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Ojinaga Industrial Profile Print E-mail

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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:

Cd. Chihuahua
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El Paso, Texas
Dallas, Texas
Monterrey, Mexico

 


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:

1993

1994
1995
1996
1997
1998
1999

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:

  1. Industrial land purchase price: $2.00-3.50 per sq. ft.
  2. New construction or build-to-suit costs: $22.00-28.00 per sq. ft.
  3. 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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