The Offshore Group Value Proposition

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Presentation Description

Learn how The Offshore Groups enables manufacturers in Mexico to increase their bottom-line by initiating and maintaining low-cost manufacturing centers under its Mexico Shelter Plan. www.offshoregroup.com

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Presentation Transcript

World-Class Support For Manufacturers: 

The Offshore Group Innovative Outsourcing World-Class Support For Manufacturers Our Team Of Over 500 Experts Working For You Presented to: Nissan Purchasing www.offshoregroup.com

Presentation Objectives:: 

Presentation Objectives: Who we are What we do How The Offshore Group services can enable companies to reduce their manufacturing costs World-Class Support For Manufacturers The Offshore Group www.offshoregroup.com

Who is The Offshore Group?: 

World-Class Support For Manufacturers 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 9001-2008 standard. Who is The Offshore Group? www.offshoregroup.com

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World-Class Support For Manufacturers The Offshore Group Offshore International, Inc. Offshore International, LLC Maquilas Tetakawi S.A. de C.V. Manufacturas Zapalinamé S.A. de C.V. International Logistic Solutions (ILS) Vangtel Nearshoring Solution www.offshoregroup.com

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

Our Strategic Locations: 

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 www.offshoregroup.com

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

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

What we do:: 

What we do: World-Class Support For Manufacturers The Offshore Group We enable 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. www.offshoregroup.com

What You Do & Control:: 

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

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Employee Busing La Angostura Industrial Park Saltillo, Coahuila Mexico www.offshoregroup.com

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www.offshoregroup.com

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www.offshoregroup.com

Benefits of The Offshore Group Shelter Program.: 

Benefits of The Offshore Group Shelter Program. 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 www.offshoregroup.com

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World-Class Support For Manufacturers The Offshore Group Four Ways Our Shelter Model Enhances Manufacturers ’ Competitiveness 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. www.offshoregroup.com

Manufacturers We Serve Today: 56: 

Manufacturers We Serve Today: 56 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 Arc-Tronics 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 www.offshoregroup.com

Client Retention:: 

Client Retention: www.offshoregroup.com

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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. 2.24 0.11 2.76 7.25 Max. 4.85 1.21 5.30 40.62 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 www.offshoregroup.com

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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 The Offshore Group can enable Nissan suppliers to reduce their manufacturing costs World-Class Support For Manufacturers The Offshore Group www.offshoregroup.com

Our Value Proposition: 

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 www.offshoregroup.com

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For more information: www.offshoregroup.com Todd Nelson Business Development The Offshore Group Email: todd.nelson@offshoregroup.com U.S. (956) 802-0796 Mexico (81) 8342 4741 Skype: Todd Nelson Sunset at Los Algodones Beach Located in San Carlos, Sonora Mexico www.offshoregroup.com