Economia Nacional Final Project Prolamsa PDF

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Economia Nacional Final Project Prolamsa...

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Economía Nacional Profesor: Asunto: FINAL PROJECT PROLAMSA

PROLAMSA This company sells Monterrey laminate products, located in the municipalities of Monterrey and Escobedo, in the state of Nuevo León, Mexico. It is currently the most modern and important company in Latin America in the production of profiles, polynes, tubes and steel boards. in different finishes: black, painted and galvanized. Leader in the market of rolled steel products, Prolamsa has significantly improved its management using PowerVentasMR in the first place to manage its commercial channels collaborating with customers and distribution partners in different countries that operate with different currencies and languages. Prolamsa USA, a subsidiary of Prolamsa in the USA, has also put PowerVentasTM to work to serve its distribution network. Additionally, Prolamsa has implemented the Mobile functionality of PowerVentasMR for its sales force, with the aim of providing its commercial executives with greater power of action in the sales field, thereby developing a competitive advantage over its competitors. PowerVentasMR is a software (from the eCommerce platform) that facilitates access to key information to do business, both for the members of your company's team and for customers. More information and better quality generates better sales, satisfied customers and greater profitability.

Company Data Prolamsa is the largest manufacturer of steel pipes and ducts in Latin America. Its foundation dates from 1954 by Don Juan Montemayor Martínez and Don Mario J. Montemayor García. Initially, the commercial line was the production of metal products manufactured with manual machinery. It has plants in Escobedo and Tepeji del Río, Mexico. The company operates four distribution centers: one in Guadalajara, another in San Luis Potosí and two in Mexico City. In 1996, he created the subsidiary Prolamsa, Inc., with headquarters in Houston, Texas, to market and sell structural and mechanical tubing, value-added products and metal components for construction in the United States and Canada. Prolamsa, Inc. operates a manufacturing plant and pipeline distribution center by ERW process (electric resistance welding) in Laredo, Texas, one of the leading pipeline production plants in North America. Increase Over the years, Prolamsa acquires a major pipeline supplier by ERW process for original equipment manufacturers and automotive industries. It was in 2011 when it obtained 100% of the shares of Aceros Cuatro Caminos, a company based in Mexico City and dedicated to the manufacture of ERW pipe by process (electric resistance welding) and value-added products for first-class customers in the automotive industry and other original equipment manufacturers. The acquisition strengthened the presence of Prolamsa in the central region of Mexico and increased its capabilities to service the automotive industry.

Awards The Mexican Center for Philanthropy (Cemefi) and the Alliance for Corporate Social Responsibility (AliaRSE) will make public the list of companies that obtained the Distinctive ESR® 2018, which satisfactorily met the standards established in the areas of CSR We recognize the effort to voluntarily and publicly assume the commitment to implement a socially responsible management and continuous improvement, as part of its culture and business strategy. Distinctive ESR® 2018, which will be held within the framework of the XI Latin American Meeting of Socially Responsible Companies, from May 14 to 17 of this year in the WTC Mexico City, whose thematic axis is "Disruptive businesses, businesses with value". Emphasizing that this would be his third consecutive year obtaining recognition and being an essential part of society.

Salaries (Prolamsa)

Fight against unemployment (Prolamsa) The Forge method Prolamsa uses the methodology applied by Forge, which has two very innovative aspects. On the side of strengthening the labor supply, the Forge Foundation will work in partnership with the private sector and with schools to strengthen the employability of young people. To do this, he works with young people against the school, giving them humanistic and technical training, for one year. Afterwards, he accompanies the young man in his job search, and a time after insertion. It is valued and promotes that the insertion is in the companies of the network, in conditions of formality. This means that both young people and adults can be employed in the labor field with flexibility and greater accessibility. This method helps the company have human capital and supports the same country to have better benefit. Exports (Prolamsa) Productos Laminates de Monterrey (Prolamsa), was formally exempt from paying fees for its exports of profiles and thin-walled rectangular tubes to the US market. This trade measure had also been imposed on China, South Korea and Turkey a decade ago. The United States, through the Department of Commerce, conducted an investigation into the imports made by Prolamsa between August 1, 2015 and July 31, 2016 and confirmed that the company no longer engaged in unfair trade practices, pursuant to a resolution published in the Federal Register, the equivalent to the Official Gazette of the Federation (DOF) of Mexico. "The Department of Commerce determines that the sales of thin-walled rectangular tubing made from Mexico by Productos Laminaados de Monterrey and its affiliated reseller, Aceros Cuatro Caminos, collectively Prolamsa, were not made at prices below the normal value during the review period." said the agency in its resolution.

