BAJA CALIFORNIA Strategic Location Top Industrial Competitiveness International Diplomatic Support Our People World Class Infrastructure Industrial
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1 BAJA CALIFORNIA Strategic Location Top Industrial Competitiveness International Diplomatic Support Our People World Class Infrastructure Industrial Sectors
2 STRATEGIC LOCATION MEXICO has free trade agreements with 46 countries. BAJA CALIFORNIA is the closest Mexican State to ASIA.
3 STRATEGIC LOCATION Excellent access to NAFTA Market BC shares border with California and Arizona, USA. BC is the only Mexican state bordering with California (6 th economy in the world) Los Angeles is 3 hours driving distance Baja California is one of the MOST COMPETITIVE Mexican States 1,550 Km. Coastline 265 Km. Border with USA Source: Center for the Continuing Study of the California Economy.
4 DIPLOMATIC NETWORK WORLDWIDE BAJA CALIFORNIA has a broad network of international diplomatic support in more than 15 countries
5 TOP INDUSTRIAL COMPETITIVENESS 1st Place in Mexico with 916 foreign manufacturing companies (IMMEX). This represent 308,150 industrial jobs. Percentage of IMMEX Companies Creation by State Baja California Nuevo León Chihuahua Coahuila Tamaulipas Estado de México Jalisco Guanajuato Sonora Querétaro Puebla San Luis Potosí Distrito Federal Aguascalientes Yucatán Durango Veracruz Otras entidades What is an IMMEX Company? The IMMEX program (formerly known as maquiladora is an incentive provided by Mexico for companies that export goods. It consists of allowing a Mexican company to carry out temporary imports of production inputs and assets, without having to pay the Last updated: May, 2016 otherwise assessed V.A.T. Last updated: May 2017 SOURCE: INEGI
6 TOP INDUSTRIAL COMPETITIVENESS Baja California by the numbers Last updated: June 2017 Economic Indicators Diff. National Monthly Unemployment Rate. June(%) Source: INEGI Manufacturing production growth. June(%) Source: INEGI Exports growth. June (%) Source: INEGI Foreign and Domestic Direct Investment (Mill. USD) SEDECO 2,536 1,100 (June) $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $- EXPORTS ( B.USD) $48,172 Chihuahua $40,430 Baja California $30,573 $29,225 $27,662 Coahuila Nuevo Leon Tamaulipas In 2014 Baja s exports represented $40 B. USD, the second largest rate nationwide. Baja s exports represented 10.6% of all the goods exported in the country. SOURCE: Atlas de Complejidad Económica, Harvard, CIDE
7 TOP INDUSTRIAL COMPETITIVENESS EXPORTS OF BAJA CALIFORNIA BY PRODUCT, 2017 MILLIONS USD Monitors and projectors Medical, surgical, dental or vet instruments Motor vehicles for transporting goods Electrical transformers Electronic integrated circuits Parts of motor vehicles and tractors Insulated electrical wire Semiconductor devices Other rail locomotives Trailers and semi-trailers Parts of other aircraft Engine parts Aircraft Parts $2,148 $1,784 $1,179 $1,120 $1,019 $980 $860 $858 $754 $693 $10,434 Last updated: May, 2017 SOURCE: Atlas de Complejidad Económica, Harvard, CIDE
8 SOURCE: Atlas de Complejidad Económica, Harvard, CIDE TOP INDUSTRIAL COMPETITIVENESS EXPORTS OF BAJA CALIFORNIA BY DESTINATION, 2017 $0 $10,000 $20,000 $30,000 $40,000 Millions USA CAN COL CHL PER BRA IRL ECU DEU JPN $829 $691 $392 $239 $183 $177 $145 $127 $122 $35,825 Last updated: May, 2017
9 OUR PEOPLE POPULATION DISTRIBUTION BY CITY Tijuana: 1 773, % Mexicali: 1 052, % Ensenada: 535, % Tecate: 114, % Playas de Rosarito: 108, % 3.6 million total population Young Population: The average age of Baja California s population is 26 years old Tijuana and Mexicali within the 10 largest cities in Mexico Mexico total population: ,473 Source: CONAPO & INEGI Last updated: May, 2017
