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
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
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
Suppliers to the 2007 Toyota Tundra
Source: Automotive News, July 23, 2007
Changing Geography of Assembly
* Radius centered on 430 mile main transportation corridor from Laredo to A SOURCE: ELM Guide, TIP Strategies, Inc., research
Global Manufacturers
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
NOTE: Shaded region represents the NAFTA Highway. SOURCE: ELM Guide, TIP Strategies, Inc. research
Global Vehicle Assembly Plants
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
9 Global Vehicle Manufacturers Almost 900,000 Units Annually 18,000 OEM Workers
Marcopolo Daimler - Freightliner General Motors Chrysler Navistar - International BAE Systems PACCAR - Peterbilt Toyota Caterpillar
Tier 1 Automotive Suppliers
Over 200 Tier 1 supplier plants Over 133,000 workers Approx. 37 million square feet of facilities 74 Tier 1 suppliers (37%) employ 500 or more workers
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
Global Suppliers in the Region
Sourcing by Geography
Predominantly Texas
Predominantly Northeastern Mexico
Predominantly Texas & Northeastern Mexico
SOURCE: ELM Guide, TIP Strategies, Inc., research
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
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
The NAFTA Economy Volume of Trucks per Day To/From Mexico
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
Source: U.S. Department of Transportation, 1998
The NAFTA Economy Daily Truck Crossings, Laredo 1995-2009
Trucks per Day
4,073 4,102
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
5000
3,846 3,950 3,988
4,162 4,284 4,273 3,637
3750
2,791
3,428
3,705
3,710 3,824
2500
2,047
1250
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
Infrastructure Seaports
Manzanillo: 1/3 of Mexico Container Trafc
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
Lzaro Crdenas: Alternative to CA for Pacic Freight
Port of Manzanillo Port of Lzaro Crdenas
Infrastructure Railroad
3 Class I Railroads Serve
Texas
12,000+ Miles of Track in
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
Texas
Class I Track in Northeastern
Mexico: Kansas City Southern Mexico and Ferromex
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
Infrastructure Multimodal
PORT OF LAREDO
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
Research & Development Assets
Labor Flexibility
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
States with Right to Work Laws
Source: National Right to Work Legal Defense Foundation, 2009
Affordable Wages for Automotive Manufacturing
TX Helpers--production workers Laborers and freight, stock, and material movers Team assemblers Production workers Cutting, punching, and press machine setters, operators, and tenders Industrial truck and tractor operators Assemblers and fabricators Structural metal fabricators and tters Inspectors, testers, sorters, samplers, and weighers Computer-controlled machine tool operators Machinists Welders, cutters, solderers, and brazers Painters, transportation equipment Electricians Tool and die makers First-line supervisors/managers of production workers Sales Representatives, Wholesale Industrial Engineers Mechanical Engineers
Texas Avg. Hourly Wage as % of States Avg. Hourly Wage
$9.78
AL
90%
GA
95%
IN
86%
KY
84%
MI
81%
MS
89%
MO
89%
NJ
90%
NC
89%
OH
84%
OK
94%
SC
90%
TN
89%
VA
93%
$10.56
102%
93%
89%
96%
80%
103%
85%
86%
95%
87%
101%
96%
96%
90%
$11.26
72%
91%
74%
80%
82%
95%
88%
90%
89%
82%
94%
77%
76%
90%
$12.12
91%
95%
61%
96%
69%
109%
86%
79%
85%
77%
118%
99%
101%
89%
$12.41
96%
95%
84%
94%
76%
98%
85%
90%
99%
86%
97%
91%
91%
90%
$12.57
93%
94%
82%
93%
71%
100%
91%
80%
94%
85%
96%
91%
92%
91%
$12.84
105%
83%
73%
77%
56%
n/a
61%
87%
79%
69%
115%
106%
96%
85%
$14.28
90%
100%
82%
96%
84%
84%
87%
80%
87%
86%
98%
85%
88%
94%
$15.48
112%
108%
96%
101%
87%
113%
90%
93%
108%
93%
88%
103%
103%
93%
$15.54
113%
97%
98%
99%
91%
113%
106%
81%
98%
94%
102%
95%
100%
97%
$16.43
95%
103%
89%
98%
86%
96%
96%
79%
98%
95%
101%
102%
82%
91%
$17.04
110%
112%
103%
110%
93%
106%
107%
93%
104%
103%
111%
105%
109%
96%
$17.12
102%
93%
95%
80%
77%
102%
82%
89%
91%
91%
112%
96%
73%
76%
$19.24
102%
97%
76%
92%
70%
98%
75%
64%
107%
83%
104%
108%
96%
92%
$20.46
94%
99%
86%
97%
77%
90%
87%
88%
104%
88%
103%
99%
97%
97%
$25.6
106%
108%
100%
108%
90%
116%
105%
90%
107%
102%
108%
100%
113%
99%
$28.18
114%
98%
101%
103%
95%
111%
102%
83%
111%
95%
118%
106%
102%
87%
$38.69
109%
110%
116%
119%
101%
119%
113%
99%
114%
112%
116%
112%
117%
101%
$41.38
111%
117%
125%
126%
109%
133%
118%
102%
123%
127%
121%
115%
119%
97%