Steel In Mexico

Three states account for 71.1% of the total national mineral reserves of Fierro: Colima (31.8%), Coahuila (20.5%) and Michoacán (18.8%), which indicates that adequate extraction and utilization of the mineral in the entity. Steel Mines in Nuevo León (9.6%) - Mines of San Gregorio (1577), - The Carmen (1614) - Real de Santiago de las Sabinas (1693) - Santa Catarina (1596) - Real de Minas of San Carlos de Vallecillo (1766) - Mineral of San Pedro de Boca de Leones (1690)

Economic situation of Mexico Although there was a clear deceleration in the second half of the year, 2017 had a better than expected outcome for the Mexican economy. The Mexican economy will most likely conclude 2017 with a growth slightly higher than 2.0%, a figure considerably higher than 1.7% estimated by the consensus of analysts in the survey conducted in December 2016 - and well above the lowest estimates that were around 1.2% - but very similar to the growth observed in 2016. Although for the first time in five years the Mexican economy grew above what was estimated, the year was marked by a first half with growth close to 2.5% and a second half with a significant slowdown. To a large extent, the Mexican economy benefited from the acceleration of growth in the global economy and in particular the US economy, as well as the recovery in oil prices and a good performance of private consumption, counteracting the reduction in spending and public investment.

For 2018, the consensus of expectations shows an estimated growth of 2.2%, slightly higher than the estimate of 2.1% in 2017. However, the consensus of 2.2% incorporates a wide range since the highest expectation is 2.7%, while that the lowest is 1.5 percent. This broad range reflects the different perceptions about the main risks that could negatively impact growth. Although some of the most important risks to growth identified at the beginning of 2017 have been moderating, some new ones have emerged and others that remain. In terms of external factors, there will be serious risks due to the uncertainty linked to the presidential race, the renegotiation of NAFTA and the policies of the United States government. The pocket of the families will be affected by the price increases; especially in gasolines, domestic gas and food; while wages would barely have an increase of 4% to 4.5% real. GDP According to the Organization for Economic Cooperation and Development (OECD) in its update of the outlook for the G20 economies, the entity raised its global growth forecast for 2018 and 2019 to 3.9%, the highest since 2011, from a previous estimate 3.6% for both years. "Growth is stable or improving in most of the G20 countries," Alvaro Pereira, interim head of the Organization for Economic Cooperation and Development (OECD), said in Paris. The higher projection was partly due to expectations that the tax cuts in the United States prop up the world's largest economy, he added.

Interest Rate

The Governing Board of the Bank of Mexico decided on Thursday to increase its benchmark interest rate by 25 basis points to a level of 7.50% it was announced that general inflation in Mexico slowed to 5.55% per annum in January, its lowest level in 10 months for comparison purposes, although with increases in gasoline and gas offset by declines in fruits and vegetables. The hour before the announcement of Banxico, the wholesale dollar rose to 18.97 pesos and after knowing the increase in the interest rate the greenback went down to 18.83 pesos, although depreciation remains for the Mexican currency

Inflation Effect

Inflation at the end of 2018 will be 4.25%, according to the median of the forecasts of 18 analysis groups consulted by El Economista. This would place it above the objective of Banco de México (Banxico), of 3.0% plus / minus one percentage point, which was expected to reach this year. The Board of Governors of Banxico acknowledged in the last minutes of the institution that the balance of risks for inflation has deteriorated and is rising, so they anticipated that the convergence to the objective of 3.0% will be slower than expected, although maintaining its expectation that by the end of 2018 the adjustment of the National Consumer Price Index (NCPI) will be achieved. Knowing the data of the closing of 2017, when the inflation reached a record level in 17 years of 6.77%, the analysts differ with respect to the expectations of the Central Bank. The risk of exchange rate depreciation and the volatility of agricultural and energy prices are the

factors that the specialists consulted most mentioned as the main elements that could slow down the disinflationary process. The inflation forecasts for the end of the year range from 5.0% to 3.8%, although the majority agreed that during January the inflation peak for 2018 was seen, starting to fall thereafter.

