MatamorosBrownsville Overview

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Matamoros/Brownsville Overview
October 23, 2006
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Overview
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Overview

• Brownsville / Matamoros a growing, dynamic
  metropolitan region with a population of over
  800,000
• A world-class manufacturing center with over 140
  plants
• The most stable, available labor force along the
  US-Mexico border with an extremely competitive
  wage structure
• A cohesive pro-business environment, welcomed and
  supported by local and state governments
• Multiple logistic options that provide cost
  efficient transportation of materials/products
  worldwide
• An unparalleled quality of life, resort-like
  living, safe family oriented community,
  increasing entertainment venues, expanding health
  resources and educational opportunities.

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Matamoros Industry

• No longer just an assembly area, companies that
  have multiple locations in Mexico have set up
  their most technical manufacturing processes in
  Matamoros
• Distinguished for quality manufacturing, for
  example Delphi Rimir has been selected as one of
  top 25 manufacturing facilities in North America
  and recipient of the Shingo Prize. Industry Week
  Magazine
• Metal working is a strength of the region.
  Companies such as Cardone Industries, Fontaine
  Fifth Wheel, Varel, Gobar Industries, Steel
  Technologies and Collado / Ryerson employ workers
  that have been trained in stampings,
  fabrications, cutting, welding, CNC machining,
  tooling and metal finishing.
• 13 permitted Maquilas in last 15 months.

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Matamoros Corporate ClientelleJust a sample
and many more
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Areas International Flare

• Local companies come from all over the world.

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Recent Achievements in Local Industry

• TriCon Industries of Japan relocates to a 200,000
  s.f. facility.
• Dura Automotive expands into new 160,000 s.f.
  facility.
• AMPAD expands operation with new 300,000 s.f.
  facility.
• Cardone Industries/Tridonex opens 70,000 s.f.
  facility.
• KS Centoco of Canada expands into new 60,000 s.f.
  facility.
• Kanthal Globar opens new 25,000 s.f.
  manufacturing facility.
• Simclair Manufacturing expands by 50,000 s.f.
• ILSCO establishes operations in a 70,000 s.f.
  facility.
• Kidde Safety Systems establishes manufacturing
  operation in 27,000 s.f. facility.
• KeppelFels of Singapore will expand their
  Brownsville operation by adding 1700 new jobs.
• Automotive seat-frame maker, CRH Group of Germany
  is building a 140,000 s.f. manufacturing facility
  in Matamoros.

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Industry Overview
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Labor Overview

• With a population of over 600,000 and a steady
  population growth of 3.3 IMPLAN, INEGI,
  companies in Matamoros are able to attract and
  maintain qualified candidates for their
  operations
• Over three generations of families in Matamoros
  have worked in the local industry, creating an
  unmatched depth to the labor supply.
• A strong work ethic has been cultivated within
  the manufacturing industry.
• With engineers trained locally, many local
  companies maintain large engineering departments
  to handle complicated manufacturing issues and
  launch new products
• Strong employee loyalty, high attendance rate and
  low turnover which normally less than 2 per
  month
• Four local labor unions to choose from, over
  12,000 pre-screen candidates seeking employment.

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Population Employment
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Available Skilled Workers

• 12,000 people ready to work
• 15 to 20 have experience in the metal working
  industries
• 80 have experience in the manufacturing
  industry
• Over 1,000 degreed engineers available

Source SJOIIM, STIPME SITME
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Labor Environment

• Labor environment is pro-business and harmonious
• Four Labor Unions compete for business
• Companies interview prospective unions and choose
  the union which they seek to negotiate with
• 48-hour standard work week contract
• Multi year labor contracts negotiable.
• The common practice in other border locations of
  providing transportation, meals, food coupons and
  etc not normally a part of negotiated contracts
  in Matamoros
• Proactive Union approach that allows for extended
  probationary periods, temporary worker programs,
  productivity bonuses, training support
• No labor work stoppages have been recorded in
  over five (5) years

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Universities

• Total of 18 Universities and Tech schools
• Matamoros Institute of Technology (2004)
• 428 Bachelor degrees
• 8 Graduate degrees
• Matamoros Technological University (2004)
• 400 Bachelor degrees

Source Matamoros Institute of Technology
Matamoros Technological University (2004)
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Training Resources

• Training Courses
• Electronic
• Electrical
• Security
• C N C
• Automation
• Human Relations
• Metrology
• Hydraulics
• Quality Control
• Computer science
• Management
• Welding

Objective Contribute to the development of
companies, in order to help their productivity
and quality but also to assist those in order to
get growth in the industrial sector though
technological innovation and education.
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Training Resources

• SERVICES
• Dimensional Metrology
• Nets Installation and Service
• Software Development
• Software Upgrades
• Computer maintenance (Preventive and
  corrective)
• Design of Testing equipment with PLC
• Prototypes with EDM Machines (Wire Sinker) and
  CNC
• Automation Projects
• Maintenance of Electrical Power Sub-stations
• Troubleshooting of Electrical, electronic,
  mechanical equipment and/or PLCs

CONALEPs mission consists of giving professional
technical education with an approach of human
development networking with the public, social
private sectors, which allows us to offer
pertinent services and quality.
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Logistics
Bridges 4 Commercial Bridges 2 Rail
Crossing 1 Airport 3 Deep Water
Seaport 1
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Quality Living in Brownsville
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The Brownsville Advantage

• Recreational opportunities include seven golf
  courses, and nature activities like birding, and
  deep-sea fishing.
• The resort town of South Padre Island, just 20
  miles away, offers a quality beach, water
  activities, and fine restaurants.
• The areas top attractions include plenty of
  recreational opportunities, terrific weather, a
  low cost of living, and a bi-cultural
  environment.
• Brownsville boasts one of the top 10 zoos in the
  country.
• Brownsville continues to invest in its quality of
  life with the completion of the master-planned
  Dean Porter Park which includes The Childrens
  Museum.
• Construction of the World Birding Center and
  Veterans Memorial Park in Brownsville is
  underway.

