Download - FINAL Capstone Bradley Presentation
MexicoMaricruz Alfaro
Bradley Corporation
Executive SummaryOil & Gas Sector Reform 2013
•Open to Private Investment•National Infrastructure Plan (NIP)
Mining Investments• Mining Development Programme 2013-2018 (MDP)• $34.3 BN USD & 365 project by 2018
Recommendation
National Infrastructure Plan 2014-2018• $590 Billion USD Plan• Energy Sector• $299 Billion USD Investment• 50% of program investment• 262 projects• http://presidencia.gob.mx/pni/objetivo.php (Official Site)
TWC
General Country Information: People•Population: 121.7 Mil (2015)
25-54 years: 40.55%
Language: Spanish 92.7%
Capital: Mexico City (21 Mil Population)
Mexican Customs & Traditions
Lengthy Meetings
CIA World Factbook
General Country Information: EconomyGDP TOTAL:• $1.1 TR USD
(2015)
Growth Rate GDP2.3% (2015) 2.1% (2014) • 1.4% (2013)
1 USD =17.7541 MXN
(5/4/16)$15.88 (2015) $13.292 (2014) $13.292 (2013)
$3.7 BL more in Imports!CIA World Factbook, XE
Top 5 Sectors
Wholesale Trade
Real Esta
te
Constructi
on
Oil & Gas M
ining
Business
Servi
ces
-50
0
50
100
150
200
$190.7
$140.0 $93.6 $74.8 $71.9
5.7%
1.7%
1.8%3.4%
-6.3%
2014 Level Bil USD 2015 % Change
Wholesale
Trade23%
Real Es-tate17%Construction
11%Oil & Gas Mining
9%
Other40%
% Share of GDP
BMI
Commercial Construction Analysis: Construction
Construction
•3rd place in the region (Colombia, Chile)
Current Spending:
• $192 MN USD• Mexico National
Infrastructure Plan (NIP)
Growth:
• 2015: 3.4%• 2016: 3.2%• 2017: 2.4%• 2018:2.09%
Presidencia.gob.mx, BMI, Acquisdata
Commercial Construction Analysis: Energy (Oil & Gas)
Presidencia.gob.mx, BMI, Acquisdata, HSBC Holdings
Energy (Oil & Gas)
• 5th in region (Brazil, Colombia, Peru, Chile)
Current Spending & Growth:
• $5.5 BN USD• 1.9% growth to
2024 – Subject to NIP
Reform
• End of 76 year Monopoly
• Open to Foreign Investment
• Large Investments
Commercial Construction Analysis: Petrochemical
Petrochemical
• Ku- Maloob-Zaap Plant in Campeche• 37.5% National Oil
Production
Current Spending:
• 2.4 BL USD (2014)
Growth:
•$98.9 BN USD by 2020
Presidencia.gob.mx, BMI, Acquisdata, HSBC Holdings
Commercial Construction Analysis: Mining
Mining• 4th source of
foreign currency • 5th most attractive
country to invest in the sector
Current Spending:• $20.1 BIL USD
Growth:• -2% (14-15)• 14% by 2016• MDP: $34.3 BN USD
investments & 365 projects
Presidencia.gob.mx, BMI, Acquisdata. Camimex, Inegi
Mining Statistics
Camimex
Commercial Construction Analysis: Projects
• Mexico City AirportConstruction• Reconfiguring of Oil Refinery- Tula• Los Ramones Pipeline ProjectEnergy
• Ethylene XXI PhotosPetrochemical• http://portalweb.sgm.gob.mx/economia/es/mineria-en-mexico/consulta-proyectos.h
tml (Project List)
• http://mexicominingcenter.com/gis/main.php (Project Map)Mining
BMI, Acquisdata, CICM, Hydrocarbons Processing
Competitive Analysis: Safety Fixtures
Mexican Competitors
New Competitor
Potential Product Listing
Marketing Analysis: TradeshowsEnergy Congreso Mexicano de
Petroleo 2016June 8, 2016 – June 11, 2016
Articles (p.74): Mexico Oil & Gas Review (Advertising Possibility)
Petrochemical American Ass. Of Petroleum Geologists SEG
Sept 6, 2016- Sept. 9th, 2016
Mining Zacatecas Mining International Expo Show 2016
8th - 11th June 2016
MEXICO MINERGY 2016 Nov. 23, 2016- Nov. 25, 2016
Geomin, Expodatabase, Congreso Mexicano del Petrolero, Mexico Oil & Gas Review
Customer Analysis
Ameco/Fluor (Mining)• Client: Altos Hornos de Mexico S.A. de
C.V. (AHMSA)• Client: Minera y Metalúrgica del Boleo,
S.A.P.I. de C.V. • Client: Odebrecht Ingeniería y
Construcción Internacional• Ethylene XXI Project
Toyo Engineering (Energy)• Petroquímica Dalian• 5 Pemex Jobs in Refining & Refineria
Duna Mol
Ameco.com, Toyo-eng.com
Trade Barriers: Tariff
Tariff Barriers:
• 15% Tariff (NAFTA Non-qualifying goods)• NAFTA • 16% Tax
Non-Tariff Barriers
• Administrative procedures• Piracy and counterfeiting rates increase• Mexico’s oil and gas sector remained largely closed to private
investment- Now Opened!
Export.customsinfo.com, USTR.gov
Trade Barriers: Risks
Countrywatch, Doingbusiness.org
Political RisksPRI: 6.5
(10=Lowest Risk)
Organized Crime
CorruptionPolitical
Stability: 6.5 (10 Stable)
Media Restrictions
on Gang Activity
Ease of Doing Business
Rank: 38 out of 189
countriesEase in paying
taxes +11
Supply ChainPotential Logistics Challenges
Best: 3.57 Timeliness Worst: 2.69 Customs Score: 3.19
The World Bank
Supply Chain
The World Bank
Trade Finance• Cash In Advance; • Confirmed Letter of Credit; • Open Account Terms;
Top Payment Terms
• LONG-TERM GUARANTEES AND LOANS AUTHORIZATIONS : $9.4 TrillionEX-IM Coverage
• Mexico Rating: BB• less vulnerable to nonpayment• Ongoing uncertainties
Country Credit Risk:
Export.gov,EXIM Bank, Euler Hermes, Standards & Poor
Thank you!