Exchange Rate (FIX)

Unemployment In Mexico The unemployment rate last February stood at 3.3 percent of the Active Economic Population (EAP), nationwide, same percentage as the previous month, revealed the National Survey on Occupation and Employment (ENOE) that coordinates the National Institute of Statistics and Geography (Inegi) According to the data, the February2017-February2018 unemployment rate was lower by two hundredths; that is to say, in relation to the 3.5 percent that was obtained in the same period of the previous year, indicated the Inegi, with data adjusted for seasonality. The Unemployment Rate refers to the percentage of the Economically Active Population that did not work even one hour during the week in which the survey was taken, but expressed its willingness to do so and did some activity to obtain employment. The monthly report states that the underemployment rate was set at 6.6 percent in February 2018, which meant a significant downward adjustment after closing the year in February of 7.3 percent. This concept refers to the percentage of the employed population that has the need and availability to offer more work time than their current occupation demands. Regarding the labor informality rate, the Inegi reported that it was 56.6 percent in the second month of 2018, the same percentage as reported in January, and 0.6 percentage points lower than in February 2017.

Investment In Mexico The Ministry of Economy sent a report to the Senate in which it states that between January and September a foreign investment of 21 thousand 754.9 million dollars was registered, 10% higher than the preliminary figure for the same period of 2016, which It was 19,772.6 million dollars. According to the Statistical Report on the Behavior of Foreign Direct Investment in Mexico, corresponding to the first 9 months of 2017, 21 thousand 754.9 million dollars were reported by 2 thousand 662 companies with participation of foreign capital, in addition to one thousand 851 trusts from which rights are derived in favor of foreign investment. Of this amount, 8 thousand 760.4 million were originated through new investments, 8 thousand 342.2 million dollars for the concept of reinvestment of profits and 4 thousand 652.2 million dollars for accounts between companies. The manufacturing industry captured a foreign investment of 9 thousand 443.5 million dollars. For its part, the construction sector was benefited with 2 thousand 627.8 million dollars, financial services 2 thousand 463. 5 million dollars, transport, mail and storage 2 thousand 431 million dollars, trade 1, 619.8 million dollars and mining 984 million dollars. The remaining sectors captured 2 thousand 185.2 million dollars. The main generator of foreign investment in Mexico during this period was the United States, followed by Spain, Canada, Germany and Australia.

Minimum Salary Minimum Salary 2018: 88.36 pesos per day

Improvise. Adapt. Overcome Prolamsa plays an important role in the manufacturing industry in Mexico, so for some time they sought to solve various obstacles such as the crises that occurred in the years 1994 and 2008. It is necessary to expand to other countries giving the right products and services so that we can obtain investment from abroad, likewise creating international relations. Another way would be to find new cheaper transportation routes that help the company's expansion. Already located in some cities on the border of Mexico and the United States, now we must make our way to South America and Canada. The company not only focuses on the construction market, they are also a fundamental part of the automotive market. Like this one, we can diversify our products to obtain higher income from different markets.

Conclusions In this course of economy, all the concepts and practice that i learn were used in this PIA, of how can a devaluation affects the companies, and what to do in case of one. This company was too helpful to make me realize a real case of economic problems in real life. The economics for Mexico in this year was helped in part of the grown of USA economic, and is expected to stay like that. Also, I realize that unemployment is a real problem. The company that we studied is a very smart one, because they teach us different strategies to prevent or make less the affect that a one devaluation will have on us....