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Presentation on theme: "JALISCO OVERVIEW 1."— Presentation transcript:


2 potential in North America* manufacturing industry
LOCATION Jalisco is a Mexican state located strategically by the Pacific Ocean… …and is the most important high value economy in Mexico JALISCO 7.3 Million & 23 years (average age) POPULATION & AGE Second best economic potential in North America* ECONOMY WHY JALISCO Just to set the context on where Mexico is positioned on a global basis, let me go over some basic indicators. Our population has surpassed the 100 million figure, estimated to be 103 million as per official statistics reports. Our GDP for 2005 accounted for 768 billion US dollars, with a per capita income of 7,181 US dollars. This places Mexico as the 13th economy of the world in terms of size and the leading one together with Brazil in Latin America. In terms of per capita income, Mexico is the leading Latin American country which makes it the most attractive market in the region. At this point in time, everybody knows about Mexico´s free trade engagement with Canada and the United States, commonly known as NAFTA, the North America Free Trade Agreement. Not so well known, however, is the fact that Mexico has the most extensive free trade agreement network in the world. This network includes, besides the North American block, the European Union in its 25 member extended version, and Japan, which therefore provides Mexico with preferential market access to the three most important markets in the world. An important fact that comes from the before-mentioned is that Mexico is the second trade partner to the United States. Total trade volume between the two countries accounted for 290,245 million dollars in 2005, with a surplus for Mexico of 50 billion dollars, which represents 17% of the trade volume. This reflects a balanced and mutually beneficial trading relationship, as opposed to a disadvantageous one, characterized by significant imbalances. Another not well known fact is that, in terms of physical infrastructure, Mexico has the 4th largest network of airports in the world. This means that airborne geographical coverage of the country is 100% in terms of each of the capitals of the 32 states of Mexico having an airport, and more than 80% of them are international ones. Probably more important is the fact that Mexico and the United States have the most intense air traffic volume among any two countries in the world. With more than 300 direct services between the US and Mexico, businessmen and tourists from both countries enjoy a wide variety of destinations and schedules for their convenience. Because of the important growth that Spanish content is experimenting in the Information and Communications Technology field, it is worthwhile to say that Mexico has the largest Spanish speaking population in the world. As you are aware, the Spanish ICT services market includes segments such as transaction processing, customer care, software development, and increasingly; digital entertainment products such as videogames, movies, and music. As surprising as it may sound for some, the most dynamic contributor to this market growth is the United States. Indeed, the US has the fifth largest Spanish speaking population in the world, which represents roughly 40 million people with an income several times higher than that of the spanish speakers living in Latin America. GDP GDP Per Capita USD $ Billion USD $ 9,361 1st place in high-tech manufacturing industry 25% of high-tech exports (nation wide) RANKING Source: * FDI Magazine

3 Total: 7,350,682 JALISCO population 2010 YEARS MALE FEMALE
Source: INEGI

FOOD & AGRICULTURE Eggs Electronics Agave / Tequila Ladies Footwear Business Opportunities Telecomm equipment Jewelry Pork Agricultural IT & Software Leather Milk Chocolates & Candies Source: 4

5 Jalisco International Trade
Global exports MUSD 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 58% of 2010 exports came from electronics and high tech sector Source: SEIJAL

6 EDUCATION & TRAINING Excellent academic & training facilities are established in Jalisco 140 Bachelor degree schools 897 High schools 12 Universities 72 Postgraduate schools 56 Technical training schools 1 Major business school 2 Technological universities Human potential 3,056,843 Total students (all grades included) THE BEST ACADEMIC AND TRAINING FACILITIES IN MEXICO ARE ESTABLISHED IN JALISCO Around 6,500 graduated engineers per year (2,000 specialized in high tech) Sources: SEIJAL with data of SEJ 6

46 Industrial parks 4 Technology parks 2 Software parks 1 Media park THE BEST ACADEMIC AND TRAINING FACILITIES IN MEXICO ARE ESTABLISHED IN JALISCO Logistic Center Guadalajara Sources: , & SEPROE 7

8 Passengers movements during 2010 International Flights
EASILY ACCESSIBLE Internationally, Jalisco is connected to main cities in the USA within less than a 4 hour in direct flights. 2 International airports (Guadalajara & Puerto Vallarta) Passengers movements during 2010 CITY National Flights International Flights Total Flights Puerto Vallarta 731,200 2’004,100 2’735,300 Guadalajara 4’ 2’181,300 6’953,800 * From Guadalajara and Puerto Vallarta airports Guadalajara is located 300 km from Manzanillo, the busiest port in Mexico, as measured by total tonnage and volume of containerized cargo. The port is connected by main rail lines to Guadalajara and Mexico City. 8

9 EASILY ACCESSIBLE Access to 50,000,000 habitants
Also offers access to 50% of the Mexican population within a 560 kms radius. Source: SEI-JAL with datas of INEGI 9

10 ...AND QUALITY OF LIFE Sun & beach Golf Alpine towns Services Culture
More than 20 museums and several theaters Hiking Services 260 Hotels 19,000 Rooms Motocross Sailing 80 Clinics, hospitals and medical centers 16 golf courses 10


12 STATE INCENTIVES R&D + I Training programs Infrastructure Land
State contribution for training programs for employees at technical and professional levels. State contributions for improvements in infrastructure (electricity, water supply, roads, etc). Sale, useage, exchange, or lease of government property at competitive prices. State payroll tax of 2% * 100% discount for new companies established in the first year. * 50% of discount for the new jobs created during the second year and for companies in expansion process. R&D + I Professional Services ,transfer of technology, tech and markets Studies, Intellectual Property protection. Quality certifications (ISO, QS, TS, AS, CMMI…)



15 SECURITY Security report:
Jalisco holds a good position among Mexican states when you consider the 9 most commont types of crime: house burglary, shop/commercial burglary, car theft, robbery, homicide, assault, rape, kidnapping and extortion (RRS y Asociados, S. C. 2010). Security report:

16 In Summary Doing business in Mexico is cost effective and easy.
Mexico has a very stable and growing economy. Guadalajara has a large pool of talent with thousands of professionals graduating from the 16 local universities. The city of Guadalajara has a thriving electronics industry & IT with the support of the government and community and continues to be a safe & profitable place to do business. Source:

17 Thank You ! For more information about
AMERICAN INDUSTRIES GUADALAJARA : (Sergio Garcia de Alba) Former Secretary of Economy of Mexico (Alejandro Lara)

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