• In 2001 Brownsville was selected as one of the
  top 10 nation-wide cities to receive the
  All-America City award. This prestigious honor
  is given by the National Civic League for civic
  excellence.

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Brownsvilles Promising Future

• A 90 million expansion has transformed Sunrise
  Mall into one of the largest retail malls in the
  area with new national chain retailers entering
  the market every year since the expansion.
• The Paseo de la Resaca Project, a 4,000-unit,
  upscale, master-planned subdivision is taking
  shape north of town.
• Road improvements include the expansion of the
  main expressway from four to six lanes. US
  Highway 77 has also been designated to become the
  future Interstate 69, which will be the NAFTA
  Highway.
• Forbes Magazine considers Brownsville MSA one of
  the hottest regions for economic growth.
• Brownsville has been a leader in all the
  construction in the Rio Grande Valley. This
  attests to the dynamic growth and prosperity of
  the community.

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Retail Continues Boom in City

• National chain retailers and restaurants continue
  to flock to Brownsville.
• Two new large shopping centers will increase
  shopping venues in the city.
• Las Tiendas Shopping Center will include a new
  Target, Mervyns, TJ Max, and others.
• Morrison Crossing has already added a Home Depot,
  Petco, Quiznos, Wireless Toys, and others to be
  announced.
• Lowes Home Improvement will soon build a new
  large store in Brownsville.
• National chain restaurants also continue to
  expand into the city.

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Education Were All About Children

• Brownsville - Independent School District (BISD)
• The school district is made up of 50 schools.
• The school district operates on a 415 million
  budget.
• Local schools help prepare students for college.
  Local students have been accepted to prestigious
  universities such as Harvard, MIT, Columbia, Yale
  and Stanford to name a few.
• Brownsville magnet schools offer advanced courses
  in engineering, science, math, music/art/theater,
  medicine and international business.
• Brownsville schools have national and
  international chess champion teams.
• This past year, Porter High School won the state
  championship title in soccer.
• A recently passed bond election will create a new
  high school, middle school, and two elementary
  schools. Existing facilities will be renovated.
• Private Schools
• The city boasts an extensive selection of private
  and parochial schools from K-12.
• Parochial schools include Catholic, Baptist,
  Episcopalian.
• Several Montessori based schools exist in the
  city.

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Higher Education Resources

• University of Texas at Brownsville
• The University of Texas at Brownsville offers
  degrees in 20 fields, including business,
  engineering, and liberal arts programs.
• Major expansions have added a School of Public
  Health, new student union, bookstore, and
  dormitories.
• Approximately 13,000 students are enrolled in the
  school.
• The school will soon add a college soccer team.
• Brownsville - Tech schools
• Texas Southmost College offers 500 courses in
  fields like electronics, accounting and data
  processing. TSC also does customer-specific
  training courses to meet community demands.
• Texas State Technical College offers training in
  diverse fields like robotics, semiconductors and
  welding.

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At the Forefront of Job Training International
Business
UTB/TSCs International, Technology, Education
Commerce Campus (ITEC) is helping meet industrys
needs in a 600,000 s.f. complex

• ITEC houses a 100,000 s.f. technical training
  center for customized training programs for new
  companies.
• The facility is home to an innovative incubator
  program to help entrepreneurs take advantage of
  the universitys resources as well as small
  business loans and incentives.
• Continuing Education programs utilize the
  facility for classroom instruction. Extensive
  welding training programs have been completed by
  the university for local industry.
• International trade-related offices maintain a
  presence in the complex. Some of these include
• US Dept. of Commerce Export-Import Bank
• Brownsville EDC Offices
• Small Business Administration
• Mexican Consulate
• A 100,000 s.f. conference facility will bring
  international-
• related conferences to the center.
• The campus also offers combined courses with
  Texas State Technical College.
• Available space for lease for RD and hi-tech
  firms at competitive lease rates.

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Why Matamoros?

• Good company/union working relationship and
  favorable contract negotiations
• Available, experienced labor force 12,000
• Competitive labor rates, no hidden costs
• Low turn-over rate-less than 2 per month
• Pro-business environment, strong support from
  city, state and Brownsville
• Available sites to accommodate large users at
  competitive prices
• Multiple cross-border logistic options

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Matamoros/Brownsville Your Future Starts Here!
Brownsville EDC 301 Mexico Bvld. Suite
F-1 Brownsville, TX 78520 Ph (956)
541-1183 www.bedc.com
Calle González entre 6 y 7 95 Col.
Centro Edificio Mariano Schreck H. Matamoros,
Tam. 87300 Ph 52 [phone] www.matamoros.go
b.mx
5ª Hidalgo e Iturbide 219 Altos. Zona Centro
C.P 87330 Ph [phone] www.ammatamoros.org