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Strategic Regional Economic Development: The Texas-Mexico Automotive SuperCluster (TMASC)
David MarquezExecutive DirectorBexar County Economic Development
October 1st, 2009Texas Economic Development Council Annual ConferenceSan Antonio, TX
Developed by Bexar County in Collaboration with TMASC Strategic Partners
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Economic Stability | Market Trends | TMASC Evolution
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Strength Amid the Recession
New York Times at www.nytimes.comSource: US Bureau of Labor Statistics
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Texas Economy Outperforms Nation’s - Jobs Added/Lost
State Jobs Added/Lost12/07 - 12/08
Texas +153,700
California -257,400
Florida -255,200
North Carolina -120,000
Source: U.S. Bureau of Labor Statistics
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Texas Economy Outperforms Nation’s - Economic Growth
Year Texas U.S.
2005 3.2 3.1
2006 4.1 2.8
2007 4.5 2.1
2008 4.2 1.9
2009 1.8 -0.9
2010 1.9 1.0
2011 3.8 2.9
Source: Texas Comptroller
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CNBC’s Top States for Business 2009
State(Overall)
Economy(Rank)
Transportation Tech & Innovation
Workforce
1. Virginia 7 10 12 8
2. Texas 1 1 3 14
3. Colorado 5 36 11 12
4. Iowa 4 31 24 21
5. Utah 14 34 26 9
Source: CNBC
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Continued Corporate Investment in the Region2009• Caterpillar Inc. in Seguin; $170 million
• Medtronic in San Antonio; $23 million
• Tianjin Pipe Company in Corpus Christi; $1 billion; 300-600 new jobs
• Union Pacific San Antonio Intermodal Facility; $120 million
• Albany Composites in Boerne; $42 million
• General Dynamics Advanced Information Systems; $1.9 million
• L-3 Communications in Waco; $10 million
• Baker Petrolite in Kilgore; $20 million
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Lone Star RisingGlobal Recognition
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Changing Geography of Assembly
* Radius centered on 430 mile main transportation corridor from Laredo to Arlington.SOURCE: ELM Guide, TIP Strategies, Inc., research
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Global Manufacturers
• Almost 900,000 units per year• More than 18,000 workers by 2010
NOTE: Shaded region represents the NAFTA Highway.
SOURCE: ELM Guide, TIP Strategies, Inc. research 10
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Core, Ancillary, and Support Operations for Automotive Manufacturing
Source: State of Texas, Office of the Governor 2005
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Assembly Plants
• General Motors• Chrysler• Navistar - International• BAE Systems• PACCAR - Peterbilt• Caterpillar
• Marcopolo
• Toyota
• Daimler - Freightliner
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Results: Toyota Moves Future Tacoma Production to San Antonio
Preserve and stabilize existing regional suppliers
New direct investment - $100 million
New direct jobs created - 1,100
Job multiplier - 1:5
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Buzz:Chrysler to Make Fiat in Mexico (WSJ Aug 2009)
Chrysler considering expansion of current Toluca, Mexico plant
Small car, fuel-efficient engine, new technologies
Target market: new-car shopper, 20-35 age bracket
Location based on Western Hemisphere market access
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Economic Stability | Market Trends | TMASC Evolution
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North American Output
Source: CSM Worldwide, 2009
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OEM Capacity Utilization
Source: CSM Worldwide, 2009
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Cash-for-Clunkers Program
Top Trade-Ins Top New Purchases
1. Ford Explorer 1. Ford Focus
2. Ford F150 2. Honda Civic
3. Jeep Grand Cherokee 3. Ford Escape
4. Chevy Blazer 4. Ford F-150
5. Jeep Cherokee 5. Toyota Camry
6. Chevy C/K 1500 Series 6. Toyota Corolla
7. Ford Windstar 7. Honda CR-V
8. Dodge Ram 1500 8. Chevy Silverado
9. Mercury Grand Marquis 9. Honda Accord
10. Dodge Grand Caravan 10. Hyundai Elantra
Source: Edmunds.com, September 18, 2009
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Growth in Driving Age Population (16-85)
Source: IHS Global Insight, 2009
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• Prius and Civic Hybrid among best-selling hybrids
• Escape & Highlander lead hybrid SUV sales
• GM began producing hybrid Tahoe, Yukon, Escalade in Arlington, Texas
• Micro models (Nissan Versa, Honda Fit) popular
Cash for Clunkers purchases
The Rise of the Hybrid, Electric Car, and Micro Car
SOURCES: Edmunds.com 20
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Standard Technological Features
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Options for Customization
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Emerging Manufacturers
TeslaV-VehicleMagnaFiskerWheego
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$528 Million U.S. Loan Gives Fisker Plug-In a Jolt
Source: Automotive News, September 28, 2009
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Oklahoma Company to Assemble Wheego Whip
Source: Associated Press, September 14, 2009
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Asian Interests Chongqing ChanganBYD AutoChina FAW Group
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Regional Snapshot | Market Trends | TMASC Evolution
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www.txmxautomotive.com
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NewsUpdatesDiscussions
www.txmxautomotive.com
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www.twitter.com/TMASC
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TMASC EvolutionA Visual Outline of Progress and Goals
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JapanChinaKoreaIndia
GermanyFinland
U.S.
State of Texas SurveyStrategic Marketing of TMASC
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David MarquezExecutive DirectorEconomic DevelopmentBexar County
[email protected] : (210) 335-0667www.linkedin.com/in/marquezdavid
www.bexar.org/ed
Special thanks to T.I.P. Strategies and the City of San Antonio
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TxMxAutomotive.com
twitter.com/TMASC
linkedin.com (search for the TMASC group)