Jose Ruiz

By Jose Ruiz

Monterrey,  Mexico (August 5, 2009).- I’ve said it more than a few times: A full manufacturing recovery in Mexico will be slow and very dependant on the automobile industry which makes up 20 percent of Mexico’s industrial production and it looks like we are headed in the right direction.

Factory orders in the US rose in June for the fourth time in five months, an unexpected gain and the latest sign that the ailing manufacturing sector is recovering

Cash-for-clunkers, the program in the US that gives up to $4,500 in rebates for trading in old gasoline chugging cars for newer fuel-efficient vehicles has injected new life into the automotive industry. Almost 250,000 consumers have taken advantage of the program.  This is not even close to a permanent solution, but it is certainly a life line for the automotive industry when it needs it the most. Dealerships had huge inventories going into the second half of the year when 2010 models start arriving. The program coupled with the automakers’ production cuts has slimed down inventories.

Dealers in the US have reported very slim inventories of the Jeep Patriot, Ford Focus, Fusion and Honda Civic. Some GM dealers are even reporting spot shortages of full size pick-ups.

This may not fix the overall demand issue but it has at least cleaned out the excess inventory of smaller models and given manufacturers a clean slate to plan production according to demand.

All of this is good news for Mexico’s automotive industry manufacturing facilities that supply parts and assemble small and compact vehicles.

Jose Ruiz is a Principal in Heidrick & Struggles’ Monterrey office. As an executive recruiter he has worked on executive search projects for multinational clients in industrial sectors and consumer markets. He can be reached at +52 (818) 8625-6521 or jruiz@heidrick.com

About Heidrick & Struggles International, Inc.
The world’s premier provider of senior-level executive search and leadership consulting services. The firm’s executive recruiters and leadership experts operate from principal business centers in North America, Latin America, Europe and Asia Pacific. In Mexico, Heidrick & Struggles operates offices in Mexico City and Monterrey. For more information about Heidrick & Struggles please visit www.heidrick.com

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By Jose Ruiz

Monterrey,  Mexico (August 3, 2009).- Overall the free fall appears to have slowed but we are still falling.  In the US the stabilization of consumer spending, unemployment benefits and the housing markets, a lessening of financial turmoil and increased government spending all suggest the longest recession since the 1930s may be close to ending.
 
In the U.S. Manufacturing shrank in July at the slowest pace in many months and factories moved closer to stabilization. In a Bloomberg News survey, The Institute for Supply Management’s factory gauge increased to 46.5, from 44.8 in June (readings less than 50 signal contraction).
 
Federal Reserve Chairman Alan Greenspan believes the worst is behind us, “collapse, I think, is now off the table…I’m pretty sure we’ve already seen the bottom… In fact, if you look at the weekly production figures for various different industries, it’s clear that we’ve turned, perhaps in the middle of last month, the middle of July.” Greenspan said.
 
U.S. Recovery will be the first step for a recovery in Mexico but other concerns are looming.  A growing deficit and falling oil output may be sleeping monsters that can put added pressure on growth, the exchange rate and an already tricky inflation scenario.

Jose Ruiz is a Principal in Heidrick & Struggles’ Monterrey office. As an executive recruiter he has worked on executive search projects for multinational clients in industrial sectors and consumer markets. He can be reached at +52 (818) 8625-6521 or jruiz@heidrick.com

About Heidrick & Struggles International, Inc.
The world’s premier provider of senior-level executive search and leadership consulting services. The firm’s executive recruiters and leadership experts operate from principal business centers in North America, Latin America, Europe and Asia Pacific. In Mexico, Heidrick & Struggles operates offices in Mexico City and Monterrey. For more information about Heidrick & Struggles please visit www.heidrick.com

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By Jose Ruiz

Monterrey,  Mexico (July 23, 2009).-  Mexican manufacturers are seeing an end to steep declines in output as U.S. companies begin ramping up orders and reducing inventory.

Overall manufacturing activity is still declining but it is doing so at a slower pace. U.S. Manufacturing declined in June at its slowest pace since August of last year, a sign that the bottom is near in the U.S. and consequently in Mexico which is closely tied to U.S. activity. Mexico last year sold 80 percent of its $291 billion in exports to the U.S.

A full manufacturing recovery in Mexico will be slow and very dependant on the automobile industry which makes up 20 percent of Mexico’s industrial production. A number that is too large to be offset by other industries.

Production in that industry sank 42 percent during the first part of 2009 as General Motors and Chrysler adjusted factory production to match lower demand in the U.S.

