tmasc executive summary
DESCRIPTION
A summary of the Texas-Mexico Automotive SuperCluster (TMASC) and efforts to promote and grow the region. Please see www.txmxautomotive.com for more information.TRANSCRIPT
The Texas-Mexico Automotive SuperCluster (TMASC)Bexar County Economic Development, Strategic Initiatives Division
January 2010
Copyright ©2010 Bexar County
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TMASC Update
Section I: Recognizing Opportunity
Section II: Building Upon Regional Assets and Resilience
Section III: Attracting New Investment and Growth
Section IV: Positioning the Region for Future Trends
Section V: TMASC Efforts and Next Steps
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A Courtship of Over Two Decades...Toyota Motor Manufacturing, Texas (TMMTX)
“If we could attract the crown jewel of manufacturing, an automobile manufacturing plant, we would dramatically change our local economy.”
Judge Nelson W. Wolff
The Cluster EffectSuppliers to the 2007 Toyota Tundra
Source: Automotive News, July 23, 2007
Changing Geography of Assembly
* Radius centered on 430 mile main transportation corridor from Laredo to Arlington.SOURCE: ELM Guide, TIP Strategies, Inc., research
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Global Manufacturers
NOTE: Shaded region represents the NAFTA Highway.
SOURCE: ELM Guide, TIP Strategies, Inc. research
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Global Vehicle Assembly Plants
• General Motors
• Chrysler
• Navistar - International
• PACCAR - Peterbilt
• Caterpillar
• Marcopolo
• Toyota
• Daimler - Freightliner
9 Global Vehicle ManufacturersAlmost 900,000 Units Annually
18,000 OEM Workers
• BAE Systems
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Tier 1 Automotive Suppliers
Over 200 Tier 1 supplier plantsOver 133,000 workers
Approx. 37 million square feet of facilities74 Tier 1 suppliers (37%) employ 500 or more workers
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SVehicles Manufactured in the TMASC Region
Industrial, Military, and Recreational Vehicles
Cars, SUVs, and Trucks
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SRegional EmploymentAssembly Plants and Suppliers
LegendNumber of Employees
Suppliers
Assembly Plants
* Radius centered on 430 mile main transportation corridor from Laredo to Arlington.SOURCE: ELM Guide, TIP Strategies, Inc., research
• Approximately 151,000 employees
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TMASC Update
Section I: Recognizing Opportunity
Section II: Building Upon Regional Assets and Resilience
Section III: Attracting New Investment and Growth
Section IV: Positioning the Region for Future Trends
Section V: TMASC Efforts and Next Steps
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The Historically Integrated NAFTA EconomyVolume of Trucks per Day To/From Mexico, 1998
Source: U.S. Department of Transportation, 1998
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The Historically Integrated NAFTA EconomyNorthbound Daily Truck Crossings, Laredo 1995-2009
0
1250
2500
3750
5000
1995 1997 1999 2001 2003 2005 2007 2009 (October)
2,047
2,791
3,4283,705
4,073 4,1023,846 3,950
3,710 3,8243,988
4,162 4,294 4,302
3,789
Trucks per Day
Source: U.S. Customs and Border Protection, 2009
Truck crossings in Laredo = 48% of TX Total
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SInfrastructureSeaports
•Manzanillo: 1/3 of Mexico Container Traffic
•Lázaro Cárdenas: Alternative to CA for Pacific Freight
Port of Lázaro Cárdenas
Port ofManzanillo
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SInfrastructureRailroad
•3 Class I Railroads Serve Texas
•12,000+ Miles of Track in Texas
•Class I Track in Northeastern Mexico: Kansas City Southern Mexico and Ferromex
