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Summary Market Profile
1st Quarter 2011 Available
Properties
Key Industries
- Automotive
- Electronics/Electrical
- Consumer Appliances
Main Companies
Recent Activity
- Foxconn opened a major campus in western Juarez to manufacture
Dell computers, creating 7,000 jobs.
- Electrolux has expanded their campus to its third phase.
They now produce refrigerators and ovens.
- Winstron continues to expand their presence with two new
facilities, adding over 400,000 SF in the past year.
- VienTek has expanded their wind blade manufacturing campus and
shown consistent growth over the past six years.
- Over 10,000 jobs generated at maquiladoras between July-August.
- General Electric (GE) transferred to Juarez (and Monterrey and
Queretaro) the production of medical products assemblies, high
efficiency engines and turbines for airplanes and power generation.
- From Juarez, Toshiba exports not only to the USA and Canada, but
also to all of Latin America and the Caribbean.
- The number of employees hired under subcontracting in Ciudad
Juarez reached 14.9%, a level never seen before, according to the last
figures disclosed by the Mexican Statistics Agency.
- 46 international companies are planning to establish operations
in Juarez, 16 of which already have concrete investment projects,
according to business representatives.
- Hewlett Packard (HP) announced they will bring nearly 4 thousand
jobs to Juarez.
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Click the image above to read a case study on
how TeamNAFTA.com assisted Cardinal Health recover from a facility fire
in Cd. Juarez, Mexico.
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Advantages
- Major support services and supplier base in Juarez and El Paso,
Texas
- Key transportation hub on the U.S./Mexican border
- Excellent infrastructure to support major manufacturing operations
- A large, capable workforce with a high skill level
- Good quality of life on both sides of the border
- A strong maquiladora culture.
Disadvantages
- Presence of large industrial campuses can impact labor demand in
certain areas
- Water intensive operations will require special storage and
treatment infrastructure
- Border crossings can become congested at peak times during the
month
- Hot during the summer
- Crime and Security concerns driving negative publicity.
City Profile
Cd. Juarez is one of the premier manufacturing locations in Mexico
alongside Monterrey and Tijuana. City and state government as
well as private developers have made significant investment in the
city’s infrastructure to ensure that future growth can be
sustained. Cd. Juarez has unmatched transportation infrastructure
as well as ample land sites for the construction of new industrial and
housing developments. Combined with excellent support services
and access to U.S. transportation routes, it should be included in any
site selection investigation.
Population
Cd. Juarez is the largest city in the state of Chihuahua and the
fifth largest in Mexico. It has an official population of 1.4
million people but it estimates on actual population range between 1.8
and 2.0 million. Its rapid growth has been fueled by the
thousands of Mexicans who have migrated to the city in search of better
wages.
The current population of El Paso, Texas is 729,097.
Location
Cd. Juarez is the northernmost city in the State of Chihuahua and is
situated between two mountain ranges and the Rio Grande. The earliest
Spanish settlers dubbed the region "El Paso del Norte," or "The Pass of
the North," for its geographic characteristics and established travel
routes. Juarez has an elevation of 3,800 ft. and is located at the
mid-point of the 2,000 mile long U.S.-Mexico border.
The State of Chihuahua—the largest 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 been historically important for its agriculture and
ranching industries. The explosive growth of the maquiladora
industry has increased the population of Chihuahua, particularly in the
manufacturing bases 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. The average annual precipitation is 8.65”.
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 been at the forefront of the country’s manufacturing and
assembly industry.
Cd. Juarez also anchors the world’s largest bi-national commercial
community, with a Gross Regional Product exceeding $41.0 Billion
(U.S.). The three major population centers in this region include
Cd. Juarez, El Paso, and the trio of counties comprising Southern New
Mexico (Luna, Dona Ana and Otero counties). Juarez has the
largest economy ($21.0 billion) of the three communities.
The cities of El Paso and Cd. Juarez have developed a deeply
symbiotic relationship in regards to manufacturing. While Juarez is a
world-class manufacturing center with a highly skilled, productive
labor force, El Paso provides logistics and service support centers
that feature excellent rail, air and truck transportation to global
markets as well as superb quality of life for executive management
PROXIMITY TO KEY CITIES AND SEAPORTS
Employment Considerations
At the peak of manufacturing activity in 2007 Cd. Juarez employed over
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in Mexico and highlights the important position that the city has in
Mexico’s overall manufacturing industry. As of
December 2010, maquiladora employment in Juarez has dropped to
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Consequently, Cd. Juarez has one of the highest concentrations of
maquiladora operations on the U.S./Mexico border with approximately
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Officially, the number of maquiladoras is approximately
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facilities. Almost all of these manufacturing facilities are
located within the 25 industrial zones around the city. These
plants are some of the largest in Mexico, with many of them employing a
workforce in excess of
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The maquiladora labor force in Cd. Juarez has quadrupled since 1982.
The newer maquiladoras are operated by high-tech, capital-intensive
industrial companies.
Unemployment Percentage
Current unemployment rate in Cd. Juarez is likely
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double the rate reported in 2007. Since the economic downturn the
city has lost
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Register manufacturing jobs, or almost
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Register of the total, so unemployment in this
sector is well above the published figures.
Skill Ranking/ Quality of Labor
Although the population of Cd. Juarez is predominantly young and
undereducated by U.S. standards, the employable workforce can be
characterized as energetic, industrious, and trainable. The skill level
of Cd. Juarez maquiladora workers is among the highest along the
border.
The most credible proof of the workforce quality is the type of
industry established in the city. High technology operations can
be found at a number of Cd. Juarez maquiladoras, and newer plants have
integrated increasingly complex processes.
