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1.What is AMT’s prescence in Mexico?

AMT now has 2 offices and 1 Technology Center in Mexico. AMT has also signed a Memo of Understanding with Monterrey Tec that allows its members to access multi regional facilities if Open Houses or Technical Seminars are scheduled outside of the areas where the offices and the Technology Center are located.

2. Who should I contact first on Mexico business for questions?

You can contact Mario Winterstein, Business Development Director in McLean or Carlos Mortera directly in Monterrey Mexico, which centrally oversees projects throughout Mexico on behalf of AMT members. Depending on your need, they will route you to the right resource for you to work with.

3. Where are Mexico’s main manufacturing industries located geographically?

The main manufacturing industries are located from Central Mexico towards the north. There is a large concentration of automotive in Central Mexico, where 60% of light automotive is produced. There are strategic hubs you need to tap into in North Eastern and Western Mexico. You will find that the industrial development has spread out much broader than what you were familiar with to mid-sized cities, such as Zacatecas, Torreon, Guaymas, Celaya, Queretaro and others. For additional information please see the maps contained in this CD.

4. Where can I get statistical information about Mexico’s macro economy?

Mexico publishes statistical information specific to the macro economy on www.inegi.com.mx , which is the Mexican Statistics Department. You can also access the CIA Fact Book and it will enlighten you with economic information of the 3rd. largest trade partner with the U.S. You can see an example here.

You can also contact AMT Mexico office as we keep an updated complilation of the projects and macro economy in Mexico.

5. Where can I get statistical information about Mexico’s machine tool market?

Members can find the information by accessing the www.AMTonline.org by contacting the Stategic Information Research Department (SIR) at AMT headquarters in McLean VA.
However, the annual statistics are usually released late in the following year.
So, if you need these numbers for the latest months, you need to contact AMT Mexico office directly and we will try to get the updated information for you.

You can also access AMDM (Mexican Machine Tool Distributors Association) an active partner to AMT in Mexico and your company or your rep agent might also have access to their trade statistics www.amdm.org.mx

6. What is the size of Mexico’s machine tool market?

  • Mexico has been a steady market for Machine Tool consumption since NAFTA was signed in 1994. The total machine tool consumption in 2008 was close to $1,500 billion USD.
  • Mexico has no significant domestic Machine Tool industry, so consumption equals imports.
  • In 2009, U.S. exports of machine tools to Mexico decreased by 25%+ but Mexico is still the leading destination for U.S. products.
  • U.S. share of machine tool imports was close to 30 percent in 2008, making Mexico the market where the US industry has the largest market share in the world.
  • US produced $2.81 billion of machine tools and related products, representing 25% of Mexico’s consumption in 2008.

 

7. What did Mexico do to cope with the global economic recession that started in 2008?

Mexico as the majority of the countries implemented several programs to support the key industries:

  • Support program to automotive and auto-parts manufacturers to keep the work force in place as the economy recovered.
  • Implementation of a “cash for clunkers” program to generate additional demand for new automobiles.
  • Implementation of an appliance replacement program, where the government financed the replacement of old appliances, triggering additional demand.
  • A major financing program to SME’s where access to cheaper funds was implemented.

Both internal and export markets were very hard hit the first 9 months of 2009, showing a slowdown of 30% in consumption and orders but a very fast recovery was observed starting in the last quarter of 2009.

 

8. Which are the fast growing industries requiring machine tools in Mexico in the next 3 years?

Mexico has a two edge manufacturing market, domestic and manufacturing for export.
Automotive is growing 80%+ vs. 2009 levels and Mexico is in line to produce 2.5M cars in 2010. VW, Nissan, Ford, GM & others continue to expand their presence and platforms in Mexico.
Auto-parts is a 2nd. Industry which is quite vibrant in Mexico, 40%+ of the auto-parts consumed in North America are manufactured in Mexico.
Global companies are seeking to expand their Mexican sourcing of autoparts. BMW wants to fold the purchases for their world-wide facilities from US$700M.
New industries as Aircraft Components and Medical equipment is also expanding and developing.
Traditional industries as Construction and Agriculture are also prospering and expanding their product scope.

Automotive, auto-parts, appliance, electronics, aircraft components, construction and agricultural, die & mold, electronics and medical are the biggest user industries of machine tools in Mexico today.

