Ciudad Juarez, located in the north of the State of Chihuahua, rests between two mountain ranges and the flat riverbanks of the Rio Grande. The earliest Spanish settlers dubbed the region "El Paso del Norte", or "The Pass of the North", for its geographical characteristics. Juarez is set at an elevation of 3,800 ft., and it is the geographical mid-point of the 2,000 mile long U.S.-Mexico border. The State of Chihuahua, the largest state in Mexico, borders Texas and New Mexico to the North, Nuevo Leon to the east, Durango to the south, and Sonora and Sinaloa to the west. It shares a 350-mile border with Texas, delineated by the Rio Grande River. The state has historically been important for its agriculture and ranching industries. With the explosive growth of the maquiladora industry, the State of Chihuahua has become increasingly industrial, particularly the cities of Juarez, and the state’s capital Chihuahua City. The weather in Cd. Juarez is hot and dry in the summer, and pleasant in the winter with limited precipitation averaging 8.65” annually. PROXIMITY TO KEY CITIES Land Distance from Cd. Juarez in Miles
REGIONAL INFLUENCE/INDUSTRIAL ACTIVITY The El Paso – Cd. Juarez borderplex is one of the busiest in terms of commercial trade and passenger traffic between the U.S. and Mexico. Cd. Juarez is also the largest production-sharing center in North America. Since Mexico introduced the maquiladora program in 1964, Cd. Juarez has led Mexico in the growth of the manufacturing and assembly industry. Cd. Juarez is also the anchor of the World’s largest bi-national community, with a Gross Regional Product exceeding $41.0 Billion (U.S.). The three major communities making up this region include Cd. Juarez, El Paso, and three counties in Southern New Mexico (Luna, Dona Ana and Otero). Juarez has the largest economy ($21.0 billion) of the three communities. The cities of El Paso and Juarez complement each other nicely. Juarez is a world-class manufacturing center with highly skilled, productive labor while El Paso is a world-class logistics and service support center that provides excellent rail, air and truck transportation to global markets as well as superb quality of life for executive management. The WorkforceDEMOGRAPHIC IMPACT UNEMPLOYMENT PERCENTAGE The open unemployment rate in Juarez is Click Here To Register . (INEGI December 2007) SKILL RANKING / QUALITY OF LABOR Although the population of Juarez is predominantly young and undereducated by U.S. standards, the employable workforce can be characterized as energetic, industrious, talented and trainable. The skill level of Cd. Juarez maquiladora workers is among the highest along the border. The most credible proof of the quality of the workforce is the type of industry established in the city. High technology operations can be found at number of Cd. Juarez maquiladora, and newer plants have integrated increasingly complex processes. EDUCATION and TRAINING PROGRAMS Juarez educational institutions provide with good educational opportunities. The city’s educational pool consists of 6 universities, 143 High Schools, and 3 Technical Institutes. English is taught at all primary and secondary schools. Juarez has a branch of the prestigious Tecnologico de Monterrey, one of the best universities in Latin America offering degrees in business administration and many engineering and computer systems disciplines. Additionally, the community and its maquiladora industry have established several programs to prepare the labor force for high technology manufacturing. Some of the most well known programs include CENALTEC; a joint state/industry initiative that provides advanced technical training in several business support activities and CAST; a program that includes training in electronics, hydraulics, instrumentation and measurement and other basic technology skills. TURNOVER RATES The OperationWAGE RATES Average Monthly Wages Paid in Juarez - 2007 U.S. dollars including all mandatory benefits for this market
Source: Area industry wage studies and interviews with local managers, $11.00 pesos/USD INDUSTRIAL COSTS Electricity USD @ $11.00
CFE – June 2004 Fossil Fuels USD @ 11.00
PEMEX APRIL 2004 Water USD @ 11.00
JMAS-2004 (Source: Mexican Department of Energy, Chihuahua State Government, CFE and Bancomext, 2004) INDUSTRIAL REAL ESTATE Cd. Juarez’s industrial real estate market can be divided into two submarkets: north and south. The city original grew immediately along the U.S. border and in the 1960s through the 1980s all industrial activity was also concentrated in this area. However, the population growth began to spread the city to the south and east along the Rio Grande. This has lead to the development of new industrial areas in the southern half of town. Northern Cd. Juarez mainly has older, class “B” facilities as its industrial base. Due to the changing demand for institutional facilities in Mexico over the past 10 years, many of the older buildings have become functionally obsolete, resulting in higher vacancy rates in this part of town. Meanwhile, most newcomers to Cd. Juarez as well as companies adding capacity within the city have moved south, taking advance of the relativity open plain. This area has larger lot sizes, mixed zoning and better transportation infrastructure. There remain large tracts of available land for new construction. Four new, southeastern industrial parks serve Cd. Juarez, with adequate available space in each. Additionally, new industrial land to the southeast of the city, in an area referred to as "Nuevo Juarez", is available on a build-to-suit basis. INDUSTRIAL REAL ESTATE U.S. Dollars/sq. ft.
