Offshore GroupManufacturing in Mexico SummitSaltillo Coahuila

Getting to Know theSaltillo Supplier Base

• Founded in 1577

• In 1824 made the capital of theState of Coahuila

• Population of 633,667 citizens

• Metro area 725,000 citizens

Saltillo

Saltillo

••••

Saltillo TilesWoven Multicolored - SarapesSaltillo used to be a foundry townSaltillo now it is considered by manythe Mexico’s little Detroit.

• Powerbrace arrived in 2004• Since then our Supplier Development

has started.

Saltillo Roadway Access

Saltillo Railway Access

Saltillo Airway Access

Finding Suppliers

• Mexican companies are just starting toadvertise on Internet.

• Investment does not go into marketingstrategies.

• The way many companies isconstituted contributes to the issue.

• Company names sometimes does nothelp.– TUFF RODEO (High Quality Powder

Coating Supplier)– EL CONDOR (MRO Integrator)– LA PALOMA (Steel source)

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 withcompanies in the area.

• Scout the area, you never know whatyou will find.

Finding Suppliers

Supplier Development

Assessment of theSupplier Base

Cultural Differences

• Honor continues to be basis forestablishing agreements.

• Communicate in written notice all yourspecifications 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 areEXTREMELY Important

Workforce

• Saltillo the “Athens”of Mexico

• Language Barriers• Mexicans are more familiar with

Manufacturing knowledge.

• Strong Values:– Work for survival– Loyalty– Mexican Holidays

CFE 2007, SQABIMBO de Mexico

2007, NQA

Quality Standards

• 1980’s the big shift.• Majority of Suppliers are certified.

– Great Understanding of continuousImprovement

• Premio Nacional de Calidad• Premio Estatal de Calidad.• To Consider:

– Review administrative procedures– Test Labs

Availability of commodities

• 7.3% DomesticElectricity.

• 29.1% Domestic NaturalGas.

• 2.2 Gross DomesticProduct.

Availability of commodities

Steel

•Mining Supply•Wood Supply•Water Supply•Mexico’s Electricity based

on coal.•Oil bonanza is drying up

Availability of commodities

Availability of Commodities

• MRO–––––

Evaluate your machinerySpare parts less expensive in USABe aware of forklifts!Evaluate your current suppliersWork with Offshore ahead of time

• Services– Do it yourself thinking!

• 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

Thank you very much andgood luck wile doingbusiness in Mexico

Questions & AnswerSession?