| Veracruz Industrial Profile |
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POPULATION The City of Veracruz, with a metropolitan area population of approximately 500,000, is the largest city in the state of the same name. The population of the state of Veracruz is 7,054,167, which represents 7.4 percent of the total population in the country. STATE DESCRIPTION The territory of the state borders with 7 states and with the Gulf of Mexico. The large coastal line of Veracruz is the longest among the many states of the Gulf of Mexico. It has an extension of 425 Mi. The climate varies drastically, offering humid warm zones and year round snow at the highest peaks. Yet, most of the territory is located in the tropics and it results in humid warm weather, with rain during the summer and an annual average temperature of 77F. The state is divided into 210 municipalities. More than 1,200 archaeological sites constitute the prehispanic heritage of the state. Approximately 35% of Mexican rivers flow across Veracruz. LOCATION The City of Veracruz is strategically located and has excellent highway connections to the local area and beyond via the modern federal and state highway network. Import and export freight coming to the city is moved over an extensive system of highways to Mexico City, and also the states of Puebla, Queretaro, Hidalgo, Chiapas, Tabasco, to name a few. REGIONAL INFLUENCE The port of Veracruz has a capacity of 12.0 million tons per year. It serves as the main gateway of Mexico to the Atlantic Ocean. The Port of Veracruz is linked by highway and railroad to the country’s capital, Mexico City. The Gulf Basin represents a potential market of 30.0 million people. Many trucking companies offer overnight delivery to and from the lucrative Mexico City market at competitive rates. There is also rail service with future on dock and double stack capability between the port, Mexico City and beyond. PROXIMITY TO KEY CITIES Direct commercial air service is now available to the United States, through Houston, Texas. The following are distances from Veracruz:
DEMOGRAPHIC IMPACT AVAILABILITY of LABOR SKILL RANKING There are major facilities in the Industrial City for personnel training at all levels, available for use by incoming companies. These are in addition to the quality universities, technological institutes and vocational training schools located in the city of Veracruz. TURNOVER RATES No official numbers are available for turnover rates we estimate them to be low, between Click Here To Register The Operation WAGE RATES Of all of the manufacturing inputs, labor is the only one less expensive in Mexico. Everything else costs more in Mexico, from shipping to telecommunications, to energy, to real estate, to the cost of capital. Accurate information on labor rates is therefore of paramount importance to any company considering manufacturing in Mexico. Wage rates in Mexico are controversial. The government, in conjunction with union representatives and members of the largest industrial organizations, adjust the minimum wage on an annual or semi-annual basis. There is a minimum wage rate for 88 different "professional classifications" that vary from construction supervisor to shoemaker. Few workers earn the minimum wage, especially in the export-manufacturing sector. 47% of employed workers in Mexico earn more than twice the minimum wage, and 11% earn more than five times the minimum wage. The minimum wage in Mexico is in reality a benchmark or reference wage, used by the government to direct increases in salaries that are congruent with its monetary and fiscal policies. The wage rates below are the product of a survey done by the state government on certain industrial parks. Monthly salary for executives and employees in US dollars not including benefits
Source: Bancomext 1999-$9.00/USD Hourly salary for laborers in US dollars, including obligatory benefits
Source State Government of Coahuila Exchange rate at $9.50 pesos per $1.00 US AVAILABLE SPACE A current survey of an industrial park in the city of Veracruz with a variety of site options, reveals the following average prices (1/Dollars*):
(In U.S. dollars per square foot) INFRASTRUCTURE
INDUSTRIAL COSTS Public Utility Rates (figures do not include value added tax):
Sources: Water — Direct consultations with the water & sewage systems, boards and commissions; Natural gas — PEMEX-Gas y Petroquimica Basica (PGPB); Fuel Oil — PEMEX — refinacion; Electricity — CFE CUSTOMS Each separate custom agent determines customs expenses in Veracruz and they adjust according to quantity, nature of, and destination of the goods. Mexican customs staffs an office at the port of Veracruz LOCATIONS Veracruz has four industrial parks, Bruno Plagiai, Ixtac, Cordoba-Amatlan, Morelos Petrochemical Park. Veracruz is also the most important producer of electric power in Mexico due to the nuclear plant of Laguna Verde. Veracruz has two neighboring port cities of great value, Coatzacoalcos and Tuxpan. All of these factors, combined with Veracruz’s close proximity to Mexico City and the surrounding area which represent approximately 30 million people, make it a very attractive city. The Support SERVICE and SUPPLIER COMPANIES Due to its status as one of the worlds leading Ports, Veracruz has an industry poised to support the shipping industry as seen in the list below.
The Politics UNIONS Veracruz is a unionized State, and the unions are well known for their peaceful negotiations with management and are pro-industry. Between 1994 — 1998 only five union strikes were reported in the state. POLITICAL INFLUENCES Governor Miguel Aleman conceived a six-year program with the objective of developing individual and collective capacities of the people of Veracruz. During the next several years, the government of the state is aimed to provide certainty to the investor to produce and create opportunities for personal as well as for collective improvement. It is the foundation for continued development in the years to come. OTHER BIG NAMES
ADVANTAGES
DISADVANTAGES
Conclusion Veracruz has great potential for industry, especially any operation that relies on shipping of goods. The state of Veracruz is trying to attract new industry along with the majority of cities in Mexico also the state government offers substantial advantages to those companies interested in investing here. |
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