Archive for the ‘Maquiladora Industry News’ Category

By WILL WEISSERT

Associated Press

CIUDAD JUAREZ, Mexico – Despite a weak U.S. economy and a drug war that has turned this city into Mexico’s deadliest, the maquiladoras are on the rebound.

These assembly-for-export plants that crank out everything from brake pads to plasma TVs for U.S. companies are opening new facilities, expanding existing ones and hiring more employees. Some firms looking for lower costs have even begun shifting production from China back to Juarez.

The recovery of the about 350 maquiladoras is the single bright spot in a city where drug violence has killed 7,000 people in three years. The maquiladoras may also be a sign that the economy in the region is finally turning the corner, after gross domestic product for Mexico shrank by almost 7 percent in 2009, the worst contraction in decades.

“There’s some real competing realities in Juarez at the moment,” said Bob Cook, president of the Regional Economic Commission in El Paso, Juarez’s cross-border sister city. “The violence has not targeted our industry, and the cartels… have not destroyed all the advantages of doing business there.”

Unemployment for Juarez is high, at 7 percent compared to Mexico’s national average of 5.4 percent. But plants that furloughed employees in 2008 and 2009 are now offering overtime as well as jobs.

The Juarez maquiladoras added about 26,000 new jobs from July 2009 until August 2010, when they employed more than 192,000 people. But there’s still ground to make up – three years ago, the sector employed about 250,000 out of Juarez’s population of 1.3 million.

Cook said that since 2008, 106 new permits for maquiladoras were granted in Juarez. An additional 15 companies have notified the commission of plans to locate or expand in the city, which would create up to 11,400 more jobs.

It’s difficult to compare Juarez to other border cities because, starting in 2006, the Mexican government began simply listing maquiladora jobs nationwide under “manufacturing.” There has also been anecdotal evidence of a recovery in the Baja California city of Tijuana, Mexico’s other major maquiladora hub, according to Dale Robinson, president of the Western Maquiladora Trade Association. He could not provide figures.

Carlos Pascual, the U.S. ambassador to Mexico, said a record 12 maquiladoras returned from China last year to locations along the border, often states with heavy drug violence such as Baja California, Tamaulipas and Chihuahua, home to Juarez. It is unclear how many plants have headed to China over the same period.

Nationwide, the maquiladora sector has shed hundreds of thousands of jobs since peaking at 1.3 million employees in October 2000, but Mexico is now catching up fast with China. U.S. imports from Mexico exceeded $168 billion through November, expanding by 35 percent over the past year, according to the U.S. International Trade Commission. Imports from China, meanwhile, were up nearly 24 percent to about almost $264 billion through November.

With credit less available globally, some companies can no longer afford to wait for profits delayed by lengthy shipping times as goods travel from Asia to the U.S. It may work out cheaper to use Juarez, Tijuana and other Mexican locales a stone’s throw from American soil.

Pascual said Mexico also is increasingly attractive compared to China because of the devaluation of the peso and the strengthening of China’s currency. And the disparities in wage rates are shrinking: China’s labor costs have increased as the government works to adhere to environmental regulations, especially after criticism during the 2008 Beijing Olympics.

“The difference was about $1.50 to 40 cents (per hour) in 1996 and $3.50 to $3 now. Mexico is still more expensive, but not that much,” Pascual said in an interview.

Juarez has been Mexico’s leader in maquiladoras for decades. Other companies increasing their presence here include:

• Swedish appliance maker Electrolux, which is closing two Iowa plants, laying off 850 workers and shifting nearly all its production to Juarez – where it already employs around 6,000 people.

• Delphi Automotive LLP, a parts supplier for General Motors, which has 12 Juarez plants and a technical center employing more than12,000 people. Production is still a long way from the days when Delphi had 20,000 workers in Juarez, but the company added about 700 new jobs through late 2010.

• Taiwan-based Wistron Corp., which produces components for BlackBerry, made by Canada’s Research In Motion Ltd., which declined to comment.

