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February 2007 2007 US Commercial Service PowerPoint Presentation
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February 2007 2007 US Commercial Service

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    Slide 1:2007 Automotive Trade Mission to Mexico March 26 30, 2007

    Slide 2:Agenda Who We Are - Brian Miller, International Trade Specialist, U.S. Commercial Service. Understanding Mexico - Daniel Crocker, Commercial Consul, and Ernesto de Keratry, Sr. Commercial Specialist, U.S. Consulate General Monterrey, Mexico. Mexico's Automotive Industry 2007 - Crocker, de Keratry. Why This Mission? Crocker, de Keratry. Tips on Doing Business in Mexico - Crocker, de Keratry. Conclusion, logistical details Kristian Richardson, International Trade Specialist. Q&A - all of the above speakers.

    Slide 3:Who Are We? The U.S. Commercial Service is a front-line, export promotion unit of the U.S. Department of Commerce. We exist to promote and protect U.S. commercial interests abroad and work to ensure that U.S. businesses successfully compete in the global marketplace. This is facilitated through our network of Trade Specialist in over 100 offices around the U.S. and Commercial Specialists within U.S. Embassies and Consulates in over 80 countries around the globe. In fiscal year 2006, we assisted more than 69,000 U.S. exporters achieve over $63 billion in export sales.

    Slide 4:The U.S. Commercial Service Automotive Team The USCS Automotive Team is made up of specialists from around the globe that are dedicated to assisting U.S. companies within the various automotive sub-sectors. The Automotive Team supports 4 key categories: Products OE and Aftermarket components. Manufacturing and Testing Equipment products used in manufacturing plants, vehicle repair facilities, etc. Services automotive engineering and consulting. Vehicles includes cars, trucks, buses, specialty vehicles.

    Slide 5:How the USCS Automotive Team can Help You The USCS Automotive Team can provide assistance on where opportunities for your products may exist and how to effectively and efficiently reach those potential customers. Market Research find the answers you need to make an educated decision for market entry. Matchmaking locate qualified overseas agents, distributors, end-users for your products. Due Diligence know who you are doing business with. Key Events Overseas trade missions and trade shows supported by U.S. Embassy staff are a cost effective way to understand the market and reach numerous potential customers.

    Slide 6:Who We Are in Mexico Daniel Crocker Commercial Consul in Monterrey. Ernesto de Keratry Senior Commercial Specialist in Monterrey. Lora Baker Commercial Consul in Guadalajara. Alicia Zayas Commercial Specialist in Guadalajara.

    Slide 8:U.S. Trade with Mexico

    Slide 9:NAFTA is a trade agreement, signed in November 1993 by the United States, Mexico and Canada. Going into effect on January 1st, 1994, NAFTA established free-trade conditions among the 3 countries and was the result of negotiations covering 11,000 products classified according to their harmonized codes. But, what has NAFTA been able to achieve over the last 10 years? For certain, the record is not perfect and much more remains to be done. This will take not only the cooperation of the three governments to ensure the realization of the goals highlighted on the previous slide but will require a public-private sector partnership. All that being said, there have been some real and very significant achievements, some of which are listed here.NAFTA is a trade agreement, signed in November 1993 by the United States, Mexico and Canada. Going into effect on January 1st, 1994, NAFTA established free-trade conditions among the 3 countries and was the result of negotiations covering 11,000 products classified according to their harmonized codes. But, what has NAFTA been able to achieve over the last 10 years? For certain, the record is not perfect and much more remains to be done. This will take not only the cooperation of the three governments to ensure the realization of the goals highlighted on the previous slide but will require a public-private sector partnership. All that being said, there have been some real and very significant achievements, some of which are listed here.

    Slide 10:China has been in the news a lot lately. The U.S. and Mexico have seen factories, especially for sectors that are labor intensive (like textiles), and the jobs associated with these factories, move to Asia and Central America in search of cheaper labor. From our perspective, it is only through the integration of our manufacturing processes, with a focus on increasing efficiency and productivity in sectors where we have a comparative advantage that we will be able to ensure competitiveness globally.China has been in the news a lot lately. The U.S. and Mexico have seen factories, especially for sectors that are labor intensive (like textiles), and the jobs associated with these factories, move to Asia and Central America in search of cheaper labor. From our perspective, it is only through the integration of our manufacturing processes, with a focus on increasing efficiency and productivity in sectors where we have a comparative advantage that we will be able to ensure competitiveness globally.