Source: Bureau of Labor Statistics Occupational Employment and Wage Estimates, 2009
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
Strength Amid Recession Recovery
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
Source: Moodys Economy.com; MSNBC.com, June 2009
Strength Amid Recession Resilient Metro Areas
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
Source: Brookings Institution MetroMonitor, September 2009
Strength Amid Recession Performance
Milken Institute Best Performing Cities Index 2009 Job Creation Job Stability Wage Growth Technological Innovation 9 out top 20 cities in Texas
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Austin-Round Rock Killeen-Temple-Fort Hood Salt Lake City McAllen-Edinburg-Mission Houston-Sugar Land-Baytown Durham Olympia Huntsville Lafayette Raleigh-Cary San Antonio Fort Worth-Arlington Dallas-Plano-Irving El Paso Wichita Corpus Christi Seattle-Bellevue-Everett Baton Rouge Tulsa Greeley
TX TX UT TX TX NC WA AL LA NC TX TX TX TX KS TX WA LA OK CO
Source: Milken Institute, November 2009
Strength Amid Recession CNBCs Top States for Business 2009
State (Overall)
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
Economy (Rank) 7 1 5 4 14
Transportation 10 1 36 31 34
Tech & Innovation 12 3 11 24 26
Workforce 8 14 12 21 9
1. Virginia 2. Texas 3. Colorado 4. Iowa 5. Utah
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
Corporate Investment in the Region Select Texas FDI 2009
Caterpillar Inc. in Seguin; $170 million Medtronic in San Antonio; $23 million
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
Tianjin Pipe Company in Corpus Christi; $1 billion; 300-600 new jobs Union Pacic 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
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
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)
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
Continued Investment Ford to Produce Fiesta Hatchback in Cuautitln
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
Ford re-tooling Cuautitln 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
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
Younger Population Vs. Other OEM States
Median Age July 08 NJ 38.7 OH MI KY TN
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
Median Age 2030 (est.) SC 41.3 MS AL NJ OH MI KY MO U.S.A. TN OK VA IL IN NC Mexico GA TX 41.1 41.0 40.8 40.2 40.2 40.0 39.6 38.7 38.3 37.9 37.8 37.8 37.7 36.8 36.2 35.6 34.6
38.1 38 37.7 37.7 37.6 37.5 37.5 37.1 36.9 36.8 36.7 36.1 36 35.3 34.9 33.2 27.6
SC MO AL VA NC U.S.A. IN OK IL MS GA TX Mexico
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
Population Growth in Mexico
Mexican State
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
2005 Population Aged 0-14 1,181,971 880,440 764,458 805,289
2005 Population Aged 15-59 2,600,253 1,813,632 1,495,796 1,360,302
Nuevo Len
Tamaulipas Coahuila San Luis Potos
Source: INEGI Conteo de Poblacion y Vivienda 2005
Growth in Driving Age Population (16-85)
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
Source: IHS Global Insight, 2009
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
First Time Buyers New Consumers, New Expectations
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
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
Safety Features and R&D Potential
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
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
Auto Industry Growth in Asia
Source: Marklines, 2009
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
North American Output
Source: CSM Worldwide, 2009
North American Emerging Manufacturers
Tesla V-Vehicle Magna Fisker Wheego
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
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
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
Preserve & grow existing industry
Recruit foreign direct investment
Spur innovation in new technology
Develop a nextgeneration workforce
www.txmxautomotive.com
twitter.com/tmasc
LinkedIn TMASC Group
Regional Collaboration
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
Support BAE FMTV production in Sealy, Texas Partners: Sealy EDC, Katy EDC, Greater Houston Partnership
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
Strategic Relationships
Preparation for Robust Growth and Development
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
State survey to identify target zones for automotive manufacturing Launch results in Spring 2010 Strong tool to meet regional development goals
Visit www.txmxautomotive.com for more information
BEXAR COUNTY ECONOMIC DEVELOPMENT, STRATEGIC INITIATIVES
David Marquez Executive Director 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
