manufacturing in mexico with the offshore group

The Offshore GroupInnovative Outsourcing

World-Class Support

For Manufacturers

Our Team Of Over

500 ExpertsWorking For You

www.offshoregroup.com

Who is The Offshore Group?• The Offshore Group is the largest shelter service

provider in Mexico with over 13,000 people employed in Mexico today on behalf of 55 foreign manufacturers and 5 foreign BPO, ITO, & Contact Center providers.

• Over 24 years, The Offshore Group has developed an unmatched support infrastructure of leaders, experts, processes, and state-of-the-art systems that small, medium, and large manufacturers (clients) leverage every day.

• The Offshore Group enjoys the highest client retention rate in the industry.

• The Offshore Group provides unparalleled facilities support within secure and strategically located industrial parks totaling nearly 4 million square feet of construction.

World-Class SupportFor Manufacturers

The Offshore Group


Who is The Offshore Group?


The Offshore Group

An integrated group of U.S. and Mexican companies that provide peace of mind to foreign manufacturers and service providers through U.S. based contractual agreements and a solid reputation for operational excellence and regulatory compliance in Mexico.


Our Challenge:


The Offshore Group

For our clients to achieve overall cost reductions by operating in Mexico; and for our clients to simultaneously preserve or even improve quality and delivery while avoiding financial and operational risks that may be associated with doing business in a foreign country.



The Offshore Group

Four Ways Our Shelter Model Meets The Challenge:1.Locations. Operate within our flexible, scalable,

secure, and strategically located industrial parks in Mexico; or choose a location that better meets your site requirements.

2.Focus. The manufacturer or service provider focuses its resources on productivity, efficiencies, quality, innovation, and on-time delivery. We focus our resources on non-production-related functions.

3.Leverage. Manufacturers immediately leverage The Offshore Group’s world-class administrative infrastructure and economies of scale in Mexico that reduce costs and eliminate long and costly learning curves.

4.Shared Risk. With The Offshore Group, foreign companies have no need to establish a legal presence in Mexico resulting in:

1. Virtually no administrative startup costs.2. Greatly reduced risk and exposure.3. No burden associated with maintaining a legally and fiscally compliant

company in Mexico.


What Are Some of The Benefits Our Shelter Program Provides?

The Offshore Group

No upfront costs, no need to form and maintain a legal entity & fast startup

Experienced labor recruiting Experienced leadership/mgmt.

recruiting Reduced labor turnover Improved labor attendance Effective labor union relations &

negotiations Ensures market wages and benefits Expert employee problem resolution Reduced border crossing costs and

delays Assurance of Mexican Customs Compliance


The Offshore Group

Expert logistics support

Assurance of Mexican Environmental Compliance

Access to local vendors and service providers

Secure & safe industrial parks Fast response to building

maintenance, repair, and utilities issues

Building upsize / downsize flexibility No government reporting

No income tax


Our Core Competencies


The Offshore Group

Labor Management

Recruiting, Selection, Hiring, Severance, Payroll,

Benefits, Labor Law Compliance, Union

Relations , Workforce Transportation

Import & Export

ManagementImporting and Exporting,

Cross Docking, Warehousing,

Distribution, International Freight Management

FacilitiesManagement

Construction Management, Tenant

Improvements, Building Maintenance,

Environmental, Security and Safety.

Regulatory Compliance

Accounting, Tax Compliance, Government Reporting, Local Vendor

Management, Purchasing, VAT Reimbursement


What You Do & Control:


The Offshore Group

Customer Service

ManufacturingTechnology

Training

Production Supply-Chain

Engineering Quality

What We Do:Human

ResourcesPayroll

& BenefitsImport

& Export

Accounting& Taxes

LocalProcurement

EmployeeBusing

FacilitiesMaintenanceEnvironmental

& Safety

Labor UnionRelations

Park Management

CorporateCitizenship


A Close-up At Our Labor Management Service:

• Executive recruiting• Recruiting ads in local media and web• Maintain candidate databases• Recruiting of direct, indirect, and salaried

labor• Recruiting of specialized labor• Offsite recruiting• Applicant prequalification• Applicant testing• Applicant background check• Hiring (per client requirements and approval)• New hire orientation• In-plant HR representation• Employee records upkeep• Attendance monitoring• Employee counseling • On-site child care services G

• Employee termination


The Offshore Group

• Workforce redeployment• Employee dispute resolution• Labor statistics and analysis• Labor union negotiations• Labor dispute resolution• Day-to-day labor union interaction• Mexico labor law compliance• Mexico labor law reporting• Local community leaders alliance • Education activity coordination• Skills training program facilitation• Alliance with local trade schools• Employee satisfaction surveying• Recreational activity coordination G

• HR field services• In-Park Medical Services


Manufacturers We Serve Today: 55Automotive & Transportation Manufacturers:

Electrical, Electronic, & Medical Device Manufacturers:

Aerospace Manufacturers:

Other Industry Manufacturers:

• Tyco Electronics1

• Cooper Standard Automotive1

• St. Clair Technologies• Intec Group• Unlimited Services• Mico• DCM• Jyco Sealing Technologies• Waukesha Bearings• Neapco• Powerbrace• Phillips Industries• Gemini Plastics• Liberty Steel

