Guanajuato and Sonora – industrial development opportunities

Guanajuato and Sonora are two states in Mexico singled out by Expansion Management as areas of opportunity for industrial development.

A quote from the article:

“Two states, Guanajuato and Sonora, capture, if not the breadth of diversity between the states, the contrasts between them. Guanajuato is using its educational resources and location to position itself as a logistics center in Mexico, while Sonora uses its automotive base to expand into aerospace.” David Hendricks

Related Links

States in Mexico offer expanding companies a wealth of advantages

Expansion Management

Need to know about Leon, Guanajuato

Industrial and Business Parks in Mexico

Mexico Investment Portal

Aaron Burda and I have begun work on a very interesting (and hopefully useful) project.  Providing information and online links, in English, for foreign investors and businesses wishing to examine, analyze and evaluate Mexico for business operations.

The Mexico Investment Information Project (link)

We are a Creative Commons licensed project (i.e. not for profit) whose mission is to provide the best online resource to foreign businesses looking to invest in Mexico. Currently online is a very rough “mock up” of a website that we are planning to build over the next several months.

If you would like to participate in the project and feel you have some valuable expertise to contribute please apply for a userid.

Project History
The Investment Portal is a combination of two projects. Lee Iwan’s Business South of the Border Blog and Aaron Burda’s UC Davis Graduate School of Management Mexico Research Project. Both Lee and Aaron were convinced that the quality of the information available on the Internet about doing Business in Mexico could be substantially improved.

Project Future
We hope to organize the existing Internet English language resources about doing business in Mexico and add to it through having select volunteers write succinct articles on relevant business topics.

If you are a Banker, Lawyer, Accountant, Environmental Expert, HR Manager, Logistics Manager or other qualified and experienced individual with business expertise about Mexico and would like to provide information, advice, or website links to this project, don’t hesitate to contact us.

Related Information

Mexico Investment Portal

Understand Mexico Blog 

Business South of the Border 

Top states for business in Mexico – World Bank Report 2007

I highly recommend that you download and read the Doing Business in Mexico 2007 report, released on November 15, 2006.

For anyone currently doing business in Mexico, or thinking about doing business in Mexico, this is a must read.

The World Bank Group has announced that “Doing business became easier in many Mexican states in 2005-2006, according to the new Doing Business in Mexico 2007 report, released today in Mexico City. The report finds that some states compare well with the best of the world, while others need much reform to become globally competitive.” – November 15, 2006

Quick results of the top ten Mexican states based upon the factors of; starting a business, registering property, obtaining credit, and enforcing a contract include:

1. Aguascalientes, Aguascalientes (Easiest)
2. Guanajuato, Celaya
3. Nuevo Leon, Monterrey
4. Sonora, Hermosillo
5. Campeche, Campeche
6. Zacatecas, Zacatecas
7. Queretaro, Queretaro
8. Michoacan, Morelia
9. Sinaloa, Culiacan
10. Mexico City (Most difficult)

A full listing of all the 31 Mexican states is available in the report.

Excerpt from the report: “If you were to open a new business in Mexico City, the start-up procedures would take 27 days on average, 8 days fewer than in Shanghai. If you decided to open a business in Guanajuato or Aguascalientes, you would have to wait 12 days—only one day longer than your competitor in Amsterdam. But if you needed to take a customer to court for a simple debt default in Guanajuato, resolving the dispute would take 304 days—far longer than the 217 days it takes in Dublin,1 but significantly shorter than in Baja California Sur where it takes 581 days. These examples illustrate two patterns. First, some Mexican states compare well with the best in the world. Second, many states need much reform to become globally competitive.”

Related Links

Press release on Doing Business in Mexico 2007 (PDF, 75KB)

Doing Business in Mexico 2007 (PDF, 1.26MB)

World Bank Report – Doing Business in Mexico 2005

Sourcing and supply chain strategy – Mexico

Purchasing from Mexico and Mexican suppliers?

Don Gringo at Catemaco News and Commentary brought these items to our attention.

Sourcing in Mexico gets easier.  The article points out that doing business with Mexico is easier than in the past.

