1. World-Class Support For Manufacturers
The Offshore Group
Innovative Outsourcing
Our Team
Of Over
500 Experts
Working
For You

2. Who is The Offshore Group?
The Offshore Group is the largest shelter service provider in Mexico with over 13,000 people employed in Mexico today on behalf of 55 foreign manufacturers and 5 foreign BPO, ITO, & Contact Center providers.
Over 24 years, The Offshore Group has developed an unmatched support infrastructure of leaders, experts, processes, and state-of-the-art systems that small, medium, and large manufacturers (clients) leverage every day.
The Offshore Group enjoys the highest client retention rate in the industry.
The Offshore Group provides unparalleled facilities support within secure and strategically located industrial parks totaling nearly 4 million square feet of construction.
World-Class Support
For Manufacturers
The Offshore Group

3. Who is The Offshore Group?
An integrated group of U.S. and Mexican companies that provide peace of mind to foreign manufacturers and service providers through U.S. based contractual agreements and a solid reputation for operational excellence and regulatory compliance in Mexico.
World-Class Support
For Manufacturers
The Offshore Group

4. Presentation Objective:
Explain the cost and performance benefits that foreign manufacturers of any size attain by operating in Mexico under The Offshore Group’s Shelter Program.
World-Class Support
For Manufacturers
The Offshore Group

5. Our Challenge:
For our clients to achieve overall cost reductions by operating in Mexico; and for our clients to simultaneously preserve or even improve quality and delivery while avoiding financial and operational risks that may be associated with doing business in a foreign country.
World-Class Support
For Manufacturers
The Offshore Group

6. Four Ways Our Shelter Model Meets The Challenge:
Locations. Operate within our flexible, scalable, secure, and strategically located industrial parks in Mexico; or choose a location that better meets your site requirements.
Focus. The manufacturer or service provider focuses its resources on productivity, efficiencies, quality, innovation, and on-time delivery. We focus our resources on non-production-related functions.
Leverage. Manufacturers immediately leverage The Offshore Group’s world-class administrative infrastructure and economies of scale in Mexico that reduce costs and eliminate long and costly learning curves.
Shared Risk. With The Offshore Group, foreign companies have no need to establish a legal presence in Mexico resulting in:
Virtually no administrative startup costs.
Greatly reduced risk and exposure.
No burden associated with maintaining a legally and fiscally compliant company in Mexico.
World-Class Support
For Manufacturers
The Offshore Group

7. What Are Some of The Benefits Our Shelter Program Provides?
No upfront costs, no need to form and maintain a legal entity & fast startup
Expert logistics support
Access to local vendors and service providers
Experienced labor recruiting
Secure & safe industrial parks
Experienced leadership/mgmt. recruiting
Fast response to building maintenance, repair, and utilities issues
Reduced labor turnover
Improved labor attendance
Building upsize / downsize flexibility
Effective labor union relations & negotiations
Ensures market wages and benefits
No government reporting
Expert employee problem resolution
No income tax
Reduced border crossing costs and delays
Assurance of Mexican Customs Compliance
Assurance of Mexican Environmental Compliance
World-Class Support
For Manufacturers
The Offshore Group
The Offshore Group

8. Who is The Offshore Group?
Our team of over 500 people are trained, knowledgeable, experienced, and focused on meeting manufacturer’s non-production needs day-to-day.
Over 40 software systems to control HR, Payroll, Import & Export, Purchasing, Employee Busing, Building Maintenance, and many other administrative functions have been developed in-house and are continuously being improved, and which provided unmatched value to Clients.
Cross docking facilities near the U.S.-Mexico border which are focused on eliminating delays, preserving the integrity of goods, maintaining legal compliance … at the lowest possible cost.
A company driven by its principles, continuously improving, and certified under the ISO standard.
World-Class Support
For Manufacturers
The Offshore Group

9. Regulatory Compliance
Our Core Competencies
Labor
Management
Recruiting, Selection, Hiring, Severance, Payroll, Benefits, Labor Law Compliance, Union Relations , Workforce Transportation
Import & Export
Management
Importing and Exporting, Cross Docking, Warehousing, Distribution, International Freight Management
Facilities
Management
Construction Management, Tenant Improvements, Building Maintenance, Environmental, Security and Safety.
Regulatory Compliance
Accounting, Tax Compliance, Government Reporting, Local Vendor Management, Purchasing, VAT Reimbursement
World-Class Support
For Manufacturers
The Offshore Group

10. What You Do & Control: What We Do: Production Supply-Chain
Manufacturing
Technology
Customer
Service
Training
Engineering
Quality
What We Do:
Human
Resources
Payroll
& Benefits
Import
& Export
Labor Union
Relations
Accounting
& Taxes
Local
Procurement
Facilities
Maintenance
Park
Management
World-Class Support
For Manufacturers
The Offshore Group
Employee
Busing
Environmental
& Safety
Corporate
Citizenship

11. A Close-up At Our Labor Management Service:
Executive recruiting
Recruiting ads in local media and web
Maintain candidate databases
Recruiting of direct, indirect, and salaried labor
Recruiting of specialized labor
Offsite recruiting
Applicant prequalification
Applicant testing
Applicant background check
Hiring (per client requirements and approval)
New hire orientation
In-plant HR representation
Employee records upkeep
Attendance monitoring
Employee counseling
On-site child care services G
Employee termination
Workforce redeployment
Employee dispute resolution
Labor statistics and analysis
Labor union negotiations
Labor dispute resolution
Day-to-day labor union interaction
Mexico labor law compliance
Mexico labor law reporting
Local community leaders alliance
Education activity coordination
Skills training program facilitation
Alliance with local trade schools
Employee satisfaction surveying
Recreational activity coordination G
HR field services
In-Park Medical Services
World-Class Support
For Manufacturers
The Offshore Group

