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Click here to download the PowerPoint presentations from the conference and to view some pictures.

More than 250 attendees and 80 companies participated in the 2006 New Mexico-Chihuahua Business Encounter, which took place on May 25-26, 2006 in Chihuahua City. This event was organized by the New Mexico Economic Development’s Office of Mexican Affairs, the International Business Accelerator, Western New Mexico University, the Mesilla Valley Economic Development Alliance, the World Trade Center El Paso/Juarez, El Centro de Desarrollo y Proveduría, and the New Mexico Small Business Development Center Network.

This event combined the activities of the “NAFTA Institute Conference”, the “Supplier Meet the Buyer Trade Mission” and elements of the New Mexico-Chihuahua Commission. During the Encounter, topical experts presented on the various aspects of conducting cross-border business. New Mexico Governor Bill Richardson and Chihuahua Governor Jose Reyes Baeza hosted a breakfast for participants that was attended by more than 330 people, including cabinet-level secretaries, mayors, commissioners and policymakers from both Chihuahua and New Mexico. The Encounter was organized per an agreement by both governors at the December 2005 New Mexico-Chihuahua Commission meeting that was held in Santa Fe.

During the event, 84 companies participated in pre-arranged business-to-business meetings with prospective, buyers, suppliers and distributors. The companies were a mix of larger companies seeking to meet prospective suppliers such as Johnson & Johnson, Bombardier, Electrolux and Goodyear de Mexico, along with a multitude of smaller companies exploring the possibility of exporting to or importing from Mexico.

According to Rick Carley, President of AutoBrite, an Albuquerque-based company that participated in the B2B meetings, “The quality of the contacts that we made were excellent, as was the attendance during the sessions. We have already conducted a business transaction with a Mexican firm we met at the Encounter that will assist us in further penetrating our Mexican market.”

The 2006 Encounter was the largest event of its type that has ever been undertaken by New Mexico-based organizations focused on creating trade partnerships with Mexico. “More than 170 participants from New Mexico traveled on two chartered buses and other contracted transportation with us to participate in the Encounter. Due to the overwhelming turnout for this year’s event, we are planning another Encounter, which we are tentatively planning to hold in Santa Teresa, New Mexico in May of 2007,” states Rick Homans, Secretary of New Mexico’s Economic Development Department.

SANTA FE - More than 250 attendees and 80 companies participated in the 2006 New Mexico-Chihuahua Business Encounter, which took place on May 25-26, 2006 in Chihuahua City. This event was organized by the New Mexico Economic Development’s Office of Mexican Affairs, the International Business Accelerator, Western New Mexico University, the Mesilla Valley Economic Development Alliance, the World Trade Center El Paso/Juarez, El Centro de Desarrollo y Proveduría, and the New Mexico Small Business Development Center Network.

“The 2006 Encounter was the largest event of its type that has ever been undertaken by New Mexico-based organizations focused on creating trade partnerships with Mexico,” stated Governor Richardson. “As a result we have new solid business leads with top companies in the Mexican industry.”

This event combined the activities of the “NAFTA Institute Conference”, the “Supplier Meet the Buyer Trade Mission” and elements of the New Mexico-Chihuahua Commission. During the Encounter, topical experts presented on the various aspects of conducting cross-border business. New Mexico Governor Bill Richardson and Chihuahua Governor Jose Reyes Baeza hosted a breakfast for participants, more than 330 people, including cabinet-level secretaries, mayors, commissioners, policymakers and business leaders from both Chihuahua and New Mexico attended. The Encounter was organized per an agreement by both governors at the December 2005 New Mexico-Chihuahua Commission meeting that was held in Santa Fe.

“More than 170 participants from New Mexico traveled to Chihuahua to participate in the Encounter,” stated New Mexico Economic Development Department Secretary Rick Homans. “Due to the overwhelming turnout for this year’s event, we are planning another Encounter, which we are tentatively planning to hold in Santa Teresa, New Mexico in May of 2007.”

During the event, 84 companies participated in pre-arranged business-to-business meetings with prospective, buyers, suppliers and distributors. The companies were a mix of larger companies seeking to meet prospective suppliers such as Johnson & Johnson, Bombardier, Electrolux and Goodyear de Mexico, along with a multitude of smaller companies exploring the possibility of exporting to or importing from Mexico.

“Together Governor Baeza and I are creating new tangible economic development opportunities between our two states,” stated Richardson. “We are providing new jobs and better livelihoods for our citizens.”

According to Rick Carley, President of AutoBrite, an Albuquerque-based company that participated in the B2B meetings, “The quality of the contacts that we made were excellent, as was the attendance during the sessions. We have already conducted a business transaction with a Mexican firm we met at the Encounter that will assist us in further penetrating our Mexican market.”

Conference presentations and other post-conference information can be obtained on the International Business Accelerator’s website (www.nmiba.com) or by calling the IBA at 505-589-2200.