10. What type of machine tools are most needed in Mexico?

Automotive, auto parts, appliance, electronics, aircraft components, construction and agricultural, die & mold, electronics and medical are the biggest user industries of machine tools In Mexico today. The most needed machines include but not limited to:
Systems for 5Cs engines:

  • Flexible production lines for cylinder heads and bodies;
  • CNC grinding machines and CNC gear machines for automotive industry
  • 5-axis VMCs and HMCs, CNC jig grinders for aircraft components manufacturing
  • High speed gantry milling machines, CMMs, EDMs, CNC milling and boring machines, deep hole drilling machines, CNC grinding machines for die & mold making;
  • CNC precision lathes, automatic lathes, small 5-axis VMCs, high speed milling centers, high speed stamping machines for IT and electronics industry.
  • Metrology systems.

Source: AMT Mexico Office, ITESM.

11. What should I know regarding selecting or designing the product for the Mexican market?

Mexico has very diverse deployment of manufacturing technology as there are domestic companies, global companies from Europe, Asia and the US that incorporate their standards to the manufacturing process. The purchasing decision regarding technology and to select the manufacturing technology provider has also been driven down from corporate offices to Mexican staff.
Things you need to consider when presenting your products are:

  • Long history of association with US made manufacturing technology or other providers.
  • Local presence and support.
  • Adequate spare parts and availability of the same.
  • Local service in same language.
  • Environment friendly similar to EPA requirements.
  • Safety considerations similar to OSHA.

Mexico presents a unique environment to work with std. products as the majority of the Mexicans in the industrial community are quite comfortable with the British Std. system, so no need to reconfigure from inch to mm etc…!

12. How can I get intelligence about competition?

  • Scheduling a Market Penetration Review Session at AMT Mexico. Once you make up your mind about the market, we will send you a questionnaire where we will ask specific question about competition, we will then task ourselves to the job of collecting competitors information from first hand sources in Mexico.
  • Attend industry shows to collect catalogs of your competitors.
  • Visit customers to hear their comments on different sources of manufacturing technology.
  • Participate in Technical Seminars to hear what your competitors are showing and presenting to the market.
  • Talk to industry association / experts to collect their input.
  • Contact AMT Mexico to review sources and cross check the information you have collected.

13. How can AMT Mexico build up or improve my Mexico business strategy?

AMT Mexico has two edges to this response, if you are new to the market or you want to re vamp your presence in the market;

  • The first one is intended for those members that are new to Mexico and are ready to develop their preliminary Sales & Marketing Strategy for the actual as currently operating.
  • The second one is schedule a review session of the current strategy to help you question, validate and invigorate the way you approach the largest export market of US made manufacturing technology!

Any of the two sessions involve, planning, a questionnaire is sent to you to be completed and returned to AMT Mexico, we will then coordinate with Strategic Information and Research in McLean to gather topics and intelligence to be shared with you. Each of your expectations will be addressed or discussed during ONE DAY session, scheduled in Monterrey Mexico. Your key executives with accountability over the Mexican Sales & Marketing plan are recommended to be present as well as anyone from your staff that can help you outline your program. For more information, follow this link to see a sample of the questionnaire.

14. How can AMT Mexico help with the US business visa issue?

We can provide your customer with a list of documents they will NEED to have with them BEFORE they think about requesting the appointment. Depending on the profile of your customer and the criticality of his or her responsibility, we can “support” its Visa request through a letter explaining why it is important for him or her to process the visa application.

15. Why should I participate in AMT’s trade missions or Market Penetration Trips as currently called?

Almost every year, AMT organizes a delegation from member companies to visit Mexico. The delegation is then called an AMT Trade Mission. It is usually a 7 days’ business travel to major customer areas in the country. The delegation usually accommodates up to 12 members. On each day of the travel, participants will be able to visit 3-4 major manufacturers in key industries. The value of being on this type of trade mission includes:

  • Meeting top company executives or top government officials;
  • Discussions with key purchasing executives which you could not arrange by yourself as a “sales call”;
  • Seeing a number of customers in a wide span of industries;
  • Learning how to deal with customers with different ownerships:
  • Sharing business experiences with other members on the mission;
  • Receiving pre-visit and post-visit reports from AMT Mexico staff to help prepare your business strategy in the country;
  • Getting immediate answers from your customers or AMT Mexico staff for many of your questions;
  • Having all the logistical meeting arrangement done by AMT
  • Opportunity to network with the industrial community (distributors, agents, tech centers and local industrialists) of the regions you are visiting.

