarit and Jalisco to the South, and Sinaloa to the west. The state is crossed diagonally from the northwest to the southeast by a tall mountain range with peaks exceeding 10,600 ft. The capital city of Durango is located in the southern part of the state at an elevation of 6,166 ft. The city has a pleasant climate with annual average temperatures of 64° F and an annual average precipitation of 18 inches. PROXIMITY TO KEY CITIES
INDUSTRY SNAPSHOT Agriculture and livestock are important elements in the state's economy; accounting for one-third of Durango's GDP. Other important commercial activities include mining, forestry and manufacturing. There are two main industrial regions in the State of Durango: the capital city of Durango in the south-central region of the state, and the "La Laguna" area in the eastern section, which includes the city of Torreon in the state of Coahuila, and the cities of Gomez Palacio and Lerdo in Durango. The city of Durango has few maquila plants, most of which are apparel manufacturers. The automotive sector has begun to develop in the last three years with the arrival of Yazaki, Sumitomo and International Wire. Other notable companies include York and Handy Craft. DEMOGRAPHICS AGE DISTRIBUTION Click Here To Register LABOR AND EMPLOYMENT Durango, Employment by Sector:
The maquiladora industry in Durango employs 5,764 people in 15 maquila plants. Over half of the workers in the maquila sector are employed in apparel manufacturing. See the table below: Maquila employment in Durango:
UNEMPLOYMENT AND SUB-EMPLOYMENT EDUCATION AND TRAINING
There are 137 junior high schools and 9 professional education institutions in the city of Durango. Additionally, there are 19 specialized education centers which offer programs that are tailored to the meet the export manufacturing industry needs. The city has a literacy rate of 96.8%, which compares favorably to the 90.5% national rate for Mexico. TURNOVER RATES The state government does not publish statistics for turnover rates. Nevertheless, we estimate that the city of Durango has turnover rates Click Here To Register 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 Durango 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.
Source: Area industry wage studies and interviews with local managers, $11.00 pesos/USD INDUSTRIAL COSTS dollar @ 11 pesos/USD
*CFE.-June 2004, ** Pemex.-June 2004, *** Comision Nacional del Agua.-June 2004 INDUSTRIAL REAL ESTATE The city has the basic service infrastructure, including electricity, potable water and sewage. Natural gas is also available to certain areas, but its use is not wide spread. There is one major industrial park in Durango owned by the state government. The Ciudad Industrial Durango Industrial Park has approximately 104 acres of land available. The park has all necessary infrastructure and services except natural gas. Water intensive companies are not allowed inside the park. AVAILABLE SPACE A current survey of industrial parks in Durango with a variety of site options, reveals the following average prices in U.S. dollars per sq. ft. for Class “A” construction:
TRANSPORTATION Four main highways connect Durango with the rest of the country. To the north east, the four-lane Federal Highway 40 connects to La Laguna region, with an estimated driving time of about two hours. Highway 45 connects Durango with Parral in the state of Chihuahua while Highway 90 links the city with Mazatlan and Zacatecas to the south. Durango provides quick access to two important NAFTA corridors:
Durango’s “Guadalupe Victoria” International Airport” offers flights to Los Angeles and Chicago as well as more than 11 destinations in Mexico. The railroad network links the city to the U.S. and to the main cities in Mexico, including La Laguna area. CUSTOMS Durango does not have a customs facility, the nearest customs office is in Torreon. Some of the services offered at the Torreon customs office include:
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 job creation. The incentives include: infrastructure works, fees with the State Public Registry and construction permits. STATE OF DURANGO INCENTIVES
Companies that create more than 500 jobs will see additional support from the state government, including land preparations assistance, construction of access roads, reduced electrical hook-up fees and railways sidings. The Support SUPPORT SERVICE COMPANIES Service and supplier support for the apparel industry is good. Other industries are advised to research the availability of support and service companies before investing in Durango. In addition, service suppliers are also available from Torreon and Gomez Palacio. The Politics UNIONS
Unions in Durango are pro-business and are characterized by their collaborative approach with management decisions. There are several labor unions in the area, including the Mexican Workers' Confederation (CTM) and the Revolutionary Confederation of Workers and Farmers, (CROC). Other unions with presence include The National confederations of Popular Organizations (CNOP) and the Electricity Workers Confederation of the Mexican Republic (SUTERM), among others. POLITICAL INFLUENCES The governor of Durango, Mr. Angel Sergio Guerrero, is a member of the Ruling PRI party and is a strong advocate of attracting new investment to the state. He is committed to the social and economic development of the both the state and the capital city. OTHER COMPANIES IN DURANGO
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