Sonora Agenda Sonora overview Main industries Areas of collaboration Strategic location with United States 368 miles of border with U.S. Easy access to commercial traffic between East Coast & West Coast United States Highly strategic to serve the West USA Market Closest deep water seaport to Arizona and New Mexico: Guaymas Hermosillo is located 180 miles from the U.S. border, which reduces risk in the supply chain and increases security in northbound shipments Population: 2.6 million inhabitants Sonora – an industrial center Sonora GDP An economic growth well beyond the national average 21% of our State GDP GDP 2012 – Sonora 6.1% - Country 3.9% 180,000 workers 16% of our active population 3 priority industrial sectors (Aerospace/Automotive/Mining) Economic Growth Manufacturing represents 7% growth annually for the last 3 years GDP integration evolution SECTORS 1990 2012 Agriculture 14.5% 6.8% 54.3% 46.9% 31.2% 46.3% 530 new companies 80 new expansions Service and Commerce 100,000+ new jobs Industry Source: Inegi Agenda Sonora overview Main industries Areas of collaboration Main industries Automotive Aerospace Electronics Medical IT Renewable Energies Metal-mechanic Mining Agribusiness Automotive industry Ford Hermosillo Stamping and Assembly Plant (HSAP) is ranked as the best Ford plant worldwide CD3 platform produced: Ford Fusion: 2010 Motor Trend Car of the Year Ford Fusion Hybrid: 2010 North American Car of the Year Lincoln MKZ: First time in the history of Lincoln that produces a car outside the USA CD4 first global platform: launched in August 2012 378,000 vehicles produced per year Over 80 automotive companies in the State Sonora business climate "Ford’s plant in Hermosillo is the best plant the corporation has all over the world, where Fusion and Lincoln MKZ models, in gasoline and hybrid versions are produced" Gabriel Lopez President of Ford Mexico Aerospace industry Most important machining cluster in Mexico 63 aerospace companies in the State. (53 companies + 10 Sonoran aerospace companies suppliers) Availability of secondary processes Solid base of electronic components, manufacturing and assembly Rapidly expanding into other segments of aerospace such as composite materials and aerostructures Rolls Royce, GE, Honeywell, Pratt & Whitney, Boeing and Airbus are some of the main industry leaders that shape the demand of what is produced in the region Sonora business climate “Mexico plays a fundamental role in our procurement strategy. We are working closely with our established suppliers that embrace our longterm goals; including the one of increasing our sourcing from emerging countries”. “By collaborating with the authorities of the State of Sonora, we are ensuring the best conditions of success for our suppliers” Mike Orris Chief Procurement Officer of Rolls-Royce Information technology Sonora is considered a pioneer state with great impulse in the Information Technology industry Sonora hosts the Sonora Soft Technology Park in Ciudad Obregon, which is part of a corridor of technology parks in the State of Sonora The park is focused mainly on software development, optimizing telecommunications and infrastructure investments to shelter national and international companies Mining industry The mining industry generates more than 16,000 jobs in Sonora State’s mining production value at 8 billion USD Sonora mining production accounts for 30% of Mexico’s total production #1 Producer in Mexico of: Gold, Copper, Graphite, Wollastonite, Molybdenum and Anthracitic Coal Ranked 4th nationwide in Silver production Investment in the mining sector amounted to 920 million USD in 2012 Mining in Sonora contributes with 12% of GDP Agribusiness Sonora is the number one seafood producer in the country and is among the leading agricultural producers of several commodities The agribusiness sector employs over 150,000 people in Sonora The State is home to the first aquaculture institute established in Mexico and to the CIAD (Research Center for Food and its Development) The United States, Japan, the European Union and the Mexican domestic market are the main consumers of the Sonoran Produce, grown in a surface of approximately 576,000 hectares Main exports to Asia are: kabocha pumpkin, table grape, watermelon, chili, pork, beef, shrimp, sardine, blue crab, among others Re Agenda Sonora overview Main industries Areas of collaboration IT Aerospace Collaboration Sonora - Arizona Sonora Soft Technology Park www.sonorasoft.com.mx Sonora Soft Technology Park Complex dedicated to software development 8 software developers in the park, including Pinnacle Aerospace Services IT Infrastructure Voice & data services Integrated security Training spaces Conference rooms Auditoriums Video conference rooms Computerized A/C, entrance, lighting controls Sonora Soft Technology Park BUILDING 1 Surface: 68,103.26 ft² Leased space: 28,513.59 ft² 8 tenants 1 auditorium 2 training spaces 1 dinning hall 100% occupied% BUILDING 2 Surface: 86,111.28 ft² Space for rent / sale: 64,583.462 ft² Energy efficient infrastructure Currently under construction Sonora Soft Technology Park | Clients Engineering degrees Sonora has 25 universities with engineering programs Among others, the following universities offer the relevant engineering degrees (mechanical/industrial/mechatronics): Engineering graduates per year Engineering enrollment 2,750 14,343 Mechatronics Industrial Mechanical Instituto Tecnológico de Hermosillo www.ith.com.mx (Hermosillo) Tecnológico de Monterrey www.itesm.edu (Hermosillo) Universidad de Sonora www.uson.mx (Hermosillo) Instituto Tecnológico de Sonora www.itson.mx (Cd. Obregón) Agenda Sonora