| Victoria Industrial Profile |
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POPULATION Cd. Victoria, the capital of the state of Tamaulipas, has a population estimated at 375,000 persons. Growth is rapid, averaging 10% annually, accelerated by migratory immigration into South Texas. STATE DESCRIPTION Tamaulipas (high mountains) borders southernmost Texas and possesses long stretches of beaches and lagoons. In the west are arid mountains and tropical valleys of the Sierra Madre Oriental, to its north are arid plains. Northern population still reflects migration from the interior, southern portion still consists mainly of Huastec Indians, descendants of a Mayan tribe. LOCATION Tamaulipas is located on the Gulf coast and its continental position reveals an economic base in fishing, trade and oil exploration. Largest city is port of Tampico on the Gulf Coast. REGIONAL INFLUENCE The state of Tamaulipas handles more trade than the ports of Southern California, Arizona, New Mexico and West Texas combined. This has helped Cd. Victoria to position itself for major growth potential; the surrounding area is currently contributing to the dramatic increase in maquila operations in South Texas. Companies trying to avoid Matamoros and Neuvo Laredo are finding Cd. Victoria well suited for many operations. A new international crossing, the McAllen-Hidalgo Crossing has also fueled the area's recent growth. The neighboring twin cities are also aggressively pursuing a World Trade Center designation in hopes of capitalizing on the anticipated future growth of U.S.-Mexico trade. Tamaulipas is best known as a corridor for transport and trade into the interior of Mexico. The State economy is one of the busiest in all of Mexico. PEMEX is the dominant business employer. PROXIMITY TO U.S. CITIES Cd. Victoria has a strategic advantage being close the only US/Mexico Border City positioned at the convergence of all land transportation systems. Distances to Key Cities:
The Workforce DEMOGRAPHIC IMPACT AVAILABILITY of LABOR SKILL RANKING The majority of maquilas that have located in the Cd. Victoria area are still assembly and shelter operations, though a few electronics manufacturers provide for a growing skill level of technicians. EDUCATION and TRAINING A number of training schools exist in Cd. Victoria, as does training support from the Monterrey Technical Institute, for maquilas who request it. TURNOVER RATES In general terms, turnover is lower than in Nuevo Laredo because of the isolation of the region and lack of better employment opportunities across the border. Estimates typically run Click Here To Register The Operation Of all of the manufacturing inputs, labor is the only one less expensive in Mexico. Everything else costs more, 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: Bancomext 1999-$9.00/USD Exchange rate at $9.50 pesos per $1.00 US AVAILABLE SPACE A current survey of an industrial park in the city of Cd. Victoria with a variety of site options reveals the following average prices
Source: Bancomext 1999-$9.00/USD (In U.S. dollars per square foot) INFRASTRUCTURE Public Utility Rates (figures do not include value added tax):
Source: Bancomext 1999-$9.00/USD CUSTOMS The state of Tamaulipas customs district handles more trade than the ports of Southern California, Arizona, New Mexico and West Texas combined. Tamaulipas is the only state strategically positioned at the convergence of all land transportation systems. LOCATIONS Cd. Victoria’s overall accessibility and adequate transportation system make it attractive to maquilas that rely upon the deep-water port facilities of Altamira, Tampico, or Corpus Christi. Mexico’s principal highway and railroad leading from Central America through Mexico City, Saltillo and Monterrey, the industrial heart of Mexico, converge in the state of Tamaulipas to meet two major U.S. rail lines, Interstate 35 and other roads which run outwards to the urban centers and seaports of Texas and beyond. TAXES Maquila employer’s pay State of Tamaulipas taxes in the amount of 3.5% of base salaries. State of Texas imposes franchise and sales taxes of 5.25% and 7.75% respectively. The Support SERVICE COMPANIES Cd. Victoria’s isolation, from the larger surrounding cities, limit its supplier base but its highway access will insure delivery of needed services from San Antonio or Laredo, Reynosa, Monterrey or Matamoros. SUPPLIERS Most technical manufacturers in Cd. Victoria have warehousing for needed supplies, or rely upon delivery service from companies in surrounding cities. The Politics UNIONS Union problems are renowned throughout the State of Tamaulipas, and Cd. Victoria maquilas feel the pinch of union negotiators particularly around election time. The unions in Cd. Victoria have not been as active as those of the surrounding cities of Reynosa, Matamoros, and Monterrey. POLITICAL INFLUENCES The PRI party controls the local government in Cd. Victoria and their ties to the unions in the region are legendary. Most political officials in the State of Tamaulipas rose from the union ranks after years of faithful service. OTHER BIG NAMES Cd. Victoria has been successful in landing new maquilas in each of the past five years. Some notable names include:
THE PROS AND CONS ADVANTAGES
DISADVANTAGES
Conclusion Cd. Victoria has the precarious position of being physically located in the midst of industry leading cities such as Monterrey, Matamoros and Reynosa. Also located in close proximity are the ports of Altamira and Corpus Christi. It is hard to attract companies when competing against these cities. Cd. Victoria has been adding maquilas and is a growing area but whether it can suit companies better than its competition is not yet known. |
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