Not Sure About VW EGR Valve Health Look For These Symptoms
Texas-Mexico Automotive Update
1. Strategic Regional Economic Development
The Texas-Mexico Automotive SuperCluster (TMASC) Update
David Marquez, Executive Director
Bexar County Economic Development
November 13, 2009
The Mexico Group
Developed by Bexar County in Collaboration with TMASC Strategic Partners
2. Strategic Regional Economic Development
TMASC Update
Section I: Recognizing Opportunity
Section II: Building Upon Regional Assets and Resilience
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
Section III: Attracting New Investment and Growth
Section IV: Positioning the Region for Future Trends
Section V: TMASC efforts & next steps
3. A Courtship of Over Two Decades...
Toyota Motor Manufacturing, Texas (TMMTX)
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
“If we could attract the crown jewel of manufacturing, an automobile
manufacturing plant, we would dramatically change our local economy.”
Judge Nelson W. Wolff
4. Suppliers to the 2007 Toyota Tundra
Source: Automotive News, July 23, 2007
5. Changing Geography of Assembly
* Radius centered on 430 mile main transportation corridor from Laredo to A
SOURCE: ELM Guide, TIP Strategies, Inc., research
6. Global Manufacturers
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
NOTE: Shaded region represents the NAFTA Highway.
SOURCE: ELM Guide, TIP Strategies, Inc. research
7. Global Vehicle Assembly Plants
9 Global Vehicle Manufacturers
Almost 900,000 Units Annually
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
18,000 OEM Workers
• Marcopolo • General Motors
• Chrysler
• Daimler - Freightliner • Navistar - International
• BAE Systems
• PACCAR - Peterbilt
• Toyota • Caterpillar
8. Tier 1 Automotive Suppliers
Over 200 Tier 1 supplier plants
Over 133,000 workers
Approx. 37 million square feet of facilities
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
74 Tier 1 suppliers (37%) employ 500 or more workers
9. BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
Global Suppliers in the Region
10. Sourcing by Geography
Predominantly Texas
Predominantly Predominantly Texas &
Northeastern Mexico Northeastern Mexico
SOURCE: ELM Guide, TIP Strategies, Inc., research
11. Regional Employment
Assembly Plants and Suppliers
• Approximately
151,000 employees
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
Legend
Number of Employees
Suppliers
Assembly Plants
* Radius centered on 430 mile main transportation corridor from Laredo to Arlington.
SOURCE: ELM Guide, TIP Strategies, Inc., research
12. Strategic Regional Economic Development
TMASC Update
Section I: Recognizing Opportunity
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
Section II: Building Upon Regional Assets and Resilience
Section III: Attracting New Investment and Growth
Section IV: Positioning the Region for Future Trends
Section V: TMASC efforts & next steps
13. The NAFTA Economy
Volume of Trucks per Day To/From Mexico
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
Source: U.S. Department of Transportation, 1998
14. The NAFTA Economy
Daily Truck Crossings, Laredo 1995-2009
Trucks per Day
5000
4,073 4,102 4,162 4,284 4,273
3,988
3,846 3,950
3750 3,705 3,710 3,824 3,637
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
3,428
2,791
2500
2,047
1250
0
1995 1997 1999 2001 2003 2005 2007 2009 (July)
Truck crossings in Laredo = 48% of TX Total
Source: U.S. Customs and Border Protection, 2009
15. Infrastructure
Seaports
•Manzanillo: 1/3 of
Mexico Container
Traffic
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
•Lázaro Cárdenas:
Alternative to CA for
Pacific Freight
Port of
Manzanillo
Port of
Lázaro Cárdenas
16. Infrastructure
Railroad
•3 Class I Railroads Serve
Texas
•12,000+ Miles of Track in
Texas
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
•Class I Track in Northeastern
Mexico: Kansas City
Southern Mexico and
Ferromex
17. BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
Multimodal
Infrastructure
LAREDO
PORT OF
18. BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
Research & Development Assets
19. Labor Flexibility
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
States with “Right to Work” Laws
Source: National Right to Work Legal Defense Foundation, 2009
21. Strength Amid Recession
Unemployment
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
September 2009
May 2009 September 2009
