SMEs have the opportunity of supplying the automotive sector
In Mexico, the Guanajuato automotive Industry is strengthened with the presence of five assemblers, 380 auto-parts and manufacture companies, but all of them reach millions dollars (million dollars) in importing tooling, an amount that opens the opportunity for local companies that want to be added to the supply chain of this sector.
Armando Cortes Galicia, sectorial executive director at ProMexico, said that Mexico is located as third tooling importer internationally surpassed by the United States and China, and has a deficit of 1,700 million dollars in this kind of item, what constitutes an opportunity window for small and medium companies to become automotive suppliers.
According with data from the Automotive Cluster in Guanajuato (CLAUGTO) business opportunities from SMEs in Guanajuato amount 4,500 million dollars.
With the growth that the sector has at the entity, one of the objectives of CLAUGTO is provide the companies with the opportunity of integrating to obtain a common benefit.
In order for local businesses to achieve this, for two years they are developing the program CLAUGTO Certification, which allows improving the processes and quality of supplying companies of this industry.
Mauricio Galicia Barajas, coordinator of the Development Committee of Suppliers and Supply Chain from CLAUGTO, said to Mexico Industry that they are working in the professionalization of companies for gather more customers and there is greater competitiveness in the region.
“This tool is generated with the participation of the installed companies and the original equipment manufacturers (OEMs.) With it, all kind of companies interested in being introduced into this sector can be assessed.”
In one year they have certified 58 companies in excellence such as Packaging Store, Grupo Solder and Dealba, among others.
In addition, he added that other companies have been introduced to this certification which is Consorcio Creativo Industrial, PCL, MD Manufacturing, Press Herramientales and Samuel Smidt.
He emphasized that the sectors assessed in the companies are the quality management system, business culture, suppliers’ management, Lean Manufacturing, costs, environmental actions, legal obligations, safety and health.
Other resources used to improve local supply is the companies training, fulfilling trade missions national and internationally and each year the Automotive Supply Forum takes place.
This year, the supply companies that participated at the Business Summit of the Automotive Supply Forum reported sales opportunities of more than 1,480 million pesos per year.
In this edition participated 89 buyer companies and more than 700 suppliers from Guanajuato; all them were at 101 business tables with the scheme B2B with the opportunity of interviewing with up to three companies.
OBJECTIVE: INCREASING NATIONAL CONTENT
With the support of the Foreign Trade Promotion Coordinator (COFOCE,) at the Automotive Supply Forum 2017 was present the attraction of 29 buying companies.
Luis Antonio Vargas Zavala, auto-parts and metallurgic promotion director at COFOCE, explained that with that strategy they intent to add more supply manufactured in the State to those assemblers established in the country.
That is why they invited transnational companies to know the offer among which highlight BMW, Audi, Toyota, Mazda and John Deere.
“What we are doing in Guanajuato is how we attract that buyer that manufactures auto-parts in Mexico, but who at the end will export it, for him to integrate the Guanajuato supply to his exporting.”
He explained that in Guanajuato there are suppliers that have up to 20 % of the value of a vehicle unlike other States that have a minor participation; therefore the objective is to add the participation of the Guanajuato supply at medium and long term.
INCREASING THE AUTOMOTIVE SECTOR EXPORTING
Vargas Zavala informed that from January to August this year, the automotive sector of Guanajuato exported 8,000 million dollars, what represents an increase of 12 %, compared with last year which registered little more than 7,000 million dollars.
In that same period, the auto-parts sector, 128 companies, generated almost 4,500 million dollars, what meant an increase of 16 percent.
The main exporting destinations are the United States with 75 %, Canada with 12 %, Germany 3 %, Colombia 1.5 % and Great Britain with 1.1 %.
The COFOCE promotion director said that in Guanajuato supply exporting is mainly concentrated in: 70 % Silao, 15 % in Irapuato, 8.5 % in Celaya.
“The growth will continue even we have many ingredients that we did not have before. It is possible that there is an adjustment in vehicles exporting in Mexico by 2020 and the State will contribute with 25 % in this plan.”
In addition, COFOCE has the GTO-Automotive program which has as an objective to promote State companies for them to serve the requirements of the automotive sector.
