DSI Presentation Case Study – U.S. – Mexico Supply Chain Blueprint

Richard L. Wottrich, CEO and Senior Consultant, International Services Atlanta USA Richard Wottrich delivered the keynote speech on Wednesday, April 15, at the United States – Mexico Chamber of Commerce conference in Chicago USA. The event was held at the offices of Baker McKenzie and attended by over 200 leaders in the Manufacturing, Logistics and Supply Chain Industries from both Mexico and the U.S. The conference theme was “United States – Mexico Supply Chain Blueprint.” Top executives from Caterpillar, Basin Industries, Landstar, KCS Railroad, Fletes México Carga Express, DHL Express, Whirlpool, Trek Bicycle, among others shared their experiences in locating significant manufacturing facilities in Mexico and the challenges of importing finished goods into the U.S. Mexico is poised to become the number one exporter of autos into the U.S. this year, supplanting Japan and Canada. Mexico will ship 4.1 million units into the U.S. this year. Some industry pundits are predicting the death of automotive manufacturing in Canada within a decade. Automotive companies have invested over $14 billion in plants in Mexico, not including Friday’s announcement by Ford of $2.5 billion for two New Mexican plants. Other new investments include Toyota at $1 billion, and Grupo Vidanta (tourism) at $1.5 billion, Direct foreign investment in Mexico has risen from $42 billion (641 billion pesos) during the 2011-2012 period to $66 billion (1 trillion pesos) in 2013-2014, an increase of 36 percent. In workshop sessions during the conference the number one concern voiced by virtually every participating executive was the lack of skilled workers. The problem is pronounced not just in Mexico, but also in the U.S. where public school systems...

2015 Mega-Trends

December 29, 2014, Atlanta USA “If you think in terms of a year, plant a seed; if in terms of ten years, plant trees; if in terms of 100 years, teach the people.”  – Confucius Charting mega-trends globally is perhaps a fool’s errand, but there is some order in the fractal universe – if you know where to look. Certain historical currents run strongly and are perhaps not immediately apparent, but nevertheless their impact will be felt in 2015 and beyond. The Energy Revolution The United States has become the largest energy producer in the world. This is nothing less than a tsunami in the world political order, as the ripples of surging U.S. fracking production of oil and gas reach across the globe. Venezuela, Russia, and Iran are struggling with 50 percent reductions in oil revenues.  This figured behind the scenes in President Obama’s recent decision to open a dialogue with Cuba.  Saudi Arabia has been forced to continue full production of its oil just to defend its market share. Economies the world over are benefiting from the drop in energy costs, which ultimately will spur their GDPs. This revolution is occurring primarily on private land in the U.S., as America is one of the few nations on earth to allow private ownership of energy assets. When the U.S. federal government loosens antiquated bans on exporting oil and gas this revolution will take on even greater dimensions. The dropping price of oil is a reflection of moribund global economies, but it will not stop the tide of U.S. energy independence and all that means to the world order....

DSI Fact-Bytes – “It’s Later Than You Think”

By Richard Wottrich, CEO & Senior Consultant, International Services  November 13, 2013, Chicago USA  Fast-Track Evolution In 1799 Alexander von Humboldt discovered a stunningly singular mountain region known as a Páramo – an alpine tundra ecosystem. This particular Páramo was in Venezuela high in the Andes. The Páramos ecosystems abound throughout the Andes, at altitudes of 9,200 to 14,800 feet above sea level – above the tree lines. They total roughly 13,500 square miles and over 3,400 species of vascular plants grow there, many seen nowhere else on earth. The Páramos are home to the daisy tree, Espeletia uribei, which grows to tree height. The daisy tree has adapted to the harsh conditions of the Páramos, evolving white hairs on its blooms to diffuse ultraviolet rays and covering its stem with a layers of dead leaves to keep it warm. But what is perhaps most compelling about these unique ecosystems is that scientists have determined they are evolving faster than any other spot on earth. DNA testing of 13 different Páramos plant lines has determined that evolution is on a fast-track – an evolutionary hot spot. New species are being formed. The earth is not static, but rather is continuously evolving new answers to its changing environment. Global Food Supplies Seemingly ever wider swings in worldwide weather patterns have been impacting global food supplies. Scientists studying global climate change caused by human activity postulate that these swings will grow and continue to negatively hit global food supply chains. A report issued in 2013 by researchers at the London School of Economics and a Washington DC think tank, the Information...