    Slide 11:Understanding Mexicos Manufacturing Sweet Spot

    Slide 12:Automotive SectorBooming in Mexico Fastest growing manufacturing sector in Mexico. Core part of North American strategy for most companies. General drive towards southern US in automotive production. Even investments in US plants drive investment in Mexico:Toyota in San Antonio ? Bridgestone expansion in Monterrey. Cost of labor is a big factor, but less than youd think. Cutting costs lower scrap, save energy, increased automation. Challenge: purchasing strategy local or at regional HQ? Bottom line: if youre selling to this sector in the US, you should be seriously exploring Mexico.

    Slide 13:Looking at Overall Production Figures

    Slide 14:Why This Mission?4 Cities, 26-30 March If youre in this business, you cant afford to pass up Mexico. In one visit, you will cover 4 key cluster areas for assemblers and tier 1 and 2 suppliers. Our matchmaking services are at the core tailored for your business needs. As a group under the auspices of the US Embassy in Mexico, you gain visibility/credibility. Results past users of our matchmaking services in Mexico have an exceptionally high rate of success in signing reps/securing export sales. Our metrics are yours: while there is a cost to the mission, we are judged ultimately on whether or not we helped you export!

    Slide 15:What Can Help You Sell More to Mexican Manufacturers? Good local representation. Knowing where purchasing decisions are made. Identification of your customers 1st or 2nd tier? Assessment of customers as suppliers. Finding out what your customers need. Understanding what financial tools are at your disposal to offer financing. Balancing risk of offering financial terms to your customers. Following up!

    Slide 16:Conclusion What now? The US Commercial Service will help increase your companys sales in Mexico, while providing a positive and maximum Return On Invest for your participation Next Steps: Verify that your company is a good fit for the Trade Mission (discuss your companys goals and objectives with our staff in Mexico) Register with Kristian Richardson at 602.254.2907 (Sign Participation Agreement, Submit Payment, and Complete Gold Key Questionnaire) Forward marketing materials to CS Monterrey and CS Guadalajara Make flight and hotel arrangements as outlined in Itinerary

    Slide 17:APPENDIX

    Slide 18:Mission Statement The U.S. Commercial Service is organizing an Automotive Industry Trade Mission focused on Supply Chain opportunities in both northeastern (Monterrey & Saltillo) and central (Aguascalientes & Silao) Mexicos automotive clusters. This event offers a timely and cost-effective opportunity for U.S. firms to tap into fast-growing markets for automotive equipment, technology and services. Target sectors holding high potential for U.S exporters include process engineering design, sub-assembly, stampings, tool and die maintenance and fabrication, plastic component parts, progressive stamping dies, cutting tools and lubricants, industrial safety equipment, process controls and testing equipment, and general industrial supplies. Mission participants will benefit from country briefings, one-on-one appointments with prospective business contacts, and high-level meetings with government officials and business leaders. The participation fee is $4,900 per company. $330 for each additional company representative. Website for registration and access to full Mission Statement: http://www.buyusa.gov/auto/mexicomission.html

    Slide 19:Itinerary and Dates25 30 March 2007

    Slide 20:Itinerary, cont. Day Four (Wednesday, March 28th) 8:30 AM: Commercial breakfast briefing with U.S. Commercial Consul, industry association, and industry specialists. 2:30 PM: Check out of hotel. 3:30 PM: Travel to Monterrey Airport for flight to Silao. (Mexicana de Aviacion at 6:15 pm) 7:30 PM: Arrive and Check-in to hotel in Silao (will be received by Guadalajara CS personnel). 8:30PM: Cocktail reception with Commercial Consul, partners, and local government officials. Day Five (Thursday, March 29th) 8:00 AM: Business briefing and meet Trade Aides. 8:45 AM: Depart for meetings. 9:00 AM to 5:00 PM: 4-5 meetings with potential partners or customers (translators and transportation provided). 6:30 PM: Travel to Aguascalientes by chartered bus (travel time approx 2 hrs). Check-in to hotel.

    Slide 21:Itinerary, cont. Day Six (Friday, March 30th) 8:00 AM: Business briefing with local industry representatives and government officials. 9:00 AM: Meet Trade aides and depart for meetings. 9:30 AM to 5:30 PM: 4-5 meetings with potential partners or customers (translators and transportation provided). No-host dinner and de-briefing meeting Day Seven (Saturday, March 31st) Return to the United States from Aguascalientes International Airport. (Transportation not provided, unless all participants would leave at the same time)

    Slide 22:Concusion What now? The US Commercial Service will help increase your companys sales in Mexico, while providing a positive and maximum Return On Invest for your participation Next Steps: Verify that your company is a good fit for the Trade Mission (discuss your companys goals and objectives with our staff in Mexico) Register with Kristian Richardson at 602.254.2907 (Sign Participation Agreement, Submit Payment, and Complete Gold Key Questionnaire) Forward marketing materials to CS Monterrey and CS Guadalajara Make flight and hotel arrangements as outlined in Itinerary