A gezunt ahf dein kop

During the past month, we have had a close-up look at one of Mexico’s public hospitals, from the point of view of the end-user.  This was not a research project: A close family member suffered a sudden critical health crisis and was rushed to the nearest regional medical center, where he remains in a delicate state.  In the process, other family members have spent many hours at the hospital to assist in the patient’s care, discuss his condition with doctors and nurses, provide medical records and file documents, and ask questions through little circular holes in glass windows.  Although the experience has been stressful, we feel compelled to report that we have been favorably impressed with the quality of infrastructure and care at the public hospital.

Mexico is served by a mixed health care system, with private hospitals and specialized service providers available to those who can afford it, and a nationwide network of public hospitals and clinics for everyone else.  The largest piece of this network is the Mexican Social Security Institute, known as the IMSS.  Founded in 1943, the IMSS has grown into a colossal operation, operating some 1,500 clinics, 230 hospitals and 25 medical specialty centers.  The agency employs over 370,000 and provides health coverage for over 52 million beneficiaries, according to the National Statistics Institute (INEGI).  The IMSS is consistently the target of criticism for a range of deficiencies and in recent years has struggled with rapidly encroaching insolvency.  Nonetheless, for millions of Mexicans, and particularly the poor, it remains a lifeline for health care.

We had not taken a family member to a public hospital for treatment before.  But we regularly hear reports from others who presumably have, and mostly, their comments are withering.  Perhaps this is why we were so positively impressed with the overall experience at the IMSS hospital.  The particular facility in question is a regional center in a medium sized city in central Mexico.  It is very large, decidedly unglamorous and could use a coat of paint and some general maintenance here and there.  However, to our untrained eye it appeared to be well outfitted, with the equipment such as beds, electronic monitors and specialized medical devices of recent fabrication and readily available.  Despite handling a massive volume of patients and their fretful families, the medical staff by and large gave the impression of being knowledgeable, dedicated and professional.  The patient received at least six CAT scans, as well as various x-rays, laboratory analyses, medications and other forms of treatment during his three week stay in the hospital, the cost of all of which was – to our grateful astonishment – covered by the family’s IMSS public health insurance.  We nearly required hospitalization ourselves after trying to imagine what that would have cost in New York.

Our comments here are not intended to represent a comprehensive evaluation of public health services in Mexico, nor to compare these services with those of other countries.  They merely describe the recent experience of one Mexican family that frankly had expected worse based on the comments of others.

One final note: Although we observed hospital staff entering data into computers, we did notice that in the emergency room, reports were being typed up on old fashioned manual typewriters – and not of late vintage either.  Hadn’t seen one of those bad boys in a dog’s age.

Read about our participation in the Mexico Today program here.

• Aerospace: Mexican aerospace manufacturer Hydra Technologies closed the first sale of its Ehecatl unmanned aircraft to a foreign customer at the Paris Air Show this month.  Hydra’s export order by a Canadian buyer, the value of which was not revealed, includes six aircraft, supporting equipment and services.  The contract represents the first export order of completed aircraft designed and built by a Mexican company, a major step forward for the country’s burgeoning aerospace industry.
• Automotive: Japanese automaker Mazda at long last confirmed rumors that it will build a major new production facility in the central Mexican city of Salamanca, Guanajuato State.  The US$500 million facility, planned to produce next-generation engines and automobiles, is scheduled to open in 2013.
• Trade: Chinese trade promotion agency Chinamex announced plans to build a Dragon Mart shopping center in Cancun, Mexico, via initial investment of US$150 million.  The complex, which will offer exhibition space, importation facilities, retail and wholesale outlets and restaurants, is intended to promote exports by small and medium sized Chinese companies.
• Logistics: Mexican courier and logistics company Redpack inaugurated a new Operations Center in the western city of Guadalajara, Jalisco.  The US$6 million facility provides freight yards, warehousing, loading docks and office space to facilitate the company’s freight management for the western region.
• Automotive: Platinum Tool Technologies, a Canadian manufacturer of molds for the automotive industry, formally inaugurated its plant in the northern state of Coahuila following US$1.75 million in investment. The facility provides high quality repairs, maintenance and engineering changes for molds and tooling.
• Health care: A consortium of public and private institutions in Monterrey, Nuevo León, is projecting investment of US$400 million over the coming years to develop a health care cluster to be called “Monterrey City of Health”.  The project involves hospitals, laboratories, universities and research centers, and is intended to attract patients and health professionals from elsewhere in Mexico and around the world for advanced care and professional opportunities.
• Steel: South Korean steel maker Posco announced plans to invest US$300 million to build the second stage of a galvanized steel plant in the northeastern state of Tamaulipas.  The producer of steel for Mexico’s auto industry announced that the pace of expansion of its Mexico operations was among the fastest in its history.
• Cosmetics: Turkish cosmetics laboratory B’iota will invest US$30 million in an effort to enter the Mexican market for their skin care products.  The company is specifically targeting the segment of depilatory products, which expanded by a reported 76% in 2010.
• Logistics: U.S.-based operator of industrial distribution facilities Prologis plans to invest up to US$88 million in its recently inaugurated Ladero Intermodal Terminal & Industrial Park outside of Mexico City.  US$14 million of the resources were used to open the first phase of the facility.  Prologis became the world’s largest operator of its type this year through a merger with AMB Property Corporation.
• Tourism: Mexico’s first domestically owned and operated cruise ship line, Ocean Star Cruises, is investing US$100 million in the first phase of its service launch this year.  The company began offering routes along the country’s Pacific coast in April 2011 with calls at Puerto Vallarta, Cabo San Lucas, Manzanillo, Ixtapa and other locations.
• Energy: Spanish energy multinational Abengoa will build a new electricity generating plant in the northwestern state of Baja California Sur.  The US$91 million power plant is projected to come on line in 2013.
• Energy: Spanish solar panel manufacturer Siliken inaugurated a new US$27 million production plant in the northern city of Tijuana, near San Diego.  Siliken joins Kyocera and United Solar Systems in Tijuana’s solar manufacturing community.
• Mining: Canadian mining company Goldcorp will invest US$400 million to expand gold and silver operations at three of its mines in the northern state of Zacatecas.  Goldcorp’s aggressive growth in the area is a key part of robust activity currently taking place in the Mexican mining industry.

