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Exclusive "Trans-border" Partnerships
The "trans-border" markets of Mexico and Canada and AIT’s two excellent partners in transportation will be featured this month: Braniff Transport in Mexico and Tri-ad International in Canada.
AIT Network Map
Partnership in Mexico: Braniff Transport
AIT is proud to be partnered with Braniff Transport in Mexico. Our cooperation has grown dramatically in the last 2 years, as Mexico's economy and infrastructure continue to develop and expand.
With their Headquarters at Mexico City International airport, Braniff Transport is one of Mexico's largest transportation companies, offering a comprehensive menu of logistical services.
They also have full service offices in:
Monterey
Guadalajara
Cancun
Toluca
Laredo and Nuevo Laredo
Mexico's Core Markets
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Aerospace |
From 1990 to 2006, Mexico ranked in the top 30 aerospace markets for U.S. exporters - a key, ever-advancing sector within aviation. During this period, export sales from the U.S. to Mexico grew by an annual average of 23.87%. Over the last few years, there has been significant investment in manufacturing facilities by Bombardier, Honeywell, Ellison Surface Technologies, Hawker Beechcraft and Airpas Aviation, among others. Aerospace groups have announced that they will invest an additional $279M into the sector over the next few years. The Mexican government is working to attract more aerospace manufacturing investments - creating opportunities for U.S. suppliers.
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Automotive |
The automotive industry continues to be the one of the most important industrial and manufacturing sectors in Mexico.
Between 2006 and 2007, the Mexican auto parts industry and vehicle production and assembly reached record production levels, even after signs of economic slowdown in the principal export market in the United States.
In 2001, Mexico was the ninth largest producer of automotive vehicles in the world, manufacturing 1.92 million units (including trucks and buses); however, after a slowdown in production due to economic events, it came back and grew to 1.6 million in 2005 and to over 2.1 million in 2007. Mexico surpassed the two million-unit annual production mark during 2006.
As a result of new investments in their assembly lines and the launching of innovative vehicle platforms, Ford, Volkswagen, and Nissan significantly increased their production. General Motors announced that they will start operations of their new plant in the city of San Luis Potosi in the month of April with a production of 30 automobiles per hour and could be increased to 60 units per hour by the end of 2008.
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Oil & Gas - Energy |
This sector includes the sub-sectors of Oil and Gas (OGM), Electric Power Systems (ELP), and Renewal Energy Equipment and Services. With the start of a new administration and the publication of the National Infrastructure Program 2007-2012, the mentioned sub-sectors have been identified to be a priority for Mexico's Federal Government. The demand for imported equipment and services for the energy sector increased by eight percent from 2006 to 2007. U.S. exports to Mexico also have grown at an average of 8.5 percent during the same period. The total market grew at an average of 5.0 percent annually from 2006 to 2007. The competition will continue to come from Japanese, French, Chinese, Taiwanese, German, and Canadian companies. Mexico's Energy sector will continue to be a priority during the period 2007-2012; therefore, large budgets are expected to be assigned to each of the three major government agencies responsible for the maintenance and investment of energy infrastructure. Government Owned-Petroleum Company (PEMEX), the Federal Electricity Commission (CFE) and Luz y Fuerza del Centro (the federally owned Mexico City power company) have been authorized by the Mexican Congress a total budget of over $35 billion during 2008.
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Technology |
The fixed and mobile markets in Mexico have enjoyed constant growth over the years, more than doubling GDP growth. Fixed lines have reached over 20 million users, and mobile communications today have over 56.5 million subscribers. Telecommunications services are becoming more readily available due to the increased penetration of fixed lines, lower rates and an explosive growth in the wireless subscriber base. Cable TV and wireless industries will be more aggressive and will show strong innovations in the near future. Technologies such as PLC, WiMAX, WiFi, and cable will be the tools for increasing penetration and offering newer services. The industry sees the coming of more mobility in the country along with smarter devices.
Please contact your AIT representative for more details on our services to and from Mexico.
Partnership in Canada: Tri-ad International
AIT's partner north of the border is one of the most respected logistic companies in the Toronto market, a twenty year old, privately owned forwarder named Tri-ad International.
With their corporate headquarters in Toronto, Tri-ad also has full service offices in Montreal, Ottawa and Vancouver that provide complete coverage to any zip code in Canada.
Canadian Core Markets
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Energy |
Canada is one of the few developed nations that are a net exporter of energy. Most important are the large oil and gas resources centered in Alberta, but also present in neighboring British Columbia and Saskatchewan. The vast Athabasca Tar Sands give Canada the world's second largest reserves of oil after Saudi Arabia, according to USGS.
Western Canada is one of the world's richest sources of energy, the industrial heartland of Southern Ontario and Quebec has fewer native sources of power. The eastern Canadian ports thus import significant quantities of oil from overseas, and Ontario makes significant use of nuclear power.
Canada is the leading export market for 35 of 50 U.S. states, and is the United States' largest foreign supplier of energy.
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Manufacturing |
The general pattern of development for wealthy nations was a transition from a primary industry based economy to a manufacturing based one, and then to a service based economy. Canada did not follow this pattern; manufacturing has always been secondary, though certainly not unimportant. Partly because of this, Canada did not suffer as greatly from the pains of deindustrialization in the 1970s and 1980s.
Central Canada is home to branch plants for all the major American and Japanese automobile makers and many parts factories owned by Canadian firms such as Magna International and Linamar Corporation. Central Canada today produces more vehicles each year than the neighboring U.S. state of Michigan, the heart of the American automobile industry. Manufacturers have been attracted to Canada due to the highly educated population and lower labor costs than in the United States.
Much of the Canadian manufacturing industry consists of branch plants of United States firms, though there are some important domestic manufacturers, such as Bombardier. This has raised several concerns for Canadians. Branch plants provide mainly blue collar jobs, with research and executive positions confined to the United States.
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Relations with the U.S. |
Canada and the United States share a deep and common trading relationship. The United States is by far Canada's largest trading partner, with more than $1.7 billion CAD in trade per day in 2005. 81% of Canada's exports go to the United States, and 67% of Canada's imports are from the United States. By comparison, in 2005 this was more than U.S. trade with all countries in the European Union combined and well over twice U.S. trade with all the countries of Latin America combined. Just the two-way trade that crosses the Ambassador Bridge between Michigan and Ontario equals all U.S. exports to Japan.
Bilateral trade increased by 52% between 1989, when the U.S.-Canada Free Trade Agreement (FTA) went into effect, and 1994, when the North American Free Trade Agreement (NAFTA) superseded it. NAFTA continues the FTA's moves toward reducing trade barriers and establishing agreed upon trade rules. It also resolves some long-standing bilateral irritants and liberalizes rules in several areas, including agriculture, services, energy, financial services, investment, and government procurement. NAFTA forms the largest trading area in the world, embracing the 406 million people of the three North American countries.
Please contact your AIT representative for details on our services to and from Canada.
If you have any questions or comments regarding the Partner News eNewsletter,
please contact Larry Georgen, Manager Global Network. |
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