Foreign direct investment in Guanajuato, Mexico

6 11 2006

The State of Guanajuato, Mexico has over 572 companies with foreign capital registered and located in the state.

The following information has been translated from an article dated November 6, 2006, published in the newspaper Correo, by Vicente Ruiz, Link.

49% of these foreign companies in Guanajuato are involved in manufacturing, and 29% are commercial operations which together represent an investment greater than 1,000,000,000 (one billion US dollars).

Due to changes in laws regarding foreign investment in Mexico (in 1993, 1995, 2001), 90% of all economic activities in Mexico are completely open to foreign participation and investment.

Mexico’s growing national economy, free trade agreements with 32 countries and geographic location provide great economic and logistics advantages to companies opening operations in Mexico.

In Guanajuato, 50% of all the foreign companies are located in the city of Leon (281), followed by Irapuato (71) Celaya (52), San Miguel Allende (31), Silao (26), San Francisco del Rincon (25), Guanajuato (19) and the rest (67) throughout the state.

Guanajuato occupies the first position for foreign investment of the all the Mexican states in the North-Central region.

Principal industries in Guanajuato that received direct foreign investment include:

  • The automotive industry received US $ 874.2 million
  • Processed food industry (concentrates, preserved products) received US $ 99.1 million
  • Manufacture of paper, cellulose and derivatives received US $ 18.9 million
  • Commerce of non-agricultural items received US $ 17.3 million
  • Chemical manufacturing received US $ 15.9 million
  • Clothing manufacturing received US $ 7.5 million
  • Textile manufacturing received US $ 5.2 million
  • Plastics manufacturing received US $ 5.4 million
  • Food products received US $ 4.8 million

Who has invested in the State of Guanajuato, Mexico:

Country…. Investment (Millions of US dollars)…… %

United States of America……..1’ 009, 214.00………..92.7

Holland………………23, 277.90………….2.1

Spain………………….18, 234.00………….1.7

Germany……………14, 267.30………….1.3

Denmark……………..4, 913.90………….0.5

Taiwan…………………4, 426.00………….0.4

Others………………..14, 549.60………….1.3

Total: USD $ 1’ 088, 882.70 (Millions)

Related Links

Aumenta inversion extrañjera en el Estado de Guanajuato: SE (Spanish)

Secretaria del Economia de Mexico (English)

State of Guanajuato webpage (English-Spanish)

Correo (Spanish)

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Motivation – heroic moments

26 10 2006

Determine which actions during the day, are your “heroic moments“.

Heroic moments might be viewed as simple required actions, obligations by others, but deep inside us, we understand that these actions require us to make a yes or no decision. We have to commit ourselves.

Heroic moments consist of an internal decision to do something for the greater good, to contribute to an idea or organization, to participate in a selfless act. The decision to start, follow-through and finish a project or activity that will benefit others.

It’s a moment when we say to ourselves “I will do this, no matter what”.

Heroic moments occur when we decide and commit to actions that that we know are required, expected or desired by others.

The most important heroic moments happens daily, when we make the decision to leave the comfort of our warm bed, wake our sleeping body and mind, and start the day.

A heroic moment occurs when you make the decision to face the angry customer, and resolve the problem.

A heroic moment occurs when you dig into the pile of paperwork on your desk.

A heroic moment occurs when we pick up the phone and start “cold- calling”.

A heroic moment occurs when we’re having a miserable day and keep smiling and don’t take it out on others.

A heroic moment occurs when we decide to motivate or lead others through inspiration and not fear.

A heroic moment occurs when we start an exercise program.

A heroic moment occurs when we decide not to involve ourselves in an personal argument or conflict.

A heroic moment occurs when we DO involve ourselves in an argument or conflict in order to solve a organization or family problem.

As employees, leaders, managers, parents, children, siblings, co-workers, or even as strangers, we are confronted with many opportunities to make “heroic” decisions.

We don’t do these things because we’ll be recognized. We don’t do them because someone will build a statue. They may not be monumental actions. It’s not the type of heroism that makes it on to the front page of the newspaper.

The only person who might know about it is you.

Finding and identifying the heroic moments in our lives is a simple way to motivate ourselves and feel good about our decisions and how we are interacting with the world around us.

(Thanks to Jesus Sotomayor for the phrase and idea)

Related Links

The power of something extra

What defines an exceptional leader





12 reasons why we ask for business help

23 10 2006

Here’s a list of common, and not so common, reasons we seek out business help and hire business consultants:

12 Reasons: Why we ask for business help

1. I know what’s wrong, but don’t know how to fix it.

2. I know what’s wrong but don’t have the resources to fix it, what should I do?

3. I know what’s wrong and I know how to fix it, but don’t want to fix it that way, show me another method that is easier, better or less costly.

4. I don’t know what’s wrong. Help me diagnose the organization or situation.

5. I think I know what is wrong and want a second opinion, validation and confirmation.

6. I don’t think anything is wrong, but just to make sure I want you to take a look.

7. I want you to tell me what is wrong so that I can tell you you’re wrong.

8. I want solutions, if they don’t work I want to blame it on you.

9. I want to achieve specific results and don’t have the expertise. I want to hire an expert in order to save time and reduce errors.

10. I have a problem and want to fix it. I don’t want to be wrong and prefer to use experts to guarantee success.

11. I want to be one of the first to learn and implement the “new and improved” business ideas, theories and practices.

12. I am looking for new ideas to break our routine and make it exciting again, make something new happen.

Related Links

10 Reasons why people hire business consultants

The clients I don’t want





Mexico manufacturing, US inventories and safety stock

21 10 2006

Manufacturers are returning to Mexico after “experimenting” in the Asia Pacific region. Some of the big reasons for this return are ; to reduce time to market, eliminate the financial costs of inventories in transit, lower the logistics costs, and to strengthen the supply chain by moving closer to just-in-time deliveries.

