NUEVO LAREDO- THE OPERATION

Wage Rates

Average hourly wages (fully burdened) paid in Nuevo Laredo in electronics manufacturing:

(expressed above in US dollars per hour. The minimum hourly wage as of January 2005 was 95 US cents)

Source:    CIEMEX - WEFA, Maquiladora Industry Analysis, Jan 1997

Available Space

Five major industrial parks serve Nuevo Laredo, with adequate available space in three.  The newer parks are far from the worker living areas, which contributes to a higher turnover rate than in communities of comparable size.

Infrastructure

Exceptional highway and transportation services.  Industrial parks on both sides of the river possess water, electricity, and gas at reasonable prices.  Transportation costs are generally low due to market forces and route availability. In addition, all 60 major trucking companies are headquartered in Nuevo Laredo.  Rail is provided by the Mexican National Railway and the Ferrocarriles Nacionales de Mexico.

Customs

US Customs, through the Laredo Customs District of South Texas, collected over $152 million in duties by the end of Fiscal 1991.  The facilities are excellent at the new Columbia Bridge, and the presence of many competent customs brokerages ensures efficient and timely crossings.  The heavy traffic does not fail to create delays of several hours during peak operations.  The 24-hour crossings do alleviate a significant portion of Laredo has more licensed US Customhouse Brokers than any other border city.

Locations

Mountain ranges form a funnel, or travel corridor, leading from the interior of Mexico through the industrial city of Monterrey to Laredo, putting the region at the center of a natural trade route between Mexico, the United States and Canada.  More directly, Laredo is the focus all interstate highway access from the metropolitan centers of the State of Texas to Mexico's industrial heartland.

Laredo International Air port is lacking in much needed improvements and expansion.  Cargo transfer continues to be predominantly truck-borne, transported to the significant air cargo facilities in either San Antonio, Texas, or Monterrey, Nuevo Leon.  The airport and three adjoining industrial parks do offer Foreign Trade Zone status to many tenants.

Laredo possesses extensive rail shipment capacities and in 1991 handled over 100,000 loaded rail car shipments across the Rio Grande into Mexico.

Taxes

Maquila employers pay State of Tamaulipas taxes in the amount of 3.5% of base salaries.  State of Texas imposes franchise and sales taxes of 5.25% and 7.75% respectively.  Laredo local taxes on sales, real property, school, bridge, road, and college range between 3% - 4%.