Education and Training Programs
Cd. Juarez’s academic institutions offer the local population ample
educational opportunities. The city’s educational foundation
consists of 6 universities, 143 high schools, and 3 technical
institutes. English is taught at all primary and secondary
schools.
Cd. Juarez is home to a satellite campus of the prestigious
Tecnologico de Monterrey, one of the most prestigious universities in
Latin America. This school offers degrees in business administration as
well as 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. Two prime examples are CENALTEC and CAST.
CENALTEC is a joint state-industry initiative that provides advanced
technical training in several business support activities. CAST is a
program that includes courses in electronics, hydraulics,
instrumentation and measurement and other basic technology skills.
Turnover Rates
Turnover rates have dropped dramatically since the economic downturn
in 2008. In the past typical monthly turnover rates ranged
between Click Here To Register . Today,
however, it is not uncommon for operations to have less than
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Register monthly turnover rates.
Even before the economic downturn turnover rates had stabilized in
many plants as companies engaged in higher value-add manufacturing and
working conditions improved. As the economy of Cd. Juarez
rebounds, it is expect that turnover rates will remain stable and below
historical norms and previous basic assembly operations continue to be
replaced by more technical value-add operations.
For the most part, turnover rates vary greatly from one operation to
another rather than from city to city. The majority of turnover
occurs in the first 90 days of employment, during the training
period. TeamNAFTA does not put much weight behind turnover rates
in the site selection process, focusing instead on labor and education
requirements, company culture and management practices.
Cd. Juarez Maquiladora
Monthly Turnover Rates
WAGE RATES IN JUAREZ
Fully Loaded
Industrial Costs
Cost / KWH of Energy
Consumed
Fossil Fuels USD @ 11.00
Water USD @ 11.00
Industrial Real Estate
Cd. Juarez’s industrial real estate market is divided into two
submarkets: North and South. The city center in the north was
originally established along the U.S. border directly opposite El Paso,
and from the 1960s through the 1980s all industrial activity was
concentrated in this area. As the population of Cd. Juarez has
increased in recent years, the city has spread along the Rio Grande to
the South and East. This growth has led to the development of new
industrial areas in those areas of expansion.
Northern Cd. Juarez has older, class “B” facilities. Due to
the changing demand for production facilities in Mexico over the past
10 years, many of these older buildings have become functionally
obsolete. Vacancy rates in this part of town are high.
Most newcomers to Cd. Juarez (as well as companies adding capacity
within the city) have moved southeast, taking advantage of the
relativity open plain. This area has larger lot sizes, mixed
zoning and better transportation. Large tracts of land remain
available for new construction, but some sites may be two years away
from having completed infrastructure. Each of the four new
industrial parks in the Southeast has adequate available space.
Additionally, new industrial land is available to the southeast of the
city in an area referred to as "Nuevo Juarez." This real estate is
being offered on a build-to-suit basis.
Industrial Real Estate
Industrial Statistics
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 upfront. Roadways
around the city are excellent. Most of the major arteries have 6 to 8
lanes.
Transportation
Competition for maquiladora shipments is intense and provides
industry with the lowest transportation rates among U.S.-Mexico border
communities. The city’s location at the mid point of the U.S.-Mexico
border facilitates shipment by air, rail or truck.
Three major commercial ports of entry serve Cd. Juarez: Zaragoza
(east), Cordova (central) and Santa Teresa (west). A Dedicated Commuter
Lane (DCL) at the Lerdo-Stanton Street and Zaragoza Bridges reduces
plant-to-home driving time to less than thirty minutes.
Rail and trucking services are extensive. There is an association of
truck transport services in Cd. Juarez with over 40 members that
provides transportation 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: Cd. Juarez
International Airport and El Paso International Airport. The Cd. Juarez
Airport provides air service to Mexico’s major national markets while
the El Paso Airport offers direct flights to important U.S. cities and
airline hubs. Airport facilities in El Paso are excellent for
commercial cargo. Cd. Juarez International Airport is not as well
developed. As a result, most maquiladoras requiring airfreight transfer
cargo from Cd. Juarez to the El Paso airport via truck.
Customs
The United States Customs Service operates two sophisticated
facilities at the Bridge of the Americas (BOTA) and the newer Zaragoza
Bridge. Wait times for passenger vehicles coming into the U.S.
from Mexico can be up to one hour on the BOTA, and even longer for
trucks. Crossing is much quicker at the Zaragoza Port of Entry.
The customs infrastructure is also growing at the Santa Teresa
International Crossing, which enters into New Mexico. This is
driven by the opening of Foxconn’s campus on the southern side of the
border in this area. Although Foxconn only initiated operations
in 2009, the amount of traffic crossing at Santa Teresa has been
substantial.
Incentives
Cd. Juarez is not known to offer major incentive packages for new
operations beyond basic tax breaks and training
assistance.
Service and Support Companies
Cd. Juarez has excellent support and service companies that cater to
the 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.
Unions
Even though there have been attempts to link union activity in U.S.
corporations to their Mexican counterparts, the 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. The city’s industrial roster represents a Who's Who of
international manufacturing with nearly 80 members of the Fortune 500
represented or doing business in the area. Listed below are a few of
the major operators in Cd. Juarez:
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Philips Consumer Electronics
A.O. Smith
Delphi
Honeywell
Lear
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Johnson & Johnson
Lexmark
Robert Bosch
MCS
General Electric
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Emerson
Toro
Flextronics
BRP
Columbus Industries
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BRK/First Alert
Cardinal Health
International Paper
Winstron
Scientific Atlanta
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Additionally, Cd. Juarez attracts investment from around the globe,
although the U.S accounts for approximately 75%.
Source: Juarez Maquiladora Association
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