Local recovery will depend less on internal factors and more on U.S. consumer demand where employers cut more jobs than expected in June threatening a decrease in consumer confidence and consumer spending which will be critical for an economic recovery.  It is expected that the unemployment rate in the United States will hit its worst point until early next year.

Other indicators pointing towards hitting bottom is the factory index from The Institute for Supply Management which rose in June for a sixth consecutive month to 44.8, after hitting its lowest point in December (32.9). An index below 50 indicates a contraction. So the trend, while still reflecting a contraction is positive as the contraction rate slows. 

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Jose Ruiz is a Principal in Heidrick & Struggles’ Monterrey office. As an executive recruiter he has worked on executive search projects for multinational clients in industrial sectors and consumer markets. He can be reached at +52 (818) 8625-6521 or jruiz@heidrick.com

About Heidrick & Struggles International, Inc.
The world’s premier provider of senior-level executive search and leadership consulting services. The firm’s executive recruiters and leadership experts operate from principal business centers in North America, Latin America, Europe and Asia Pacific. In Mexico, Heidrick & Struggles operates offices in Mexico City and Monterrey. For more information about Heidrick & Struggles please visit www.heidrick.com

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El Norte (Julio 13 2009)
Por: César Sánchez

Estos cambios organizacionales son para poder afrontar los retos de la crisis y la lenta recuperación económica que se prevé, dijo José Ruiz, director en Monterrey de Heidrick & Struggles, firma especializada en la gestión de talento y búsqueda de ejecutivos.

“Ante la crisis las empresas están buscando resultados inmediatos y tienen menos tolerancia a la falta de capacidades, por lo que incluso consideran candidatos de otras partes del País”, expresó el directivo.

“La gente piensa que están rodando cabezas, pero realmente es un análisis interno donde las compañías están tratando de analizar la situación de lo que enfrentan cada uno de los negocios y tratar de colocar a la mejor persona en ese negocio”, explicó Ruiz, al referirse a los cambios directivos en todo el mundo.

Detalló que lo que hace que un director sea efectivo es diferente en una etapa de arranque, de consolidación o contracción, es por eso que se dan los cambios.

En entrevista, Ruiz comentó que a principios del 2009, cuando abrieron la oficina en Monterrey, había mucha incertidumbre en el mercado y las empresas tomaban acciones de contingencia, que fue cuando se vino la ola de recortes de personal en la Ciudad.

“Ahora hay más claridad y las empresas están planeando para un panorama más estable con una lenta recuperación.

“Lo que estamos viendo son movimientos internos donde las empresas están ajustando sus estructuras para afrontar los cambios”, explicó.

Hace un año, refirió que los temas en las empresas eran sobre estrategias de expansiones y adquisiciones, y ahora los temas son de sistemas de control, evaluación de riesgo y cuestiones de control de costos.

Con la crisis, refirió que también han cambiado los requerimientos de las capacidades de los líderes en las empresas. Antes se requerían directivos con mucha capacidad de planeación de proyectos de expansión, ahora buscan un perfil más conservador y más enfocado a la ejecución que a la planeación y estrategia.

La firma con sede en Chicago factura unos 700 millones de dólares al año y tiene 400 consultores en diversos países, lo que les ayuda a poder trabajar con clientes multinacionales para la búsqueda de talento local, dijo el directivo.

El enfoque de la empresa, detalló, es en los niveles que establecen la dirección y la estrategia, es decir a nivel de directores generales.

A pesar de que la firma se le conoce como una de búsqueda de ejecutivos, su gama de actividades es más amplia y trabajan también con fondos de inversión y en transiciones ya sea de gente que viene de fuera de las empresas o bien internamente.

Comentó que el mercado mexicano sigue siendo muy dinámico, sobre todo el de Monterrey.

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Reforma (8 Julio 2009)
Por: César Sánchez