10 OUR PEOPLE PRO-BUSINESS COMMUNITY Non-union environment More than 60% of the State s budget invested in education Linkage Programs Leaders and National Pioneers (school industry - government) Hard working, skillful and competitive labor cost HIGH SKILLED AND STABLE HUMAN RESOURCES Top Private and State Universities with international standards 51 Universities in Baja California Total under graduates: 90,455 Engineering Students: 22,609 Last updated: May 2017 Source:
11 WORLD CLASS INFRASTRUCTURE
12 WORLD CLASS INFRASTRUCTURE Border Crossing Highways Water Electricity Natural Gas Industrial Parks Railroad Cargo Service Seaports - Port of Ensenada - Port of El Sauzal Airports - Cross Border Express (CPX) - Ojos Negros Airport
13 BORDER CROSSING POINTS 7 strategic border crossing points 2 of them used for inbound/outbound cargo transport 2,500 loaded trucks containers per day Programs to reduce border crossing times (cargo: CT PAT / personal: Sentri & Fast Pass) Border crossing time for cargo is guaranteed to be a maximum of 4 hours after arrival at the crossing point. Source: USA DTS 2017
14 HIGHWAYS Baja California is well-connected through world class highways. Excellent access to the rest of México and the United States Source: USA DTS 2017
15 WATER While the Colorado River is the current main water source, desalination plants that are under development will provide additional availability with 4m 3 /sec capacity in Rosarito, 2m 3 /sec in Ensenada and 300 lt 3 /sec in San Quintin. Water supply, is guaranteed in Baja California for new companies. If the new companies have high water requirements, Mexicali can guarantee a supply of 4 m 3 per second with immediate availability.
16 ELECTRICITY Baja California has one of the most competitive energy costs in the world. The average cost per MW of electricity for 24/7 industrial use can be around USD $ In addition to CFE, there are two other private energy companies will provide Solar and Wind sourced electricity in With these alternatives, energy costs for industries are guaranteed to be at least 20% below CFE s rate for the next 20 years.
17 NATURAL GAS Baja California has a storage and distribution terminal that ensures the current and future demand of this energy. Natural gas is provided by Sempra Energy and offers the most competitive price nationwide.
18 INDUSTRIAL PARKS AND ZONES Tijuana 65 Industrial Parks Mexicali Ensenada Tecate Rosarito 25 Industrial Parks 4 Industrial Zones 1 Industrial Park 3 Industrial Parks 2 Industrial Parks Total: 100 Industrial Parks and Zones in Baja California
19 SEAPORTS Destinations: Hong Kong, Japan, Singapore, South Korea, Australia, South America, among others. In addition, the Port of Long Beach, USA is only a 3 hour away Baja California, while the San Diego Port is just 30 min away. Seaport shipping and receiving capacity is guaranteed for the next 10 years.
20 AIRPORTS 2 airports with daily flights to mayor cities in Mexico and international destinations (Tijuana & Mexicali). Closeness to major international airports in the United States: Los Angeles LAX and San Diego SAN. Only Mexican State with direct flights from the city of Tijuana to Shanghai. It will also start operation of a non-stop service to Beijing beginning Tijuana services the second most domestic routes in Mexico. (Mexico City s International Airport is first). Mid-term plans include direct flights to Seoul (R. of Korea) and Guangzhou (China) in Asia and Houston, Los Angeles, Chicago and Phoenix in the United States.