The maquiladora industry ran into the drug violence in Juarez on Oct. 28, when gunmen opened fire on a trio of buses carrying night-shift maquiladora workers to communities outside the city. Four people were killed.

Investigators suggested the attack was tied to a dispute involving the bus company. No arrests have been made – not unusual in a city where almost no murders are solved.

Since the shooting, employees say, vans of armed guards have provided security escorts. Converted American school buses, painted green and white and marked “Transporte de Personal,” rumble everywhere in Juarez, bringing workers to and from maquiladora shifts that run around the clock.

“Of course you’re scared, but you’ve still got to go to work,” said Luis Garcia, 36, who makes 800 pesos, about $65, a week cutting car-seat leather for the Eagle Ottawa company of Michigan, and who rides the same bus route where the shooting occurred.

The violence may be taking a toll even on companies. Electronics giant Epson, a division of Japan’s Seiko Epson, pulled 25,000 jobs out of Juarez this fall. The company says it closed its printer cartridge plant because of the global economy, not violence.

El Paso Mayor John Cook said some other firms have devised “exit strategies” and are ready to put them in action if violence gets worse. But Alan Russell, president of El Paso-based Tecma Group, feels safe enough to operate maquiladoras in 18 Juarez plants for 33 companies. All 33 firms have added jobs since 2008, he said. Four clients shut down production in Juarez in 2009 due to the poor U.S. economy, but the group added five companies in 2010.

Unlike Eagle Ottawa, Cook’s company recommends not traveling with armed guards, and his security personnel don’t carry guns.

“This is not a war of ideals or a war of religion,” he said. “It is purely financial and these killings are targeting players involved in the drug business.”

Maquiladoras have increased security, but they would not discuss specifics or say how much such measures cost. Russell said his company recommends clients eat at their Juarez factories rather than go in the city and spend the night in El Paso.

“You don’t play golf in a thunderstorm. You take precautions,” he said.

Bill Parisen is vice president for an international manufacturer that moved a California plant to Juarez, reaching full operation with 60 employees in July. He asked that the firm’s name not be published because he is not authorized to speak for it.

“China’s costs just don’t make sense for us to be manufacturing there anymore,” he said.

Parisen said that none of the 71 Fortune 500 operations in Juarez were withdrawing, despite drug violence. He himself spends two weeks a month in Juarez but sticks to “executive safe routes” created by the government of President Felipe Calderon amid spiking violence and fortified by federal police and the Mexican army.

“People ask me, ‘how can you travel to Juarez?’” he said. “But then I cross and there are people jogging, people walking their dogs.” He’s even gotten used to soldiers at roadblocks: “They’re very friendly.”

Product tester Alberto Hernandez has worked at a Cisco Systems Inc. plant in Juarez since he was 15. He said many workers who lost their jobs to the recession have found work at his factory, which never went through layoffs.

“At work, you are safe,” Hernandez said, now 22. “Outside, there’s no control. No laws.”

Graduate Edgar Ronquillo Flies High at The Tecma Group

Edgar Ronquillo, who graduated from Western Technical College’s (WTC) Electronic Engineering Technology and Information Systems and Security Programs, has been gainfully employed at Tecma for the past two years. According to Karina Celis, Human Resources Supervisor for Tecma, “Tecma provides a shelter program that allows our customers to easily and economically begin manufacturing in Mexico without the high start-up costs and delays. Tecma performs all tasks essential to starting and opening a manufacturing facility in Mexico, eliminating the customers any distractions.” Additionally Tecma places employees like Ronquillo at facilities like ExpressPoint. Tecma employees about 3000 individuals in Juarez, Mexico and about 200 in El Paso, Texas.

Currently, Ronquillo is a Micro Computer Technician for ExpressPoint, where he was placed by Tecma. He says his responsibilities include “working in the system, getting materials in and out, and working on hard drives, and some software.” Ronquillo says not only did he receive help from WTC as far as career placement from Career Services, but they also helped contribute to his perspective of what he calls, “the outside world”. He says, “WTC helped me in this way, they gave me an idea of what to expect from the outside world, adding to my personal views. As soon as I finished at WTC, I knew how to work hard to reach desired goals.”