16. How do I do product promotions in Mexico?

There are several ways to do product promotion in Mexico:

  • Major industrials shows

Contact the office or access www.amtonline.org and get a list of major industrial shows in Mexico for the coming months.

  • Technical seminars

At major industrial shows, e.g. TECMA, Metalform & ExpoManufactura, there will be technical seminars run concurrently. AMT Mexico will inform members of the opportunities to participate, we usually receive 3 to 4 conference slots to make available to our members and invite them to participate as speakers. There is no investment other than travel expenses.
Members can also hold seminars independently from trade shows any time during the year. AMT Mexico staff can assist in logistical arrangements and audience invitation.
AMT Mexico through the collaboration agreement with Monterrey Institute of Technology makes available world class seminar facilities for a fraction of the cost to the members. Members will only be required to open 1 or 2 seats to the academic community from Monterrey Tech.

  • Advertisements in industrial magazines

For a list of the related magazines, see Attachment C. AMT Mexico has negotiated packages with key magazines to secure preferred pricing; we can also support you in hiring translation services and proofreading, etc.

  • Direct mailings:

AMT can assist in developing the mailing list by using our office database which has over 4,000 useful entries.

  • Customer visits:

AMT can assist in setting up the meetings and escorting you for the visit based on availability of AMT Mexico staff.

17. Which are the major industrial shows that I should consider participate in Mexico?

There are three shows that are key to your successful penetration in the Mexican market. Tecma which takes place every odd year in Spring in Mexico City, ExpoManufactura which takes place EVERY YEAR in Monterrey also in Spring and Metalform, which is a yearly show that changes venue between Mexico City and Monterrey. For additional information about each show and others related to your product or industry, please follow the link.

If you are looking for regional shows for specific products or processes suchs as welding, metrology, laser, plastics, HVAC, controls or automation, let us know and we will search and verify the related shows for you upon request.

18. What are the benefits of being part of the AMT/USA pavilion?

Exhibiting under AMT/USA pavilion, you will enjoy:

  • Take advantage of the strong industry liaison established by AMT Mexico with key associations and decision makers of the regional industry.
  • Good location.
  • Maximum exposure.
  • Standardized booth logo and banner design.
  • Visible joint advertisement by AMT.
  • List on the AMT show directory.
  • Share in business contact trade leads received at AMT info booth.
  • Synergy with other American exhibitor.
  • Brand awareness of “Made in USA”.
  • Inclusive services to participate in other major event charted to increase your exposure to the Mexican customer base, morning visits, business encounters, etc…
  • Customer and government networking at AMT receptions.
  • Customer and government networking at show organizers receptions.
  • On site assistance in installation, logistics, booth set up and business activities.
  • Rest and meeting areas with snack, coffee, printers, fax and computers.

19. What are the benefits of participating in a good industry show in Mexico?

It does not matter if you are new to the market or have been active in it for several years. A good industry show will provide you with:

  • Exposure to the market.
  • Trade opportunities.
  • Discover and talk to non-conventional customers.
  • Learning about new or other technology offered in the Mexican market.
  • Gathering intelligence regarding competitors.
  • Getting to know and see potential distribution partners in action.
  • Finding potential agents and seeing them in action.
  • Finding potential suppliers.
  • Finding candidates to work as Direct Employees.
  • It will let you learn and know more about the Mexican market.

20. Which are the main industrial magazines in Mexico?

There are several, we at AMT Mexico have created a table profiling each of the most recommended ones. Please follow this link to review and for additional information or if you want to pursue advertising and want to access preferred pricing, contact AMT Mexico for further support.

21. How can I get my trade leads?

  • AMT Mexico release trade leads to those members who are part of the Mexico.
  • Focus Group on a regular basis.
  • Trade missions usually organized by AMT once every year.
  • Customer visits.
  • Industrial shows (from visitors).
  • Signing up to Globaline.
  • Register for your free subscription to receive AMT Trade Opportunities by going to AMT’s website www.AMTonline.org
  • Agent reports/correspondence.
  • Technical seminars.

