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Strategic Compensation Analysis
for Operations Expansion
to Nicaragua, Guatemala, Honduras,
Colombia, & El Salvador

The case study highlights expertise in delivering comprehensive market analysis and strategic recommendations for international expansion across multiple countries. By leveraging a combination of desktop research, local expertise, and econometric analysis, PRODENSA provided the client with the insights needed to make informed decisions about their expansion into emerging markets.

Table of contents

Overview

A U.S.‑based automotive manufacturing company aimed to diversify its operations by expanding into new markets in Latin America, specifically Nicaragua, Guatemala, Honduras, El Salvador, and Colombia. The company planned to establish new manufacturing operations with an estimated headcount of 20,000 employees across these regions. To support this expansion, the CLIENT required a comprehensive study evaluating multiple factors, including compensation, labor force, education, economic activity, and infrastructure. PRODENSA was engaged to conduct this analysis and provide strategic recommendations for the CLIENT’s future projects.

Project Stages

CLIENT Needs Analysis

PRODENSA initiated the project with a detailed analysis of the CLIENT’s specific needs. This stage involved understanding the CLIENT’s objectives, the scale of their planned expansion, and the critical factors that would influence their decision‑making. The focus was on gathering relevant data to evaluate the feasibility of establishing manufacturing operations in the selected countries.

Desktop Research & Survey Design

PRODENSA conducted extensive desktop research to gather preliminary data on demographics, labor force, education, industry, economic activity, and other relevant factors in each target country. A tailored survey was also designed to capture additional insights from local experts and industry leaders, ensuring a comprehensive understanding of the regional conditions.

Competitor Identification & Benchmarking

As part of the analysis, PRODENSA identified key competitors already operating in the region and benchmarked their practices against industry standards. This involved evaluating compensation packages, HR practices, union activities, and transportation infrastructure, providing a clear picture of the competitive landscape.

Data Gathering & Interviews with Local Experts

Given the limited availability of public data in some countries, particularly Nicaragua, PRODENSA supplemented the research with insights from private data sources and conducted interviews with local experts. This approach ensured the data gathered was both accurate and representative of the current market conditions.

Data Processing & Analysis

The collected data was processed and analyzed, focusing on key areas such as workforce availability, compensation trends, economic activity, and security. PRODENSA also conducted an econometric analysis to forecast the potential workforce for manufacturing operations in each country through 2030, providing the CLIENT with long‑term insights.

Report Elaboration & Presentation

The final stage involved synthesizing the findings into a comprehensive report. PRODENSA presented the report to the CLIENT, which included an evaluation matrix and targeted recommendations for investment in each country. The report also highlighted specific locations within these countries that offered the most advantageous conditions for the CLIENT’s expansion.

Challenges & Solutions

  • Limited Public Data Availability: Countries like Nicaragua presented challenges due to the scarcity of publicly available data.
  • Solution: PRODENSA utilized private data sources and conducted interviews with local experts to obtain reliable information, ensuring a comprehensive analysis.

Project Outcome

PRODENSA successfully gathered and analyzed critical information across multiple regions, providing the CLIENT with a clear understanding of the opportunities and challenges in each target country. The analysis included key areas such as demographics, labor force, compensation, industry practices, and infrastructure. The CLIENT used this information to make data‑informed decisions, identifying the optimal locations for their future manufacturing operations in Latin America.