Juarez Location Analysis

October 2012 www.DATAMARK.net

Juárez, Mexico: Outsourcing Location Analysis

Introduction Juárez, Mexico is the largest city in the state of Chihuahua, and the second-most populated city on the U.S.-Mexico border, after Tijuana, Baja California. Juárez lies on the Rio Grande river, just south of El Paso, Texas. Together, the two cities form a metropolis of more than 2.5 million people.

As El Paso's sister city, Juárez has long been home to a thriving bilingual, bi-cultural business climate, where thousands cross the border daily in both directions to work, shop and visit friends and family.

Home to a twin-plant "maquila" industry for more than four decades, Juárez has more than 40 industrial parks. More than 70 Fortune 500 companies conduct business in Juárez.

Juárez, Mexico Quick Facts:

1.6 million population

5 international crossings

3 public and 2 private universities

$60 billion in U.S.-Mexico trade came through El Paso/Juárez in 20111

North and Southbound El Paso/Juárez vehicle crossings totaled 5.2 million in 20111

North and Southbound El Paso/Juárez pedestrian crossings totaled 6.8 million in

20111

Major Employers in Juárez2

Delphi -- 16,521 employees

Lear Corporation -- 7,774 employees

Foxconn -- 6,000 employees

Scientific Atlanta --5,347 employees

ADC -- 3,100 employees

Lexmark -- 2,800 employees

Electrolux --2,156 employees

Toro -- 1,800 employees

Bosch --1,633 employees

Historical and Cultural Attractions in Juárez

The Guadalupe Mission -- Founded in 1659 by Spanish friar Fray García de San

Francisco.

Our Lady de Guadalupe Cathedral--Adjacent to the Guadalupe mission, this

structure was built in the 1950s and two 100-foot towers.

El Parque Chamizal--A popular 40-acre park established in the 1960s after the

resolution of a border dispute caused by the meandering Rio Grande river.

Juarez History Museum--Housed in a Victorian structure, formerly the Federal

Customs House, built in the late 1800s.

Samalayuca Dunes--Expansive sand dune field southwest of Juárez. Location for

exterior shots for the 1980s sci-fi movie "Dune."

Monument to Benito Juárez--Built by Italian sculptors in 1910, the monument

honors Juárez, a Zapotec Indian who served five terms as Mexican president.

Home to a twin-

plant "maquila"

industry for more

than four decades,

Juárez has more

than 40 industrial

parks.

More than 70

Fortune 500

companies conduct

business in Juárez.

2 ©2012 Datamark, Inc. www.datamark.net

Monument to Benito Juárez--Built by Italian sculptors in 1910, the monument

honors Juárez, a Zapotec Indian who served five terms as Mexican president.

Security Conditions in Juárez Shortly after assuming office in 2006, then-Mexican-President Felipe Calderón ordered the armed forces and Federal Police to put down the powerful cartels that controlled drug trafficking in various regions throughout the country. The Mexican Drug War, as it came to be known, resulted in headline-making violence between the military, police and cartels, and between the cartels themselves.

From 2007 to 2010, Juárez experienced a tremendous spike in its murder rate as the Juárez and Sinaloa cartels battled for control of the drug-trafficking route. The drug war affected every resident in some way, but for the most part, the cartels contained the fight to each other and the Mexican military. Big, multi-national companies continued to do business on the border, and even thrived during this time period. Employment levels have returned to their pre-recession peak, and international trade between Juárez and El Paso skyrocketed 47 percent between 2009 and 2010. 3

In a 2010 interview with the El Paso Times, Bill Parisen, vice president for an international manufacturer relocating from California, said low labor costs, a well-trained workforce and good logistics made Juárez his company's choice over other locations in the region.

"We did our due diligence. We found the border violence left maquiladoras unaffected in terms of employees needing to move in and out of Juárez," Parisen said.


Employment levels

have returned to

their pre-recession

peak, and

international trade

between Juárez

and El Paso

skyrocketed 47

percent between

2009 and 2010.

In 2011, Juárez installed a new police chief, Julián Leyzaola, who had built a reputation as a fierce opponent of the cartels by bringing the violence under control in the border city of Tijuana. Since Leyzaola's arrival, the number of homicides has plunged 80 percent from its peak. 4 Experts attribute the drop in violence to the end of the Juárez-Sinaloa cartel conflict, as well as to Leyzaola's tough policing of the city.