• The proximity of Mexico to the US markets impacts communication, logistics, costs and time factors.
• Mexico has a history of dealing with the US, and are familiar with competitive manufacturing techniques.
• Relationships are critical to success.
• Beware of stereotypes.
• Take the time to find the “right” partner.
• Do’s and don’ts for doing business in Mexico

Does your supply chain strategy include Mexico?  It should.  Al Brown president of SupplyMex writes that Mexico offers:

• Logistics infrastructure, highways, rail and port system that has been improved over the past 10 years.
• Free trade agreements with 42 countries.
• Global production and quality standards.
• Stable political and economic environment.
• Skilled workforce.

Thanks Don.
Related Links

Purchasing.com

Why you should pay attention to free-trade treaties 

Maquiladoras in Mexico

Industrial and Business Parks in Mexico

Questions – Answers, Doing business in Mexico

Have any questions about how to do business in Mexico?

Any specific problems or dilemmas related to doing business in Mexico?

Questions about the business culture in Mexico or Mexican culture in general?

Would you like to know more about a specific theme related to Mexican business?

Need references or information about organizations, people or associations in Mexico?

Send your questions to me at   lee.iwan  at  gmail.com
or post a comment here.

Related Links

How to do business in Mexico

Official government websites of the 32 Mexican States 

The definitive dialing guide for calling Mexico

Shorten your learning curve about Mexico

Business South of the Border

World Corruption Perception Index 2006 – Transparency International

Interesting look at perceived corruption worldwide.

Transparency International has released their 2006 index of corruption perception on November 6, 2006.

Mexico lands at number 70 on the list, which puts it close to the middle of the pack out of a total of 163 countries.

” Since 1995, Transparency International has published an annual Index of perception of corruption ordering the countries of the world according to “the degree to which corruption is perceived to exist among public officials and politicians“. The organization defines corruption as “the abuse of public office for private gain. ” – excerpt from Wikipedia Corruption Perception Index.

“As this index is based on polls, the results are subjective and are less reliable for countries with fewer sources. Also, what is legally defined, or perceived, to be corruption differs between jurisdictions: a political donation legal in some jurisdiction may be illegal in another; a matter viewed as acceptable tipping in one country may be viewed as bribery in another. Thus the poll results must be understood quite specifically as measuring public perception rather than being an objective measure of corruption.

Statistics like this are necessarily imprecise; statistics from different years are not necessarily comparable.” – Wikipedia Corruption Perception Index.

Related Links

Internet Center for Corruption Research

Corruption Perception Index – 2006 (EXCEL)

Transparency International

Wikipedia

Foreign direct investment in Guanajuato, Mexico

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)

IMF predicts strong economic growth for Mexico

Good news for Mexico and Mexican business.

The IMF (International Monetary Fund) released their Regional Economic Outlook: Western Hemisphere on November 2, 2006.

They are predicting a 4.4% growth rate for this year and strong indicators for medium term growth due to a strong financial sector in the country.

Get the entire report here: IMF – Regional Economic Outlook: Western Hemisphere (pdf file)

Related Links

Press Release: IMF sees continued robust growth in Latin America and in the Caribbean

IMF – Regional Economic Outlook: Western Hemisphere

IMF – Regional Economic Outlook: Western Hemisphere (pdf file)

BBC News: IMF praises Latin American growth

Bloomberg: Mexico’s growth to beat earlier forecast, IMF says

Mexico manufacturing, US inventories and safety stock

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

Illegal immigration – USA and Mexico

Immigration control is a global challenge, and yet not one developed country has developed a good workable and acceptable legal immigration plan that eliminates illegal immigration.

There are political solutions, and then there are real solutions.

Immigration between nations occurs when there are marked differences in economic wealth or living conditions between two regions. In order to eliminate massive immigration, wealth (and it’s distribution) of the economically disadvantaged country must improve or the wealthier country must lose it’s wealth.

The long-term solution to immigration will be found in changing economic conditions, policies and the creation of opportunities in the disadvantaged country.