Through this platform is developed a reliable suppliers' base to increase the value of Guanajuato content in exporting and accelerate the development of small and medium companies.
He said that currently, Guanajuato has a network of more than 400 automotive suppliers capable of creating products to serve the assemblers demand, in quality as well as in quantity. Which include a complete range of mechanized processes, stamping, forge, smelting, pressure casting, thin cutting, injection, blown among other additional services fundamental for processes in this sector.
He noted that the GTO-Automotive catalogue is focused on buyers and started with the promotion of 30 companies, later 70 were integrated, and afterwards, increased to 89; in this year there are 120 companies inside this project.
“It has been working well and others are being incorporated, because buyers find reliable supply.”
GUANAJUATO, FIRST PLACE IN VEHICLES MANUFACTURERS
It is anticipated that for 2020, Guanajuato will occupy the first position in vehicles production in the country. The State’s growth has been significant, it started with 28 buyer companies in 2013, currently there are more than 100; in this edition were registered 1,500 suppliers from 25 countries.
75 of each 100 dollars in merchandise exported from Guanajuato to different countries are automotive supply products; this was announced by Guillermo Romero Pacheco, secretary of Sustainable Economic Development (SDES, by its Spanish initials.)
He informed that business opportunities for the local supplier fall in supply and services such as metallic structure, lift truck tires, hoses, connectors, plastic injection, resins, molds, tools, coverages and paints, chemicals, gears, precision machined, welding, piping, among others.
Since 2006 to date, at the entity have been concreted 231 investment projects for an amount greater than 12,400 million dollars, what represents 74 % of the total of companies that installed in the state.
Likewise, he noted that in Guanajuato the sector is present in 23 of the 46 municipalities in the entity. And from each locally produced vehicle, 60 % is made in Guanajuato.
ADVICE TO LOCAL COMPANIES
Before the importance of having good suppliers for the automotive industry, Cristina Villasenor, purchase responsible at Wurth Elektronik, gave advices about how to be a good ally for transnational companies.
In Mexico, supply is classified in two sub-levels; suppliers of first, second, third and fourth generation. This shows how they are maturing inside the companies their service capability and their penetration in the market and mainly their permanence.
Guanajuato has about 1,634 suppliers registered, 694 are focused on services, 344 are direct and 596 are indirect companies.
“Only 15 % of the suppliers registered as of fourth generation are the most competitive, consolidated. They fight to be the best, but they are causing a bottleneck to all suppliers, that is why they have to see the way of introduce themselves in the opportunity areas.”
In order for other companies be more attractive and competitive, it is important to work in the professionalization, to make the supply chain more efficient and create a solid structure to level up.
He highlighted the importance of investigating the companies with which they want to be suppliers.
He emphasized the need companies in Guanajuato have to prepare their information, fulfilling a basic file on their conduct code, account statements, purchase policies and having the economic capability to solve projects.
“Learn become professionals, they must have a good quotation structure and do not promise what you cannot comply, because quotation is your word and it is in writing.”
He noted that all buyers, in addition of wanting good and inexpensive services or products, they also request that they are delivered immediately, because the automotive industry is demanding and require things delivered at the moment.
“A company when decided purchasing what local companies offer is because the product meets the specifications, service is reliable, have serious deals, have enough support and the price is competitive,” he concluded.
FUTURE OF THE AUTOMOTIVE INDUSTRY IN GUANAJUATO
More than 1 million 208 thousand vehicles
More than 1 million 810 thousand engines
12 million tires
2 million 320 thousand transmissions
More than 25,000 million dollars in automotive exports
21% of the total GDP of the State of the automotive industry and auto parts
More than 123,000 direct jobs
1. GKN Driveline Celaya
2. Thyssenkrupp Components Technology de Mexico
3. Pirelli Mexico
4. Mazda de Mexico
5. Hutchinson Autopartes Mexico
6. Hirotec Mexico
8. Audi Mexico
9. NSK Bearings Manufacturing Mexico
10. Hirotec Mexico
1. Die and stamping
5. Plastic injection
6. Textile products
7. Electric systems
8. Molding welding
9. Maintenance and machines repair
10. Racks maintenance
11. Maintenance of boarding ramps
12. Maintenance to articulated platforms