Industrial activity in Mexico continues to be strong! The Kia assembly plant in North Eastern Mexico (Monterrey) is well on schedule. There is a buzz of real estate activity and growth of tier 1 and tier 2 operations related to this large project. Domestic auto parts manufacturers such as Grupo Saltillo or GIS are actively negotiating with Kia to become key suppliers. Other industries are also consolidating in Mexico. Since the fall in oil prices, the industrial production of non-oil-related products continues to grow and demand additional capabilities from the local industrial base.
AMT Mexico held a Market Penetration Session for a member last week and got good feedback on the quality of the material presented and the discussions that took place. The company expressed a high interest in scheduling “technology tours or demos” of one of their machines and to warehouse with us.
Another member will visit in July to discuss expanding the services we provide them. They want to sub lease 4K sq. ft. of office space through us and assembly lab space with our partner for warehousing IBLS. We will increase the number of proxies for them from three to eight or nine and will perform an all-inclusive service, more than just warehousing, as they want to assemble and test automation systems, procure components locally through our service engineering department and then sell via AMTW Services entity. More discussions will take place during the visit.
The final stages of AMTW Services import license were completed last week. The new entity is ready to start operating, and several member companies are actively working with us to launch the program in the next months.
The proxy front is quite active. Proxy number 37 just started to work at AMT Mexico, this time for a new participating company. We have also been in contact with another company who may hire proxy employee 38. Another company is reviewing additional candidates to hire a BD Manager, and still another is committed to close this year with a proxy employee to manage their distribution network, being revamped after the Market Penetration Session.
Companies continue requesting service support. We also were successful in launching the “service to third party companies” service so that we can keep our service department busy more than 85%+ of their available time while supporting our members in their service needs.
All in all, a busy month in Monterrey.
Categories: Global Services