Celis says of Ronquillo and WTC graduates, “They come to us already equipped with the requisite training and hands-on skills required to succeed. WTC graduates have completed their program and are ready to begin applying what they have learned in the workforce. Non-WTC graduates don’t have the attitude of excellence and eagerness to apply what has been learned.” She concludes, “The graduates are ready to hit the ground running and become productive members of our workforce.”

Ronquillo recalls watching air planes fly overhead from his front porch where he sat as a young boy with his grandfather. He remembers his grandfather telling him that he knew one day “you’ll be up there; that will be you.” Ronquillo has recently earned his private pilot’s license, and plans on working towards a commercial license. He says, “Training at WTC definitely prepared me for flight training.” He adds that “Learning to fly paralleled his training from WTC; being familiar with electrical components added to the ease of learning.” It would seem that training, for Ronquillo, from WTC, prepared him for his longtime dream of becoming a pilot both by way of practice and perspective. For more information about the programs that Ronquillo graduated from, visit http://www.westerntech.edu/academics/electronic-engineering-technology or http://www.westerntech.edu/academics/information-systems-and-security

Bus attack that killed 4 not aimed at Juárez maquiladora

By Diana Washington Valdez

El Paso Times

Posted: 10/31/2010 12:00:00 AM MDT

 

The maquiladora that employs the Juárez workers attacked by gunmen on Thursday was not a target of the shooting, said Janine Krasicky Sadaj, spokeswoman for Eagle Ottawa LLC.

“At this point, we have no indication that the attack was directed at Eagle Ottawa,” Krasicky Sadaj said. “We sympathize with the good people of Mexico, our employees included, who are doing their best to cope with these trying times. We will do everything we can to support them in their time of need.”

Gunmen fired on three maquiladora employee buses in an attack that killed four people and wounded 15 others in Caseta.

Mexican police said the shooters kidnapped one or two men.

Eagle Ottawa will continue to work with a local security firm and is reviewing its security procedures, the spokeswoman said.

The company employs 2,075 people in Juárez.

“Our entire Eagle Ottawa family is deeply saddened regarding our friends and co-workers who were attacked while traveling in buses to their homes after serving a late shift.

“We extend our sincere condolences to all of our employees, families and loved ones of all those affected by this tragic event. To support all of our employees and their families, we will be providing counseling and financial assistance as a result of this event,” Krasicky said.

Eagle Ottawa, based in Auburn Hills, Mich., is an automotive leather supplier serving automotive clients worldwide.

Mexican authorities continue to investigate the attack.

Diana Washington Valdez may be reached at dvaldez@elpasotimes; 546-6140.

 

Juárez maquiladora operators unsure whether shooting will have effect on industry

by Vic Kolenc /

El Paso Times

Posted: 10/29/2010 12:00:00 AM MDT

Operators of factories in Juárez said it was too early to know if Thursday’s deadly attack on three buses carrying workers will force changes in the maquiladora, or manufacturing, industry.

People tied to the industry said the bus attacks, which killed four people and left 15 injured, would likely hurt efforts to recruit new companies to Juárez.

“Information is the key. What provoked this attack? Why would someone do this?” asked K. Alan Russell, president of The Tecma Group, an El Paso company that operates maquilas for 33 companies in 18 plants in Juárez.

“It has to be understood if this was an attack on our industry or an attack on individuals. I can’t say if the attack was a message to the maquila industry. I don’t think so.”

The maquiladora industry in Juárez, which employs more than 200,000 people in more than 343 factories, has continued to thrive in the midst of a drug-cartel war which has claimed more than 6,000 lives in Juárez since 2008.

The recession did more to hurt operations than the drug war, maquila operators have said. However, maquila operators, many of them huge multinational corporations, have tightened security as the violence has escalated. Many plant executives and professional personnel who commute between El Paso and Juárez have become careful in their travel habits due to the violence.

Many maquila workers travel to work on their own. Many others take buses contracted by maquila operators from their neighborhoods to factories.