12. Manufacturers We Serve Today: 55
Automotive & Transportation Manufacturers:
Electrical, Electronic, & Medical Device Manufacturers:
Aerospace
Manufacturers:
Other Industry
Tyco Electronics1
Cooper Standard Automotive1
St. Clair Technologies
Intec Group
Unlimited Services
Mico
DCM
Jyco Sealing Technologies
Waukesha Bearings
Neapco
Powerbrace
Phillips Industries
Gemini Plastics
Liberty Steel
Precision Interconnect (Tyco)
Medtronic1
Gyrus Medical (Olympus)
Avalon Labs
Younger Optics
C&M Corporation
Novacap
The Phoenix Company
Electronic Evolution
Arc-Tronics
Huber-Suhner
Whitepath
Turck
CBC Connect
Blickman
Goodrich Turbomachinery1
BAE Systems
Parker Hannifin
GE-Unison Industries1
Esco Turbine Components
Benchmark Electronics1
Sargent Controls
Williams International
Senior Aerospace
Ducommun Aerostructures
G.S. Precision
Paradigm Precision
Horst Engineering
Vermillion
Trac Tool
Precision Products
CRS Aerospace
Bodycote Thermal Processing
Meco
Hydro Aluminum
Minco
APSM Systems
Greenheck Fan
Camfill Farr
Kromet
1 Companies with both stand alone and shelter operations
Headcounts range from 7 to 4,000 people
Years in shelter range from 3 to 14

13. Client Retention:

14. Our Strategic Locations
Los Angeles
Tijuana
Mexicali
Tucson
Nogales
Cd.
Juarez
Guaymas
Hermosillo
Chihuahua
Houston
Reynosa
Monterrey
Altamira
San Luis
Potosi
Queretaro
Guadalajara
Mexico City
Manzanillo
Honduras
El Salvador
Guatemala
Mazatlan
Mission
Gulf of Mexico
Sea of Cortez
Asian, European,
& South American
Ports
Brownsville
Saltillo
World-Class Support
For Manufacturers
The Offshore Group

15. Legal Structure/Roles
Client
U.S. Contract
Offshore International
U.S.
U.S.
Mexico
Mexico
MX Affiliates
Maquilas
Teta Kawi
Manufacturas
Zapaliname
Client Operations
In Guaymas
Client Operations
In Saltillo
Legal Presence in Mexico
Mexican Governmental & Regulatory Entities
- Fiscal
- Labor & Unions
- Social Security & Welfare
- Customs
- Commerce
- Environmental
- Health & Safety
Trade within Mexico
Legal Council

16. The Offshore Group’s La Angostura Industrial Park Located in Saltillo, Coahuila Mexico

17. Employee Busing
La Angostura Industrial Park
Saltillo, Coahuila Mexico

20. The Offshore Group’s Bella Vista Industrial Park Located in Empalme, Sonora Mexico

21. Cost Per Direct Labor Hour
Cost Overview:
Guaymas / Empalme, Sonora Mexico (2009 Actual Costs in USD for 35 companies)
Cost Per Direct Labor Hour
Direct Labor
(Fringed)
Overtime
Total Direct Labor
Mexico
Overhead
Total Mexico Operating Cost
Min.
$1.51
$0.18
$1.90
$6.63
Max.
$4.85
$1.98
$5.36
$29.06
Average
$2.47
$0.67
$3.14
$6.05
$9.19
Saltillo, Coahuila Mexico (2009 Actual Costs in USD for 16 companies operating in La Angostura)
2.24
0.11
2.76
7.25
4.85
1.21
5.30
40.62
$2.91
$0.58
$3.77
$7.54
$11.31
Labor Cost
Variables:
Labor skill
Labor availability
Overtime
Turnover
Absenteeism
Severance
Exchange rate
Major Overhead Variables:
Mexico purchases
Electricity
Freight
Customs
World-Class Support
For Manufacturers
The Offshore Group

22. Exchange Rate History:
Mexico Inflation Rate History:
World-Class Support
For Manufacturers
The Offshore Group

23. How We Help You Or Your Suppliers Understand The True Cost of Operating in Mexico
Conduct a customized cost model to arrive at expected total operating costs in Mexico using actual and current cost data (not from government agencies, consultants, or surveys)
Assist in site selection
Assist in conducting what-if logistics scenarios
Assist in electrical power and special utilities provision
Assist in identifying suppliers in Mexico
World-Class Support
For Manufacturers
The Offshore Group

24. Our Value Proposition
Focus on what you do best. By outsourcing non-production-related functions to us, you focus on productivity, efficiencies, and innovation; on meeting product quality and delivery commitments; and on operating at the lowest possible cost in Mexico.
Achieve a competitive advantage from day one. By leveraging our resources, infrastructure, expertise, economies of scale, and legal presence in Mexico.
World-Class Support
For Manufacturers
The Offshore Group

25. Sunset at Los Algodones Beach Located in San Carlos, Sonora Mexico
For more information:
Eduardo R Saavedra
VP Business Development
The Offshore Group
Ofc: (520)
Cell: (520)
Sunset at Los Algodones Beach Located in San Carlos, Sonora Mexico