Exchange Rate $11.00 pesos/dollar INFRASTRUCTURE Cd. Juarez has ample utility and transportation infrastructure. Electricity and natural gas are readily available. Companies that have large process water requirements need to pay special attention to securing rights up front. The roadways around the city are excellent, most of the major arteries have 6 to 8 lanes. TRANSPORTATION Competition for maquiladora shipment is intense providing industry with the lowest transportation rates among U.S./Mexico border communities. The city’s central border location facilitates shipment by air, rail or truck. Three major commercial ports of entry serve Juarez: Zaragoza (east), Cordova (central) and Santa Teresa (west). Dedicated Commuter Lanes (DCL) at the Lerdo/Stanton Street Bridge and at the Zaragoza International Bridge reduce plant-to-home driving time to less than thirty minutes. Rail and trucking services are extensive. There is an association of transport services in Cd. Juarez, with over 40 members that provides trucking services within Mexico and to the U.S. Rail service to major West and Midwest markets takes less than eighteen hours. There are two commercial airports in the area: Juarez International Airport and El Paso International Airport. The Juarez Airport provides extensive air services to Mexico’s national markets while the El Paso Airport provides direct flights to major U.S. communities. Airport facilities are excellent in El Paso for commercial cargo, but not as developed on the Juarez International Airport side, hence, most maquiladoras requiring airfreight use the El Paso, Texas airport and transfer to Cd. Juarez via truck. CUSTOMS U.S. Customs operates two sophisticated facilities at the Bridge of the Americas, (BOTA), and the newer Zaragoza Bridge. TAXES The following information outlines the basic premise of the taxing system in Mexico. STATE TAXES: The asset tax is currently 1.8% of total assets on the Mexican entity's books, less accumulated depreciation and accounts payable to Mexican vendors, with assets adjusted to include the effects of inflation. The payroll tax depends on the type of workers listed on payroll, it averages 2.6%. INCENTVES Cd. Juarez is not known to offer major incentive packages for new operations beyond basic tax incentives and training assistance. The SupportJuarez has excellent support and service companies that supports a large and well-developed maquiladora industry. Highly qualified legal, tax and accounting advice is available on both sides of the border. El Paso has modern industrial parks and warehousing facilities that support maquiladora operations in Mexico. The area is also known as a major center for plastics molding and metal stamping and treating. The PoliticsThe present government has been implementing programs and incentives in order to attract foreign investment, showing great interest in the maquiladora industry. The governments business record has been mixed. On one hand, the government attempted to raise the state’s payroll tax to the highest level in the country. On the other, it continued to foster new investment in the state by offering tax incentives and services to new, large companies looking to establish manufacturing operations in town. UNIONS Even tough there have been attempts to link union activity in U.S. corporations to their Mexican counterparts, Cd Juarez workforce is largely non-unionized. Only 5% of the workers belong to the Mexican Workers Union (C.T.M.). OTHER BIG NAMES Cd. Juarez is home to some of the largest maquiladoras on the border with an impressive roster that reads like a who's who of international manufacturing. Click Here To Register Industrial Market Map
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