Cost–Effective Nearshore Manufacturing

The Tecma Group of Companies

The Primary Reasons that Companies are

Interested in Mexico as a

Manufacturing Venue:

• Reducing manufacturing costs and

related overhead

• Servicing existing customers

• Developing new markets

The Tecma Group of Companies

• Founded in 1986

• U.S. Owned and Operated

• El Paso – Ciudad Juarez Primary Business Location

• Service Areas:

Tecma Shelter Manufacturing Partnership (TMSP)

Logistics Services and Shipping SecurityIndustrial Cafeteria ServicesJoint VenturesGeneral Mexico Business Consulting (site selection)

Tecma by the Numbers

• Two hundred+ start-ups in almost three

decades

• More than thirty client companies

• Three thousand+ employees

• One million+ square feet of industrial space

Companies that have chosen Tecma:

Tecma Shelter Manufacturing Partnership

Tecma Group clients operate manufacturing facilities in Mexico at which production

is fully under their control, while working within the framework of the U.S. legal

system.

ManufacturerTecma Group

LP

Tecma Group

Mexico

Tecma Group clients are “subdivisions” of Tecma’s Mexican legal entity. Tecma

clients have no legal or fiscal presence in Mexico thereby reducing certain risks and

employer responsibilities

U.S.

Mexico

Tecma Shelter Manufacturing Partnership

Tecma Group’s Mexico Shelter Manufacturing Partnership delivers service in critical

and necessary non-value added, non-manufacturing functions, freeing

manufacturers to concentrate on their core mission.

Assembly and

Fabrication

Design and

Engineering

Quality

Control ands

Testing

Materials

Purchasing

Human

Resources

Payroll and

Benefits

Accounting

and Fiscal

Compliance

Mexico

Logistics and

Customs

Industrial Real

EstateEmployee

CafeteriaPermitting and

Legal

Industrial

Concierge

Tecma Group clients are in business to perform and fully concentrate on the

following value-added, production related activities:

Mexico Shelter Manufacturing Partnership

in El Paso and Ciudad Juarez

• Comprehensive and turn-key service ensuring a quick, time

and money saving start-up

• Reduced operational costs

• Reduced shipping and logistics costs

• Close proximity to major consumer and industrial markets

on both sides of the border

• Ready access to a highly-skilled and qualified labor pool

• Bi-cultural quality of life for manufacturing executives

Mexico Shelter Manufacturing Partnership Costs

Direct Labor

Mexico Shelter Manufacturing Partnership Costs

Total Costs including DL and all additional

overhead.

The Tecma Group’s Billing Methodology

Simple, Straightforward and “Open Book”

Invoicing:

•Mexico Shelter Service Mark Up

•Industrial Real Estate Rental Fee

•Mexico M.R.O. Purchases

The Tecma Factor

What distinguishes Tecma Group from other similar service

provides in El Paso – Ciudad Juarez, and elsewhere in Mexico:

•Core competency in Mexico Manufacturing Shelter services, not as an “add-on”

•Flexibility to suit clients’ needs, not the other way around

•Scale that generates savings

•Professionalism in the form of a fully staffed human resources department to make

hires that “stick”

•Trust established over three decades of servicing manufacturers in Mexico

Logistics, Supply Chain and Shipping Security

Tecma serves its clients in the area of supply chain management

by:

Addressing shipping security through services provided by Secure Origins, Inc.

•Loading and sealing process video security

•GPS tracking and surveillance of land, rail and ocean shipments

•Web-based supply chain visibility tools

Tecma’s logistics service offerings include:

• Transportation and warehousing

• Purchasing and inventory management

• Customs compliance and document preparation

Industrial Cafeteria Services

Tecma has been serving meals to maquiladora plant employees for almost two

decades, and employs more than 300 workers to fuel a hungry workforce with

over 14,000 meals a day.

Tecma guarantees that the food the employees receive is held to the highest

standard of quality and hygiene, and offers:

■ Fast and friendly service to every person enjoying the cafeteria.

■ Satisfying portions■ Catering services for employee picnics, special celebrations,

receptions or any other type of events.■ Stringent safety and hygiene practices in the handling, preparation

and serving of food.■ Traditional cafeteria line services.■ All-you-can-eat options■ Service plans tailored to the clients’ needs

Joint Venture Formation

Tecma is open to forming joint ventures with one or more parties to undertake economic activity in Mexico together. The parties agree, in creating this new entity, to both contributing equity, and sharing in the revenues, expenses, and control of the newly created enterprise. The venture can be for one specific project only, or a continuing business relationship.

Potential reasons for forming a joint venture with Tecma include:

■ Build on company’s strengths

■ Spreading costs and risks

■ Improving access to financial resources

■ Economies of scale and advantages of size

■ Access to new technologies and customers

■ Access to innovative managerial practices

■ Influencing structural evolution of the industry

■ Pre-empting competition

■ Defensive response to blurring industry boundaries

■ Creation of stronger competitive units

■ Speed to market

■ Improved agility

Site Selection and Mexico Business

ConsultationTecma offers a wide range of cost effective solutions to assist you in establishing

your business in Mexico. We start by signing a non-disclosure agreement (NDA) that

ensures confidentiality throughout the process:

�Review criteria for site and facility, in order formulate:

1. Project overview

2. Company location criteria

3. Industrial building and infrastructure needs criteria

�Perform location and site analysis to understand:

1. Population and labor forces trends

2. Workforce, wages and labor stability

3. Industrial and/or consumer market conditions

4. Competitive forces

�Analyze physical and transportation infrastructure.

�Survey suppliers of services and materials.

�Identify government economic incentives (federal and state)

�Provide “quality of life” and education resource information

Next Steps

�Potential Client Needs Assessment Form

�Mexico Site Visit

�Comprehensive Costing Analysis

Contact Information

K. Alan Russell

President and CEO

Tecma Group, LP

2000 Wyoming Ave., El Paso, Texas 79903

Phone: 915 . 534.4252; Fax: 915 . 534.0205

E-mail: Alan@Tecma.com