Building a Gold Label Cluster in MexicoManuel Montoya

Parallel 3.1 Cluster implementation in different parts of the world

12 November 2014

BUILDING A GOLD LABEL CLUSTER IN MEXICO

IS IT POSIBLE TO COLLABORATE IN LATIN AMERICA?

Do Latin American People are:

1. Collaborative?

2. Trustful?

3. Innovative?

4. Open Minded?

Are the Global Cluster Models applicable to Latin America?

IS IT POSIBLE TO BUILD WORLDCLASS CLUSTERS IN LATINAMERICA

2004 Nuevo Leon’s Strategy: Monterrey City of Knowledge

Innovation and Technology Park (PITT)

Clusters for the Strategic Industries

FIRST STEPS

2005 Instalation of the Council for the Automotive Industry of the State

* President: An industry leader

* CEOs from Companies

* Academics

* Government Officials

* Meetings every 3 months: How to gaincompetitiveness

FIRST STEPS

2006 After several meetings, the Council decided to create anentity to coordinate the “good ideas to gain competitiveness”

2007 A General Manager was hired

The Cluster was established as a Civil Asociation with its ownBylaws and Budget:

Name: Cluster Automotriz de Nuevo León, A.C.

The Board of the Council became the Board of the Cluster

CREATION OF THE CLUSTER

1. Leadership

2. Governance

3. Public Policy

4. Execution

5. Structure

6. Collaboration

7. Goal Focus

KEY FACTORS TO STRUCTURE THECLAUT

1. First President: Mr. Enrique Zambrano

2. CEO of a group of Companies that includes Metalsa, one of themexican global companies of the auto industry

3. He personally dedicated one hour per week during the fist yearto work with the General Director: Guidance, Focus

4. He asked the rest of members of the Board to meet every 3 months, without the possibility of being replaced in any meeting

5. He last in total 4 years, but asked to reduced the Presidencyperiod to 1 year, with the possibility of renewal for another year

LEADERSHIP

1. Board Structure

10 CEOs

3 Deans

2 Secretary of Government Bodies

2. Meetings

Every 3 Months

Only 2 hours: from 8 to 10 am

3. Rules

Rotation of 2 Board Members Every 2 years

3 Seats for the Universities and 2 for Government

Roles: Vicepresident, Secretary, Tresurer, Vocals

GOVERNANCE

1. Art 37, Law for Investment and Employment of the State of Nuevo Leon

2. The Economic Development Secretariat promoted 11 Clustersand have an internal structure to follow their activities

3. Economic support to each one

4. Council for Nuevo Leon’s Clusters

PUBLIC POLICY

1. Strategic Planning (December 2006)

2. 5 Strategic Lines:

1. Specialized Trainning

2. Supplier Develpment

3. Supply Chain Efficiencies

4. Innovation

5. Foreign Investment Attraction

3. A Working Committee was formed to attend each StrategicLine

EXECUTION

Who attend the meetings

Working Committees

WORKING COMMITTEES

Share Information

Find Synergies

Evaluation

Proyects

1. Full time General Manager for the Cluster

2. Engineer with an MBA

3. Experience in the Automotive Industry

4. Experience coordinating programs for Executives and Business people at a Business School

5. International background

CLUSTER MANAGEMENT

1. A Coordinator for each Committee

2. Background accordingly

3. Agenda, Invitations

4. Follow up of the agreements of the meetings

5. In direct contact with each one of the participants of their Committee

COORDINATION

1. Every month

2. Day and time fixed

3. 8 to 10 am

4. Agenda and Minutes of the Meeting

5. Dialogue between the participants

6. Challange: to reach to concrete projects

THE MEETINGS

1. Defined by the Committees

2. The follow up to be done through the cluster

3. Funded by the companies

4. Look for Public funding

5. Benefits to several companies

6. Try to look for those with bigger impacts

THE PROJECTS

1. A Shortage of Technicians in the market

2. Electromechanical

3. 10 Schools were evaluated, and 1 selected

4. Program reviewed

5. The companies send operators to be upgraded to technicians

6. 600 people trained from 25 different companies

ELECTROMECHANICALTECHNICIANS

1. No Cold Forgings Suppliers in Mexico

2. Visit to 10 Suppliers in the Basque Country

3. Purchasing Managers of 5 Companies

4. After the visit, 3 of the 10 Suppliers establishedoperations in Mexico

COLD FORGINGS SUPPLIERS

15 Different Trainning Programs, 700 people trained per year

40 Projects per year to improve Supplier’s competitiveness

Development of Model Assembly Lines with the Toyota ProductionSystem

10-15 Technological projects developed per year betweenCompanies and Universities of the cluster

Workshops in Plants

Benchmarking between companies

Etc.

SOLVING MARKET FAILURES

1. Solve Common Problems

2. Implement Common Solutions

3. Networking

4. Direct Contact with the correct people in other companies

5. Direct Contacts in the Universities and Research Centers

6. Direct Contact with the correct Government Officials

7. Knowledge of the Industy

8. Trust: Social Capital

WHAT DO MEMBERS OBTAINED

Goal Oriented

1. 90 Members:

75 Companies

5 Universities

3 Technical Schools

3 Research Centers

4 Government Secretariats

2. 20 Working Groups, 300 people participating in

monthly meetings

3. Between 30 to 40 projects developed per year

CLAUT TODAY

Triple Helix

INVESTMENT ATRACTION

1. Atraction of a Car Manufacturer to Nuevo Leon

2. 300,000 cars per year

3. Development of the wholesupplier chain

4. 15,000 New Jobs to be created in the next 3 years

5. Bigger Market for all!

GOLD LABEL AWARD BY ESCA

1. Leadership is Key

2. Structure is needed: Management

3. Long term commitment from Regional Governments

4. Build step by step, no shorcuts

5. Implementation, Implementation, Implementation!

IT IS POSIBLE TO BUILD WORLDCLASS CLUSTERS IN LATINAMERICA

THANKS!