overview Main industries Areas of collaboration IT Aerospace Collaboration Sonora - Arizona Our priority is aeroengines Largest concentration of aeroengine components suppliers in Mexico Highly integrated cluster from casting, machining, coating (hot & cold sections) Strategic platform for Rolls-Royce in their best cost strategy Rolls-Royce opened an International Procurement office in Sonora Our unique capabilities in COATINGS open significant new opportunities OEMs CASTINGS COMPONENTS MACHINING SPECIAL PROCESSES Other aerospace competencies LEADER IN AEROSPACE PRECISION MACHINING Aerostructures SOME NAMES IN OTHER SEGMENTS Electrical Aircraft MRO Aircraft Interiors Expanding in other segments Aerostructures In collaboration with our established companies, we are working at developing the supply chain Parts machining Surface Treatments (Anodizing, Passivation, FPI, MPI,…) Aircraft heavy maintenance 52,500 sq ft wide body hangar At Cd. Obregón international airport Wide-body a/c maintenance DGAC Delegated authority Leadership role in aerospace development Aerospace, throughout the world, flourishes where government, companies and technical institutions succeed in creating strong partnerships The State of Sonora acknowledges its role in creating the winning conditions for aerospace We partner / invest with our companies To develop customized solutions in support of their implementation At creating opportunities for their growth The State has demonstrated its commitment to the Industry, ex: Direct involvement of highest Government officials Developed a strategic vision Seek for the expertise when required (surveys, consultants, …) Team up with OEMs and Tier-1s on supplier strategies Connects to main aerospace hub Logistically advantageous Seattle Border state with Arizona – Great relationship with Transportation authorities on both sides of the border Immediate highway access to the U.S. interstate network Train transportation to U.S. cities Ford’s shipping nearly ½ million cars by train to the U.S. Runways for urgent air shipments Close access to a large aerospace base on the U.S. West Coast Montreal Wichita HMO Charleston Mobile STAADIS – technology center STAADIS – A technological center for automotive and aerospace Co-located with Tec de Monterrey Dedicated to technological support of industrial projects Dispenses training to graduates from ITESM and to company personnel Fitted with laboratories and offices Lean & six sigma consulting expertise STAADIS – technology center Training programs Engineering and manufacturing design (MECI certification) Management intelligence Master programs, consulting services, certifications and “intercompany” projects Laboratories Precision machining laboratory Design and simulation laboratory Advanced metrology laboratory Tooling laboratory Welding laboratory Plastics center Lean manufacturing center SIAAM – developing aerospace trades Sonora Institute for Aerospace & Advanced Manufacturing SIAAM is dedicated to aerospace trade training Programs sources from Quebec Aerospace cluster programs Aircraft structural assembly Electrical wire harnesses assembly CNC machining – In preparation Other programs planned (tooling, composites, welding) Programs developed by proven aerospace experts Training of substantial duration Structural assembly – 570 hours International visibility Organized by: Sponsored by: BCI Aerospace, the world leading organizer of B2B meetings for Aerospace, partnered with SONORA on Engine Forum Sonora 2013 150 individual companies attended and 250 executives More than 2,000 B2B meetings arranged in the first edition Agenda Sonora overview Main industries Areas of collaboration IT Aerospace Collaboration Sonora - Arizona The Arizona – Mexico Commision A 50-year legacy of working with Mexico, especially Sonora Led by the Governor Jan Brewer and Governor Guillermo Padres Sonora Counterpart: “La Comisión Sonora Arizona” Under the umbrella of the AMC, the work of the Economic Development Committee AMC Economic Development Comittee The Sonora-Arizona Committee is currently working 3 initiatives: Coordination of Aerospace & Defense Strategies Aerospace Human Capital Development Aerospace trades education: Collaboration on specific programs Management & Professionals: Exchange of engineering graduates Aerospace Supply Chain Integration Companies that operate on regional basis The region hosts over 15 aerospace companies that have dual operations in both Sonora and Arizona The dual footprint provides them a strategic advantage: Best of both locations can be put at contribution Proximity of sister companies allows: Tight operational integration Share of talents & training (Management / Engineering / …) Access to a large array of suppliers on both side of the border Aero-engines center of excellence On-going training efforts & capabilities Sonora Institute for Aerospace and Advanced Manufacturing “SIAAM” Collaboration with University of Arizona TechPark Continued support of “Metromatematicas” Aero-engines center of excellence Metromathematicas Developed by former Ford Motor Co. engineer Nahum Correa, the system known as “Metromatematicas” uses methodology and manufacturing tools to teach algebra, geometry and calculus The program focuses on middle schools aged children which gets them out of the classroom and puts them into a lab environment Ownership of industrial park Maquilas Teta Kawi built a training center and provided transport and funding for teachers and students Today there are 5 Labs inaugurated by the State and 2 educators appointed to evaluate the program Skilled students makes future for industry more promising Thank you!