Source: Bureau of Labor Statistics; NYTimes.com; FlowingData.com
22. Strength Amid Recession
Recovery
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
Source: Moody’s Economy.com; MSNBC.com, June 2009
23. Strength Amid Recession
Resilient Metro Areas
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
Source: Brookings Institution MetroMonitor, September 2009
24. Strength Amid 1
2
Austin-Round Rock
Killeen-Temple-Fort Hood
TX
TX
Recession 3 Salt Lake City UT
4 McAllen-Edinburg-Mission TX
Performance 5 Houston-Sugar Land-Baytown TX
6 Durham NC
7 Olympia WA
• Milken Institute Best
8 Huntsville AL
Performing Cities Index 2009
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
9 Lafayette LA
• Job Creation
10 Raleigh-Cary NC
• Job Stability 11 San Antonio TX
• Wage Growth 12 Fort Worth-Arlington TX
• Technological Innovation 13 Dallas-Plano-Irving TX
14 El Paso TX
15 Wichita KS
• 9 out top 20 cities in Texas
16 Corpus Christi TX
17 Seattle-Bellevue-Everett WA
18 Baton Rouge LA
19 Tulsa OK
20 Greeley CO
Source: Milken Institute, November 2009
25. Strength Amid Recession
CNBC’s Top States for Business 2009
State Economy Tech &
Transportation Workforce
(Overall) (Rank) Innovation
1. Virginia 7 10 12 8
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
2. Texas 1 1 3 14
3. Colorado 5 36 11 12
4. Iowa 4 31 24 21
5. Utah 14 34 26 9
26. Strategic Regional Economic Development
TMASC Update
Section I: Recognizing Opportunity
Section II: Building Upon Regional Assets and Resilience
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
Section III: Attracting New Investment and Growth
Section IV: Positioning the Region for Future Trends
Section V: TMASC efforts & next steps
27. Corporate Investment in the Region
Select Texas FDI 2009
• Caterpillar Inc. in Seguin; $170 million
• Medtronic in San Antonio; $23 million
• Tianjin Pipe Company in Corpus Christi;
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
$1 billion; 300-600 new jobs
• Union Pacific San Antonio Intermodal Facility;
$120 million
• Albany Composites in Boerne; $42 million
• General Dynamics Advanced Information
Systems; $1.9 million
• L-3 Communications in Waco; $10 million
• Baker Petrolite in Kilgore; $20 million
28. Corporate Investment in the Region
Select Northeastern Mexico FDI 2009
• Hitachi Chemical auto parts manufacturing in Nuevo Leon; US $155
million
• Sanyo solar panel manufacturing in Nuevo Leon; US $15 million, 600
new jobs
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
• Golden Dragon copper pipe manufacturing in Coahuila; US $100
million, 550 jobs
• Speco Aeolian towers manufacturing in Coahuila; US $30 million
• Hilti mining & construction tools manufacturing in Tamaulipas; US $40
million, 250 new jobs
• Whirlpool refrigerator manufacturing in Nuevo Leon; US $55 million,
1,100 new jobs
• Johnson Controls Industries auto battery manufacturing in Nuevo Leon;
US $105 million, 250 jobs
Source: MPBulletins.com, September-October 2009
29. Continued Investment
Toyota Moves Future Tacoma Production to San Antonio
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
• Preserves and stabilizes existing regional suppliers
• New direct investment - $100 million
• New direct jobs created - 850
• Job multiplier - 1:5 (including suppliers)
30. Continued Investment
Chrysler to Produce Fiat 500 Subcompact in Mexico
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
• Chrysler likely to expand Toluca plant for production of 100,000 units
• Target market: new-car shopper, 20-35 age bracket
• W. Hemisphere market access: plans to sell 75% in NAFTA,
25% in S. America
31. Continued Investment
Ford to Produce Fiesta Hatchback in Cuautitlán
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
• Ford re-tooling Cuautitlán assembly plant formerly producing F-Series pickups
• Production to begin in early 2010
• $3 billion investment by Ford and suppliers
• 4,500 Ford jobs
• Guanajuato transmission plant, expansion of engine plant in Chihuahua planned
32. Strategic Regional Economic Development
TMASC Update
Section I: Recognizing Opportunity
Section II: Building Upon Regional Assets and Resilience
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
Section III: Attracting New Investment and Growth
Section IV: Positioning the Region for Future Trends
Section V: TMASC efforts & next steps
33. Younger Population Vs. Other OEM States
Median Age July ‘08 Median Age 2030 (est.)
