| Piedras Negras Industrial Profile |
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KEY INDUSTRIES
MAIN COMPANIES
ADVANTAGES
DISADVANTAGES
Market Overview Piedras Negras is a small community focused on the service industry and agriculture. In many ways, Piedras Negras in the key trading center for the state of Coahuila. Its geographic isolation and limited manufacturing base make it a difficult location for new industries, unless they are relatively self-sufficient and interested in playing a large role in the community. The City POPULATION Piedras Negras is a very small farming and industrial community of approximately 225,000 persons. Population growth has accelerated as a result of recent industrial activity moving into the area. Eagle Pass, Texas, located at the other side of the border, has a much smaller population of 22,413 inhabitants. (Source INEGI 2003 and City of Eagle Pass 2000) STATE DESCRIPTION Coahuila is the third largest Mexican state after Chihuahua and Sonora. It is located in the northern part of the country and shares a 318 miles border with the state of Texas, in the middle of the Rio Grande River. It shares borders with the state of Nuevo Leon to the East, with the states of San Luis Potosí, Zacatecas and Durango to the South, and with Chihuahua to the West. LOCATION Piedras Negras is located 274 miles north of Saltillo via Federal Highway 57 in the State of Coahuila, Mexico. The city sits on flat and rolling terrain near the banks of the Rio Grande River. The climate is hot and humid almost the entire year; tough the region experiences heavy rain due to the Gulf Stream. The city of Eagle Pass, Texas is located at the other side of the border.
REGIONAL INFLUENCE While the city is slowly growing, several other markets in Coahuila have developed significant industries bases. The state capital, Saltillo, is home of one of GM’s manufacturing plants and continues to grow into a major manufacturing center. Monclova is Mexico’s key steel center and helps attract new companies to the area. PROXIMITY TO KEY CITIES. Land Distance from Piedras Negras (in Miles):
The Workforce DEMOGRAPHIC IMPACT Piedras Negras is often called “La Puerta de Mexico” (Mexico's Door) as a considerable amount of people and commercial traffic flows through the city. Piedras Negras serves as a transfer center for both north and southbound trade and possesses a growing population that relocates in search of higher paying jobs; however, base employment is mostly agrarian related. AGE DISTRIBUTION Click Here To Register EMPLOYMENT CONSIDERATIONS Currently 12,485 people are employed in Piedras Negras’ 31 maquiladoras. Maquiladora employment grew by 8.3% in 2003, adding 964 new jobs. (Source INEGI) UNEMPLOYEMENT The Unemployment rate in Piedras Negras is higher than average, around Click Here To Register SKILL RANKING Piedras Negras has a workforce that is focused in the automotive, textile and electronics industries. The workforce skill level is below average. Large and medium sized maquiladoras have not tended to settle in Piedras Negras due to its small size and remote location. Instead, the city attracts small operations that do not require considerable human resources nor sophisticated support services. EDUCATION AND TRAINING Piedras Negras has 6 universities, technical and vocational schools that offer courses specifically designed for industrial and manufacturing careers. (Source SEPC 2003). AVAILABILITY OF LABOR Even tough maquila employment has grown at very fast rates during the last few years, the availability of labor is pretty much assured. Population and demographic projections still point to above average growth rates as a consequence of increasing trade, border migration and high birth rates. Turnover Rates In general terms, Piedras Negras has an Click Here To Register |
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Source: Area industry wage studies and interviews with local managers, $11.00 pesos/USD
INDUSTRIAL COSTS dollar @ 11 pesos
| Electricity | Click Here To Register |
| Natural gas | Click Here To Register |
* CFE.-June 2004 ** CRE.-June 2004 *** Pemex June 2004
INDUSTRIAL REAL ESTATE
There are six industrial zones in Piedras Negras:
- Piedras Negras,
- Amistad,
- Del Norte,
- Rio Grande,
- K 10, and
- Aeropuerto
A current survey of industrial land in Piedras Negras reveals the following average USD prices:
| Industrial land purchase price | Click Here To Register |
| New construction, build-to-suit costs | Click Here To Register |
| Lease for industrial space (5 yr. term): | Click Here To Register |
Exchange Rate $11.00 pesos/dollar
INFRASTRUCTURE & TRANSPORTATION
The Eagle Pass/Piedras Negras border is the primary U.S.- Mexico border crossing for the industrial Mexican State of Coahuila. Piedras Negras has three International Bridges that connect to the U.S., one for rail crossings, and two for automotive crossings, of which one is exclusively devoted to commercial cargo traffic. Click Here To Register
TAXES AND INCENTIVES
STATE
- Payroll Tax, applied at a 1% rate
- Tax Over the Acquisition of Real Estate, it averages 2 %
- Rights for the Building Licenses.
INCENTIVES
Payroll Tax Incentive
For a one year period, those companies that perform below the allowed contamination indexes that do not require water for their productive process and that generate new will be exempted of paying the 100% of the Payroll Tax that is established in the State of Coahuila.
Training Scholarships Program Incentive:
The State of Coahuila offers training programs for a period of 30 to 90 days for the non-qualified labor force. The State commits cover between 1.5 and 3 minimum wages for each scholarship holder while maquilas must commit to hire at least the 70% of the trained personnel.
Incentives that are Subject to Negotiation
- Condonation or subsidy of the payment that must be covered for registering the maquiladora in the Public Property Registry.
- Condonation or subsidy in the payment of rights related with the construction process.
It is important to mention that the condonation or subsidy of any taxes or municipal licenses can be negotiated.
The Support
Piedras Negras' smaller size and interior location constrict support capacities. The lack of services and the added distance to Laredo or San Antonio would drive costs up for any start-up or specialized operation.
The Politics
UNIONS
Approximately 70% of the maquila workforce in Piedras Negras is unionized; however, unions are generally pro-business. The mayor part of the labor force belongs to central worker unions like the Confederation of Mexican Workers (CTM), the Revolutionary Confederation of Workers and Farmers (CROC) and the Mexican Republic Electrical Workers Union (SUTERM).
OTHER BIG PLAYERS
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ACTIVITY |
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Electronic motors |
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Seat covers |
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Electric motors |
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Truck springs |
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Plastic components for pipes |
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Automotive harnesses |
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Electric motors |
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Apparel |
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Apparel |
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Advertising material assembly |
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Transformers |
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Vending dispensers |
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Welding services |
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Apparel |
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Truck and heavy machinery inner tubes |
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Steel leaf and coil springs |
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Plastic toys |