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SInfrastructureMultimodal Ports, Foreign Trade Zones
ZONA DE CONECTIVIDAD
GOMEZ PALACIO
Foreign Trade Zones
•31 Foreign Trade Zones in Texas
•8 multimodal (rail, truck, and air cargo) ports in the TMASC region
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Research & Development Assets
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A Pro-Business Environment
States with “Right to Work” Laws
Source: National Right to Work Legal Defense Foundation, 2009
TX AL GA IN KY MI MS MO NJ NC OH OK SC TN VA
Helpers--production workers $9.78 90% 95% 86% 84% 81% 89% 89% 90% 89% 84% 94% 90% 89% 93%
Laborers and freight, stock, and material movers $10.56 102% 93% 89% 96% 80% 103% 85% 86% 95% 87% 101% 96% 96% 90%
Team assemblers $11.26 72% 91% 74% 80% 82% 95% 88% 90% 89% 82% 94% 77% 76% 90%
Production workers $12.12 91% 95% 61% 96% 69% 109% 86% 79% 85% 77% 118% 99% 101% 89%
Cutting, punching, and press machine setters, operators, and tenders $12.41 96% 95% 84% 94% 76% 98% 85% 90% 99% 86% 97% 91% 91% 90%
Industrial truck and tractor operators $12.57 93% 94% 82% 93% 71% 100% 91% 80% 94% 85% 96% 91% 92% 91%
Assemblers and fabricators $12.84 105% 83% 73% 77% 56% n/a 61% 87% 79% 69% 115% 106% 96% 85%
Structural metal fabricators and fitters $14.28 90% 100% 82% 96% 84% 84% 87% 80% 87% 86% 98% 85% 88% 94%
Inspectors, testers, sorters, samplers, and weighers $15.48 112% 108% 96% 101% 87% 113% 90% 93% 108% 93% 88% 103% 103% 93%
Computer-controlled machine tool operators $15.54 113% 97% 98% 99% 91% 113% 106% 81% 98% 94% 102% 95% 100% 97%
Machinists $16.43 95% 103% 89% 98% 86% 96% 96% 79% 98% 95% 101% 102% 82% 91%
Welders, cutters, solderers, and brazers $17.04 110% 112% 103% 110% 93% 106% 107% 93% 104% 103% 111% 105% 109% 96%
Painters, transportation equipment $17.12 102% 93% 95% 80% 77% 102% 82% 89% 91% 91% 112% 96% 73% 76%
Electricians $19.24 102% 97% 76% 92% 70% 98% 75% 64% 107% 83% 104% 108% 96% 92%
Tool and die makers $20.46 94% 99% 86% 97% 77% 90% 87% 88% 104% 88% 103% 99% 97% 97%
First-line supervisors/managers of production workers $25.6 106% 108% 100% 108% 90% 116% 105% 90% 107% 102% 108% 100% 113% 99%
Sales Representatives, Wholesale $28.18 114% 98% 101% 103% 95% 111% 102% 83% 111% 95% 118% 106% 102% 87%
Industrial Engineers $38.69 109% 110% 116% 119% 101% 119% 113% 99% 114% 112% 116% 112% 117% 101%
Mechanical Engineers $41.38 111% 117% 125% 126% 109% 133% 118% 102% 123% 127% 121% 115% 119% 97%
Affordable Wages for Automotive Manufacturing
Source: Bureau of Labor Statistics Occupational Employment and Wage Estimates, 2009Texas Avg. Hourly Wage as % of State’s Avg. Hourly Wage
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SGrowth Outpacing Other OEM StatesNet Change in Population by State, 2000-2009
-100,000
0
100,000
200,000
300,000
400,000
500,000
600,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Source: U.S. Census Bureau Population Estimates, 2009Note: Each state included in this graphic hosts two or more OEM plants, with the exception of Mississippi (one plant)
Texas led US in net population increase for 2009
Texas AL GA IN MI MS MONJ NC OH OK SC TN VA
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May 2009
September 2009
Strength Amid RecessionUnemployment
Source: Bureau of Labor Statistics; NYTimes.com; FlowingData.com
September 2009
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SStrength Amid RecessionResilient Metro Areas
Source: Brookings Institution MetroMonitor, December 2009
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Strength Amid RecessionPerformance
1 Austin-Round Rock TX2 Killeen-Temple-Fort Hood TX3 Salt Lake City UT4 McAllen-Edinburg-Mission TX5 Houston-Sugar Land-Baytown TX6 Durham NC7 Olympia WA8 Huntsville AL9 Lafayette LA