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Reports on some recent and upcoming investment collected from the local business media:

• Aviation: Mexican airline VivaAerobus will invest US$30 million this year to acquire eight Boeing 737-300 aircraft.  The principally domestic carrier will use the new planes to add domestic and possibly international routes as well.  VivaAerobus has expanded steadily since entering the market in 2006.
• Automotive: U.S. automaker General Motors announced plans to invest US$540 million to expand production at its existing plant at Toluca, just west of Mexico City.  The added infrastructure will accommodate production of two new models of energy efficient engines.  GM is Mexico’s largest auto maker.
• Energy: Spanish renewable energy developer Iberdrola plans to invest US$400 million in its Mexico operations through the end of 2012.  Iberdrola recently purchased an existing wind farm in southern Mexico from fellow Spanish energy firm Gamesa, and is currently building another wind farm in the same region.
• Logistics: Hutchison Port Holdings will undertake US$200 million worth of expansion and upgrades at the Port of Lazaro Cardenas on Mexico’s Pacific coast this year.  Planned works include dock construction, addition of berths and expansion of switching and storage yards to handle cargo containers.
• Aviation: Mexican domestic air carrier Interjet announced plans to invest over US$90 million over the coming two years.  The resources are earmarked for tripling the capacity of the airline’s maintenance center and acquiring a substantial number of new aircraft.  Interjet reportedly will become the first Latin American airline to use Sukhoi jets, of Ruso-European manufacture, on its scheduled routes.
• Automotive: U.S. automaker General Motors will invest US$300 million to upgrade and adapt its manufacturing plant in the northeastern state of San Luís Potosí.  Expansion of the plant is intended to accommodate production of a new compact model not currently being built in Mexico.
• Manufacturing: U.S.-based furniture manufacturer Furniture Brands is investing US$20 million to outfit an existing maquiladora plant in the southeastern state of Yucatan to produce cut-and-sew kits for its U.S. upholstery operations.  The facility is expected to initiate production in mid-2011.
• Transport: Mexican rail freight operator Ferrosur will invest US$21.1 million to acquire nine locomotives for its fleet of rolling stock.  The new fuel-efficient engines, made by general Electric, will help the freight carrier meet high transport demand from state-owned petroleum producer Pemex.
• Energy: Mexico’s Federal Electricity Commission (CFE) will invest some US$220 million this year in projects to support electricity generation and transmission in the northwestern Baja California region.  The Energy Ministry is projecting 25% growth in electricity consumption in the area by 2025.
• Automotive: Japanese automaker Nissan announced combined investment of US$900 million from 2010 through 2012 in its Mexican manufacturing operations.  The resources will support manufacture of three new vehicle models at the company’s plants in the states of Aguascalientes and Morelos.
• Retail: Retailers belonging to the National Retailers Association (ANTAD) will invest US$3.6 billion in 2011, according to ANTAD.  The bulk of the resources will be channeled into new store openings, remodeling and upgraded technology.
• Airports: Mexican airport operator Grupo Aeroportuario del Pacifico (GAP) plans to invest some US$83 million this year in maintenance and expansion of its airports.  The group’s 12 locations include the airports of Guadalajara, Puerto Vallarta and Tijuana.
• Automotive: Canadian auto parts manufacturer Magna International announced plans to construct a new production plant in the northeastern Mexican state of San Luís Potosí.  The US$100 million facility, intended to supply parts to OEM vehicle manufacturers in central and northern Mexico, is projected to open in June 2012.
• Energy: Construction is set to begin on the Mexican Renewable Energy Center (Cemer) in the central state of Guanajuato.  The new specialized research center will require a projected US$29 million for construction as well as laboratory and office equipment and vehicles.
• Manufacturing: Dubai-based steel pipe manufacturer Tenaris will invest US$30 million this year to open a plant in Mexico to produce rods for pumping purposes.  Mexican subsidiary TenarisTamsa recently initiated the first stage of manufacturing operations at a new US$1.6 seamless pipe manufacturing complex in  the eastern state of Veracruz.
• Healthcare: Mexican Hospital Operator Grupo Christus Muguerza plans to invest at least US$10 million in new projects in the northeastern state of Nuevo Leon this year.  Resources are earmarked for hospital renovations and a new mobile surgery unit, among other uses.
• Beverage: Bevidisa, a subsidiary of Mexican soft drink producer Pascual Boing, began construction of a new manufacturing plant in the northeastern state of Nuevo León.  US$7.5 million facility will produce soft drinks and flavored popsicles for the U.S. market.

