Mexico
Why Queretaro?
Life goes beyond business
General Overview
Land
State Population
Metropolitan
Population
Geographical Division
4,513 miles2
1,690,042 inhab.
979,436 inhab.
18 counties
Weather
50 – 80 ºF
Altitude
1,820 masl
 “Queretaro
state
has
a
privileged geographical location
in the Central Mexico region,
providing a wide influence
range”.
 More than 45 million of
inhabitants in a 135 miles ratio.
Economic Indicators
GDP
MUSD $14,406
Per Capita Income
Per Capita Growth
US $ 9,719
1993
Growth Manufacturing
Industry
6.4%
1 0,000
2007
9,719
1994
9 ,000
8 ,000
8,455
2006
9,270
GDP Distribution
1995
7 ,000
6 ,000
4,464
4,712
4,230
4,345 3,355
8,143
5 ,000
4 ,000
Manufacturing Industry - 34%
2005
8,618
1996
3 ,000
7,210
2 ,000
2,869
3,864
3,271
5,868
3,874 4,702
2004
6,754
4,051
5,334
5,064
4,576
5,397
6,143
5,177
5,587
5,661
2003
6,326
6,201
6,699
2002
1999
1 ,000
0
34%
33%
14%
Trade, Restaurants and Hotels
- 19%
Financial Services - 14%
19%
2001
Others - 33%
Manufacturing Industry Distribution
Metal Mechanic and
Autoparts - 34.6%
16.1%
34.6%
16.4%
Food and Beverage 32.9%
32.9%
Others - 16.1%
1998
 National
 Queretaro
2000
GDP growth (%)
10
Nacional
National
Querétaro
8
6
6.8
5.7
5.4
5.2
4.0
4
Chemical, Rubber and
Plastic - 16.4%
1997
4.8
4.2
2
3.3
2.8
2.8
0
2004
2005
2006
2007
2008
Demographic Profile
State Population
1,690,042
inhab.
Economic Active
Population
682,031
(40.35%)
State Population Growth
1.8%
51%
Metropolitan Area
Population Growth
2.3%
Average State Age
26.5 years
* National Unemployment
Rate
3.9%
* State Unemployment
Rate
4.1%
* January- March 2008
Men
49%
Women
Labor Profile
Jobs Creation Growth
Wages
400,000
Minimum Wage (C Zone)
8.1%
350,000
Wages
$49.50
300,000
6.1%
1.7%
250,000
IMSS Average Wage
(Social Security
Institute)
$249.15
200,000
4,129
5.7%
14,151
10.5%
24,849
29,297
15,941
150,000
100,000
50,000
Industrial Sector Wages
2003
Worker without
Experience
$118.35
Worker with one year of
Experience
$145.58
Worker with 2 or more
years of Experience
$175.02
Specialized Technicians
$250.99
*Mexican Pesos
Daily salaries, without benefits
0
2004
2005
2006
2007
Unions
• Considered as Pro-Business
• More than 90% of the workers are
unionized
• The Queretaro State Government
guarantees the feasibility to choose the
Union
• Feasibility to adapt to the needs of the
companies
• Main Unions: CTM, FTEQ, CROC
Queretaro, Quality of Life
Government made the investment in infrastructure as well as an adequate urban
development a priority for the development of the State
• Acueducto II
• New road infrastructure
• City of Arts project
Queretaro is considered the 3rd safest state of all Mexico
Weather 50º- 80°F – 10° -27°C, no need to cool or heat industrial facilities.
Excellent balance between an industrial city and a city considered Cultural
Heritage of Humanity
As a result of its intensive manufacturing industry, Queretaro has an
Foreign Community.
Extensive
Queretaro has International Schools including all grades.
Queretaro has a great variety of recreational facilities and residential areas, including:
12 Country Clubs and 7 Golf Courses
Superior Education, Research and Development
Number of students
School Year 2007-2008
Engineering
9,446 registered students
Superior
Technicians
4,455 registered students
Educational Institutions
Universities
37
Graduate Programs
18
Technical Universities
6
R & D Centers
39
Training Centers
46
Research and Development Centers
1
Research Areas
3
4
• Industrial Processes
• Advanced Materials
• Information Technologies
• Electric and Automatization
• Machinery and Production
6
25
State 1
CONACYT 3
Private 4
Federal 6
Superior Education 25
International Trade
Concept
Exports
Imports
Main Products
Auto parts, turbines, polymers, food
preparations, wire, conductors.