22. How can I set up meeting appointments with potential customers?

You may find it challenging to set up meeting appointments with some of the potential customers established in Mexico, specially those global companies that have no linkage to the US manufacturers, i.e. companies from Europe, Brazil or Asia. In many instances they just ignore the request for a meeting or never set a date for such an event.

To overcome the latter, you can try the following:

  • Use your American or International business contacts to set up meeting appointments for you with the Mexican subsidiary.
  • Use your Agents in Mexico to set up the meeting appointment, one of the attributes of a good agent is that they may already have access to those non-traditional customers.
  • Contact AMT Mexico staff and we will help set the meeting for you through our many developed contacts in country.
  • Contact persons who have visited your show booths or requested your catalogs to ask them to facilitate a meeting appointment.
  • Take advantage of numbers! Involve other AMT members which are not a competitor to tag along on a joint call.
  • Use your government resources US and let AMT Mexico facilitate contact with local government to use them as a lever to gain access.

23. What are the factors affecting Mexican customer’s purchasing decisions?

Mexican customers expect the same as any other customer US or globally in regards to Quality, Price and Delivery. An added attribute the Mexican customer base is seeking is your flexibility and knowledge about potential Financing options existent in the market, do not hesitate to contact AMT Mexico for a refreshment of what is available and what works well in the market.

Another key factor sought by the Mexican and users is Flexible technology. Your customer will be most interested in Flexibility and smart investing to broaden the product range.

Your Mexican customer will be willing to travel and get familiar with the product BEFORE making the investment decision, so local demonstration or capacity to show them the technology is of great value to them.

Spare parts availability is a determining factor which is rising as a key attribute to the procurement decision.

Local Service is an outspoken expectation that if not offered will send your product to the bottom of the selection roster, ANY Mexican company expects local service, available on a timely basis and in their same language.

24. What is the most important strategy in negotiating with the customer?

The most important job your agent or your Direct Sales resource will face is to identify who is the actual decision maker within the organization.
Is it a family owned business?
Is it a global company with a Central Manufacturing Engineering staff at corporate?
Is it driven more by operations than by financial decisions? Your answer to this question might also skew the way you integrate your proposal and the way you present it to your end customer.

Regarding discounts and special price, DO NOT bring the discount or special price issue early in the negotiations, rather wait to hear and capture ALL customer expectations BEFORE even bringing the issue of discount into the table.
Be sensitive and well versed on the different FINANCING options existing in Mexico.

For additional discussions on all this points and others related to negotiating in Mexico please contact AMT Mexico.

25. How can I build up a list of potential customers?

  • First, you may look for the local investment from international manufacturing companies, especially those who have been your customer in the US.
  • Second, specific sector databases/directories are uploaded to the Mexico section in AMTonline. At the web page you can find directories for automotive & auto parts, aircraft components, industries located in Coahuila, Sonora, Queretaro, Nuevo Leon and the rest of the most industrialized states in Mexico.
  • Third, visit various industry shows in Mexico and get a directory from the show organizer for a particular industry.
  • Fourth, ask your agent/distributor or your own local employees to build up the customer list.
  • Fifth, talk to other members whose product line are complimentary to yours and have the same customer base, even consider making joint customer calls to leverage on synergies.
  • Last but not least, contact AMT Mexico.

26. Should I use Direct Selling or Selling through Agents?

In a traditional market, an Agent used to be considered as the fastest way to lap into a new market. As the expectations from the global customers evolve that is not so anymore as Agents get confronted with conflicting decisions regarding lines they represent and time they inves in each of the lines.

In Mexico in particular, agents will entertain the idea of representing many more products than traditionally considered as “fair critical mass” where the SAME level of attention is devoted to them all. The size of the Mexican market has also altered the dynamics, as many more manufacturers are contacting good and traditional agents to invite them to represent their product lines, so well established Agents might be quite busy and have a broader selection of products to represent.