A short-term solution will be found by building walls and increasing border enforcement (This is effective where the border areas are limited and can be totally controlled).

The current immigration situation between Mexico and the US has become a political football, and it appears political solutions are all that matter.

It’s time for both countries to work and invest in real, long-term economic solutions to solve fundamental problems in order to help and protect both countries. The US is facing a problem, and Mexico should assist their neighbor in finding solutions.

The Mexican perspective:

• There are many opportunities and jobs available that pay much better than in Mexico.
• There are no jobs available in Mexico for the majority of immigrants.
• Going to the US is a “rite of passage” for many Mexicans in certain areas. Most return to Mexico after 3 – 5 years.
• Many cross the border illegally to meet family members already in the US, and have jobs waiting for them once they arrive. Most immigrants have jobs in the US.
• Most of the immigrants come from rural areas in Mexico, with low levels of education.
• Mexican immigrants in the US send enormous sums of money to support family members in Mexico. Petroleum sales bring Mexico the most foreign currency income, followed by money sent by Mexicans in the USA (not all illegal immigrants) to family in Mexico.
• For many Mexican state governments, this injection of foreign capital is very important for maintaining local economies.
• Crossing the border illegally is dangerous and life threatening, and in many cases expensive.
• US employers are open and supportive to employing illegal immigrants, and in many cases provide false identification and protection to the workers.
• The majority of the millions of illegal immigrants currently in the US are working, and spending money in the local US economies.
• The legal immigration mechanisms available (visas) reject those who are economically disadvantaged (the ones with the highest need to immigrate).
• Mexicans believe that the US has the sovereign right to restrict and control immigration.
• They would like to see a realistic legal migration program created.
• The immigrants in the US pay sales taxes, and they consume goods and services in the US.

The US perspective

• Illegal immigration takes jobs away from US citizens.
• Illegal immigrants use social, health and welfare services paid for by US taxpayers.
• Illegal immigrants bring crime, drugs and violence to communities.
• Illegal immigrants don’t speak English and don’t learn English, and are forcing communities to spend money on bilingual teachers and government programs.
• Illegal immigration can be stopped by building a wall or by enforcing the border.
• Illegal immigrants don’t pay taxes.
• US agricultural businesses cannot survive with competitive prices if illegal workers are eliminated. Legal immigration will increase labor costs.
• Elimination of illegal immigrants will cause substantial increases in the costs of food, restaurants, hotels, construction and certain consumer and industrial goods and services. Immigrant labor is needed to maintain the US economy.
• The US Border Control has stated many times that the solution is in enforcing and penalizing US employers that hire illegal workers, not by penalizing and deporting the illegal immigrant.
• The US government and state governments understand the economic situation and provide political solutions for voters, but understand that the total elimination of immigration would severely hurt the US economy. A legal immigration solution must be implemented.
• There is a fundamental dilema. America is the land made of immigrants, and yet now must begin to control this immigration. Huge uncontrolled borders, wealth and opportunity, and willingness of employers to hire undocumented workers combine to make the US an attractive immigration destination.

Opportunities and possible solutions

If we agree that the illegal immigration problem is a consequence of economic situations and differences in the distribution of wealth, then the following ideas are possible solutions. None of them are easy, all of them have costs, but they are the only real long-term solutions to the immigration situation.

• US government and businesses coordinate with the Mexican government and business sector to invest in economic development projects in the areas in Mexico with the highest degree of poverty and immigration.
• The Mexican government must aggressively work and invest in order to improve opportunities and wealth in their country, especially for the economically disadvantaged.
• US businesses push for immigration reform that allows for temporary workers and legal immigration. The program would increase costs to the US employers, and the workers would be paying taxes.
• US government makes laws and enforces them against US employers that hire illegal immigrants.
• US government finds a method to legalize current immigrants that have been and are working in the US.

Related Links

Observations on illegal immigration in the US, possible solutions

How to do business in Mexico, Parts 1 – 28

Official government websites of the Mexican States

The definitive dialing guide for calling Mexico

Top States in Mexico for for doing business – World Bank Report 2007

Maquiladoras in Mexico

An Internet search for the definition of the terms maquila and maquiladora will turn up quite a variety of ideas and interpretations.