Metal,
aluminum,
hydrocarbons,
turbines, cotton, circuits.
Free Trade Agreements
Network
• 44 Countries in 3 Continents
• More than 900 million of
potential consumers
Total Exports 2007
MUSD $4,607
Total Imports 2007
MUSD $4,486
Free Trade Agreements Network
North America
South America
Asia
Canada
Bolivia
Japan
Austria
Belgium
Bulgaria
USA
Chile
Middle East
Cyprus
Czech Republic
Denmark
Central America
Colombia
Israel
Estonia
Finland
France
Costa Rica
Uruguay
FTEA
Germany
Greece
Hungary
El Salvador
* ACE’s
Iceland
Ireland
Italy
Latvia
Guatemala
Argentina
Liechtenstein
Lithuania
Luxembourg
Malta
Honduras
Brazil
Norway
Netherlands
Poland
Portugal
Nicaragua
Peru
Switzerland
Romania
Slovakian Republic
Slovenia
-
Cuba
-
Spain
Sweden
United Kingdom
* ACE: Economic Complementation Agreements
European Union
Foreign Direct Investment
Country
Companies
Participation
USA
273
47.5%
Spain
58
10.1%
Germany
45
7.8%
Korea
26
4.5%
Canada
24
4.2%
Italy
21
3.7%
France
18
3.1%
Netherlands
16
2.8%
Japan
13
2.3%
Others
81
14.00%
Total
575
100.00%
Exporting Companies
546
Infrastructure
International
Airport
Interior
Custom
house
Highways
Railroads
Industrial
Parks
• Cargo and Passenger flights
• National and International
Flights
• Multimodal Terminal
• Fiscal Enclosure
•Nafta Highway, 57 Highway
•3,246 kms of Highways
• Availability of logistic and
transportation companies
• 512.2 kms of Rail lines
• Availability of the 2 main
railroad companies (Kansas
City Southern Mexico,
Ferromex)
•18 Industrial Parks & 1
Aerospace Industrial Park
Capital City
Destiny
Km
Time
(hrs)
Mexico City
220
2:30
Borders
Destiny
Km
Time
(hrs)
Nuevo Laredo
914
8:56
Cd. Juarez
1,514
18:00
Mexicali
2,443
24:00
Ports
Destiny
Km
Time
(hrs)
Altamira
631
7:09
Lazaro
Cardenas
536
6:42
Manzanillo
650
7:36
Veracruz
631
7:05
Infrastructure – Industrial Parks
19 Industrial Parks &
Zones in the State
Services:
• Electric Energy
• Water
• Natural Gas
• Wastewater Treatment Plant
• Private Security
• Firefighting Infrastructure
• Rail Spur
• Availability of Qualified
• Labor Force
Infrastructure – Industrial Parks
Autoparts and Home Appliances Clusters
Potential Market
of 45 million
consumers in a
217 miles ratio
Examples from the Main Sectors
Food and Beverages
Automotive
Home Appliances
Aerospace
Automotive Industrial Sector
4 Assembly Plants
57 TR 1 Suppliers
100 TR2 Suppliers
More than 30,000 workers
Aerospace Industrial Sector
10 Manufacturing or Supplier
Companies
3 MRO Companies
2 R&D Centers
1 Design and Engineering Center
More than 3,600 workers
Main Aerospace Cluster in Mexico
Courses:
•Electric Assembly
•Structural Assembly
•Machining
•Sheet Metal
•Superior Technician in Avionics
•Aeronautic Manufacture Engineer
National Aeronautic University in Queretaro
UNAQ
Will provide specialized education for the Aerospace Industry, with
technical, engineering and graduate programs, at the International Airport
of Queretaro.
Aerospace Industrial Park
An Industrial Park dedicated to the Aerospace Sector.
Benefits: Preferential lease rates, no hook up fees for electric energy,
inside the International Airport of Queretaro.
Industrial Sector Home Appliances
4 Assembly Companies
More than 20 Direct Suppliers
1 R & D Centers
More than 7,000 workers
Industrial Sector Software - IT
With
the
Software
Cluster
and
Queretaro’s Technological Information
More than 60 Companies
Specialized Services consolidation in
InteQsoft, the State becomes a new
prototype
of
regional
economical
success.
3,800 Workers in Software
Development, 6,200 in Call Centers
Information Technologies
Cluster
Automotive Industry Software
Telecommunications Software
Aerospace Industry Software
Call Centers
Objective:
Data Center Level 4
To become the leader State in Mexico in
the production of Embedded Software and
Contact Centers.
