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POPULATION
Ojinaga is a very small farming community of approximately 60,000 persons. Growth is low and stabile, reflecting its remote location and agrarian composition. Presidio, Texas, sister city to Ojinaga, has approximately 5,500 inhabitants. Trade includes agriculture and mining. Ojinaga is one of the largest entries for export feed and cattle in the nation.
STATE DESCRIPTION
Chihuahua, one of the richest and largest states in Mexico, shares a 350 mile long border with Texas, bounded by the Rio Bravo del Norte, (Rio Grande River). The main portion of the state consists of a high desert plateau lying from between 4,000 and 4,800 feet above sea level. In the west are the Sierra Madre Occidental, slashed by deep gorges. The state has traditionally been one of agriculture and ranching. With the explosive growth of the maquiladora industry, the State of Chihuahua has become increasingly industrial, particularly the cities of Juarez and its Capital, Ciudad Chihuahua.
LOCATION
Chihuahua is placed in the middle of northern Mexico and along the Rio Grande River. Largest city in the state is industrial center and birthplace of the maquiladora industry, Cd. Juarez.
Excellent paved highway between Ojinaga and Ciudad Chihuahua offers manufacturers another option, besides Juarez, to border crossings; especially competitive if finished goods are destined for central or eastern U.S.A. Highway 67 accesses Interstate 10 140 miles from the Ojinaga crossing.
GEOGRAPHY
Ojinaga sits on grassland and rolling terrain near the banks of the Rio Grande River. The climate is hot and humid almost the entire year. The region experiences heavy rains at times, and is affected by the Gulf streams and the hurricane season in South Texas.
PROXIMITY TO U.S. CITIES
Once across the international bridge into Presidio, Texas:
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Cd. Chihuahua
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El Paso, Texas
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Dallas, Texas
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Monterrey, Mexico
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The Workforce
DEMOGRAPHIC IMPACT
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EMPLOYMENT CONSIDERATIONS
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UNEMPLOYMENT PERCENTAGE
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AVAILABILITY of LABOR
Population and demographic projections still point to above average growth, as expected to accompany increased trade, border migration and higher birth rates.
SKILL RANKING
Large and medium sized maquilas have not tended to locate in Ojinaga due to its small size and remote location. Cd. Chihuahua has been an alternative destination for maquila operators who require access to the crossings in Ojinaga, but wish to locate away from the border. The aggregate skill level will increase as more maquilas in electronics locate there.
EDUCATION and TRAINING
A college-type training school exists in Ojinaga, from which 40% of the region's student graduate.
TURNOVER RATES
In general terms, turnover is moderate in Ojinaga because of a smaller labor pool and fewer choices for workers to find other job sites. Their single plant is within walking distance of housing areas. Turnover rate estimates typically Click Here To Register
The Operation
WAGE RATES
Average hourly wages paid in Ojinaga in manufacturing:
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1993
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1994
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1995
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1996
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1997
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1998
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1999
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Direct Labor
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Technicians
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Administrative
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(expressed above in U.S. dollars per hour)
Wages are generally lower in Ojinaga than in other maquila cities on the border, reflecting the city's isolation and smaller size.
AVAILABLE SPACE
A current survey of industrial land in Ojinaga, with a limited variety of site options, reveals the following average USD prices:
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Industrial land purchase price: $2.00-3.50 per sq. ft.
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New construction or build-to-suit costs: $22.00-28.00 per sq. ft.
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Refurbish, or rebuild-to-suit costs: $12.00-18.00 per sq. ft.
INFRASTRUCTURE
Electric, water and tanked propane gas is available. Interconnection with West Texas Utilities assures continuous service.
CUSTOMS
U.S. Customs processes commercial traffic from the State of Chihuahua at the Ojinaga crossing for shipments destined to central Texas cities and the U.S.
TAXES
Maquila employers will pay State of Chihuahua taxes in the amount of 3.5 - 5.0% of base salaries.
The Support
SERVICE and SUPPORT COMPANIES
Chihuahua's smaller size and interior location severely constricts its support capacities. The lack of services and the added distance to Juarez would drive costs up for any new or specialized operation.
The Politics
UNIONS
Unions are present in the State of Chihuahua, approximately 40% of the maquila workforce is unionized; however, they are an efficient intermediary between labor and management. As a traditional ranching state, its industrial nature is fairly new; therefore unions do not have a long history there as they do in other interior cities.
ASSISTANCE
Federal and State special assistance is not especially noteworthy in the State of Chihuahua for new maquiladora operations, as concessions have been curtailed considerably in light of the strain on the infrastructure in the state’s major city of Juarez.
ADVANTAGES
Very small community, very low labor costs. Adequate resources of water and electricity. Proximity to Cd. Chihuahua via direct and excellent highway.
DISADVANTAGES
Labor pool too small and unskilled. Agrarian based work force dedicated to harvest season. Too small to support complex operation.
The Conclusion
Ojinaga is a small farming community that is seeking a major employer. Small assembly operations would probably find success in structuring their operations around the harvest season.
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