Posts tagged ‘border economy’
Analysis by Crossborder Group Finds Tijuana #1 City in North America for Medical Device Manufacturing Employment
FACT: there are 29 aerospace industry firms operating in the City of Tijuana, Baja California.
FACT: based on a company survey of each of those 29 firms, Crossborder Group found average Q2-2011 employment totaling 7,313 workers, making Tijuana the Mexican city with the largest number of aerospace cluster employees within 400 miles of the US-Mexico border.
These are just two of the many findings in a recent aerospace industry white paper developed by Crossborder Group for the City of Tijuana Economic Development Corporation (DEITAC) and released at this year’s Paris Air Show by DEITAC and Baja California business and economic leaders. As with most of Crossborder’s business projects, (more…)
Crossborder Group has just completed an analysis of the most-recent INEGI data for Mexico’s maquiladora/IMMEX industry — some findings of which are presented at right in our CrossborderInforma briefing (download here, or by clicking on the image [PDF, 175kb]). Beyond the fact that Mexico’s IMMEX companies are continuing their rebound from the 2008-2009 recession — ending 2010 with a respectable 1.81 million employees (9.1% growth year-over-year compared to December 2009) — several other findings stand out:
- Border states captured only 63% of the nearly 165,000 jobs created in the maquiladora/IMMEX sectors in 2010;
- Nuevo León has surpassed Baja California for second-place in terms of total IMMEX employees (despite the negative security image, Chihuahua remains in first-place); and… (more…)
Since we started doing at-border surveys in 2003, one of our goals has been to make finding information out about this binational marketplace more affordable — and to provide useful data to businesses and policy makers without waiting for infrequent (and really expensive) studies… Our recent CrossborderInforma briefing about crossborder holiday shoppers and their economic impact on San Diego (read it here), in fact, reflects those goals.
Well, today we’re happy to announce a new Quarterly, at-border survey service –pre-scheduled times each quarter to ask 4 to 8 of your questions at very affordable prices (check out our Quarterly Omnibus Survey flyer in PDF, here or below). This at-border survey service uses trained, bilingual Crossborder staff with PDAs, and can cover the entire California-Mexico border (San Ysidro, Otay Mesa, Tecate, Calexico, Calexico East and Andrade — with other POEs optional).
Got questions you want to ask border crossers? Download our CrossborderSurveys Quarterly Omnibus overview — and contact us today about our Spring and Summer 2011 survey sessions (multi-season discounts available!). We can help you answer questions about the hundreds of thousands of border crossers people that make up the US-Mexico border economy!
Questions? Email us at Answers[at]CrossborderBusiness[dot]com.
Crossborder Group has released initial findings from their December 2010 (Winter Quarter) at-border surveys, conducted among nearly 1,000, randomly-selected northbound car, SENTRI, and pedestrian travelers at the San Ysidro and Otay Mesa Ports of Entry. These results (download PDF at right) highlight nearly 800 responses from Mexico-residing visitors into San Diego and their Christmas Holiday purchases in San Diego County.
“Since 2003 we’ve been surveying border crossers, and have repeatedly asked Mexican shoppers to estimate their household expenditures on Christmas gifts purchased in San Diego,” explains Kenn Morris, President of California-based Crossborder Group and it’s Mexico subsidiary, Crossborder NS, S de RL de CV. “This last Holiday season, Baja California visitors estimated that they’d spent $536 dollars per household on Christmas gifts purchased in San Diego — that’s an enormous and positive economic impact that the public should know about.” (more…)
The Mexican peso has reached its strongest exchange rate against the U.S. dollar since October 2008 — 12.07 pesos to US$1 — benefiting some in the domestic market, while bringing back some concerns about a “Super Peso” for those that are involved with (or depend upon) cash inflows from the United States.
As seen in the graph at right (developed by Crossborder Group and based on historic Banco de México peso exchange rate data [showing the official rate to resolve currency obligations]), the peso was last at these levels in early-October, 2008, during a time in which the peso depreciated by 20-30% from 10 pesos per US$1.