ERP Software
Strategic Programs
Queretaro Industrial Expo
Yearly exhibition organized by the
state Government, focused on the
creation of opportunities for local
Productive Chain Link
• Link of Anchor Companies with potential
suppliers;
• Link of Suppliers with Buyers.
companies with the most important
companies in Mexico, while creating a
permanent
platform
to
develop
a
Commercialization
strong goods and services market.
• Suppliers Development Program
• Participation
in
National
and
International Exhibitions
• Business Support Programs Proexport
and Disexport.
Quality and Continuous Improvement
State Quality Award, considered as a
support to improve the competitiveness
through quality systems.
Certified Manufacturing Industry
Micro, Small and Mid Sized Companies
with Quality Certifications
Sector
Companies
More than 400
Companies with
Quality
Certifications:
Metal Mechanics and
Autoparts
115
• ISO 9000
Chemical, Rubber and Plastic
53
• ISO 14000
Services to the Industry
33
• ISO/TS 16949
Electric and Electronic
17
Paper, Print and Editing
Houses
15
Food and Beverage
11
Non Metallic Minerals
3
Textil
1
Total
248
• NADCAP
• AS 9100
Rankings and Awards
National Competitiveness
Place
Source
Concept
1º
Inversionista
Best City to Live: Metropolitan Zone of Queretaro, 2007
2º
KPMG and AMECE
Economic Growth Expectations for the next 3 years, 2007
2º
Aregional
State GDP Growth: 5.7%, 2007
3º
Reforma Newspaper
Quality of Life Survey 2007: Metropolitan Zone of Queretaro
3º
World Bank
Doing Business in Mexico 2007: Where is easier to open a company?
International Competitiveness
Grade
Source
Concept
 Solid economic base that keeps attracting Foreign Direct Investment
 GDP per capita above national average
mxAA
 Solid financial performance
 Trend to increase the investment amount
Solid credit quality compared to
AA
other entities or issuers in the country
 Henceforth, the positive credit prospectives (PCP) indicate that the
grading could increase in a one to two year period.
 Satisfactory fiscal performance
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 Decreasing current debt of the State
 Increasing economic strength as a productive, commercial and services
center.
State’s support
Counseling for Government Procedures and Regulations
Approval for the establishment of a new company (Application Form). Overseeing
of the incentives and permits approval.
Outlining Work Schedules
Work schedules and on-site land, industrial facilities and park visits with the
necessary arrangements for executives.
Networking Program
With services providers such as attorneys, contractors, head hunters,
accountants, etc. Support services regarding industrial costs, human resources,
migratory affairs, investment requisites, legal and taxing aspects, as well as
assistance while getting settled in Queretaro State.
State’s support
Public Property and Commerce Registration
State tax equivalent to 0.6% over the value of the property plus 25% brand new
companies that start construction or acquire operating facilities could get an exception
or refund up to 100%. Companies already established in the State that purchase real
estate as part of their patrimony, will only cause 50% of the corresponding tax.
Real State Transfer Tax
Municipal tax equivalent to the 2% over the value of the property plus 25%. New
companies that begin construction or acquire facilities, as well as the established
companies that acquire facilities and thus generate or maintain jobs, may obtain
reductions of up to 80%. Each municipality will determine the application of this
reduction.
State’s support
Accelerated Depreciation of Fixed Assets
Examples:
•Desk personal computer, equipment and laptops, servers, printers, optical scanners,
graphics units, bar-code readers, digitizers, external storage units and concentrators of
computing networks:
Normal Depreciation: 30%
/
Accelerated Depreciation: 88%
•Manufacture of motor vehicles and their parts, manufacture of metal products:
Normal Depreciation: 8%
/
Accelerated Depreciation: 69%
•Equipment for research of new products or development of technology:
Normal Depreciation: 35%
/
Accelerated Depreciation: 89%
State’s support
Training Programs
BECATE
Job training program for the unemployed people that grants 1 up to 3 minimum wages
during a period of 1 up to 3 months. The requesting company is committed to hire a set
percentage (80%) of the trained workers.
Secretariat of Sustainable Development
Blvd. Bernardo Quintana No. 204 Col. Carretas,
Queretaro, Qro. 76050
Tel. +52 (442) 211 68 00
www.queretaro.gob.mx/sedesu