The maquiladoras have created quite an emotional and political reaction on both sides of the US and Mexico border. They have been accused of stealing jobs from the US, promoting sub-standard working conditions, lowering wages, exploiting workers, and not contributing to the Mexican economy.

Despite the controversy, the maquiladoras are growing and thriving in Mexico. They offer attractive benefits to organizations that are seeking competitive production and assembly costs, skilled labor and Mexico’s proximity to the US market. Recently many transnational organizations that moved manufacturing operations to China in the 1990’s have moved back to Mexico due to cost and logistic advantages.

Maquila and Maquiladoras – definitions and activities

• The term maquila comes from the Spanish term that refers to the portion paid (in grain, flour or oil) to a miller for milling a farmer’s grain.

• Maquiladoras are legal entities under Mexican law, with special tax privileges, they provide service, assembly or manufacturing operations.

• Maquiladoras are able to import raw materials or semi-processed materials from foreign countries, in order to service, process or assemble them in Mexico, and then export the finished product back to that country. These activities take place without the collection or payment of import, export or V.A.T. (value added tax) taxes.

• The maquiladora program was created by Mexico in order for foreign organizations to take advantage of low labor costs in Mexico (primarily the USA), and to provide employment to Mexican workers in Mexico. Initially the maquila operations were located close to the US border. Currently maquila operations can be found throughout Mexico.

• Maquiladoras can be 100% foreign owned, 100% Mexican owned, or a joint venture between Mexican nationals and foreign investors.

• Maquiladoras are also known as twin plants, in-bond industries, export assembly plants and offshoring.

• The maquiladoras in Mexico suffered from a crisis of plant closings in the 1990’s and early 2000’s as many companies moved operations to China. Since 2004, Mexico has seen a resurgence of the maquiladoras.

• Check with your attorneys and accountants in Mexico about the specific benefits of the maquila program. As of September 2006, there were important legal changes (simplification and consolidation of government compliance and monitoring programs) that will affect current and future maquiladoras.

Related Links

Why you should pay attention to free trade treaties

Industrial and business parks in Mexico

Official government websites of the 32 Mexican states

Maquila and Maquiladoras in Mexico

World Bank report – Doing Business in Mexico

The World Bank has an on-line report available entitled “Doing Business in Mexico“. The study was published in December of 2005.

“Cosponsored by COFEMER, USAID, and the World Bank Group, Doing Business in Mexico is the first state-level report of the Doing Business series in Latin America. This report investigates the scope and manner of regulations that enhance business activity and those that constrain it.

The report covers the following thirteen Mexican cities and four areas of regulation: Starting a business, Registering property, obtaining credit and enforcing a contract.”

“When compared, Mexico City and the 12 other cities differ dramatically on the four indicators the report measures. “

The cities and regulations analyzed include: Aguascalientes, Celaya, Ciudad Juarez, Guadalajara, Monterrey, Veracruz, Merida, San Luis Potosi, Torreon, Mexico City, Tlalnepantla, Puebla, and Queretaro.

Of special note is the following comment. “The report concludes that reform is sorely needed. Much of the opportunity for improvement is in local administrative procedures, which can be changed by a governor or a mayor.”

This is very important. A governor or local mayor can make an important difference on the ease of setting up and doing business in Mexico. Seek out those states and cities with pro-active leadership. Find those areas that are investing heavily in infrastructure or have a dynamic policy focused on foreign investment and economic development.

Related Links

Doing Business in Mexico – World Bank

Doing Business in Mexico (PDF)

Press Release (PDF)

Industrial and Business Parks in Mexico

Looking for a “plug and play” solution for your business or factory in Mexico? Take a hard look at the advantages that Mexican industrial parks offer.

AMPIP (Mexican Association of Business and Industrial Parks) can partner with you and provide contacts and information about Mexico’s industrial and business parks. They work closely with private industry, state and local governments and real estate organizations in order to provide solutions for companies seeking to quickly and easily establish a physical presence in Mexico.

