Cd. CHIHUAHUA- THE OPERATION
Skill Ranking
A number of larger maquilas have located in the Cd. Chihuahua area since 1989, many of which provide additional training for the local workforce. Cd. Chihuahua has been an alternative destination for maquila operators who require access to the crossings in El Paso / Juarez, but wish to locate away from the border. The aggregate skill level will increase as more maquilas in the electronics business located there.
Education and Training
A number of training schools exist in Cd. Chihuahua, including a state university from which 40% of the region's students graduate.
Turnover Rates
In general terms, turnover is moderate in Cd. Chihuahua because of a smaller labor pool and fewer choices for workers to find other job sites. Some plants within walking distance of housing areas experience lower turnover rates than those located in business parks that require workers to make lengthy bus transfers. Turnover rate estimates typically run 8% - 12% per month.
Wage Rates
Average hourly wages (fully burdened) paid in Cd. Chihuahua in electronics manufacturing
| 1993 | 1994 | 1995 | 1996 | 1997 | 1998 | 1999 | |
| Direct Labor | 1.88 | 1.93 | 2.11 | 1.56 | 1.70 | 1.87 | 2.02 |
| Technicians | 4.11 | 4.33 | 4.49 | 3.50 | 3.89 | 4.28 | 4.63 |
| Administrative | 8.05 | 8.40 | 9.00 | 7.80 | 8.50 | 9.35 | 10.12 |
expressed above in US Dollars per hour
Source: CIEMEX - WEFA, Mauiladora Industry Analysis, Jan 1997
Wages are generally lower in Chihuahua than on the border, reflecting the city's isolation and smaller size. Daily base hourly wages average closer to the national minimum wage, typically 18 - 22 nuevo pesos, including benefits. Workers with higher skills do receive higher wages, more comparable to those paid in Juarez.
Available Space
Four major industrial parks serve Cd. Chihuahua, with adequate available space in each. The newer parks are far from the worker living areas, which contributes to a higher turnover rate than in communities of comparable size.
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A current survey of industrial parks in Chihuahua,
with a variety of site options, reveals the following average USD prices.
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Infrastructure
Exceptional highway to the northern border crossings in Cd. Juarez. Electricity, water and gas available at all industrial parks.
Customs
US Customs processes commercial traffic from Cd. Chihuahua at the El Paso / Juarez crossing, and a small portion through the Ojinaga crossing for shipments destined to central Texas cities.
Locations
Chihuahua's interior location requires shipment by air, rail or truck, the latter being by far most utilized. Airport facilities are adequate for commercial cargo, but remote location incurs additional costs. Most maquilas air freight to El Paso, Texas and transfer to Chihuahua via truck.
Taxes
Maquila employers pay State of Chihuahua taxes in the amount of 3.5% - 5.0% of base salaries.
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