Representatives of the Juárez Association of Maquiladoras said Thursday that the group would meet with government officials about security for the industry. Carlos Miranda, the association’s president, told The Associated Press that buses used to transport maquila workers had been burned by attackers as part of extortion attempts.

Russell said Tecma would make no changes in its operations or in the transportation of its factory workers until it learned more about the circumstances of Thursday’s attacks.

Eagle Ottawa Co., which employed the workers who were attacked, issued a statement Thursday saying executives would comment after determining what happened. Eagle Ottawa, based in the Detroit area, makes leather for the automotive industry. It has two plants in Juárez.

Lance Levine, CEO of MFI International, an El Paso contract manufacturer that operates a Juárez maquila with 500 workers, said once more is known about the attacks, his company will evaluate operations to see if changes are needed.

“Security is always our major concern. We will evaluate everything,” Levine said. “We hope this doesn’t affect the industry. But anything that is negative has an impact.”

Pancho Uranga, an executive for electronics manufacturer Foxconn, which operates a huge computer-assembly campus on the West edge of Juárez, said he did not expect his company to make operational changes because of the bus attack. However, Foxconn is continually working on security for its workforce, he said.

“There needs to be more security forces present in the areas outside of Juárez,” Uranga said.

Chihuahua state police will increase security for maquila workers working night shifts, Mexican officials said Thursday.

The attack on the three buses took place about 1 a.m. Thursday in Caseta in the Valley of Juárez. Drug gangs have infested a string of small towns in the valley, police said.

Uranga said the attack sends a negative message to companies considering investments in Juárez.

Maquila workers have been attacked walking home, but there had been no attacks on buses transporting workers to their neighborhoods, he said. “That’s why this message is a little harsher,” Uranga said.

Bob Cook, president of the El Paso Regional Economic Development Corp., said any bad publicity can make it more difficult to recruit companies to Juárez. REDCo recruits companies tied to the maquila industry to both Juárez and El Paso.

Tecma’s Russell agreed that negative reports from Juárez hurt the maquiladora industry.

“I fight the PR battle continuously,” Russell said.

The maquilas – most in large, modern industrial parks – have not been immune from the crime surrounding them. Some were hit by ATM bandits in late 2008. The ATM machines were removed and the robberies stopped.

A Lear Corp. plant executive, kidnapped from his Juárez neighborhood in January, was rescued by Mexican soldiers. He told a Juárez TV station his captors thought he owned the Lear plant.

The maquila industry is not only important to Juárez. Many El Paso companies and workers are tied to the industry. For every 10 percent increase in maquila production in Juárez, employment in El Paso grows by 3 percent, according to an economist at the El Paso branch of the Federal Reserve Bank of Dallas.

Vic Kolenc may be reached at vkolenc@elpasotimes.com, 546-642.

Staff Writers Adriana Gomez Licon and Diana Washington Valdez and The Associated Press contributed.

 

 

 

FOR IMMEDIATE RELEASE:

The Board of Directors of the Association of Maquilas (AMAC) elected last Wednesday in their regular assembly Mr. Carlos Miranda as Pro-term President of the Association substituting Ms. Soledad Maynez Bribiesca, who has been assigned to the cabinet of Juarez mayor elect Héctor Murguía.

Mr. Miranda will assume his position as temporary leader effective October 6th.  Mr. Miranda currently holds the position of vice-president of the Board of Directors.

A specialist in the human resources field in the manufacturing industry, and following the AMAC statues, Mr. Miranda will call for an election on November 4^th, 2010.  During this election, he will challenge Jose Luis Armendáriz, the only current candidate for the President position.  

Mr. Miranda currently holds the position of Director of Human Resources for the Tecma Group of companies, a provider of sheltered services for manufacturers that wish to establish operations in Mexico.  

Mr. Miranda graduated from the Universidad Autónoma de Chihuahua where he majored in Business Administration.  He has more than 20 years of experience in human resources administration in manufacturing facilities of Japanese, U.S. and Korean operations.