“Investment Promotion
AMPIP has become one of Mexico’s leading agencies for the promotion of foreign investment projects, thanks to its participation in national and international shows, the advertising in specialized media, the alliance with other business associations and the permanent contact with a wide network of corporations and real estate players, as well as with government officials.

Part of the promotion activities include the registration of industrial assets owned by AMPIP members in our Industrial Real Estate Promotion System, available on-line at our Internet site, apart from the printed material, such as location maps edited in conjunction with the Mexican Bank for Foreign Trade (Bancomext), which are distributed worldwide.”

There are specific and unique advantages of industrial and business parks. Saving time and money are among the biggest factors. Access to transportation, power and communication infrastructure is another. The definition of “Industrial Park” will provide some idea of the other advantages.

“What is an Industrial Park?

An industrial park is a delimited extension of land, characterized by four main aspects:

1. It is located close to transport facilities, such as hightways, airports, sea ports and railways.

2. It concentrates essential dedicated infrastructure in one location for industrial operations, such as water (including sewer lines, drainage systems), electricity (including high power supply lines), telecommunications and roads.

3. It fulfills all the prerequisites to obtain the permission from local authorities for the set up of new operations (construction, environment, etc.)

4. It has a central administration that coordinates the internal safety of assets, the maintenance of public infrastructure, the promotion of new operations and the affairs with local authorities”

For more detailed information, contact: Associacion Mexicana de Parques Industriales, Monte Camerùn 54 – 1, Colonia Lomas de Barrilaco, C.P. 11010, Delegacion Miguel Hidalgo, Mèxico D.F., Mexico Tel. +52 (55) 2623-2216 Fax +52 (55) 2623-2218 Email ampip@ampip.org.mx

Related Links

AMPIP Mexican Association of Business and Industrial Parks

Official Government websites of the 32 Mexican states

How to do business in Mexico

How to negotiate with Mexican business people

Mexican official (and unofficial) holidays

Tip: How to call Mexico from the US

What to dial in order to reach a cellular phone in Mexico

Advice on what to expect when doing business with Mexico

Meeting people in Mexico – kiss, shake hands or hug?

Before you go on your business trip to Mexico

Tipping Guidelines for Mexico

Mexico and international free trade treaties

Mexico has signed 11 international free trade treaties and 2 complimentary economic agreements since 1993.

Mexico is the only country in the world with active free-trade treaties that cover North American and the entire European Community.

These free trade agreements have made Mexico highly competitive in terms of manufacturing for export to world markets, for the importation of raw materials for manufacturing and for the import of consumer goods for sale in Mexico.

The free trade agreements currently in place include:

• TLCAN – Includes Mexico, USA and Canada – Initiated January 1, 1994 (NAFTA in English)

• TLC-G3 – Includes Mexico, Colombia and Venezuela – Initiated January 1, 1995

• TLC Mexico-Costa Rica – Includes Mexico and Costa Rica – Initiated January 1, 1995

• TLC Mexico – Bolivia – Includes Mexico and Bolivia – Initiated January 1, 1995

• TLC Mexico – Nicaragua – Includes Mexico and Nicaragua – Initiated July 1, 1998

• TLC Mexico – Chile – Includes Mexico and Chile – Initiated August 1, 1999

• TLCUEM – Includes Mexico and the European Union (Austria, Belgium, Denmark, Finland, France, Germany, Greece, Holland, Ireland, Italy, Luxembourg, Portugal, Spain, Sweden, United Kingdom, Cypress, Czech Republic, Estonia, Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia) – Initiated July 1, 2000.

• TLC Mexico – Israel – Includes Mexico and Israel – Initiated July 1, 2000

• TLC Mexico – TN – Includes Mexico, El Salvador, Guatemala and Honduras – Initiated on March 15, 2001 with El Salvador and Guatemala and June 1, 2001 with Honduras

• TLC Mexico – AELC – Includes Mexico, Iceland, Norway, Liechtenstein and Switzerland – Initiated July 1, 2001

• TLC Mexico – Uruguay – Includes Mexico and Uruguay – Initiated in July 15, 2004

• AAE Mexico – Japan – Includes Mexico and Japan – Initiated April 1, 2005

In addition there are Complementary Economic Agreements (ACE’s) in place with Brazil and Argentina.