The most successful approach based on Market observation and testimonials from other AMT members is for you to consider accessing the market DIRECT, this can be accomplished through a Proxy program with AMT Mexico, outsourcing the resource through of the many agencies that do so. Having a Direct Report in Mexico responsible for the sales efforts in combination with one or two Agents is by far the smartest approach to the market. AMT Mexico can help you to outline select candidates for your Direct Sales Report as well as put you in contact with potential Agents in Mexico.

27. What can an Agent typically do for me?

The nature of an Agent is to help your organization secure Trade leads and customer information faster than if doing directly through your HQ.
An agent is quite capable of working on the logistics for introduction meetings and to harvest intelligence from your customer. Many Agent organizations in Mexico have added a new dimension, Service and are highly interested in setting up the capability and skill, so be prepared to discuss if your company is willing to let the agent perform Service, what are your expectations, training required and tools needed for such training.

29. How many agents/distributors should I have in Mexico?

- You may need at least 2 agents in Mexico for the different geographic zones, mainly:

  • North East (e.g. Monterrey, Saltillo, Nuevo Laredo, Monclova, Torreon, Reynosa, Matamoros).
  • North West (e.g. Chihuahua, Cd. Juarez. Hermosillo, Guaymas, Tijuana, Mexicali, Tecate).
  • Central Mexico (e.g. Leon, Silao, Celaya, San Luis Potosi, Queretaro, Toluca, Aguascalientes, Atlacomulco, Puebla, Guadalajara, Mexico City).
  • Exclusive agents for the whole country are not recommended.

- It is advisable that you always make reference to an agreement for representation, rather than a contract. You may choose to sign the agreement for as long as you want as you can terminate the agreement at any given time.

30. How can I find candidates to act as agents/distributors?

There are several ways to find candidates to act as agents/distributors:

  • Ask AMT for a list of agents/distributors which AMT Mexico staff updates periodically:
  • Discover and interview candidates at industrial shows.
  • Sharing with other members
  • Through your joint venture/alliance partner.
  • Newspaper add
  • By engaging with Monterrey Tech to develop undergraduate students into agents.

31. How do I evaluate the capabilities of a potential agent?

  • Ask about their technical background (No. of engineers, experiences, years with the industry, cities where they have sold).
  • Ask about their customer base (region & industry, success stories).
  • Find out about their reach (sales, service, number of staff, locations).
  • Ask about industries they would like to penetrate.
  • Ask about which other product lines they would like to represent to compliment their current base.
  • Assess their English fluency (speaking and writing; commercial and technical, latter one desired).
  • Other suppliers represented or being represented (American and non-American).
  • Contact AMT Mexico to discuss and assess the overall capability of the organization.

32. What else should I know about bidding in Mexico?

Make sure to respond to ANY trade leads falling in your lap as soon as possible as first impressions do count in Mexico!
Make sure to visit your customer or have your agent do so and capture ALL their expectations. Your rep should be well equipped to ask “out of the box” questions and communicate back to you to potentially introduce innovate solutions.
Make sure you understand and observe the dates for quotation and engineering delivery.
Be well prepared to brag and discuss how you plan to service your technology with local resources. AMT Mexico, distributors or Agents are options to offering Local Service.

33. How much commission should I pay my agents?

The commission rate can vary from company to company. Commission varies depending on how much work the agent performs to realize the sale; you can use the following criteria to calculate the commission:

  • Different rates for different sales volumes (2%-15%).
  • Fixed rate for all sales.
  • Different rate for every sales.
  • Maintenance sales vs. new sales conquered.
  • Involvement with the Service portion of the transactions.

34. Are there local companies doing equipment financing in Mexico?

There are several banks and financial institutions offering financing. You should understand how those options work to invite your potential customer to use them.
Options may vary from credits in pesos where the interest rate is TIE+9 (TIE is a Mexican equivalent to LIBOR) in average to credits in dollars, where the rate is LIBOR + 6.
Banks are now more flexible to rule out a real state as collateral and to consider the actual asset as guarantee instead. State governments also offer “bags” of funds which are used to promote technology advance and interest rate is comparable with US rates. If you want to know more you can contact AMT Mexico office and we will be glad to detail additional roads you could follow.
Follow the LINK to review a sample of a financing program facilitated by Tec de Monterrey.