La crisis económica está provocando ajustes en los equipos directivos de la mayoría de las empresas públicas en el mundo y las empresas mexicanas no son la excepción, señaló José Ruiz, director de la oficina Monterrey de la firma internacional Heidrick & Struggles, especializada en la gestión de talento y búsqueda de ejecutivos. El directivo comentó que los cambios organizacionales realizados en las empresas son para poder afrontar los retos de la crisis y la lenta recuperación económica que se prevé. “Ante la crisis, las empresas están buscando resultados inmediatos y tienen menos tolerancia a la falta de capacidades, por lo que incluso consideran candidatos de otras partes del País”, expresó el directivo. La semana pasada, Alfa anunció que Dionisio Garza Medina, presidente y director general de Alfa, dejará su cargo a partir del 31 de marzo de 2010, además una semana antes anunció el nombramiento de Armando Garza Sada como vicepresidente de la compañía, entre otros cambios directivos. “La gente piensa que están rodando cabezas, pero realmente es un análisis interno donde las compañías están tratando de analizar la situación de lo que enfrentan cada uno de los negocios y tratar de colocar a la mejor persona en ese negocio”, expresó Ruiz, al referirse a los cambios directivos en todo el mundo. Detalló que lo que hace que un director sea efectivo es diferente en una etapa de arranque, de consolidación o contracción, es por eso que se dan los cambios. Hace un año, refirió que los temas en las empresas eran sobre estrategias de expansiones y adquisiciones, y ahora los temas son de sistemas de control, evaluación de riesgo y cuestiones de control de costos. Con la crisis, refirió que también han cambiado los requerimientos de las capacidades de los líderes en las empresas. Antes se requerían directivos con mucha capacidad de planeación de proyectos de expansión, ahora buscan un perfil más conservador y más enfocado a la ejecución que a la planeación y estrategia.

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Jose Ruiz is a Principal in Heidrick & Struggles’ Monterrey office. As an executive recruiter he has worked on executive search projects for multinational clients in industrial sectors and consumer markets. He can be reached at +52 (818) 8625-6521 or jruiz@heidrick.com

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According to companiesandmarkets.com’s new research report, “Aerospace Industry Forecast to 2013″, growing air travel and wars around the world are driving the global aerospace industry. Civil aerospace segment is expected to grow at a faster pace than the defense segment. It is estimated that by the end of 2027, the world’s airlines will take delivery of 29,400 civil airplanes with total value of US$ 3.2 Trillion to keep pace with the growing demand for air travel.

The US represents the biggest aerospace market, with total sales estimated to have closed at US$ 204.4 Billion in 2008, followed by EU, Canada and Japan. But in future, developing economies such as China, India, Mexico and Brazil are expected to emerge as big marketplace for aerospace products.

The Chinese aerospace sector ranks among the world’s most dynamic sector due to the massive investment by the country. Moreover, Chinese aerospace companies are fast showing their presence in the global aerospace industry. It is anticipated that China will buy more than 3,700 airplanes before 2028 with the potential market value of US$ 390 Billion, becoming the most potential civil aerospace market.

Companiesandmarkets.com’s  report gives an extensive and objective analysis on the global aerospace market. It investigates both the past and current trends in the global aerospace market, and outlines the future trends shaping it. It comprehensively assesses the industry performance both in civil and defense segment. Based on various market indicators, the report evaluates future outlook of the industry. The report can thus give valuable information to manufacturers/investors preparing to enter the aerospace market.

The report also provides future perspective of the following countries

Developed Markets
- US
- Canada
- Japan
- UK
- France
- Germany

Emerging Markets
- Middle East
o UAE
o Saudi Arabia
o Qatar
- China
- India
- Mexico
- Brazil

Profiling on Key Players

This section gives overview on the key players, including The Boeing Company, EADS NV, United Technologies Corporation, Lockheed Martin Corporation, Northrop Grumman Corporation, Honeywell International Inc., Raytheon Company and BAE Systems plc, operating in the global aerospace market. It provides vital information, like business overview and financial information, of each company.

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Recession in the US will bottom out in fourth quarter, says Moody’s economist Economy won’t ‘kick in to high gear’ until 2011 or 2012, Mark Zandi says.

Mark predicts the battered economy will begin a slow upward climb after the recession in the United States bottoms out in the fourth quarter of 2009,

“The economy won’t come roaring back,” he said. “The sectors that generally lead us out of a recession — housing and vehicles — are flat on their back and won’t revive rapidly. The economy will kick into high gear in 2011 and 2012.”

It is expected that China will lead the way followed by the United States. Mexico will likely follow since Mexico’s economy has suffered as the global crisis chokes demand in the U.S., which buys 80 percent of the country’s exports.

Mexico needs U.S. consumer demand to pick-up and it does not look good if consumer confidence is an indicator of future demand and unemployment is a driver of consumer confidence. The Congressional Budget Office expects the unemployment rate to keep rising through 2010 to peak over 10%.

It does not look like the recession in Mexico has bottomed out and it does not look like it will in the near future.

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Jose Ruiz is a Principal in Heidrick & Struggles’ Monterrey office. As an executive recruiter he has worked on executive search projects for multinational clients in industrial sectors and consumer markets. He can be reached at +52 (818) 8625-6521 or jruiz@heidrick.com

About Heidrick & Struggles International, Inc.
The world’s premier provider of senior-level executive search and leadership consulting services. The firm’s executive recruiters and leadership experts operate from principal business centers in North America, Latin America, Europe and Asia Pacific. In Mexico, Heidrick & Struggles operates offices in Mexico City and Monterrey. For more information about Heidrick & Struggles please visit www.heidrick.com

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Mexico’s central bank cut its key interest rate by three quarters of a point Friday saying strong action was needed because the economy had contracted more than expected this year after a fall in exports to the United States and the national shutdown to control swine flu.

