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

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Presentation on theme: "The Offshore Group Innovative Outsourcing World-Class Support For Manufacturers Our Team Of Over 500 Experts Working For You."— Presentation transcript:

1 The Offshore Group Innovative Outsourcing World-Class Support For Manufacturers 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? World-Class Support For Manufacturers 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.

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

5 Our Challenge: World-Class Support For Manufacturers The Offshore Group 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.

6 World-Class Support For Manufacturers The Offshore Group Four Ways Our Shelter Model Meets The Challenge: 1.Locations. Operate within our flexible, scalable, secure, and strategically located industrial parks in Mexico; or choose a location that better meets your site requirements. 2.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. 3.Leverage. Manufacturers immediately leverage The Offshore Groups world-class administrative infrastructure and economies of scale in Mexico that reduce costs and eliminate long and costly learning curves. 4.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.

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

8 World-Class Support For Manufacturers The Offshore Group Our team of over 500 people are trained, knowledgeable, experienced, and focused on meeting manufacturers 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. Who is The Offshore Group?

9 Our Core Competencies World-Class Support For Manufacturers The Offshore Group Labor Management Recruiting, Selection, Hiring, Severance, Payroll, Benefits, Labor Law Compliance, Union Relations, Workforce Transportation 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 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. 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 Regulatory Compliance Accounting, Tax Compliance, Government Reporting, Local Vendor Management, Purchasing, VAT Reimbursement

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

12 Manufacturers We Serve Today: 55 Automotive & Transportation Manufacturers: Electrical, Electronic, & Medical Device Manufacturers: Aerospace Manufacturers: Other Industry Manufacturers: Tyco Electronics 1 Cooper Standard Automotive 1 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) Medtronic 1 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 Turbomachinery 1 BAE Systems Parker Hannifin GE-Unison Industries 1 Esco Turbine Components Benchmark Electronics 1 Sargent Controls Williams International Senior Aerospace Ducommun Aerostructures G.S. Precision Paradigm Precision Horst Engineering Vermillion Trac Tool Waukesha Bearings 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 World-Class Support For Manufacturers The Offshore Group 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 Our Strategic Locations

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

16 The Offshore Groups La Angostura Industrial Park Located in Saltillo, Coahuila Mexico

17 Employee Busing La Angostura Industrial Park Saltillo, Coahuila Mexico

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20 The Offshore Groups Bella Vista Industrial Park Located in Empalme, Sonora Mexico

21 World-Class Support For Manufacturers The Offshore Group Guaymas / Empalme, Sonora Mexico (2009 Actual Costs in USD for 35 companies) Cost Per Direct Labor Hour Direct Labor (Fringed) Overtime Total Direct Labor (Fringed) 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) Cost Per Direct Labor Hour Direct Labor (Fringed) Overtime Total Direct Labor (Fringed) Mexico Overhead Total Mexico Operating Cost Min Max Average$2.91$0.58$3.77$7.54$11.31 Cost Overview: Labor Cost Variables: Labor skill Labor availability Overtime Turnover Absenteeism Severance Exchange rate Major Overhead Variables: Mexico purchases Electricity Freight Customs

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

23 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 How We Help You Or Your Suppliers Understand The True Cost of Operating 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 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


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