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Challenges Facing Manufacturing in Puerto Rico
What Puerto Rico must do to remain competitive
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Agenda
• Education• Government• Operating Limitations• Business Community• Protection?
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Education
• We need to keep kids in school longer. Make it interesting, go back to trades teaching.
• We have excellent universities however we need more trade school exposure (application of how to work in industry)
• How to live in a highly populated area. Common etiquette. (I relate this to being service oriented).
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Literacy levels % of population older than 10 years
35.1%
10.8% 8.5%
1940 1970 2003E
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% of Education Budget allocated for Teacher salaries
64%
35%
Average OECD Puerto Rico
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College Board Aptitude Test Results
554538
466 465461 456 445 445
300
350
400
450
500
550
600
1983 1990 2000 2004
Math ReasoningVerbal Reasoning
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High level of School Dropouts
19% 19% 21%
38% 38% 40%
58%
13%
USA Germany Japan
Source: Organization for Economic Cooperation and Development (OECD), Education at a Glance 2001; A T Kearney Analysis
Canada France UK PuertoRico
Italy
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Government
• Needs to handle employment without robbing Peter to Paul (recent employment incentive) Can actually hurt current businesses.
• Should invest in internships• Permit processes (?)• Governments inability to understand business.• Crime (whom would want to live here?)
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Governmental employment
USA
6.5
12.2
12.7
13.5
14.6
15.6
16.2
17.5
17.8
19.1
21.5
25.3
Source: OECD Labor Database; PR Labor Department, Establishment Survey; A T Kearney Analysis
% empleo total 2000
Puerto Rico
Turkey
Canada
Check Republic
Ireland
USA
Italy
New Zealand
Germany
Spain
Netherlands
Korea
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Homicides per 100,000 population
19.6
5.9
3
18
Puerto Rico USA Chile Mexico
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Operational Limitations
• Electrical (nothing new here)• Labor Laws (Ability to arbitrate, not pay) • Benefits (Xmas Bonus)• Municipal Taxes on Inventories
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Our Electrical
Guaynab
o
Colton (7
004)
Oaklan
d (7031)
Red Lio
n (7037)
Treich
lers (
7043)
New Prag
ue (7029)
Macon (7
025)
Columbus (7005)
York
(7045)
Martins C
reek (
7026)
Tampa (
7042)
Loudonville (
7024)
Decatur (
617)
Commerce C
ity (5
240)
Hastings
(7017)
Denve
r (7010)
Chester
(7003)
Omaha 1
6th St (7
032)
Sherm
an (7
040)
Omaha C
St (7
033)
Saginaw
(7039)
Alton (7
001)
Fremont (7
013) $-
$0.05
$0.10
$0.15
$0.20
$0.25
$0.30
FEB 13)
P6 (Nov12)
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Comparative to other MIlls
Guaynab
o
Hastings
(7017)
Martins C
reek (
7026)
Commerce C
ity (5
240)
Colton (7
004)
Alton (7
001)
Oaklan
d (7031)
Decatur (
617)
Tampa (
7042)
New Prag
ue (7029)
Saginaw
(7039)
Columbus (7005)
Omaha C
St (7
033)
Chester
(7003)
Sherm
an (7
040)
Macon (7
025)
York
(7045)
Denver
(7010)
Omaha 1
6th St (7
032)
Fremont (7
013)
Loudonville (
7024)
Red Lio
n (7037)
Treich
lers (
7043)$0.00
$50,000.00
$100,000.00
$150,000.00
$200,000.00
$250,000.00
$300,000.00
$350,000.00
$400,000.00
$450,000.00
$500,000.00
(FEB13)
P6 (Nov12)
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New business creation per million in population
Source: National Science Foundation; U.S. Small Business Administration; OECD;IADB; A T Kearney Analysis
PuertoRico
Mexico USA. Chile Ireland Singapore
2,4552,330
532346303225
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Additional
• Business Community is real separated, each have their own focus (How Many Org)
• DRCAFTA
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• Data from: Alianza Para Dessarollo De Puerto Rico
• ConAgra Mills• OECD Org for Economic Development
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