• Precision Interconnect (Tyco)• Medtronic1

• Gyrus Medical (Olympus)• Avalon Labs• Younger Optics• C&M Corporation• Novacap• The Phoenix Company• Electronic Evolution • Arc-Tronics• Huber-Suhner• Whitepath• Turck• CBC Connect• Blickman

• Goodrich Turbomachinery1

• BAE Systems• Parker Hannifin• GE-Unison Industries1

• Esco Turbine Components• Benchmark Electronics1

• Sargent Controls• Williams International• Senior Aerospace• Ducommun Aerostructures• G.S. Precision• Paradigm Precision• Horst Engineering• Vermillion• Trac Tool• Waukesha Bearings• Precision Products• CRS Aerospace• Bodycote Thermal Processing

• Meco• Hydro Aluminum• Minco• APSM Systems• Greenheck Fan• Camfill Farr• Kromet

1 Companies with both stand alone and shelter operations• Headcounts range from 7 to 4,000 people• Years in shelter range from 3 to 14


Client Retention:Years Client Years Client Years Client17.3 COOPER EMPALME 9.9 PHOENIX 4.9 BAE15.2 UNLIMITED 9.8 TYCO 4.6 NEAPCO14.5 ST. CLAIR 9.4 PARKER 4.6 GYRUS13.5 HYDRO 8.3 PRECISION PRODUCTS 4.4 JYCO12.3 COOPER SALTILLO 8.2 INTEC 4.3 MICO11.8 PI 8.3 YMEX 4.0 DUCOMMUN11.8 PARADIGM PRECISION 7.8 GSP 4.0 WILLIAMS11.6 UNISON 7.5 BENCHMARK 3.6 GREENHECK FAN10.6 TURBINE 6.9 SARGENT 3.6 BLICKMAN10.4 SENIOR AEROSPACE 6.8 CBC 3.6 WAUKESHA10.2 GOODRICH 6.8 POWERBRACE 3.4 WHITEPATH (14,009.52 SF)10.1 TURCK 6.7 VERMILLION 3.3 C&M

6.7 CRS Aerospace 3.3 MINCO6.6 MEDTRONIC 3.2 PHILLIPS6.0 AVALON 2.8 TRAC TOOL5.6 NOVACAP 2.2 HORST5.5 CAMFIL FARR 1.9 DCM5.4 EET 1.2 KROMET5.3 OKE 0.6 MECO5.2 APSM 0.3 GEMINI

Over 10 years Between 5 and 10 years Less than 5 years



The Offshore Group

Los Angeles

Tijuana MexicaliTucson

Nogales Cd.Juarez

GuaymasHermosillo

Chihuahua

Houston

ReynosaMonterrey

AltamiraSan LuisPotosi

Queretaro

Guadalajara

Mexico CityManzanillo

Honduras

El Salvador

Guatemala

Mazatlan

Mission

Gulf of Mexico

Sea of Cortez

Asian, European, & South American

Ports

Brownsville

Saltillo

Our Strategic Locations


Legal Structure/Roles

ClientClient

Maquilas Maquilas Teta KawiTeta Kawi

ManufacturasManufacturasZapalinameZapaliname

Offshore InternationalOffshore International U.S.

Mexico

U.S.

Mexico

U.S. Contract

• Mexican Governmental & Regulatory EntitiesMexican Governmental & Regulatory Entities - Fiscal- Fiscal - Labor & Unions- Labor & Unions - Social Security & Welfare- Social Security & Welfare - Customs- Customs - Commerce- Commerce - Environmental- Environmental - Health & Safety- Health & Safety

• Trade within MexicoTrade within Mexico• Legal CouncilLegal Council

Client OperationsClient OperationsIn SaltilloIn Saltillo

Client OperationsClient OperationsIn GuaymasIn Guaymas

MX Affiliates

Legal Presence in Mexico


The Offshore Group’s La Angostura Industrial Park Located in Saltillo, Coahuila Mexico www.offshoregroup.com

Employee BusingLa Angostura Industrial Park

Saltillo, Coahuila Mexico


The Offshore Group’s Bella Vista Industrial Park Located in Empalme, Sonora Mexico


Exchange Rate History:


The Offshore Group

Mexico Inflation Rate History:


Our Value Proposition• Focus on what you do best. By

outsourcing non-production-related functions to us, you focus on productivity, efficiencies, and innovation; on meeting product quality and delivery commitments; and on operating at the lowest possible cost in Mexico.

• Achieve a competitive advantage from day one. By leveraging our resources, infrastructure, expertise, economies of scale, and legal presence in Mexico.


The Offshore Group


For more information:www.offshoregroup.com

Eduardo R SaavedraVP Business DevelopmentThe Offshore GroupEmail: [email protected]: (520) 889-0022Cell: (520) 360-6644

Sunset at Los Algodones Beach Located in San Carlos, Sonora Mexico


http://www.offshoregroup.com/

manufacturing in mexico with the offshore group

Business

overtimetotal

legal presence

offshore group

foreign manufacturers

building maintenance

related functions

2009 actual

sonora mexicowww