| Hermosillo Industrial Profile |
|
|
|
View Larger Map
MAIN COMPANIES
MAIN COMPANIES Click Here To Register RECENT ACTIVITY
ADVANTAGES
DISADVANTAGES
Overview Ford, Ford and Ford. This the biggest story in Hermosillo and much of Mexico. Ford’s expansion is bringing an incredible stable of multinational companies to Hermosillo and will make it one of the more important centers in Mexico. While the new project is not slated to start until late 2005, the market is already a jumble of companies looking for buildings and employees. This activity combined with the relative isolation on Mexico’s pacific coast should caution companies interested in the area. Nogales or Cd. Juarez may offer the same benefits without the potential headaches. The City POPULATION 609,829 people live in Hermosillo and the city is growing at an annual rate of 3.9%. This represents just over 25% of Sonoro’s total population of 2,309,138 people. Source: Sonora State Government 2003 LOCATION Hermosillo is the capital city of Sonora. It is located in the center of state 172 miles south of Nogales, Arizona. Sonora is Mexico’s second largest state and it shares a 365-mile border with both Arizona and New Mexico. Sonora also has 746 miles of coastline on the Gulf of California. The city has a tropical feel and sits at an altitude of 689 ft above sea level. It is dry and pleasant in the late fall and winter, but during the summer it can be brutally hot, reaching over 110° F. Average annual precipitation is 16.7 inches. REGIONAL INFLUENCE/INDUSTRIAL ACTIVITY The state’s economic drivers are changing from agriculture, mining and ranching, to industrial production. To date over 330 maquiladoras operate in Sonora employing over 100,000 workers. This activity generates 2.7% of Mexico’s GNP ($3,956 million USD). Hermosillo is the educational, political and commercial center of Sonora. Ford is by far the largest manufacturing operaton in the city, but a number of other companies have located there in the past 15 years. Originally, maquiladoras relocated to Hermosillo from Phoenix and Tucson seeking lower labor costs for assembly and sewing operations.
PROXIMITY TO KEY CITIES
The Workforce DEMOGRAPHIC IMPACT An increased maquiladora presence in recent years has stabilized the workforce and begun to raise the skill level of industrial employees. Harvest season can still reduce the workforce as many workers leave to support the family farm or seek migrant work in Arizona and California. AGE DISTRIBUTION Click Here To Register EMPLOYMENT CONSIDERATIONS
UNEMPLOYMENT RATE AND AVAILABILITY OF LABOR SKILL RANKING The skill level of the workforce has increased during the last few years; the successful Ford Motor Company plant has raised the labor force's overall technical skills. The most credible proof of the quality of the workforce is the type of industry established in the city. The principal maquila plants in Hermosillo employ personnel in the following industries:
EDUCATION and TRAINING PROGRAMS Hermosillo has literacy rate of 95%, which is above the national average. 88% of the workforce has completed elementary school and 8% have high school degrees or have attended a technical school. Most of the workforce averages an education of 9 years. The city has 31 technical training programs with an enrollment of over 5,000 students and 12 Universities with over 23,000 students, including a branch of the "Tec de Monterrey", one of the most prestigious schools in the nation. The state government aids maquilas with training support and offers to pay the minimum wage for workers in training for up to 8 weeks; additionally, local schools have implemented training programs to accommodate the needs of a particular company. TURNOVER RATES Turnover estimates for Hermosillo run Click Here To Register The Operation WAGE RATES
Average hourly wages paid in Hermosillo - 2004
(Source: Area industry wage studies and interviews with local managers, $11.00 pesos/USD) INDUSTRIAL COSTS Electricity USD @ $11.00
Fossil Fuels USD @ 11.00
Source: Mexican Department of Energy, Chihuahua State Government, CFE and Bancomext 2004 INDUSTRIAL REAL ESTATE Hermosillo has eight industrial parks throughout the city. Five of them are in a urban setting geared towards small operations that can draw labor from the immediate surrounding area. The Hermosillo Industrial Park is actually more of an industrial zone and is where the original Ford suppliers established their operations. The remains good land sites available in this area. Ford is working to drive all of the new suppliers into the Dynatec South Park, located across the street from their plant. This will be a class “A” industrial park with full services, from natural gas to rail. Once the main wave of suppliers move in, there will still be large tracts of land available. There are also land sites in the immediate vicinity. INDUSTRIAL REAL ESTATE
U.S. Dollars/sq. ft., Exchange Rate $11.00 pesos/dollar INFRASTRUCTURE Hermosillo is a well-designed city with a modern infrastructure and growing resort development. The city has 8 industrial parks, all of them the basic infraestructure. The city has a natural gas pipeline with a capacity of 100 million cubic feet/day and connections to the industrial parks are available. Water pressure to the industrial parks is often low and the lines tend to become clogged with sediment during the rain season. TRANSPORTATION The State of Sonora has 5 international airports, 190 airfields, one deep sea port and 6 border points of entry with a highway network of 14,750 miles (23,737 km) The four-lane Federal highway 15 links Hermosillo with Nogales, AZ (168 miles). Cd. Obregon and Navojoa are also accessed via highway 15. It should be stressed that there are two types of highways. Toll highways, which are privately owned, are modern and generally in excellent condition. Free highways, on the other hand, are generally in bad condition. Tolls rates for trucks are generally high which results in most users using the congested, free highways. Hermosillo has daily railroad service to the interior of Mexico, and to the US through a partnership with Union Pacific. Regarding maritime transportation, Guaymas, located 87 miles south of Hermosillo is one of the most active ports in Mexico. The city’s international airport, "Ignacio Pesqueira", offers daily commercial service to most major Mexican cities, as well as international service to Los Angeles, Tucson and Phoenix.
STATE GOVERNMENT INCENTIVES: In addition, assistance is provided to enterprises in the areas of:
The Support SERVICE and SUPPLIER COMPANIES The service and support capacity of Hermosillo is limited. Most maquilas retain their service channels and suppliers from Phoenix or Tucson. Some companies rely on distributors based in Nogales. The Ford Motor Company plant utilizes support and services from its sister operations in Chihuahua City. The Politics UNIONS Unionized labor in Hermosillo does not represent a major impediment to startups or expansions for maquiladora operations. Migrant farm worker unions are more prevalent in this region. The labor unions in Mexico are generally pro-industry, relations between unions and management are peaceful and harmonious. The major 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 Regional Confederation of Mexican Workers (CROM) The Government of Sonora has a strong interest in the manufacturing industry. This current Governor Mr. Armando Lopez Nogales is a member of the PRI party. Sonora is a state with social and economic stability, a good quality of life and a low crime rate. OTHER BIG PLAYERS Other companies established in Sonora:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| < Prev | Next > |
|---|