But moving to Mexico isn’t going to solve all the problems.

A September 2006 article in CFO magazine points out how US businesses are increasing safety stocks “just in case”. Delayed in the USA The article points out how supply chain disruptions are being provoked by an increasingly saturated US highway system and bottlenecks in deepwater ports and railyards.

The good news is that Mexico is close to the USA, a truckload of goods can leave any point in Mexico and arrive at the US destination in as little as 4-5 days. The railyards and new multimodal Interior Port in Guanajuato, Mexico allow manufacturers to establish production facilities in the interior of the country. Exporters can now clear customs and load the sealed container onto the rail-car at the new (2006) high capacity Customs port located in the geographic center of Mexico.

The bad news is that unless the US begins to upgrade their highway, port and rail facilities, supply chain managers in the US will be buying and storing higher levels of inventory to assure continuity of operations, “just in case”.

Related Links

Delayed in the USA – Supply Chain

Industrial and Business Parks in Mexico

AMPIP Mexican Association of Industrial and Business Parks





Are you involved in creating the future?

20 10 2006

Facts serve no purpose by themselves, they exist.

We confuse the accumulation of facts with education.

A good education should inspire us to continue to discover and understand more. It should give us the tools and teach us how to think.

Thinking is the abilty to visualize, create and discover relationships between facts.

Intelligence should not only be measured by how much we know, but rather on how we apply our thinking and on much of that knowledge is passed to others for the future.

The future will be in the hands of those learning today.

Are you sharing your intelligence with others and creating that future?

(inspired by the study “Are they really ready to work?”)

Related Links

The future of our entry level workforce – gloomy

Are they really ready to work? (PDF)





Lessons in international business – negotiations

17 10 2006

Observations on how to create trust, effective meetings and excellent negotiations with overseas customers, suppliers and partners.

  • Whenever you are involved in international negotiations or global meetings keep in mind that you might be working with the same person for the next 10 – 20 years.
  • Negotiations should be open and straightforward.  Hidden agendas will eventually be discovered and make the next meeting very difficult.
  • Negotiations should involve creating value for both parties.
  • Meetings are important moments where trust is being built and confirmed.  Be honest and clear about your desires.
  • Never agree to something you cannot deliver or perform.
  • Listen, understand and evaluate what your partner is requesting.   What are they saying, and what does it mean.
  • Be certain of what you are negotiating and agreeing to.  If not 100% sure, stop and request clarification.
  • Prepare for the meeting several weeks before it happens.  Refresh and add information weekly.  When you reach the meeting, you will be in control of the information and feel comfortable during the talks.
  • At the end of the meeting, write down the most important points or agreements, with names and dates, and have it signed by those present.  This little tip will save lots of time and trouble for everyone involved.
  • Any agreement must have 100% follow-through.  If for any reason problems arise in the follow-through, immediately contact and communicate the situation to your partner.

Related Links

How to negotiate with Mexican business people

Great international business trip results





Great International Business Trip Results

16 10 2006

In any international relationship communication and understanding are critical for success.

Problems created by; language, stereotypes, misinformation, lack of information, and cultural misunderstandings combine with normal business problems to create a complicated scenario for anyone involved in international relationships and global business.

Prepare your international meetings and business presentations using the following questions as a guide to organize your ideas and focus on actions that will produce positive results for everyone involved.

6 Questions – Create Great International Business Trip Results

  1. What does this organization know about me, my company and my country?
  2. What do they think they know about me?
  3. What can I tell them that they do not know?
  4. What do I know about my international partner, culture and country?
  5. What do I think I know about this business, culture and country?
  6. What can they tell me that I do not know?

1. What does this organization know about me and my company. When you walk in the room an opinion has already been formed about you, your organization, and your ability to perform in the future. These ideas are based upon facts, information and past experience.

  • What has been the history of our relationship in their country?
  • Who has been involved in our mutual business, and why?
  • What promises have been made and kept by both?
  • What promises have been made and not delivered upon?
  • What have the major problems and success been in the past?
  • Press and media, our organizations promotional material.

2. What do they think they know about me. Clarifying the unknowns or presumed realities in a relationship is crucial to success. These ideas may be very damaging and limit your ability to trust one another. What stereotypical behaviour can you avoid or prevent? What can you clarify or refute through information or actions?

  • Behaviour and reacts based upon past experience with your organization.
  • Rumour and innuendo, press and media reports.
  • Negotiation styles.
  • Business objectives.
  • Behaviour, goals and methods of doing business based upon country and cultural stereotypes.

3. What can I tell them that they do not know. Today’s business world requires trust, information and solutions. Reinforcing your need to work with your international partner, providing important information or solutions, and clarifying misunderstandings can only help the relationship.

  • Clarify or destroy cultural stereotypes.
  • Clarify business objectives and why they are important in order to reach these objectives.
  • Provide solutions and alternatives to existing situations and challenges.
  • Provide information of value for their business and strategy.
  • Clearly identify current or potential business problems.
  • Predict and have answers ready for their questions.

4. What do I know about my International partner, culture and country? What do I know is true and not innuendo or interpretation? The numbers, facts, information, agreements and past performance history of the business. Information about the country and the business culture.

5. What do I think I know about this business, culture and country? What preconceived ideas and stereotypes are you working with? What are you assuming and what has been proven?

6. What can they tell me that I do not know? What questions do you need to ask in order to verify information or create plans. What pieces of your information puzzle are missing? This is the time to get your questions answered, what are they?

Related Links

Cultural misunderstanding it can happen to you

Stereotypes and global business

Create great international business relationships

16 Essential questions – the international business traveller’s quiz

Lessons in international business