Mr. Miranda has lead numerous innovative recruitment projects in the field of human resources, as well as human development and training programs.  He has participated in labor relationships in the legal and strategic planning areas with the purpose of creating compensation plans for the employees and has experience in environmental care in the industrial sector.

Mr. Miranda has been a member of the Council for Technical Administration of the Universidad Autónoma de Chihuahua and was a part of the board of directors of the Juarez Country Club. 

Mr. Miranda has served with the Association of Maquilas as a member of the Board of Directors in 1989, and as Vice President during the 2009 term.

Mr. Miranda was employed as a Human Resources Manager at Eagle Ottawa and MS International, and has been a member of the Environmental and Labor Committees of the Association of Maquilas where he was recognized for his work on the Social Security (IMSS) commission.

AMAC is a non-profit association  that was established back in 1974, which represents the Maquiladora industry to the Mexican Federal Government.  AMAC lobbies the Government in such matters of Tax, Customs and Infrastructure.  Also AMAC takes an important roll in local community involvement.

 

 

 

 

The Mexican city is dangerous and drug-infested, but manufacturers like the wages, freight costs, and location

By Christopher Power

Mexico’s Ciudad Juárez is one of the most violent places on earth. Drug gangs fight endless battles with each other and police in the streets and alleys of Juárez’ poorest neighborhoods. In the past 28 months this city of 1.5 million, across the Rio Grande from El Paso, has recorded 5,200 murders.

Even though Juárez is the center of Mexico’s war on drug dealers, it’s holding its own as the center of maquiladoras, the special zones Mexico developed 30 years ago to attract investment. “It’s a dual reality,” explains Bob Cook, president of the El Paso Regional Economic Development Corp., a group that encourages multinationals to invest on both sides of the border.

In return for building factories in the maquiladoras, multinationals get favorable tax treatment, pay low wages (sometimes as low as $4.21 a day), and take advantage of worker training sponsored by the local government. After mass layoffs during the recession, Juárez factories have added 27,000 workers in the past 10 months. Blue chips like Johnson & Johnson (JNJ), Delphi Automotive, and Scientific Atlanta show no signs of leaving. El Diario, the local daily, is filled with help-wanted ads from Lear (LEA), Delphi, Siemens (SIE), and other companies. Through April, nine companies had obtained permits to operate in Juárez, about the same as last year. K. Alan Russell, who runs industrial parks in Juárez for dozens of corporate clients, mostly American, says he has landed more business in 2010 than all of last year.

Proximity to the U.S. is a big reason for Juárez’ staying power as a place to invest, though drug gangs like their proximity to their American customers, too. Companies have direct access to the U.S. market, and freight trucks can go easily from a Juárez factory to U.S. Interstate 10. “From taking the order to delivery, our Juárez plant can get the job done in three to four weeks,” says Derek Johnson, chief executive of a Denver-based maker of store mannequins. “When you throw in ocean shipping, it sometimes takes our China plant 10 weeks to fulfill an order.” Johnson’s experience reflects recent studies that rank Mexican competitiveness right up with China’s, thanks to cheaper freight costs, a relatively skilled workforce, and those low wages.

The violence never ceases, however. Part of Cook’s PowerPoint pitch for investing in Juárez includes color-coded maps showing which cartels operate where in Mexico. The restaurant industry has been hurt by the violence: Many in Juárez don’t go out at night. “It will take a miracle to solve this,” says Cook.

Yet Francisco Uranga, Foxconn’s chief business operations officer for Latin America, can only recall one murder of a maquila employee that seemed cartel-related. The gangs, it seems, prey mostly on each other. “They don’t bother us. We don’t bother them,” says Uranga. The maquilas operate in closely guarded areas, often on the city’s outskirts and a stone’s throw from the big bridges to the U.S. This year, bridge traffic is up sharply. “We follow the cycle of the U.S. economy,” says Russell, “not the political instability.”

The bottom line: Low wages and freight costs, tax breaks, and location are all persuading companies to stay in Juárez.

Power is an assistant managing editor at BusinessWeek, responsible for international coverage.  

 

 

 

Manufacturers take steps to protect workers and expatriates from potential dangers.