21 CROSS BORDER XPRESS Just a five-minute walk between San Diego and the Tijuana Airport. Cross Border Xpress is an enclosed pedestrian bridge for Tijuana Airport (TIJ) passengers crossing the U.S./Mexico border. After more than seven years of planning, design and permitting with government agencies from both sides of the border, CBX opened for business in December Spanning 390 feet, the CBX skywalk is the first ever to connect a facility in the U.S. directly into a foreign airport terminal. Cross Border Xpress serves the approximately 10,000 passengers who already cross the border as part of their travels every week. Users of the bridge will be able to access the more than 30 destinations within Mexico that TIJ offers, many of which are not served by other Southern California airports.
22 INDUSTRIAL SECTORS
23 INDUSTRIAL SECTORS AEROSPACE AUTOMOTIVE MEDICAL DEVICES RENEWABLE ENERGIES BIOTECH ELECTRONICS & SEMICONDUCTORS INFORMATION TECHNOLOGY METAL MECHANICS TOOLING & DESIGN MINING FOOD AND BEVERAGE MEDICAL TOURISM HOUSING FURNITURE
24 AEROSPACE
25 AEROSPACE Baja California has over 50 years of aeronautical experience Largest concentration of aerospace companies in México 93 companies established in the region, representing 21% nationwide. 60% are AS9100 and/or NADCAP Certified Workforce of more than 33,000 Includes: operators, technicians and engineers Design, assembly, manufacture & MRO Operating repair facilities in Baja California approved by FAA New & expansion investment projects. Source: Ministry of Economy 2013 Pro-Mexico & Baja California Aerospace Cluster (Last updated: April, 2016)
26 EMBLEMATIC AEROSPACE COMPANIES IN BAJA
27 years years years years years AERONAUTICAL EXPERIENCE 51 In Baja 40 In Baja 35 In Baja 31 In Baja 12 In Baja Updated on June 2017
28 MEDICAL DEVICE
29 MEDICAL DEVICES Baja California leads the medical device industry in Mexico More than 69 established companies with processes of design, assembly, manufacture, sterilization, among others Workforce of 54,000 specialized employees Baja California's cluster together with San Diego's on the U.S. integrates the most sophisticated and diverse binational medical device region in North America
30 MEDICAL DEVICE COMPANIES
31 AUTOMOTIVE
32 AUTOMOTIVE For more than 50 years Kenworth OEM (Paccar Group) has been manufacturing heavy trucks for a worldwide market Toyota Tacoma truck (OEM) is being fully assembled in Baja California More than 80 automotive companies established in Baja California 32 tier I and II companies High skilled employees Huge automotive after market suppliers Growing off-road business with more than 25 companies.
33 AUTOMOTIVE COMPANIES
34 STATE INCENTIVES
35 STATE INCENTIVES Up to 100% exemption on the payroll tax, for a 3 to 5 years period, based on the project. 30% Water Discount on Consumption: For this incentive to take place, the company must use an in-house water treatment plant to recycle and reuse water within the facility, the 30% water discount goes on your monthly bill. 20% Exemption in water connection fees: the company may receive up to a 20% exemption in the connection fee to the water and sewer system, based on the characteristics of the project and the Law's terms.
36 STATE INCENTIVES Human Resources: The State will guarantee: Availability of talented workforce. A stable and union-free work environment. Full support in creating linkage programs with local, state, and national universities, technical and vocational schools. Working together with the industry within Baja California, in order to adapt the curricula to your industry needs. Assistance in recruiting personnel through the State Secretariat of Labor in collaboration with the National Employment Service.
37 STATE INCENTIVES Government Support: The State of Baja California guarantees: A fast-track process with all type of procedures in the three Government levels. A fast-track process for construction permits and acquisition. Supply Chain Development: The State will guarantee: Two annual events for supplier development programs. Organize workshops abroad for potential supplying companies that might be interested in establishing operations in the region. A guaranteed incentive package for foreign and local suppliers.
38 WHY Closest State to Asia Closeness to North American Markets Infrastructure & Communication development Young, educated & service oriented population Knowledge & technology transfer capabilities Manufacturing flexibility Pro-business environment & Clusters development orientation
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