A variety of factors appear to be creating this peso-strengthening trend: a still-slow U.S. economic recovery, concerns about certain European markets (and the stability of the Euro), and the contrasting relative fiscal/economic stability in Mexico. In fact, recent efforts by the Calderon Administration to increase foreign reserves to over US$113 billion and secure a US$73 billion two-year line of credit from the IMF, while maintaining Government debt to just over 2% of GDP, will likely contribute to some continued strengthening of the peso for at least the first half of 2011.
A new Super Peso could lead to increasing costs for international visitors to Mexico, as well as a higher cost for production in the foreign-dominated IMMEX/maquiladora industry — potentially undermining some of Mexico’s competitive strength internationally. Crossborder Group will continue to track this issue throughout 2011, and can provide insights into potential impacts on your market or industry — contact us at answers[at]crossborderbusiness.com for more information.
For those keeping up on border infrastructure issues in the California-Baja California region, some quiet progress has been happening that could dramatically shape the future of the binational sister cities of Tijuana and San Diego. On July 23, the U.S. State Department issued a Finding of No Significant Impact (FONSI) [link] for Otay-Tijuana Venture, LLC’s proposed crossborder airport terminal — followed even more quickly than some (including ourselves) could imagine with the issuance on August 4 (only hours ago, as of this writing) by Secretary of State Clinton of the Presidential Permit required to authorize moving forward on the project [link to announcement].
While many may not be familiar with this project, the concept has been discussed at various governmental levels (and various levels of interest) since at least 1991 — the year that Mexico’s Aeropuertos y Servicios Auxiliares (ASA) proposed an expansion of Tijuana’s International Airport (TIJ) that included two runways and a US terminal in Otay Mesa. More recently, a local economic development organization, the South County Economic Development Council (SCEDC), has championed the concept, resulting in a positive preliminary study in 2007-2008 by the San Diego Airport Authority. Our own firm, in fact, included questions about the crossborder terminal concept in our own at-border surveys for several years — a few results of which are presented at bottom — finding that over one-third of San Diego residents that crossed the border had flown out of TIJ at least once within the last year. (more…)
New data from several major automotive manufacturers signals a recovery, and a shift toward expansion and increased foreign direct investment into Mexico’s automotive industry.
Mexico’s automotive sector experienced a steep decline in production and investment in 2009 due to the global economic downturn. In fact, by January of 2009, production of cars and light trucks had fallen to less than half of January 2008′s levels — a trend which continued throughout most of 2009. However, several major OEM’s have recently announced plans for production or supplier expansions in Mexico over next few years.
We’re proud to announce that one of the world’s largest manufacturer of miniature ball bearings — and a major supplier of cooling fans, precision motors and electrical component — has retained Crossborder Group for a country-wide analysis of Mexico’s manufacturing markets, and new sales opportunities. While not new to the Mexican market, this California-headquartered subsidiary of a major Asian company has contracted Crossborder to provide a state-by-state review of key manufacturing sectors (including both maquiladora/IMMEX and domestic manufacturers), regional industrial insights and strategic guidance, as well as survey-based feedback from potential customers companies in order to facilitate their growth in Mexico.
This week, the San Diego Union-Tribune covered recent trends of border crossings between San Diego and Tijuana — quoting Crossborder Group’s President, Kenn Morris, and highlighting some of the firm’s recent research. “It is great to see the U-T covering such an important aspect of our binational economy. This is an area that has been in steady decline since 2003, but is finally starting to show signs of stabilization,” states Morris. “There’s really a huge lack of data available about who’s crossing the border and why — something that our own team at Crossborder Group has been trying to solve with periodic at-border surveys.” Current plans are, in fact, underway by Crossborder to conduct these surveys on a quarterly basis to create more real data, and up-to-date information regarding border crossers and their impact on the binational region.