 By:  Jonathan Katz

April 30, 2010 

Drug cartels responsible for as many as 22,000 reported deaths in Mexico over the past three years have put manufacturing plants along the border on notice but have not impeded business activity, say economic-development and plant officials.

The violence has not affected any U.S. citizens visiting the plants, known as maquiladoras, and is primarily targeted at individuals involved in the drug trade, says K. Alan Russell, whose El Paso, Texas, company The Tecma Group operates maquilas throughout Mexico.

“It is certainly a very dangerous environment if you’re in the wrong business, but the data tells us we’re not the ones being targeted,” says Russell, Tecma’s co-founder and president. “There’s certainly the possibility of a random carjacking or getting caught in the crossfire of these violent acts that we hear about; however, I’ve said a number of times it’s probably on the same level as being struck by lightning.” 

Russell says none of his clients have closed plants or left the area because of drug-related violence, though he says it’s difficult to determine whether the company has lost potential business because of the situation. In fact, The El Paso Regional Economic Development Corp., or Redco, has completed 11 deals for new operations in Juarez in the past 11 months, according to Redco President Bob Cook. 

Russell and Cook say most plants in the region that have closed or moved have done so because of economic conditions. 

Maquila Workers Face Dangers

Cook characterizes the rare instances of crime in the manufacturing community as “opportunistic” incidents conducted mainly by small-time criminals who are taking advantage of the Mexican government’s focus on corruption.

 ”What’s happened is with all the focus on these organized-crime elements and the fact that the government at the local level has made an effort to get rid of corruption, it’s created an environment where opportunistic criminals have tried to undertake their criminal activity when law enforcement is elsewhere,” Cook says.

Despite reports that the violence has had little, if any impact, on U.S. business travelers, maquila workers have been directly and indirectly impacted by the increased criminal activity. Gunmen made off with uniforms and at least five trucks on April 11 from an operation owned by oilfield services company Schlumberger Ltd. in Reynosa, Mexico, which borders McAllen, Texas., according to a report in The (McAllen) Monitor. IndustryWeek could not reach a Schlumberger representative for comment. 

An employee at a General Cable Corp. plant in Piedras Negras, Mexico, lost his brother-in-law who was caught in crossfire, says German Zavala, plant manager. The plant hasn’t taken many formal actions to increase security but has advised employees to keep a low profile. 

“We’re basically spreading the word to not stay out too late at night, don’t go around bar hopping — stuff like that,” Zavala says. “We’re not taking out-of-the-way measures to keep everyone safe. If you stay in your own business, you should be safe.”

The plant also has cut back on training seminars and courses in Mexico to protect employees and limited travel from Mexico. “We used to fly out of Laredo, Mexico, or Monterrey, but now most people are driving up to San Antonio, Texas, and flying out of there,” Zavala says. 

Ensuring Worker Safety

The safest plants provide transportation for late-shift workers, says Garrett Brown, network coordinator for the Maquiladora Health & Safety Support Network based in Berkley, Calif. The organization comprises more than 400 volunteer occupational health and safety professionals who work as advocates for maquila worker safety.

“The better employers have had in place for some time a system of buses that are employer funded or subsidized, which take people on routes from the plant to their home,” he says. 

Tecma’s Russell says that’s been the standard at his plants for years and typical for most maquilas. But Brown says female employees could be hesitant to take the buses because some of the suspects associated with a series of rapes and murders between 1993 and 2003 in Juarez were maquila bus drivers. 

“Part of the reason these young women have been victims is that the maquilas often work two or three shifts, so oftentimes women who work the second shift get off at 11 or 12 at night, at which point no public buses are operating,” Brown says. “Since maquila workers are paid so little, it means they can’t afford cars and they’re walking through industrial areas at 11 or 12 at night, which is very unsafe.”

 

TECMA: NAFTA in Motion Since 1986

Interview with K. Alan Russell By Arturo Chretín – Juarez-El Paso Now Magazine.  January 2010

Tecma provides virtually everything a company in Mexico needs when looking to outsource or manufacture off-shore without the inherent hurdles and hassles. This is done at tremendous savings with 100% control in the client’s hands – guaranteed.

