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A Quick Note from Franklin...
Welcome to the bi-weekly newsletter update. I have decided to send 2 newsletter updates per month. This is due to the fact that things are changing quickly in México!
Changes are occurring rapidly here in México due to two main reasons:
- The diligient efforts of México to encourage foreign investment
- The fluid, if not chaotic business climate in the United States. Many U.S. companies have been put in a position due to the weak economy, sluggish sales, and high costs of conducting business (in the U.S.) of exploring their options of either expanding their operations in México or starting new operations here.
Check out the English news articles (what is new in México?) relating to changes in México below!
Do you want to forward this to someone you know who is doing business in México?
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| What is new in México?
China opening plants in Tijuana - Creating 15,000 new jobs...Tijuana recuperates 70% of their lost jobs since "Crisis" began.
(Frith commentary based on June 4, 2009 - Front page article in El Mexicano - Tijuana, Baja California)
20,000 Tijuana workers have lost their jobs since September, 2008. Fortunately for Tijuana, there has been over $110 million dollars of foreign investment from ASIA.
China will be opening automotive and motorcycle manufacturing facilities in Tijuana creating over 2,100 jobs alone. 15,000 new jobs are expected to be created from years end.
Besides the new foreign investment from Asia, Tijuana is experiencing new job creation from factories closing in the United States and relocating to México. One example of this is the recent decision by Sony Corp to close their operations in San Diego and relocate them to Tijuana.
More to come.....
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Mexico Sees More Foreign Investment In Insurance Sector
Wallstreet Journal - May 18, 2009
MEXICO CITY (Dow Jones)--Mexico's insurance industry will likely attract more foreign investment in the years ahead thanks to low use of financial services in the country and the quest by international firms for high growth markets.
"Insurance as a percentage of gross domestic product is 2%, and the average for the Organization for Economic Cooperation and Development is above 6%," said Manuel Aguilera, president of insurance regulator CNSF, in an interview.
"There is room to develop this market and that, together with the saturation of insurance markets in developed countries, should be a major attraction for foreign companies," he added.
The untapped potential has led to a spate of deals in recent years by foreign investors looking for a piece of the Mexican market.
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Mexico Better Equipped For Crisis Than In 1995 Recession
Wallstreet Journal - June 3, 2009
MEXICO CITY (Dow Jones)--As Mexico ploughs through its deepest recession since the crisis of 1995, revamped public finances and well-capitalized local banks put it on a much stronger footing than it had 14 years ago...
Alfredo Coutino, Latin America director at Moody's Economy.com, said in an interview that the North American Free Trade Agreement, as well as pension and tax reforms in recent years, have helped bolster the economy "but are insufficient to allow Mexico to decouple from the external business cycle."
Today's woes are largely the product of the international financial crisis and resulting global downturn, while the so-called Tequila Crisis was a home-grown disaster fueled by an overvalued currency, large public-sector deficits and government dependence on financing linked to the U.S. dollar.
A peso devaluation in December 1994, during the early days of President Ernesto Zedillo's administration, set off a chain of events that triggered soaring interest rates and forced the government to seek billions of dollars in financial aid from the U.S. Treasury and multilateral lenders.
Mexico's economy and public finances are much stronger today than they were in the mid-1990s.
"The macroeconomic situation is totally different. Mexico's economy doesn't have [structural] imbalances. Fiscal accounts are close to balanced. External debt is sustainable. Inflation is low. The exchange rate is flexible," Coutino said.
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Global broadband access on the rise
June 16, 2009 - Cnet
More people throughout the world are hopping onto the high-speed bandwagon.
Global broadband access jumped by 16.6 million lines in the last quarter, reaching a total of 429.2 million lines throughout the world, says a report released Tuesday by industry group Broadband Forum.
Despite the sluggish economy, growth was slightly higher in the latest quarter than over the prior three months, according to the report.
In this past quarter, broadband access grew by 10 percent in 20 different countries. The biggest gainers were India at 13.4 percent, the Ukraine at 15.2 percent, Egypt at 10.6 percent, and Mexico at 10.3 percent. Access in North America rose 3.87 percent, reaching 93.5 million lines, the report said.
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Worst of Mexico recession over - OECD head
MEXICO CITY, June 16 (Reuters)
Mexico has passed through the worst of its current recession, said the head of the Organization for Economic Cooperation and Development, Jose Angel Gurria on Tuesday.
"The strongest, the most important, the most negative of growth or deceleration of the economy, of exports, of industrial production, of employment, etcetera, the most severe has already been seen," Gurria said at a press conference.
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Vive Mexico: Swine Flu Down, Bargains up in Mexico
Wide-open beaches, empty pool chairs in Mexican resorts as country recovers from swine flu
By LISA J. ADAMS Associated Press Writer
TULUM, Mexico June 15, 2009 (AP)
The last time Bud Olson visited Mexico, he ended up in a hospital with kidney stones and missed the ancient Mayan ruins in the seaside town of Tulum.
So when he heard that swine flu was sweeping through Mexico just weeks before he was to return this year, the 43-year-old Seattle, Washington, resident and his friends threw all caution to the warm Caribbean breezes and went anyway.
Olson is one of the intrepid few who decided to come to Mexico in the throes of the epidemic.
His reward? No lines, great service, empty beaches - and lower prices.
"There was no one at our resort," said Olson's friend, Penny Moeller, 44. "The service was spectacular. But it's a shame for the economy."
Moeller says she ended up paying $142 (1,907 pesos) a week for a rental car she originally booked for $350 (4,700 pesos).
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About Human Resources México:
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Contact us today if you want to focus 100% on revenue and reduce your liability.
We can help you setup operations for the first time, outsource your HR, attend special meetings, or handle mergers / acquisitions. We will conduct a complete analysis and provide a comprehensive solution fast. ( See services)
We will take the burden off of your shoulders.
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| Issue: 2
Bi-weekly Newsletter |
Home office in Tijuana |
Services...
Complete Human Resource Outsourcing
(Payroll, taxes, compliance, etc - Your existing / future employees become OUR employees - we assume responsibilities and liability)
Recruiting and staffing in México
À La Carte human resource services
(Representation, meetings, legal coordination, processing, research, etc)
Employee training programs
(Human Resources, Sales, Customer Service, Image Presentation, Teamwork, etc.)
Complete setup of operations in México
Mergers / Acquisitions / Public Companies
Arrange transportation / security for México site visits |
México related web links (in English)...
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