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Challenges Facing Manufacturing in Puerto Rico

Challenges Facing Manufacturing in Puerto Rico. What Puerto Rico must do to remain competitive. Agenda. Education Government Operating Limitations Business Community Protection?. Education. We need to keep kids in school longer. Make it interesting, go back to trades teaching.

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Challenges Facing Manufacturing in Puerto Rico

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  1. Challenges Facing Manufacturing in Puerto Rico What Puerto Rico must do to remain competitive

  2. Agenda • Education • Government • Operating Limitations • Business Community • Protection?

  3. Education • We need to keep kids in school longer. Make it interesting, go back to trades teaching. • We have excellent universities however we need more trade school exposure (application of how to work in industry) • How to live in a highly populated area. Common etiquette. (I relate this to being service oriented).

  4. Literacylevels % of populationolderthan 10 years 1940 1970 2003E

  5. % of Education Budgetallocated for Teacher salaries

  6. College Board Aptitude Test Results

  7. High level of School Dropouts USA Germany Japan Canada France UK PuertoRico Italy Source: Organization for Economic Cooperation and Development (OECD), Education at a Glance 2001; A T Kearney Analysis

  8. Government • Needs to handle employment without robbing Peter to Paul (recent employment incentive) Can actually hurt current businesses. • Should invest in internships • Permit processes (?) • Governments inability to understand business. • Crime (whom would want to live here?)

  9. Governmental employment 2000 % empleo total Puerto Rico Turkey Canada Check Republic Ireland USA USA Italy New Zealand Germany Spain Netherlands Korea Source: OECD Labor Database; PR Labor Department, Establishment Survey; A T Kearney Analysis

  10. Homicides per 100,000 population

  11. Operational Limitations • Electrical (nothing new here) • Labor Laws (Ability to arbitrate, not pay) • Benefits (Xmas Bonus) • Municipal Taxes on Inventories

  12. Our Electrical

  13. Comparative to other MIlls

  14. New business creation per million in population Source: National Science Foundation; U.S. Small Business Administration; OECD;IADB; A T Kearney Analysis 2,330 2,455 532 346 303 225 PuertoRico Ireland Chile Mexico USA. Singapore

  15. Additional • Business Community is real separated, each have their own focus (How Many Org) • DRCAFTA

  16. Data from: Alianza Para Dessarollo De Puerto Rico • ConAgra Mills • OECD Org for Economic Development

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