Mexico Supplier Base in Saltillo

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Getting to Know the Saltillo Supplier Base was presented at The Offshore Group’s Manufacturing in Mexico Summit. For more information please visit http://www.offshoregroup.com/mexico-outsource-showcase/ manufacturing-in-mexico-summit

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Offshore Group Manufacturing in Mexico Summit Saltillo Coahuila Getting to Know the Saltillo Supplier Base As presented at The Offshore Group ’ s Manufacturing in Mexico Summit. www.offshoregroup.com

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As presented at The Offshore Group ’ s Manufacturing in Mexico Summit. www.offshoregroup.com

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• Founded in 1577 • In 1824 made the capital of the State of Coahuila • Population of 633,667 citizens • Metro area 725,000 citizens Saltillo As presented at The Offshore Group ’ s Manufacturing in Mexico Summit. www.offshoregroup.com

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Saltillo • • • • Saltillo Tiles Woven Multicolored - Sarapes Saltillo used to be a foundry town Saltillo now it is considered by many the Mexico’s little Detroit. • Powerbrace arrived in 2004 • Since then our Supplier Development has started. As presented at The Offshore Group ’ s Manufacturing in Mexico Summit. www.offshoregroup.com

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Saltillo Roadway Access As presented at The Offshore Group ’ s Manufacturing in Mexico Summit. www.offshoregroup.com

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Saltillo Railway Access As presented at The Offshore Group ’ s Manufacturing in Mexico Summit. www.offshoregroup.com

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Saltillo Airway Access As presented at The Offshore Group ’ s Manufacturing in Mexico Summit. www.offshoregroup.com

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Finding Suppliers • Mexican companies are just starting to advertise on Internet. • Investment does not go into marketing strategies. • The way many companies is constituted contributes to the issue. • Company names sometimes does not help. – TUFF RODEO (High Quality Powder Coating Supplier) – EL CONDOR (MRO Integrator) – LA PALOMA (Steel source) As presented at The Offshore Group ’ s Manufacturing in Mexico Summit. www.offshoregroup.com

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Finding Suppliers • Be patient! • Several Chambers: – – – – CNIME www.cnime.org.mx CANACINTRA www.canacintra-digital.com.mx COPARMEX www.coparmex.org.mx CANACERO www.canacero.com.mx • Establish strong networks with companies in the area. • Scout the area, you never know what you will find. As presented at The Offshore Group ’ s Manufacturing in Mexico Summit. www.offshoregroup.com

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Finding Suppliers As presented at The Offshore Group ’ s Manufacturing in Mexico Summit. www.offshoregroup.com

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Supplier Development As presented at The Offshore Group ’ s Manufacturing in Mexico Summit. www.offshoregroup.com

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Assessment of the Supplier Base As presented at The Offshore Group ’ s Manufacturing in Mexico Summit. www.offshoregroup.com

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Cultural Differences • Honor continues to be basis for establishing agreements. • Communicate in written notice all your specifications and requirements. • Patience (different priorities) – This is NOT to say that Mexicans are never in a hurry. • Chaos (Worry Curve) – The curious part is that everything DOES get done. • Relationships and social networks are EXTREMELY Important As presented at The Offshore Group ’ s Manufacturing in Mexico Summit. www.offshoregroup.com

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Workforce • Saltillo the “Athens”of Mexico • Language Barriers • Mexicans are more familiar with Manufacturing knowledge. • Strong Values: – Work for survival – Loyalty – Mexican Holidays As presented at The Offshore Group ’ s Manufacturing in Mexico Summit. www.offshoregroup.com

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CFE 2007, SQA BIMBO de Mexico 2007, NQA Quality Standards • 1980’s the big shift. • Majority of Suppliers are certified. – Great Understanding of continuous Improvement • Premio Nacional de Calidad • Premio Estatal de Calidad. • To Consider: – Review administrative procedures – Test Labs As presented at The Offshore Group ’ s Manufacturing in Mexico Summit. www.offshoregroup.com

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Availability of commodities • 7.3% Domestic Electricity. • 29.1% Domestic Natural Gas. • 2.2 Gross Domestic Product. As presented at The Offshore Group ’ s Manufacturing in Mexico Summit. www.offshoregroup.com

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Availability of commodities Steel As presented at The Offshore Group ’ s Manufacturing in Mexico Summit. www.offshoregroup.com

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•Mining Supply •Wood Supply •Water Supply •Mexico’s Electricity based on coal. •Oil bonanza is drying up Availability of commodities As presented at The Offshore Group ’ s Manufacturing in Mexico Summit. www.offshoregroup.com

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Availability of Commodities • MRO – – – – – Evaluate your machinery Spare parts less expensive in USA Be aware of forklifts! Evaluate your current suppliers Work with Offshore ahead of time • Services – Do it yourself thinking! As presented at The Offshore Group ’ s Manufacturing in Mexico Summit. www.offshoregroup.com

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• Mexican Suppliers: – Work with less logistic hassles. – are in near proximity to USA. – are more familiar with Manufacturing knowledge. – Mexican Suppliers are more in tune with US Standards. • Take your time. • Establish administrative procedures in advance • Be open minded. Conclusions As presented at The Offshore Group ’ s Manufacturing in Mexico Summit. www.offshoregroup.com

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Thank you very much and good luck wile doing business in Mexico Questions & Answer Session? As presented at The Offshore Group ’ s Manufacturing in Mexico Summit. www.offshoregroup.com