Dinner Guests at the Governor's Mansion

Positioning products or services in the hands of consumers does not happen miraculously. Businesses must be able to adapt quickly and penetrate cultural barriers in order generate sales and increase market share. All markets are comprised of intricate cultures and sub-cultures that pose a challenge to any business. In order to overcome this challenge, a business should take the time to understand the basic cultural aspects where their business is being conducted. In the U.S., selling techniques may vary from state to state and city to city, because of the multiple cultural backgrounds prevalent within those markets. When multiplied worldwide, the challenge gets even larger. The following are some cultural differences I have seen business in the U.S. and Mexico struggle with when attempting to do business.

The first challenge is overcoming the language barrier. It is important to possess a strong ability of conveying what is being meant rather than what is being said. Even when a common language such as English is spoken, the meaning of words can be quite different between two cultures. For instance, a company in Mexico was interested in purchasing 15,000 tons of urea fertilizer and was seeking quotes to compare the prices of other suppliers. A fertilizer distributor in New Mexico decided to compete and invested a great deal of time in negotiating prices to come up with the best price among the competitors. This distributor underbid all the other companies by offering a price of $215.50 US dollars per ton placed on the US-Mexico border. When the purchase contract was about to be signed, the buyer noticed that the U.S. quote was in “short” tons and not in “metric” tons, which is what is commonly used in Mexico. This simple glitch in the meaning of the word “ton” between the two cultures resulted in a loss of a sale, because of a 240-pound per ton difference in the intended meaning.

Another important cultural aspect is the consideration of time. When doing business in Mexico, a company must be prepared to invest a great deal of time in establishing relationships with prospects prior to conducting any business. Personal interaction in Mexico is important and sometimes necessary in order to generate trust. On the other hand, when doing business in the U.S. the least amount of interaction one spends with a business prospect, the better. In fact, most transactions in the U.S. usually take place without any of the two parties ever meeting each other. Relationships in the U.S. are typically formed after business has been conducted over a period of time, but not in the initial sales period. Generally in the American culture, time is considered a scared resource, and the notion of “Time is Money” is taken very seriously. Arriving 15 minutes early to an appointment in the U.S. is common practice and is usually interpreted as a measure of quality. In Mexico, arriving 15 minutes late to an appointment is common practice and is not interpreted as a measure of quality. Other major cultural observations between Mexico and the U.S. involve communication and presentation strategies.

While first impressions are important in both cultures, image and aesthetics are weighted more heavily in Mexico. Aesthetics and image are extremely important in Mexico and are the key focus in most marketing materials and business presentations. In Mexico, the type of watch, pen, shoes, and suit is a measure of business success. The manner in which Spanish is spoken by individuals in Mexico is also a measure of success and to some extent social status.

In the U.S., aesthetics and image are not weighted as heavily nor is the manner in which the English language is spoken. As long as the intended message gets across, the way English is spoken is not as important. What is weighted more heavily in the U.S. is how well the information is presented and communicated. It does not matter if the person is wearing a Rolex or has a Mont Blanc pen in his or her pocket, if the information being presented is clear and direct, it has more value.

In addition, the contents in marketing materials in the U.S. are also weighted more heavily than are aesthetics in Mexico. For example, in the U.S. contact information and product descriptions that are easy to understand are more important than the pictures or intricate designs contained in the promotional material.

Keeping these basic cultural differences in mind when doing business in Mexico or the U.S. can increase the chances of reaping the economic benefits of these multibillion dollar markets.

• Business Type: Vendor
• Country: Mexico
• Description: A food distributor in Chihuahua City is interested in supplying buyers in the U.S. with a variety of Mexican food items such as, coconut juice, habañero hot sauce, dried corn leaves, dried chile, oregano oil, pinto beans, and other Mexican food items. This company has access to co-packaging and custom labeling.

• Business Type: Vendor
• Country: Mexico
• Description: A designer and manufacturer of industrial automation equipment is looking for a joint venture partner in the US interested in servicing maquiladoras in Chihuahua. This company currently has machines operating in maquiladoras such as Delphi and Siemens.

• Business Type: Vendor
• Country: USA
• Description: An information technology company that focuses on designing and installing security systems is interested in expanding their information technology services to Mexico.

• Business Type: Vendor
• Country: USA
• Description: A corporation comprised of corporate attorneys is interested in providing legal business services to foreign investors interested in establishing a U.S. Corporation. This firm also provides assistance in obtaining corporate financing and immigrant/non-immigrant U.S. visas.

• Business Type: Buyer
• Country: USA
• Description: A distributor of raw shea butter in Silver City, New Mexico is looking for suppliers from Ghana, Africa to source bulk shipments of raw shea butter. This distributor is also interested in establishing relationships with appropriate US Customs brokers interested in providing import and distribution services.

Advantages of the Show:

• A showcase for your business and/or product to be seen by representatives of industry and thousands of visitors.
• Participation at business meetings.
• Contact with industry and/or influence leaders.
• Your participation along with over 100 suppliers, fully oriented to industry.