10 Raleigh-Cary NC11 San Antonio TX12 Fort Worth-Arlington TX13 Dallas-Plano-Irving TX14 El Paso TX15 Wichita KS16 Corpus Christi TX17 Seattle-Bellevue-Everett WA18 Baton Rouge LA19 Tulsa OK20 Greeley CO
Source: Milken Institute, November 2009
• Milken Institute Best Performing Cities Index 2009• Job Creation
• Job Stability
• Wage Growth
• Technological Innovation
• 9 out top 20 cities in Texas
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TMASC Update
Section I: Recognizing Opportunity
Section II: Building Upon Regional Assets and Resilience
Section III: Attracting New Investment and Growth
Section IV: Positioning the Region for Future Trends
Section V: TMASC Efforts and Next Steps
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SCorporate Investment in the RegionSelect Texas Projects 2009
Corporation LocationCapital
InvestmentJobs
Created
Toyota Assembly Plant Expansion San Antonio $100 Million 850
Caterpillar Inc. Manufacturing Facility Seguin $170 Million 1,400
Medtronic Diabetes Care Center San Antonio $23 Million 1,400
Tianjin Pipe Company Manufacturing Facility Corpus Christi $1 Billion 300-600
Union Pacific Intermodal Facility San Antonio $120 Million 75
Albany Composites Manufacturing Facility Boerne $42 Million 337
L-3 Communications Aircraft Repair Facility Waco $10 Million 100
Caterpillar Inc. Manufacturing Facility Waco $30 Million 60
Grifols, Inc. Manufacturing Facility San Marcos $76 Million 190
Kalmar RT Center Manufacturing Facility Cibolo $18 Million 200
Source: Texas Comptroller, 2009
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Corporation LocationCapital
InvestmentJobs
Created
Hitachi Chemical Manufacturing Facility Nuevo León US $155 Million
Sanyo Solar Panel Manufacturing Facility Nuevo León US $15 Million 600
Golden Dragon Pipe Manufacturing Facility Coahuila US $100 Million 550
Speco Aeolian Tower Manufacturing Facility Coahuila US $30 Million
Hilti Tool Manufacturing Facility Tamaulipas US $40 Million 250
Whirlpool Manufacturing Facility Nuevo León US $55 Million 1,100
Johnson Controls Manufacturing Facility Nuevo León US $105 Million 250
Luvata Pipe Manufacturing Facility Nuevo León US $40 Million
LG Electronics Manufacturing Facility Tamaulipas US $100 Million 200
Source: MPBulletins.com, 2009
Corporate Investment in the RegionSelect Northeastern Mexico Projects 2009
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Continued Automotive InvestmentToyota Moves Future Tacoma Production to San Antonio
• Preserves and stabilizes existing regional suppliers
• New direct investment - $100 million
• New direct jobs created - 850
• Job multiplier - 1:5 (including suppliers)
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Continued Automotive InvestmentChrysler to Produce Fiat 500 Subcompact in Mexico
• Chrysler likely to expand Toluca plant for production of 100,000 units
• Target market: new-car shopper, 20-35 age bracket
• W. Hemisphere market access: plans to sell 75% in NAFTA, 25% in S. America
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Continued Automotive InvestmentFord to Produce Fiesta Hatchback in Cuautitlán
• Ford re-tooling Cuautitlán assembly plant formerly producing F-Series pickups
• Production to begin in early 2010
• $3 billion investment by Ford and suppliers
• 4,500 Ford jobs
• Guanajuato transmission plant, expansion of engine plant in Chihuahua planned
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TMASC Update
Section I: Recognizing Opportunity
Section II: Building Upon Regional Assets and Resilience
Section III: Attracting New Investment and Growth
Section IV: Positioning the Region for Future Trends
Section V: TMASC Efforts and Next Steps
