| Toluca Industrial Profile |
|
|
KEY INDUSTRIES
MAIN COMPANIES
ADVANTAGES
DISADVANTAGES
Overview Toluca is a well-established manufacturing center, especially for the automotive industry. The city has a modern infrastructure and there are several suppliers both in Toluca and Mexico City that provide world-class support to manufacturing operations. With the extremely large market of Mexico City and its surrounding areas located 41 miles away from Toluca, the city is in a position to take advantage of one of the world’s densest population centers. The Workforce POPULATION The State of Mexico has a population of 12,222,891 individuals, which makes it the most populous state in Mexico. Toluca, the state’s capital, has an estimated population of 666,596 people. This population is growing at a 3.2% annual rate, much faster than the 1.8 % national rate, and is one of the youngest populations in Mexico. Toluca is located 45 minutes away from Mexico City market, which, along with its surrounding areas, has a combined population of over 21 million people (Source INEGI 2000) LOCATION Toluca, capital of the State of Mexico, is located 45 minutes away from Mexico City via a modern six-lane highway. The State of Mexico is situated in the central Region of Mexico, encircling the Federal District to the north, east and west. The State of Mexico is an amalgamation of diverse municipalities; the ones adjacent to Mexico City, like Toluca, Cuautitlan, Tlalnepantla, Ecatepec, and Naucalpan are densely populated, each with a population exceeding 700,000 individuals, and have significant industrial activity. Toluca has an elevation of 8,655 feet. The rain season runs from June to September with an average annual precipitation of 30-37 inches, the weather is cool to cold with the following average temperatures:
PROXIMITY TO KEY CITIES
INDUSTRY SNAPSHOT The economy of the State of Mexico represents over 11% of Mexico’s GDP, with over $58,649 Million USD. Its principal export items are auto-parts, motor vehicles, chemical products and processed food. It is important to highlight that 30.94% of the State of Mexico’s GDP comes from the manufacturing industry. Even tough industrial activity has remained constant, maquiladora activity in the State of Mexico has decreased substantially during the last few years; the number of plants went down from 58 in 2000 to 37 in June 2004. Initially, the bulk of the industrial activity was located in the municipalities bordering Mexico City to take advantage of the capital's infrastructure and to serve its large market. More recently, new industrial areas have been established in Toluca and other cities, ensuring the State of Mexico's autonomous development. Toluca has a GDP of $6,280 Million USD, and a per capita annual income of $9,434 USD. As Mexico City continues to grow and services are stretched thin, many companies have chosen Toluca to locate their facilities. It should be noted that Mexico City and its surrounding areas, located 41 miles away have a combined population of over 20 million people that generate 32% of Mexico’s GDP. Industrial activity in Toluca is highly diversified, with the main endeavors concentrating on the glass, textile, chemical, petrochemical, electronics, and auto and auto-parts industries. Some of the international companies with manufacturing facilities in Toluca include Kimberly Clark, General Motors, and Daimler Chrysler while Ford Motor Company has a major plant located nearby in the municipality of Cuautitlan. Daimler Chrysler’s primary plant in Mexico is located in Toluca. This plant has 40 years of operation and a capacity to produce 180,000 vehicles annually. The Operation DEMOGRAPHICS AGE DISTRIBUTION TOLUCA: Distribution By Age Group EMPLOYMENT CONSIDERATIONS SKILL LEVEL The workforce in Toluca has been exposed to industrial jobs for several generations. There are several chemical, automotive, auto-parts, and metal-mechanic factories in the city and the workforce is well trained and productive. An example of the quality of the workforce is Daimler-Chrysler’s plant which has produced several models over its history. Taking advantage of low labor rates ($2 to $3 an hour, including benefits); Daimler-Chrysler’s Toluca plant features more manual operations and workers (3,400) than is normal for a plant of this type, tough robotic automation increased. EDUCATION AND TRAINING PROGRAMS The state government established a training program that provides workers with a minimum salary whereas the company provides training for a period of two months. The company however, commits to hire 70% of the trainees at the end of the program. Companies can participate in selection of workers for the training period. The State of Mexico is home to one of the most recognized educative systems of the country with a student population of 3.5 million people. There are 15, 308 students enrolled in 44 technical schools that provide job training programs. Over 62,000 students are enrolled in post-secondary education while more than 1,200 engineers graduate every year from the state’s educational system. Toluca has a literacy rate of 93.8%, which compares favorably to the national literacy rate of 90.5%. TURNOVER RATES The state does not publish turnover statistics but they are expected to be in the neighborhood of Click Here To Register The Operation WAGE RATES
Wages are the key driver of Mexico’s manufacturing industry. It is, therefore, one of the first and most important topics any company expanding in Mexico will consider. TeamNAFTA touches on the overall wage issues in our Info Center, but we have also provided some sample wages for Toluca below. While we have access to more detailed wage information, we typically present that information in a tailored report addressing a company’s specific labor needs.