NJ 38.7 SC 41.3
OH 38.1 MS 41.1
MI 38 AL 41.0
KY 37.7 NJ 40.8
TN 37.7 OH 40.2
SC 37.6 MI 40.2
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
MO 37.5 KY 40.0
AL 37.5 MO 39.6
VA 37.1 U.S.A. 38.7
NC 36.9 TN 38.3
U.S.A. 36.8 OK 37.9
IN 36.7 VA 37.8
OK 36.1 IL 37.8
IL 36 IN 37.7
MS 35.3 NC 36.8
GA 34.9 Mexico 36.2
TX 33.2 GA 35.6
Mexico 27.6 TX 34.6
Source: Population Division of the Department of Economic and Social Affairs of the UN Secretariat, World Population
Prospects: The 2008 Revision, http://esa.un.org/unpp
34. Population Growth in Mexico
2005 Population 2005 Population
Mexican State
Aged 0-14 Aged 15-59
Nuevo León
1,181,971 2,600,253
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
Tamaulipas 880,440 1,813,632
Coahuila 764,458 1,495,796
San Luis Potosí 805,289 1,360,302
Source: INEGI Conteo de Poblacion y Vivienda 2005
35. Growth in Driving Age Population (16-85)
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
Source: IHS Global Insight, 2009
36. BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
First Time Buyers
New Consumers, New Expectations
37. The Rise of the Hybrid & Electric Car
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
• Prius and Civic Hybrid among best-selling hybrids
• Escape & Highlander lead hybrid SUV sales
• GM began producing hybrid Tahoe, Yukon,
Escalade in Arlington, Texas
• Rise of Microcar Sales
38. BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
Safety Features and R&D Potential
39. Asian Interest
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
• China and India OEMs in the US market a reality
• Potential FDI for TMASC
• Automotive News Oct 2009 “Chinese seen as buyers of U.S. suppliers”
40. BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
Source: Marklines, 2009
Auto Industry Growth in Asia
41. BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
Source: CSM Worldwide, 2009
North American Output
42. North American Emerging Manufacturers
Tesla
V-Vehicle
Magna
Fisker
Wheego
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
43. Strategic Regional Economic Development
TMASC Update
Section I: Recognizing Opportunity
Section II: Building Upon Regional Assets and Resilience
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
Section III: Attracting New Investment and Growth
Section IV: Positioning the Region for Future Trends
Section V: TMASC efforts & next steps
44. Preserve & grow Recruit foreign
existing industry direct investment
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
Spur innovation in Develop a next-
new technology generation workforce
50. Preparation for Robust Growth and Development
• State survey to
identify target zones
for automotive
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
manufacturing
• Launch results in
Spring 2010
• Strong tool to meet
regional development
goals
51. Visit www.txmxautomotive.com for more information
David Marquez
Executive Director
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
Bexar County Economic Development Department
T: (210) 335-0667
dmarquez@bexar.org
www.linkedin.com/in/marquezdavid
Special thanks to T.I.P. Strategies and the City of San Antonio