This will be an active week:

On Monday, we are expecting to hear that March industrial production declined 8.41 percent year-on-year (according to a Reuters survey).

On Wednesday, the release of the gross domestic product numbers are expected to show the economy shrinking 7.61 percent in the first quarter, compared with the same period a year ago.

On Thursday, March retail sales data are expected to show a decline of 5.93 percent, while Mexico’s consumer price index for the first half of May is expected to fall 0.3 percent.

“A string of sluggish economic data should reinforce expectations of a potentially deeper rate-cut cycle,” RBC Capital Markets said in a research note.

However, it is widely believed that the first signs of an economic turn around will come from US consumer indicators. As the US consumer goes so does the economy in Mexico.  The peso and Mexican stocks soared as US recession fears began to ease early this week.

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Jose Ruiz is a Principal in Heidrick & Struggles’ Monterrey office. As an executive recruiter he has worked on executive search projects for multinational clients in industrial sectors and consumer markets. He can be reached at +52 (818) 8625-6521 or jruiz@heidrick.com

About Heidrick & Struggles International, Inc.
The world’s premier provider of senior-level executive search and leadership consulting services. The firm’s executive recruiters and leadership experts operate from principal business centers in North America, Latin America, Europe and Asia Pacific. In Mexico, Heidrick & Struggles operates offices in Mexico City and Monterrey. For more information about Heidrick & Struggles please visit www.heidrick.com

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The peso remains strong floating around 13 pesos to a dollar and inflation in April was reported at 0.38%, an improvement over March’s 0.58%

In another positive sign for manufacturing in Mexico the U.S. government report showed employers cut fewer jobs in April than economists forecast. The U.S. buys 80 percent of Mexican exports.

“This was a good number,” said Jaime Ascencio, a fixed- income strategist in Mexico City at Actinver SA, the nation’s biggest independent money manager. “It raises bets that diminishing job losses will translate into more consumption.”

Economists are forecasting Banco de Mexico will trim its target to 5.25 percent from 6 percent on May 15, according to the median of 16 forecasts in a Bloomberg survey. The bank has reduced rates by 2.25 percentage point so far this year to 6 percent last month in an effort to revive growth.

With information from bloomberg.com>

Jose Ruiz is a Principal in Heidrick & Struggles’ Monterrey office. As an executive recruiter he has worked on executive search projects for multinational clients in industrial sectors and consumer markets. He can be reached at +52 (818) 8625-6521 or jruiz@heidrick.com

About Heidrick & Struggles International, Inc.
The world’s premier provider of senior-level executive search and leadership consulting services. The firm’s executive recruiters and leadership experts operate from principal business centers in North America, Latin America, Europe and Asia Pacific. In Mexico, Heidrick & Struggles operates offices in Mexico City and Monterrey. For more information about Heidrick & Struggles please visit www.heidrick.com

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It’s been a week headlined by swine flu as most of Mexico’s economic activity came to a screeching halt in unprecedented action to curb the spread of the disease.

Actions halted nonessential state services as well as the private sector from May 1 to May 5.

Mexican President Felipe Calderon is confident will soon return to normal and regain economic momentum. “Mexico is trying to return to normalcy as soon as possible,” Calderon said in a televised interview broadcast yesterday. The President said it is too soon to estimate the economic impact caused by the virus. “Some economic sectors may recuperate immediately,” he said.

Experts estimate the economic halt has cost 2 billion pesos ($150 million) of lost gross domestic product per day.

Health Minister Jose Cordova declared yesterday that the epidemic is in a “declining phase” and appears to have “contained itself”.

Activity in the country began to return to normal on May 6.

Jose Ruiz is a Principal in Heidrick & Struggles’ Monterrey office. As an executive recruiter he has worked on executive search projects for multinational clients in industrial sectors and consumer markets. He can be reached at +52 (818) 8625-6521 or jruiz@heidrick.com

About Heidrick & Struggles International, Inc.
The world’s premier provider of senior-level executive search and leadership consulting services. The firm’s executive recruiters and leadership experts operate from principal business centers in North America, Latin America, Europe and Asia Pacific. In Mexico, Heidrick & Struggles operates offices in Mexico City and Monterrey. For more information about Heidrick & Struggles please visit www.heidrick.com

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