(Source: Bancomext 2004 with data from Industrial Parks and State Governments)
*CFE.-June 2004, ** CRE.-June 2004, *** Pemex June 2004 INDUSTRIAL REAL ESTATE The municipal region of Toluca has a modern and state of the art industrial infrastructure that provides sites with water, sewage, electrical power, a gas pipeline, and telephone services with fiber optic advantages. Companies can take advantage of an available water treatment plant. The local electricity company, Luz y Fuerza del Centro, oversees 34 electrical substations in the Toluca area. INDUSTRIAL PARKS IN TOLUCA
AVAILABLE SPACE A current survey of industrial parks in Toluca, with a variety of site options, reveals the following average prices in US dollars per sq. ft.
TRANSPORTATION An international airport, railroads, and an excellent highway system connect Toluca with the rest of the country. Toluca has direct access to the main markets in the central region of the country including Mexico City Jalisco, Queretaro, Aguascalientes, Guanajuato, Puebla, and San Luis Potosi. The network in the State of Mexico has 762 miles of railroads. Given its central location, Toluca has access to the three main NAFTA highway corridors: The Pacific NAFTA corridor, which communicates with the entire geographic band formed by the Rocky Mountain range and the Pacific Coast, passing through San Diego, Los Angeles, San Jose, Seattle and Victoria, Canada. The central western corridor includes the largest concentration of maquiladoras and the 2nd largest trade volumes of all the North American corridors, connecting to Chihuahua, El Paso, Denver, Las Vegas and Edmonton. The central eastern corridor which passes through Houston, TX and the largest North American cities and the industrial basins of the central eastern region, as well as through the Great Plains in the U.S. and through the Canadian Prairies. Some of the cities in this corridor include Mexico City, Monterrey, Dallas, Houston, Atlanta, Chicago, Detroit, Toronto, and Montreal. The Adolfo Lopez Mateos International Airport, located in Toluca, serves as a satellite airport for Mexico City. It has a capacity for 2,000 operations annually and offers loading services for cargo. Transportation time from the industrial areas of Toluca to the airport is between 5 and 25 minutes. The Benito Juarez International Airport, Mexico City’s airport located 41 miles from Toluca, offers daily direct flights to the most important destination around the globe. According to the Mexico City airport authority, the airport registers one operation per minute. The airport gives service to more than 60,000 passengers every 24 hours. During 2003, the airport registered 296,109 operations, transporting more than 21 million passengers. (Source: Grupo Aeroportuario de la Ciudad de Mexico) INCENTIVES The State Government provides assistance in relation to payroll taxes, and training programs. Through The Foreign Investment and International Trade Office companies obtain assistance and technical support for exporting requirements. Additional incentives can be negotiated, depending on the location of the new project, type of manufacturing activity, and the creation of jobs. The incentives subject to negotiation include infrastructure works, fees with the State Public Registry, and construction permits. STATE OF MEXICO INCENTIVES
The Support SUPPORT SERVICE COMPANIES Common product carriers offering services are FedEx, UPS and DHL. Suppliers to the Automobile Industry include Robert Bosch — Electrical Equipment, Klinger —Gaskets, Perkins Engines —Diesel Engines, Eaton — Axles and Gates Rubber Parts. Additionally, Toluca’s manufacturing plants have quick access to several world-class service and support companies in Mexico City, in fact, Mexico’s capital has the best supplier infrastructure in the whole country, and there are countless companies that offer shelter services, components production, and logistics services. It is important to highlight that, Mexican suppliers in Mexico City offer services similar in quality to its U.S. counterparts. Th Politics UNIONS The labor force in Toluca is unionized but does not represent a major impediment to new start-ups or expansions. There is an excellent attitude towards management. The main unions are the Confederation of Workers (CTM) and the Revolutionary Confederation of Workers and Farmers (CROC), as well as the Revolutionary Confederation of Mexican Workers (CROM). POLITICAL INFLUENCE The State of Mexico is ruled by the PRI party. Mr. Arturo Montiel, Governor of the State of Mexico, is committed to improve existing infrastructure and promote industrial development throughout the state. One of the key objectives of the government is to attract FDI throughout a constant effort to publicize the competitive advantages that the state offers. Efforts are underway to provide quality services to foreign investors. OTHER COMPANIES IN TOLUCA:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| < Prev | Next > |
|---|