The electrical/electronic sector is the second largest manufacturing group in Puerto Rico and its success is significantly due to the Island’s high tech base and favorable business climate. Among the well-known companies with operations on the Island are Siemens, General Electric, Hewlett-Packard, Solectron, Smart Modular, Cutler-Hammer, Microsoft, Storage Technology and Hubbell. In fact, 68% of the electronics companies in Puerto Rico are the subsidiaries of major U.S.A. companies. Some companies, including Solectron and Smart Modular, are also contract manufacturers. Total shipments from the Island in this sector, including computer products, reached USD$5.6 billion in 2002, the equivalent of 10.3% of total U.S.A. electronic and computer shipments.

Puerto Rico’s bilingual and available workforce is well prepared to meet the needs of companies operating on the Island as well as those considering expanding or establishing manufacturing facilities. Almost 50 years of manufacturing experience has given rise to an elite group of highly educated, innovative and dedicated management team. A recent study has shown that productivity rates per dollar in Puerto Rico are significantly higher than the U.S. average. This combined with high capacity transportation, advanced telecommunications and electrical infrastructure makes Puerto Rico the location of choice for electrical and electronic manufacturing companies.

Puerto Rico is the lowest cost gateway to the most lucrative market in the world. Here you can enjoy the benefits of operating within a U.S. jurisdiction, with the added tax benefits of operating under a foreign tax structure. Puerto Rico’s value proposition offers an unparalleled combination of both financial and operational advantages that include:

Electrical and electronics companies also find a ready supply of educated workers at all skill levels. Puerto Rico universities graduate some 23,000 bilingual students each year, 9,000 with degrees in science, engineering and technology. That places the Island 9^th in the U.S. in terms of engineering degrees awarded. Well-recognized Ph.D. programs provide researchers.

Puerto Rico has a loyal, productive workforce, trailing only Japan in the fewest number of days lost to labor disputes per manufacturing employee, and wage rates are typically 20% to 30% lower than those on the mainland for the same position.  A variety of wage and training grants are available as are both U.S. federal and local training programs.

Puerto Rico also has a full range of suppliers providing everything from packaging and labels to validation.

PRIDCO (Puerto Rico Industrial Development Company) is the agency of the Commonwealth of Puerto Rico tasked with assisting companies to set up operations on the Island. In addition to “fast tracking” permits and other documents necessary to operate, PRIDCO is the largest owner of industrial real estate on the Island, with some 25 million square feet, of which 1.5 million is available for rental. And PRIDCO’s assistance doesn’t end with the commencement of the new facility. A PRIDCO representative is assigned to visit each facility on a regular basis to insure that any minor problems are quickly resolved.

Puerto Rico offers the tax advantages of being offshore with the safety and quality of life of staying home. For more information or to schedule a meeting with a PRIDCO Special Project Manager you can either e-mail us at info@pridco.com or call toll free at 1-888-5-PRIDCO (774-3226).