Related Links 

Why you should pay attention to free trade treaties 

Create great international business relationships

Working with individuals and ideas from cultures different from our own is complex, and filled with opportunities to misunderstand and offend everyone involved. It requires time to develop trust and understanding for all the players involved.

Take the time to learn how and why business is done in the country. Don’t judge the results based upon your culture and your country’s standards.

There is nothing more damaging to an international relationship than criticism based upon a lack of understanding. You must learn before you attempt to teach new ideas, strategies and procedures.

When doing business in Mexico remember that no matter what you feel or believe about your company’s products or procedures, Mexicans know their market and people better than you do. They know the correct business etiquette and the “invisible” cultural nuances that are required in order to do business in Mexico.

If you enter into business in Mexico with the idea that you are going to “teach the Mexicans how business is really done” I am confident you will suffer some serious problems.

Pushing procedures and business strategies into Mexico will surely cause divisions, it can turn into an “us versus them” situation for employees and customers.

I recommend that your focus be on learning and understanding how business in currently done in Mexico, and why. Once you have this knowledge, teach and explore your cultures and organizations solutions and strategies with your Mexican collaborators. I’ll bet the ideas will get modified if necessary, implemented and embraced quickly.

The creation of hybrid strategies, using elements from both cultures, will guarantee unification and understanding for everyone involved.

Before you start a revolution it’s essential to fully understand the status quo.

 

Related Links

International Business Tips

Stereotypes and global business

International business traveller – ambassador, explorer, map-maker

Official government websites of the 32 Mexican States

Links to the Official Government Websites of the Mexican States

• Aguascalientes

• Baja California

• Baja California Sur

• Campeche

• Chiapas

• Chihuahua

• Coahuila

• Colima

• Durango

• Guanajuato

• Guerrero

• Hidalgo

• Jalisco

• Mexico DF

• Michoacan

• Morelos

• Nayarit

• Nuevo Leon

• Oaxaca – Not currently available

• Puebla

• Queretaro

• Quintana Roo

• San Luis Potosi

• Sinaloa

• Sonora

• State of Mexico

• Tabasco

• Tamaulipas

• Tlaxcala – Not currently available

• Veracruz

• Yucatan

• Zacatecas

Many of these sites have the information available in the english language. Search the entry page for links to versions in english (or ingles).

Related Links

How to do business in Mexico

How to negotiate with Mexican business people

Mexican official (and unofficial) holidays

Tip: How to call Mexico from the US

What to dial in order to reach a cellular phone in Mexico

Advice on what to expect when doing business with Mexico

Meeting people in Mexico – kiss, shake hands or hug?

Before you go on your business trip to Mexico

Tipping Guidelines for Mexico

Mexican official (and unofficial) holidays

Travelling to Mexico for business or pleasure?  Check the official Mexican holiday calendar to find best dates and avoid the crowds or ensure your business contacts will be there to meet you.
Mexico currently recognizes the following dates as official national holiday dates.  This means that the majority of businesses in Mexico will close, including all banks and all government agencies.

In 2006 Mexico authorized alternative dates (Mondays) for the observance of certain national holidays.  These dates are published yearly in the “Diario Oficial”.

• January 1 – New Year’s Day

• February 5 – Celebration of the Mexican Constitution (1917)

• March 21 – Anniversary of the birth of Benito Juarez (1806)

• May 1 – Labor Day

• September 16 – Mexican Independence Day (1810)

• November 20 – Anniversary of the Mexican Revolution (1910)

• December 1 – Every 6 years when the power is transferred from the current president to the president elect

• December 25 – Christmas Day

In addition there are some dates that are not official holidays, but due to local culture and customs you will find that many businesses are closed or many decision-makers are on vacation.  These include:

• The week before Easter, especially the Thursday and Friday prior to Easter.  Holy Week (Semana Santa) is widely celebrated as a religious holiday and annual vacation time for families.  Beaches and resorts are favorite destinations.

