What obstacles are Condulimex and other companies in the electrical manufacturing sector facing at the moment?

In our case in particular, technology and development of new products have not been a problem; we rely on advanced technology and we have developed innovative products, which are unique in the whole world. One of the most complicated subjects for us, when looking at the constant effort we put into the development of world class products and the constant investment in technology, is products like the CCA cable.   This cable, which is three times lighter and cheaper than other cables, is a novelty and best option for sectors such as automotive, construction and aerospace. However, we have been hampered by oligopolies in the sector, which in turn, as owners of the monopoly certification power sector through the ANCE program, block the entry of competitors. Furthermore, we have known cases where they even retain certification of a product, preventing market entry until their companies have developed something similar.

What strategy has allowed Condulimex to grow despite obstacles from the market and oligopolis?

As managing director of the company, I have faced various situations of direct attack from the big shot entrepreneurs of the sector, which could be due to the qualifications they look for and retain in our products, even against government regulatory commissions, which can request an inspection of companies without any clear reason. We have overcome those obstacles through technological innovation and development, with high-quality products that have been recognized and sold on an international level with full satisfaction. For example, the United States, one of the most complex markets in the sector and known for its harsh regulations, makes up an important percentage of our production. We have been contacted by countries in Latin America such as Colombia for our products, after our products have passed the strictest of quality requirements of their country. Internationalization has helped us grow and convert ourselves into one of the most important companies in the sector; this, along with the organization of the company and our core products, has helped us defend ourselves from attacks from oligopolies within the sector.

Do you believe that the current reforms and projects promoted by the government are boosting the country’s economy?

Yes, I do. As previously mentioned, taking into account our experience in competing within the national market, I believe that the President of the Republic, Enrique Peña Nieto, contributed to generate a healthy competition among companies, taking measures to end oligopolies and monopolies.  This directly benefits Mexican SMEs, making  Mexico a more attractive country for foreign investment and for companies to  compete freely. For example, a new initiative has been put forward to allow the validation of certifications obtained in countries with which Mexico has free trade agreements instead of requiring a Mexican certification. In our case, we rely on certifications obtained in the United States, Colombia, and other countries that require verification and approval, thus avoiding the problem of corruption and oligopolies’ control over certifiers who decide whether it is accepted or not.

What role does the private sector play in the changes that are occurring in the country?

Mexico is currently in a process of change and modernization. Most projects promoted by the government do not give great results, but show that we have entered a period of transition. We belong to Coparmex, a confederation of employers with more than 36,000 members of Mexican and foreign origin with operations in Mexico. Through them, large, medium, and small enterprises have a voice, especially the SMEs of the private sector, which have no voice in most countries. It is through the help of these great confederations, that even represent us before the President of the country, that we share our concerns and address our demands. The private sector in Mexico is changing, both foreign and domestic, on a large and small scale, by participating in the change of the country through modernization and innovation, strategic planning, as well as improvements in the management of companies like ours, taking the leap from a family company to a world-class company, with strategies. All of these details are essential to the development of Mexico. Foreign investment is also crucial, especially for large projects carried out in the country, which may affect companies in many sectors like ours.

What is the vision of the company and sector in the medium term?

The electrical manufacturing sector has been growing along with sectors such as construction and infrastructure. For example, the arrival of energy companies has resulted in a boost for several sectors, including power, through the large investments made in infrastructure development, plants, and buildings.

2016 will be a year of tremendous growth for our company and for the industry, according to the analysis we have done. We work with world-class companies and different sectors, including the largest homebuilders in the country; the energy sector through CFE; large automotive companies; and even the food industry where we work with multinational companies such as Nestlé. With foreign investment coming in, there are more opportunities. We work with the largest and most-demanding companies from different sectors due to the quality and innovation of our products, and also because our products are more economical and therefore the best option for these high-end partners.

What do you think of education within the country, especially in meeting the growing demand for technical, professional, and managerial staff ?

Mexico has the ability to generate professionals and technicians due to the high demand in this sector, both from public and private institutions of first level, where highly trained professionals are well prepared. We support educational projects such as dual degrees, where students combine technical education activities in the company, by focusing on solving business problems as well as studying with teachers in laboratories. This program is of German origin and has, so far, been very beneficial to both the student and the company.

Do you consider the investment in those type of projects to be beneficial to the growth of Condulimex?

Absolutely. Our company has been generating a high volume of sales and has been growing thanks to the hard work of its employees. To start with, the company only had used machinery and invested in the development and training of employees instead, something that at the time seemed risky, but as a result was very successful. We have a very close relationship with our employees, which allowed them to engage with the company, and achieve high goals.