35. Should I quote FOB or CIF?

In theory, you can quote either FOB (Free on Board) or CIF (Cost, Insurance & Freight). In practice, your buyer will prefer FOB Laredo, TX as Laredo is the main port of entry from the US with 30% of US-Mexico trade taking place. In some cases your customer might ask you to quote CIF. When you prepare the CIF quote, please make sure that you use a forwarder who has representation in the city where your customer is located, AMT Mexico office can help you to secure quotation from comprehensive agents that in many instances handle freight and customs broker services.

36. Who pays the VAT for import?

The VAT (Value Added Tax) which was recently rised one pint to 16% in the majority of Mexico is always to be borne by the buyer. So, in most cases, when you quote to your customer, you don’t need to include VAT in the quotation if selling directly from the US. Notice if you sell through distributor your distributor will quote and clearly state price in Mexico is net and VAT will be covered by end customer.

37. What are import duties / tariffs for Machine Tools?

As Mexico have several Trade Agreements in place (NAFTA, European Union, Japan) we can answer that there are NO duties associated to importing Machine Tools into Mexico, even when bringing product from Asia. A clear process has to be observed to avoid “loosing the origin” thus being considered as potentially dutiable, for additional information please contact AMT Mexico and we will help you find the best approach to present the quote to your customer if FOB, CIF or any other.

38. What type of documentation is needed to import equipment into Mexico?

Please refer to Attachment D “Product Import Checklist” Even when this attachment refers to sending products to AMT ITESM Tech Center for exhibition purposes you can just replace section two information with your customer’s shipping information.

39. What is the procedure for opening a Sales Office in Mexico?

The process to open or incorporate a Mexican subsidiary of your company as a sales office unde the Mexican law is quite easy when compared to OTHER international locations.

Procedure:

If your International Penetration Strategy indicates you ought to incorporate to rip on the benefits of the country, AMT Mexico can help you indicating Accounting & Attorney firms that can help you with the legal documentation needed to open your company. AMT Mexico can also help you introducing to you the different options you could follow when incorporating regarding to your Import License for Warehousing of spare as well as what your customers might expect in regards to flexibility to produce import documents according to the legal regime that is most beneficial to them. Last but not least, AMT Mexico can help you with an all-day review pf the fundamentals to incorporate in Mexico, reasons to do so and reasons or watch outs to consider.

40. What are the main changes of the most current Mexican corporate tax law?

Mexico’s tax law was reviewed 2 years ago and the major changes incorporated were:

  • Obsoleting of the Asset Tax.
  • Reduction of Income Tax to 28%, more to come on this issue.
  • Creation of an Equalizing Tax, based on cashflow to companies. Tax that was implemented gradually from 16% getting to 17.5%.
  • Increase of the VAT or Sales tax in 1% from 15% to 16%.

Due to the global recession in 2009, the Mexican government decided to increase the VAT in 1% and also to increase the Income Tax to prior levels of 30% for 2010 and 2011.

Most companies in Mexico are still on the learning curve for the Equalizing tax, adding a window of opportunity for YOUR company to sell to them at the END of the YEAR as they are trying to minimize the fiscal impact in the following year.

For additional information regarding taxation and how to introduce to your customer please contact AMT Mexico.

41. What are the incentives offered for foreign manufacturing investment in Mexico?

AMT Mexico is well positioned to support your claim for incentives when you decide to incorporate in Mexico.

For additional information regarding potential incentives follow this link.

42. What certificate is required for machines exported to Mexico packed with wood materials?

Wood packaging requires a special fumigation to be imported into Mexico. Please follow this link to get acquainted with the type of stamping required on the wood skid. Many wood shops in the US will provide you with skids that have already been treated. For additional information please contact AMT Mexico and we will be happy to indicate alternatives for you.

43. How do I register my Trademarks in Mexico?

In order to protect your brands and trademarks in Mexico, foreign companies need to register those. The official Mexican organization for trademark registration is the Mexican Institute of Industrial Property (IMPI). You can contact AMT Mexico Office and we will be able to help you to secure registration through a local agent. For additional information, please make reference to the Intelectual Property in Mexico this link.

44. What should I do if there is an IPR infringement concerning my company?

AMT Mexico can put you in contact with a well-established attorney firm to support your claim for infringement. You will be prompted to assess the scope of the damage quite objectively and a continuous follow up will be required until ruling in your favor.
For additional information please contact AMT Mexico.

