1. Supply Chain Opportunities in Calibaja November, 2013Flavio Olivieri Tijuana EDC, CEO

2. Click to s Free Trade Agreements Mexico edit Master title style Network Click to edit Master text styles Second level Third level Fourth level 1994 Mexicos pro-international trade policies have created a world-wide Fifth level network of free trade treaties with 44 countries, including:11/19/20132 3. Mexico s Global Competitiveness Total U.S. cost to market Stable economy Ease of doing business Speed to market logistics Strong IP protection Mexico is in a strong position to be a significant winner from shifts in the global economy. That is good news not only for Mexico, its also good for America, since products made in Mexico contain four times as many U.S.-made parts, on average, as those made in China., Boston Consulting Group 4. Why Mexico by the numbers Competitive Countries Total Landed Cost in the U.S.Technological Sophistication Index 2.96OECD Latin America3.25 2.49Brasil Argentina ChileEngineering students2.16Mexico2.06 1.58750,000 115,000 graduates every year 5. 76 airports133Kkilometers of roads27Kkilometers of railroads117 seaports 6. ImportsExportsFrom Philippines to MexicoFrom Mexico to PhilippinesFood processing Telecommunications equipment Manufacturing of plastic productsManufactured goods Semiconductors Chemical products Sugar based products (Million dollars)Mexico is Philippines 3rd trade partner in America, after U.S. and Canada. 7. Tijuanas industry Employment by Economic Sector 5%4% 1%6% 11%47%26%Manufacturing Profesional Services Other Activities MiningCommerce Construction Transport/ Communications Agriculture 8. Tijuanas industry Manufacturing companies and employment Tijuanas Manufacturing Industry 2000-2013p 900200.000800180.000700160.000 140.000600120.000500100.00040080.00030060.00020040.00010020.0000 Plants20002001200220032004200520062007200820092010201120122013819725590562575578568567569587599569540563Employees 189.6 150.0 138.7 141.9 159.2 169.4 173.7 170.4 170.5 149.4 136.9 148.2 154.41 164.90Source Inegi, IMMEX companies- 9. Tijuana Key Industrial SectorsElectronics MedicalAutomotive 114 Companies 55.000 employeesAerospace 42 Companies 32,000 employees #1 North America 27 Companies 7,300 employees 40 Companies 18,000 employees 10. Supply Chain Opportunities Aerospace and defense industry Value of imports $1.2 billion annually Product area: Metal structures Castings and forges Composite materials Plastics Optical fiber Fiber glass Wires and harnesses Services: Precision machining Heat treatment Metal Stamping Anodized Aerospace design Thermoforming 11. Supply Chain Opportunities Medical Device Industry Value of imports $1.5 billion annually Product area: Plastic and rubber parts Electronic components Microparts (screws) Metallic components Foam Services: Sterilization Precision micro machining Microbiological laboratories Calibration MRO (Industrial Maintenance Service, repair and operation of machines). Rotational molding of plastic parts. 12. Supply Chain Opportunities Electronics Industry Value of imports $6.5 billion annually Product area: Printed circuit boards (PCB) Microprocessors Plastic injection molding Packaging Cable & harnesses Services: MRO Labeling services Recycling 13. Supply opportunities Automotive Industry Value of imports $1 billion annually Product area: Composites Iron & alluminium Cable & harnesses Valves, Hoses Services: Precision machining Metal plating Diecastings, welding, stamping, finishing, etc. Plastic Molding (thermoforming) 14. Supply opportunities Plastics Industry Estimated annual demand $1 billion Source SEDETI 2011 surveyProduct area: Resins Corrugated card board Services: Molding services (Contract manufacturing) Industrial design services Powder coating 15. Supply opportunities Medical Device and Aerospace Supplier Development Events: 16. About Tijuana EDC Non-profit business organization with over 20 years of experience in industrial promotion. The Tijuana EDC facilitates the establishment of manufacturing and business operations in Tijuana, Mexico. 17. Investors ServicesInformation on regulations, accounting, customsSite Selection SupportFacilitateGovernment incentivesBusiness Services One-Stop-ShopFacilitate initial recruiting 18. Trade- Strategic Alliances 19. Thank you! folivieri@tijuanaedc.org www.tijuanaedc.org