U.S. Mexico Chamber Of Commerce Speech

  November 8, 2012, Chicago USA Richard Wottrich presented the keynote presentation today at the U.S. Mexico Chamber of Commerce – Mid America Chapter meeting in Chicago USA.  Wottrich’s presentation, entitled “Why Global Economic Convergence is a Myth,” covered current global GDP growth trends, sovereign debt issues and advantages Mexico has that will lead to robust growth in the next decade. Other speakers included Brian H. Bowers, Senior Vice President, Intermodal and Automotive, of Kansas City Southern (NYSE:KSU), a $2.2 billion railroad freight company with the only direct shipping route into Mexico. Anderson spoke on “Intermodal Connection of North American Supply Chain.” Other topics included “Benefits of Integrating Manufacturing in North America” and “Transportation, Logistics, Distribution and Border  Security.” Mexico is poised to become America’s second largest trade partner after Canada, supplanting China. U.S.-Mexico trade totaled $460 billion in 2011. Blog writer, Richard L....

Wottrich Speaks at 2012 McLean Conference

By Richard L. Wottrich, Senior Managing Director, International Services  May 10, 2012, Chicago USA The McLean Group, LLC, held its 5th Annual Conference at the Tyson’s Corner Hilton in McLean, Virginia, May 10-11, 2012. Over the past year McLean has grown to 65 investment bankers with some 55 attending the conference. McLean’s Business Valuation division is composed of 12 professionals and it produced 235 valuations in 2011. Richard Wottrich, Senior Consultant for International Services, delivered a speech on Thursday entitled “Building Global M&A Teams.” McLean International Services networks with over 200 investment banks and consulting firms in 35 countries. The McLean Keynote Speaker was Oliver (Ollie) North, host on the FOX News Channel. Additional speakers included David Hofmann, Director of North American Operations for InterChina Consulting, based in Beijing, China; J. Richard Knop of Windsor Group, LLC and Fed Cap Partners LLC; Mark H. Malooly, Senior Manager at KPMG LLC; Philip W. Jaeger, attorney at Bean Kinney & Korman; Mark Moore, Executive Vice President of John Marshall Bank; and Joseph M. Bione, President of Whitehall Group, L.L.C. Richard Wottrich, Blog Author...

The Traffic Club of Chicago

By Richard L. Wottrich, Senior Managing Director, International Services  April 17, 2012, Chicago USA Richard Wottrich is speaking at The Traffic Club of Chicago on Thursday, April 19, 2012, on the topic of “Macro Trends Impacting Global Transportation & Logistics.” The Traffic Club of Chicago, founded in 1907, is one of the nation’s oldest and finest transportation associations. The club is dedicated to maintaining the highest standards of the transportation and logistics industry, keeping its members abreast of industry happenings, while at the same time, assuming a responsible role in civic, cultural and charitable activities in the Chicago area. 12 Macro Trends Impacting Global Transportation & Logistics (Black Swan Events) Nuclear Power – Three major economies, Japan, Germany and Italy, have decided to shut down their nuclear power plants over the next 30 years, as these plants hit their designed life spans. This switch to other power sources will put increased demand on global oil and gas reserves. Natural Gas & Liquefied Natural Gas (LNG) – The advent of advanced fracking technologies in the US has unlocked vast gas reserves that are changing the economics of energy globally. The massive LNG Gorgon Project in Western Australia will create a global LNG market. China & India – Despite recent modest slowdowns in growth rates, China and India remain significant factors in global oil and gas consumption. Consolidation – As global population soars beyond 7 billion, the sheer scale of Transportation and Logistics will drive industry consolidation. Infrastructure – In 1989 China had just 200 kilometers of expressways. Today China has the second largest super highway system in the world and...