HispanicBlackAsianWhiteOther
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Access to Growing Market SegmentsA Large and Brand-Agnostic Hispanic Market
Source: U.S. Census Bureau, 2008 Estimates
\
1%
47%
4%
12%
37%
Texas Population
Change in Hispanic Market Share 2007-2008
Source: R.L. Polk & Co., 2009
-1.5%
-0.75%
0%
0.75%
1.5%
2.25%
3%
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0
5
10
15
20
25
30
19981999
20002001
20022003
20042005
20062007
2008
2009 (Oct. Y
TD)
Mar
ket
Sha
re (%
)
Source: Asociación Mexicana de Distribuidores de Automotores, 2009
Access to Growing Market SegmentsAutomaker Success in Mexico
Brand Market Share in Mexico, 1998-2009
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SAccess to Growing Market SegmentsGen Y Enters US Driving Age Population (16-85)
Source: IHS Global Insight, 2009
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SAccess to Tomorrow’s Customer and Workforce Young Population Relative to Other North American OEM Sites
Median Age July 2008Median Age July 2008
Canada 39.9
NJ 38.7
OH 38.1
MI 38.0
KY 37.7
TN 37.7
SC 37.6
MO 37.5
AL 37.5
VA 37.1
NC 36.9
U.S.A. 36.8
IN 36.7
OK 36.1
IL 36.0
MS 35.3
GA 34.9
TX 33.2
Mexico 27.6
Median Age 2030Median Age 2030
Canada 43.7
SC 41.3
MS 41.1
AL 41.0
NJ 40.8
OH 40.2
MI 40.2
KY 40.0
MO 39.6
U.S.A. 38.7
TN 38.3
OK 37.9
VA 37.8
IL 37.8
IN 37.7
NC 36.8
Mexico 36.2
GA 35.6
TX 34.6
Source: Population Division of the Department of Economic and Social Affairs of the UN Secretariat, World Population Prospects: The 2008 Revision, (Mexico and Canada figures reflect 2010 and 2030 estimates)
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SCapacity to Lead the Industry Through InnovationManufacturing Tomorrow’s Vehicles, for Tomorrow’s Consumer
Diverse Vehicle Offerings: Trucks, SUVs, Sedans, Hatchbacks, Subcompacts
Regional Expertise in R&D:Consumer Electronics, Vehicle Safety, Telematics, Engine Efficiency, Manufacturing Processes, Alternative Fuel Technologies
Proximity to Customers and Innovators:Growing Population, Gen Y Engineering and Design Talent
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SAttractive Climate for Foreign InvestmentAsian Interest
• Exponential growth of automotive sector in China and India
• Chinese and Indian OEMs in the US market a reality
• Potential FDI for TMASC
• Automotive News Oct 2009 “Chinese seen as buyers of U.S. suppliers”
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Ideal Launch Pad for the “New Domestics”Projected North American Output
Source: CSM Worldwide, 2009Note: “Asian 4” refers to Toyota, Honda, Nissan, and Hyundai-Kia; “German 3” refers to Daimler AG, Volkswagon Group, and BMW.
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TMASC Update
Section I: Recognizing Opportunity
Section II: Building Upon Regional Assets and Resilience
Section III: Attracting New Investment and Growth
Section IV: Positioning the Region for Future Trends
Section V: TMASC Efforts and Next Steps
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Preserve & grow existing industry
Recruit ForeignDirect Investment
Spur innovation in new technology
Develop a next-generation workforce
ww
w.txm
xautomotive.com
twitter.com
/tmasc
LinkedIn TMA
SC
Group
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Strategic Relationships
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Visit www.txmxautomotive.com for more information
Jen T. MartinezStrategic Initiatives Manager
Bexar County Economic Development
(210) [email protected]
www.linkedin.com/in/jenmartinez
David MarquezExecutive Director
Bexar County Economic Development
(210) [email protected]
www.linkedin.com/in/marquezdavid
Special thanks to T.I.P. Strategies and the City of San Antonio