45. What can AMT Mexico do for members (field service and courtesy visits)?

At AMT Mexico’s office we will more than happy to help you set up courtesy visits to the various customers you are interested in visiting. We also have local resources that can help you establish you after sales service package in order to support your end user and make sure you develop a long withstanding relationship with your customer.

46. What is the cost associated with this service?

Cost to AMT members is almost pass through of actual personnel cost and it is by far a lot cheaper than service people from distributors in Mexico or your own US rate for service in Mexico. For additional information follow this link:

  • Field Service Support in Mexico for Members

47. What can AMT Mexico do for members regarding outsourcing service?

AMT Mexico can recommend qualified Mexican suppliers (who have experience dealing with US companies, understand the US spec and standards) to AMT members who want to outsource parts. AMT Mexico can help both member and Mexican suppliers understand each other on materials, technical requirements, etc… We can also support members to secure quotations, escorting AMT members to visit the potential supplier, the latter based on availability, We can even put you in contact with several Mexican agencies that will work with you in developing Mexican sources.

48. What does AMT need from members in order to prospect components on their behalf?

In order to help a member company accomplish outsourcing in Mexico, AMT Mexico needs information about materials, technical requirements (like heat treatment, hardness, etc.) part drawings, quantities and other manufacturing information from members as well as target pricing.

49. What are the costs and/or timing associated with this service?

The service is currently free of charge. But if the member asks AMT Mexico staff to escort him/her to visit potential vendors, then the member needs to pay the travel expenses, including air tickets and hotel accommodations.
Normally it takes about six weeks to get quotations.

50. What can AMT Mexico do for members?

For those members who have their own direct Rep Office in Mexico, AMT can help them find qualified candidates. For those members that do not have an entity in Mexico, AMT Mexico can introduce them with several options they can use to secure a Human Resource as a full-time employee with minimum investment and complications for the member company in the US. We can also post your job openings and do the preliminary screening of potential candidates. By contacting AMT Mexico Office we can counsel you on a competitive compensation and benefits package to be offered. Follow this link to view the example.

51. What does AMT Mexico need from members in order to hire local employees on behalf of members?

AMT Mexico launched an initiative called proxy where we can hire your employees on your behalf. You will need to sign a PROXY AGREEMENT with our Mexican subsidiary and we will take care of covering compensation on your behalf. There is a fund you will need to maintain for us to cover the salary related expenses for your direct report.

52. What is the process to hire a local employee?

  • You can hire an individual by incorporating an entity in Mexico, then you hire a payroll and accounting outsourcing entity and will keep the employee registered to your Mexican subsidiary the cost to keep this company running is competitive and there are minimum requirements to do so.
  • You can use an outsourcing company (such as Manpower or Keystone, etc…) to hire a resource witch will then be compensated by such company. Cost to member is 45 to 55% on top of the actual salary your employee will make.
  • You can enter the Proxy Service, AMT Mexico offers to its members, for additional information, see AMT Mexico Services presentation or contact AMT Mexico.
  • You can invite your intended employee to work as a “Freelancer”, establish his or her own company and issue invoices or receipts for “Professional Services”.
  • In all the instances above, AMT Mexico office recommends you to contact a local lawyer to develop a work contact or agreement that will protect both you and your employee. We can recommend a lawyer that will be ready to support you in this matter.
  • For pre-screening of candidates and reference investigation please contact AMT Mexico office.

53. What is the mandatory social insurance?

Social insurance includes three items, pension insurance, health insurance, and housing funding, which are all mandatory requirements of the Mexican government. There is a ceiling to the amount to be paid and there is a joint obligation between employee and company where company bares the largest portion of the obligation.

54. Does Mexico have a standard Labor contract for hiring local employees?

Yes, there is one. AMT Mexico Office can put you in contact with a local lawyer that will work with you to develop a labor contract for your resources.

55. What are the personal income tax rates in Mexico at different levels of income? Are the tax rates uniform throughout Mexico or do they differ by state?

The tax rates are uniform throughout Mexico. If you want additional detail of tax rates please contact AMT Mexico.