• May 10 – Mexican mothers day.  Always celebrated on this date, regardless of what day of the week it falls on.

• Mid July until late August – Summer vacation time for families.  Beaches and resorts are favorite destinations.

• Dec 12 – Day of the Celebration of the Virgin of Guadalupe.

• December 16 until January 2 – The time of the “Posadas”, pre and post Christmas celebrations.  Many companies use these dates for annual vacations.

• There also may be local celebrations by specific towns and cities, in order to celebrate the founding of the city or special religious events.  Businesses will normally close on these days.

Related Links

Advice on what to expect when doing business with Mexico

Tip:  How to call Mexico from the US

Meeting people in Mexico – kiss, shake hands or hug? 

Before you go on your business trip to Mexico

How to do business in Mexico, Parts 1 – 28 

Top 4 growth industries in Mexico

I’m often asked what opportunities are available in Mexico. My answer is always the same. Mexico has enormous potential and many opportunities for business.

A better question is “what do you want to sell or invest in”? Without a doubt you will find that Mexico is a receptive market.

Here is my list of the top 4 industries and areas with great growth potential in Mexico.

The top 4 growth industries in Mexico

Construction – You name it and it will be built in Mexico in the coming years. Mega-infrastructure projects (electric plants, hydroelectric dams, highways, airports, marinas and ports, petroleum extraction), commercial, industrial and office construction and residential projects can be found in abundance throughout the country.

Tourism – Big push to develop tourism from the Federal, State and local governments. Tourism is a priority item on government agendas including: high-end hotels and resorts, sports and eco-tourism, business and professional events. Mexico has perfect weather, incredible rich history, open and accessible culture, thousands of miles of beaches, deserts and jungle, and easy access to the USA and Canada.

Medical and Pharmaceutical – Another government priority. Emphasis on preventative medicine and improving the quality of life provides rich areas of opportunity. The demographics in Mexico show that the market is growing and will continue to do so.

Security – This industry will remain strong and show exceptional growth in the future. There is strong demand by private industry, government, telecomunications and computer-related activities, the financial industry, international commerce, and the transportation industry to name but a few.

Current Resume – Lee Iwan – March 2007

 

Lee Iwan

International Business Development

Sales & Management Executive

Accomplished bilingual and bi-cultural executive with broad based domestic and international experience in business discovery and development; sales, marketing and operations for start-ups, growth and mature organizations.

Results oriented, proven success in new market identification, strategic thinking, negotiations and pragmatic problem solving. Track record of “hands on” leadership increasing communication, sales, efficiency and profitability.

Thrive in dynamic and fluid environments requiring enthusiasm, creativity, communication skills and organization.

Core competencies include:

Relationships and Communication

Team Leadership

Cross Culture Liaison

Innovation and Change Management

Global Focus

Entrepreneurial Focus

Contingency Planning

PROFESSIONAL EXPERIENCE

QUIMICA CENTRAL DE MEXICO S.A. de C.V. Leon, Gto., México July 1998 – Present

Business Manager, Strategic Business Discovery & Development May 2005 – Present

Serve as independent executive working directly with CEO and Board of Directors. Fully responsible for the visualization, research, creation, communication, follow-through, analysis, planning and implementation of new business development and corporate strategic diversification projects.

Key Achievements:

• Project Leader, pharmaceutical joint venture (Swiss-México), manufacturing and commercial operations .
• Spearheading strategic alliance negotiations to increase long-term market share and global positioning.
• Ongoing negotiations with India and China for product representations, agencies and toll manufacturing.

Business Manager, International Business March 2000 – May 2005

Served as Business Manager, responsible for global sales and marketing, distribution and logistics, and all corporate international negotiations with clients and suppliers.

Directed export sales and market development, international supplier strategic alliances; leadership of export sales distribution and agency networks; cross-functional team participation; business intelligence; sales and marketing strategy and leadership for the Asia Pacific and Latin American regions; sales implementation and market development; logistics and supply chain management, cross cultural communications, “globalization” of company culture and corporate special projects.