Reports on some recent and upcoming investment collected from the local business media:

• Plastics:  The Manufacturing Industry Chamber of Nuevo Leon (Caintra) announced an initial US$1 million investment to build the Mexican Institute for Technological Innovation in Plastic and Rubber in the Monterrey area.
• Electronics: IBM formally inaugurated new manufacturing installations in Jalisco developed at an estimated cost of US$20 million.  The facilities are intended specifically for the production of IBM’s high-end XIV Storage Systems for export to the United States, Europe and other areas.
• Toys: Spanish toy manufacturer and retailer Imaginarium announced ambitious plans to expand operations in Mexico with an initial investment of US$1.6 million.  The company plans to open over 40 new retail locations in the country by 2013, in addition to potentially manufacturing in Mexico.
• Retail: Despite underwhelming economic recovery, Mexico’s top retailer Wal-Mart de Mexico announced plans to invest over US$900 million this year.  The plans include the opening of 300 new locations across the company’s various retail formats and the remodeling of existing stores.
• Mining: Canadian mining company First MajesticSilver Corp. opened a mineral processing plant in the northern state of Coahuila in late 2009.  The US$22 million plant will produce gold and silver.
• Healthcare: The Mexican government announced plans to undertake a formal program to promote Mexico as a destination for ‘medical tourism.’  Medical services to foreigners traveling to Mexico for this purpose were valued at an estimated US$122 million in 2009, and the government projects that the promotional campaign will boost the sector to over US$1 billion by 2015.
• Retail: Leading grocery and general merchandise retailer Soriana announced investment plans worth US$300 million for 2010.  The firm’s expansion program for this year includes construction of 40 new stores.
• Automotive: Chrysler de México announced it will begin production of the new model Fiat 500 at the Chrysler’s Toluca, Mexico plant in December.  The company reported investment of US$550 million in advance of the new production program.
• Retail: DIY retailer Lowe’s finally opened its first two stores in Mexico in February 2010, following investment of US$100 million during an extended preparation process.  Lowe’s Mexico operation has plans in the works for three more stores in the medium term.
• Research: A US$200 million Research and Technological Innovation Park is set to begin operations in Monterrey by the end of this year.  The high technology research center will include sites for high profile companies such as Motorola and PepsiCo, and Mexican industry leaders Sigma Alimentos and Xignux.  Research areas will include nanotechnology, advanced materials, biotechnology and software, among others.
• Food Processing: Mexican snack foods manufacturer Bokados announced investment plans of approximately US$8 million in 2010 as part of an aggressive market expansion strategy.  The plans for this year include opening the company’s third production facility.
• Automotive: Chinese light truck maker ZX Auto will begin investing a planned US$100 million this year in the construction of a new manufacturing plant in the north western state of Baja California, according to state officials.  Baja California’s automotive manufacturing sector includes approximately 80 companies, including parts makers and maquiladoras.
• Paper: Consumer goods giant Kimberly-Clark’s Mexico subsidiary plans to invest US$100 million in plant and process upgrades this year in anticipation of a rebound in demand following a down 2009.  The company is projecting 7% sales growth in Mexico this year.