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Competitiveness
• Competitiveness pertains to the ability and performance of a company, industry or country to sell and supply goods/services in a given market, in relation to the ability and performance of other in the same market.
• The Global Competitiveness Report of the World Economic Forum defines competitiveness as "the set of institutions, policies, and factors that determine the level of productivity of a country".
In 2020 Mexico will offer a better competitive cost, surpassing its actual competitors
Source: Bureau of Labor Statistics (2008-2012), Promexico with information from Global Insight (2012-2020).
Labor Costs 2010-2020 (dollars /hour)
2010-2020 Mexico will display real exchange rate (RER) stability vs USD. This will rise
production costs (in USD).
Source: ProMexico with Global Insight forecasts (using the Producer Price Indexes for the selected countries).
Number of days of sea transportation from selected ports to the U.S.
For all countries sea transportation days were estimated with respect to the L.A. seaport; except for Recife and Veracruz, that were estimated with respect to the N.Y. seaport. Source: ProMexico with Sea Rates.
Origin Destination → US
Country Seaport DaysMexico Manzanillo 3.3Mexico Veracruz 5.4Brazil Recife 10.2Japan Yokohama 13.4Korea Inchon 15.6China Shanghai 15.9Taiwan Keelung 16.4Philippines Manila 18.1Malaysia Kuantan 21.0Singapore Singapore 21.3Thailand Bangkok 21.4
Competitiveness in MX
• Standard & Poor’s Rating Services: BBB+, A-2• Energy International Agency: $73• World Bank (Doing Business 2015): #39 of 189• Free Trade Agreements• Regional Manufacturing• Human Capital• Optimistic but Cautious: Legal Reforms
Legal Reforms
Source: http://www.kpmg.com/MX/es/PublishingImages/E-mails-externos/2015/pad2015/estudio-PAD15-180315.pdf
Improve Competitiveness
Client satisfaction Processes & performance Innovation & new products Reduce costs Develop human talent
Increase Profit
Better use of assets Improve Innovation Improve IT Expand to emerging Less labor costs More low cost Outsourcing markets suppliers
Contact Information
Marie Alsace GalindoDirector of Business Development &
Special Legal Consultant
TechBA-Michigan
T. +1.248.233.2036 Email: [email protected]