K. Alan Russell is Co-Founder and President of The TECMA Group headquartered in El Paso, Tex. The firm has a subsidiary in Mexico with locations in Ciudad Juarez, Camargo, Chihuahua, Torreon, Coahuila and Leon, Guanajuato. He was interviewed by Juarez El Paso NOW.

 “What sets Tecma apart from its competitors” he explained, “…was that it began more than 15 years ago and was the result of the industrial real estate industry. The market for industrial buildings at that time,” he continued, “was for the most part built to suit. In other words there were no spec-buildings being built and very little available vacancy.” 

 During this time, according to Mr. Russell, Tecma did not have the ability to develop industrial sites or construct facilities for their clients.  “In order to compete,” he explained, “our Sheltered Services had to be much better than the advantaged builders and developers that also offered shelter services.” 

 In today’s market with a large amount of real estate to choose from, Tecma has the advantage. 

 The Company has grown since its conception over 20 years ago and so has the Tecma philosophy. As co-founder of the Company, Russell sees it and explains: “Experience is always the best teacher. We have learned that our true competition is not China, it is not another region or another Shelter Provider.” 

“Our real competition” Mr. Russell continues, “is a company coming to Mexico and doing their own Integration into the country and then running Stand-Alone without us.”  

Tecma accepts all operational liability in Mexico for its clients; they can facilitate the lowest employee turnover. The Company can also put 25 years of experience on the table in all disciplines.  This is what is expected of them. “The real test is that we can do this,” said Russell, “at a cost that is competitive to what a client, any client, can do for themselves. And we understand this at Tecma and use our economies of scale to bring this advantage to our clients.”

Tecma is really not diverse at all. They are extremely focused on their core competency. Even though their clients range in industries from textiles, automotive, electronics, plastics, magnetics, fiber optics, pet products and even fire arms, Tecma’s product quality remains the same and Tecma’s clients are able to see the border as an opportunity rather than a barrier.

What does it mean to operate under the Tecma Umbrella? It means that the Company’s professional services facilitate working in Mexico while boosting their clients’ productivity and profitability. K. Alan Russell pointed this out: “First, there are the integration services. This is the step where we help our client pick the correct region, the correct city and then the correct site within the city decided on. We assist with cost analyses, budgeting, construction or lease negotiations and other front-end requirements which all business transfers require.” 

“Once established,” Russell said as he elaborated on the Tecma Umbrella, “then the sheltered services begin. This is where the symbol of the Umbrella becomes significant. The Umbrella represents the shelter which protects our clients from the many complexities and distractions of operating a manufacturing plant in Mexico. Tecma also provides independent cafeteria, payroll and Mexican accounting services for clients in their own stand-alone operations.”

Tecma is a Company that bases their success on their qualified labor force. In this way, K. Alan Russell, who is the President of the Company commented: “We believe that all companies are valued by the stability, loyalty and quality of their labor force. It just so happens that these core principles are the foundation of Tecma´s services. Training alone will not do it. You must really care a lot and take the culture, emotions and opinions of your workforce into account.” 

The year 2010 is just beginning and the expectations for the industry as well as for Tecma are relying on the improvement over the situation we just lived through in 2009.

Mr. Russell also had this to say: “The unfortunate part of the down-turn was the required lay-offs of some of our loyal and valued family members. However, if the past 60 days is a good indicator of what 2010 will be like, we are going to need these people back.  We believe that with a waiting list of good people ready to return to work, that Tecma has the experienced surge capacity to seize the moment as the economy turns around.  We will emerge stronger at the end of 2010 than ever before.”

“Never in our recent history,” according to Russell, “have all the cards been stacked so much in favor of manufacturing in Mexico.” The Co-Founder and CEO of The TECMA Group concluded: “As the market turns, the Mexico plants will be the first to deliver on that demand. Mexico has the facilities available and an experienced workforce to address this demand. Those individuals and companies with experience in the Maquila Industry will see the greatest opportunities of our carriers unfold over the next five years.”