Hispanic Population as percent of total population by county - U.S. Census 2000

Source: U.S. Census Bureau - www.census.gov


The economic investment fundamentals of the Hispanic market are compelling:

- Hispanics currently comprise 14% of the U.S. population, numbering 40.4 million, and are growing three times faster than the total U.S. population due to high birth rates and continued high immigration.

- Hispanic buying power is currently estimated at $700 billion and is expected to reach $1 trillion by 2010, driven by the demographic dynamics and the rising income levels of the Hispanic population.

- In addition to representing buying power equivalent to that of Spain, the U.S. Hispanic economy should also be viewed as an integral part of a broader consumer marketplace which includes Latin America and the Caribbean. This is particularly relevant in the food, media, telecom and financial service sectors.

- As a result of high regional concentration and high immigration flow, the U.S. Hispanic “nation” is not assimilating to the same extent as other immigrant populations, creating demand for businesses that serve this distinct market.

- Hispanic companies are growing at three times the rate of the national average.

As a result of these and other related trends, Nexos views the opportunities in its major sectors of focus to be as follows:

- Consumer Goods — There is a wide spectrum of growth opportunities for companies targeting Hispanic consumers, ranging from repositioning non-Hispanic businesses to serve that group to expanding the product offering of Hispanic businesses to capture the "upmarket" demand from second generation Hispanics. Nexos has particular expertise in food, retailing, restaurant and distribution areas.

- Financial — Financial companies are expected to benefit from greater demand from Hispanics for greater bank account ownership, mortgage banking, credit/debit cards, investment products and insurance as the differential in savings by Hispanics versus the U.S. average narrows.

- Health Care — There are attractive growth opportunities for health care and insurance providers focused on both the existing underserved Hispanic market as well as the emerging, higher income Hispanic market. Research clearly indicates that Hispanics, regardless of language skills, have a strong preference for Spanish-speaking health care providers and community facilities.

- Housing Related — The rapid growth in Hispanic population and household formation, combined with rising income levels will greatly benefit a broad sector of companies providing building supplies, furnishings, infrastructure and services.

- Media & Telecom — Advertising spending on Hispanic-targeted television, radio, print and online media are growing at levels in excess of 15%, and there are significant station ownership opportunities for Hispanics who have access to capital.

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