56. Does AMT have information on compensation for local staff in Mexico?

Yes, information from a 2009 Salary Survey for local Mexican employees is available to AMT members.

57. How about the probation period according to Mexican Labor Law?

Mexican Labor Law is quite clear regarding probation periods, in reality; ANY employee who works solely for your company for a DAY is already your employee. There are many professionals and attorneys that might suggest a probation contract, this contract is nothing but a closed contract for a determined period of time (usually 90 days) and it allows you to discontinue the program after the detailed period as the contract was ONLY valid for 90 days. Traditionally when hiring a professional under this program employment conditions somewhat more expensive than if hiring on a regular contract. Not every attorney or lawyer will be familiar with the implications and mechanics, so for additional information and a referral of a good labor lawyer contact AMT Mexico.

58. How should I plan business trips to Mexico?

  • First, you need to make appointments with those companies in Mexico that you want to meet.
  • Second, before planning your trip to Mexico, avoid the Mexican holidays. You can easily find out about those by contacting AMT Mexico offices or accessing the Market Penetration Guide in Mexico.
  • Third, before traveling to Mexico, you should need to make sure that you have your product catalogues translated into Spanish and that you are familiar with the type of applications where your product could be used in Mexico. You can contract the SIR department in McLean or AMT Mexico office to receive market intelligence information before arriving to the country. Please give us a one to two week time window in order for us to respond such an inquire and make sure we respond with quality information.
  • You must be sensitive to Security warnings as issued by US State Department and local police force in Mexico.
  • Keep your business trips on regular business hours, travelling and dining at “business-like” hours better than late at night or quite early in the morning.
  • If you are planning on hiring a driver, ask the concierge at your hotel, AMT Mexico or your US Consulate for referrals.

59. If I travel in Mexico, what Airlines do you recommend to me?

There are many airlines in Mexico. Regional airliners are very expensive, so consider taking the road and asking your agent to drive around with you from main hub cities, such as Guadalajara, Leon, Mexico City, Monterrey, Chihuahua. Juarez, Tijuana, Hermosillo and others. Please contact AMT Mexico Office to get additional information on airlines and suggestions on how to plan your road trip.

60. What hotel do you recommend to me?

AMT Mexico has a list of hotels that we have got corporate rates with for members. To get more information, please contact Gema Martinez International Trade Assistant at AMT Mexico Office, 011-52 81 8358 2000 ext 5504 or Esta dirección de correo electrónico está protegida contra spambots. Usted necesita tener Javascript activado para poder verla.

61. Does AMT Mexico provide translation service?

AMT Mexico does not provide translation service for members. But we have some qualified translation companies that we have been working with for a good amount of time. We do help members do proofreading for translation if needed we also get the translators in line for our members based on their request.mx

62. Do you have a resource to print our business cards, product catalogues, operational manual, etc.?

Yes, we do.

63. Can mu US mobile phone work in Mexico?

YES, it will depend on the carrier and the contract you have signed with them. In some instances it will take a couple of hours after arrival for your phone to be picked up by the carriers. Be attentive and control the international roaming specially when browsing as you might be surprised of the charge.

64. Can I use USD in Mexico?

You can use USD in major international hotels and most good restaurants. Be prepared to receive a lower exchange rate than if changed at a bank. You can also use most ATM machines to pull Mexican pesos out even when your account is in USD. Most of your expenses in Mexico can also be paid by credit card. All reputable businesses will carry AMEX or Visa, they will also be extra cautious when processing the charge, in many instances bringing the terminal to you.
If you are interested in receiving cash, you can visit Currency Exchange Houses at the airport or near your hotel and receive a more competitive rate than hotels and restaurants.

65. Do I need to tip for personal services in Mexico?

Mexico as any other global company is adhering and rapidly observing the same tipping practices. In major restaurants and if a larger group is being services, tip is already by default.
We recommend you tip up to 15% if the service was fair. Keep in mind many people will prefer cash tipping vs. credit card change.

 

 

 

Centro Norteamericano de Tecnología de Manufactura, A.C. Subsidiaria de:
AMT – The Association for Manufacturing Technology

Pabellón Tec Local 38-1A, Av. Eugenio Garza Sada 427 Sur,
Col. Altavista C.P. 64840. Monterrey, N.L. México.

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