In the Press: What People are Saying About Juárez Today “People go out more. You see families in the parks. People are taking back their city.”

--Nancy Ruiz, accountant and Juárez resident, in an interview with Fox News Latino, Oct. 2, 2012.

“He has lowered the murder rate, called out the cartels, survived seven attempts on his life. This is Mexico’s bravest man.”

--Documentary filmmaker Charlie Minn, on Juárez police chief Julián Leyzaola; Borderzine: Journalism Across Fronteras, Oct. 4, 2012.

"One thing is clear – Mexico is not the war-torn wasteland it is often made out to be. Its people have a glorious history, and a hopeful future."

--CNN senior producer Ravi Agrawal, CNN GPS blog, Sept. 12, 2012.

"Suddenly, it seems, Mexico has become the preferred centre of manufacturing for multinational companies looking to supply the Americas and, increasingly, beyond. Today, Mexico exports more manufactured products than the rest of Latin America put together."

--Financial Times, Sept. 19, 2012

“The city has hope now. Businesses are opening. People have shed their fear.” --Eli Valle, fashion designer and Juárez resident, interviewed by the New York Times, May 9, 2012.

Worker Safety at DATAMARK's Juárez Facility Fortunately, Juárez citizens employed by multi-national companies have not been targeted by the cartels during the conflict. Multi-national companies typically do not transport large amounts of cash or finished goods that can easily be resold if stolen.


There have been zero incidents of violence or theft against DATAMARK employees traveling to or from work. DATAMARK puts the highest priority on the health and safety of its employees, and the Juárez facility includes a number of security protocols and features, including:

Employee transportation in company-provided buses.

The DATAMARK building is located in a secure maquila park with an entrance staffed 24/7 by security patrols.

A valid ID is required to enter the facility , and all guest appointments are verified.

Alarms (fire and burglary) are monitored by a private security service.

The facility is equipped with 17 CCTV security cameras.

Diesel generator backup for electrical failures.

Security includes door alarms and panic buttons.

Data Security at DATAMARK's Juárez Facility

Card-swipe entry to data center.

Servers locked in enclosed racks.

System access controlled by MS Active Directory.

Internet firewall with intrusion protection and detection monitoring services.

All servers and network equipment have UPS and power generator backup.

Why Choose DATAMARK's Juárez Facility for Call Center Services? Juárez continues to be a thriving destination for multi-national business despite troubles associated with Mexico's ongoing war against the drug cartels. The U.S.-Mexico border is a bilingual, bicultural setting with favorable labor rates and access to a skilled workforce. Establishing call center operations in Juárez offers access to these benefits and more:

200-seat center offers flexibility and scalability.

Neutral American English and Latin American Spanish accents.

The U.S.-Mexico

border is a

bilingual, bicultural

setting with

favorable labor

rates and access to

a skilled workforce.


Familiarity with American idioms and culture

Favorable location and time zone for travel

Proven DATAMARK track record with U.S. customers

Sources

1. Texas A&M International University Texas Center for Border Economic and Enterprise Development; http://texascenter.tamiu.edu/texcen_services/border_trade.asp.

2. El Paso Regional Economic Development Corporation; www.elpasoredco.org. 3. "Plan El Paso: Vol. II"; Chapter 11, Border Relations; Published April 2012.

4. Mesa de Seguridad, Juárez; "Indicadores de Seguridad, Septiembre 2012"; www.mesadeseguiridad.org.

About DATAMARK

DATAMARK is a leading provider of digital mailroom management, data entry, document processing and business process re-engineering solutions for Fortune 500 companies, government agencies and other large organizations.

Founded in 1989, our company is the strategic business process outsourcing partner for Top 10 companies across several industry sectors, including transportation and logistics, healthcare, insurance, banking and financial services. With onshore and offshore centers, DATAMARK delivers process optimization, technology and Enterprise Content Management solutions to help organizations achieve efficiency and profitability in all back-office business functions.

For more information on how DATAMARK’s business processing solutions can reduce operating costs while improving efficiency, flexibility, and customer satisfaction, call 800-477-1944 or email [email protected].

DATAMARK, Inc. 123 W. Mills Ave., 4th Floor El Paso, TX 79901 USA www.DATAMARK.net


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Juarez Location Analysis