Key Achievements:

• Created and implemented commercial entrance for Asia-Pacific market, first 3 years revenue $ 5 M (US), projected annual sales growth of 200%.
• Initiated and maintained strategic alliances with international suppliers, raw material cost savings of $ 2 M (US) fortified long term strategic positioning.
• Negotiated exclusive agency representations in Mexico for South African and US specialty chemical manufacturers.
• Increased company global competitiveness utilizing the export department to drive corporate cultural changes in strategic planning, production, time to market, supply chain and logistics, sales, marketing and administration.

Export Manager July 1998 – March 2000

Served as Export Manager, responsible for sales, distribution and marketing strategy and management for 20 countries including Latin America, US, Europe and Taiwan.

Key Achievements:

• Created new commission and base price structure for agents and distributors resulting in increased loyalty and increased revenue of 8%.
• Re-engineered department systems to increase revenue and customer loyalty through increased efficiency in communications, administrative processes and product shipping.
• Managed international sales force in Latin America and Asia Pacific regions (18 distributors / agents).
  

NUVIDA S.A. de C.V., León, Guanajuato, México January 1993 – July 1998

Owner–President–Entrepreneur

Served as President for start-up specialty service business, corporate and government clients.

Key Achievements:

• Alliance between private industry, State and Local government to create and maintain 100-acre interactive ecological area – Parque Explora.
• Managed workforce of 45.
• First workforce in the State to receive State Certification (training and operations procedures).

FLOWERS FLOWERS INC., Evanston, IL, USA March 1986 – August 1993 Owner–President-Entrepreneur

Served as President for start-up innovative luxury consumer goods and service business.

Responsibilities included: strategy and planning, management, sales and marketing, purchasing and operations.

EDUCATION

Bachelor of Science Agricultural Economics * University of Illinois – Urbana, IL 1980

PROFESSIONAL ACHIEVEMENTS

Board Member, State Chemical Industry Export Committee, COFOCE, February 2007 – Present

Weblog: Business South of the Border August 2006 – Present

Weblog: Lee Iwan Accumulated Experience April 2006- Present

Business Development Mission, Chennai, India, February 2007

Chromium Industry Conference, Cape Town, South Africa, February 2006

Commercial Mission, New Delhi, Mumbai India, November 2005

Course: Finance for Non-Financial Managers, 2005

Business Development Mission: Buenos Aires, Argentina, 2004

Board Member, State Leather Industry Consulting Committee, COFOCE, 2000 – Present

ANPIC, Mexican Leather Industry Fair, Leon, Gto., Mexico, 1999 – Present

ISO 9001:2000, Certification Process, 2003 – 2006

Business Development Mission: Geneva, Switzerland & Moscow, Russia, 2004

Business Development Mission: Istanbul, Turkey, 2003

All China Leather Exhibition (ACLE), Shanghai, China 2002 – 2005

Guangzhou Leather Fair, Guangzhou, China, 2002 – 2005

Business Development: Geneva, Switzerland, 2002

Commercial Mission: Mexico – Central America, 2000 – 2002

Asia Pacific Leather Fair, Hong Kong, 1999 – 2005

Linneapelle, Bologna, Italy, 1999 – 2005

Commercial Mission: Mexico – China, 2000 – 2001

Business Development: Amsterdam, Holland, 2000

Business Development: Guatemala, El Salvador, Honduras, 2000

Miami Leather Fair, Miami, FL, USA 1999 –2001

Business Development: Uruguay, Brazil, Argentina, 1999

FENAC, Leather Fair, Novo Hamburgo, Brazil, 1999

Course: Mexican International Commerce Legislation, 2001 – 2004

Diploma: Modifications in the Mexican Customs Legislation, 2003

Diploma: International Commerce – Logistics, 2001

Diploma: International Commerce, 2000

Course: The Strategic Salesperson, 1999

Periodico AM, Newspaper Columnist. 1994 – 1996

Society of American Florists, Editorial Board, 1990 – 1992

Chicago-Dempster Merchants Association, Vice President, 1988 – 1990

Lee.iwan@gmail.com