View Larger Map POPULATION
The city of Guanajuato which is the capital of the State of Guanajuato, has an estimated 141,215 inhabitants, or 3.03% of the state’s population of 4,656,761 individuals. (Source INEGI 2000)
STATE DESCRIPTION
The State of Guanajuato occupies the Baijo, the heartland of Mexico. Though bajio means lowland, Guanajuato’s plains and valleys lie at an altitude of 5,500-7,000 feet. When compared to the tall surrounding mountains, however, the area indeed qualifies as bajio. Farms thrive in the fertile valleys; at certain times of the year a drive through the countryside reveals fields of brilliant green and gold. Guanajuato has played a key role in the history of Mexico as the birthplace of the independence movement. Traditionally an agricultural and mining region, Guanajuato is now an important industrial state with 73 maquilas employing close to 13 thousand workers. - INEGI 1999
LOCATION
The State of Guanajuato borders with the state of San Luis Potosi to the north, with the state of Queretaro to the east, Michoacan to the south and Jalisco to the west. Guanajuato’s major cities are Leon, Irapuato, Celaya and Guanajuato the state’s capital.
PROXIMITY TO KEY CITIES AND SEA PORTS
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The Workforce
DEMOGRAPHIC IMPACT
The State of Guanajuato has historically been one of Mexico’s richest. After silver was found in Zacatecas, Spanish prospectors combed the rugged lands north of Mexico City and were rewarded by discoveries of silver, gold, iron, lead, zinc and tin. For two centuries 30% to 40% of the world’s silver was minded in Guanajuato. Even today silver and gold remain one of the top exports of the state.
EMPLOYMENT CONSIDERATIONS
Over 70% of the economically active population is under 35 years of age.
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SKILL RANKING
The most credible proof of the quality of the workforce is the type of industry established in the city. The gross state product is broken down as follows:
EDUCATION and TRAINING
A training program has been established by the government that provides the workers with a minimum salary while training for a period of two months. The company however, must hire 70% of the trainees at the end of the program. Companies can participate in selection of workers for the training period.
TURNOVER RATES
The state does not publish turnover statistics but we expect them to be % per month, depending on the size of company. The large number of small shops that offer no benefits and few promotion possibilities contribute to higher employee turnover. High labor turnover-rates are a constant problem for most maquila operations in Mexico, especially along the border.
The Operation
Monthly salary for executives and employees in US dollars not including benefits.
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Executives and employees
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Minimum
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Maximum
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Plant Manager
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Production Manager
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Production Engineer
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Production Technician
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Accountant
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Bilingual Secretary
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Source: Bancomext 1999-$9.00/USD
Hourly salary for laborers in US dollars, including obligatory benefits
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Laborer
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Minimum
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Maximum
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Skilled
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Unskilled
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Source: State Government of Guanajuato
Exchange rate at $9.50 pesos per $1.00 US
INDUSTRIAL COSTS
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Electricity
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USD @ 9.40
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Demand Charge per kW
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Rate per kWh (1999)
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Costs increase 1% per month
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Fossil Fuels
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USD @ 9.40
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Natural Gas/mmbtu (May. 2000)
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Costs increase 1% per month
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Water
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USD @ 9.40
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Potable Water & Sewage for 53,000 Gal.
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Source: Guanajuato State Government-1999
INDUSTRIAL REAL ESTATE
A current survey of industrial parks in the State of Guanajuato with a variety of options, reveal the following average prices per sq. ft. in US dollars.
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Category
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Minimum
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Maximum
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Annual lease of industrial bays
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Land purchase price
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Construction costs for standard bays
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Exchange rate of $9.40 pesos per dollar
INFRASTRUCTURE
There are 3,899 miles of roads and 674 miles of railroad in the State of Guanajuato. The municipal region of Guanajuato has a small and underdeveloped industrial infrastructure that provides sites with water, sewage, electrical power, and telephone. The State of Guanajuato has 2 international and 2 domestic airport.
CUSTOMS
The closest fully staffed Mexican customs office is in Queretaro.
TAXES
Existing taxes in Mexico are Federal and include no reductions or incentives related to the following: Income, Value Added Tax (IVA), Assets Tax, Withholdings, Import/Export, Social Security, Housing Fund (INFONAVIT), Retirement Savings (SAR), Workers Income Tax (ISPT). State taxes include a Payroll tax of 2% waived during the two initial years of operation, Random Games Tax (15%) and a Vehicle Tenancy Tax (variable).
The Support
SERVICE and SUPPLIER COMPANIES
Guanajuato as a state is one of Mexico’s leading production centers more than adequate service and supplier companies exist in the main cities of Leon, Celaya, and Irapuato.
In the city of Guanajuato though large-scale operations will find a limited number of companies offering support and services, especially for high tech operations.
The Politics
UNIONS
Unionized labor in Guanajuato does not represent a major impediment to new starts or expansion.
ADVANTAGES
- Ample workforce available.
- Large industry already established in the surrounding cities.
- The State of Guanajuato accounts for a healthy 3.5% of the G.N.P.
DISADVANTAGES
- Other cities in the State are more industrialized
- Distance to the USA border.
- No heavy industry established in the city of Guanajuato.
The Conclusion
The State of Guanajuato has some important industrial centers like Leon, Salamanca, and Irapuato. It is also a fertile agricultural state, producing grains, vegetables and fruit. It is still an important source of silver, and gold. The state is thriving under the leadership of the PAN governor, Vicente Fox, who is the incoming President of Mexico. Guanajuato State has the lowest unemployment rate in Mexico and an export rate three times the national average. Most operations will be better suited in one of the other cities of Guanajuato.
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