Entrada Group Podcasts: Seizing Opportunity – 23 Billion Reasons Why Auto Suppliers Are Looking at Mexico
October 19, 2015 (Austin, TX) – With the automotive industry in Mexico skyrocketing – recent numbers putting investment at $23 billion – auto suppliers from around the world are discovering new opportunities by establishing production in Mexico. Best practices for suppliers seeking to succeed in Mexico and use it as a springboard for new growth is the subject of Entrada Group’s latest podcast: “Seizing Opportunity – 23 Billion Reasons Why Auto Suppliers Are Looking at Mexico.”
While the opportunities are abundant, suppliers contemplating Mexico need to act fast, as OEMs are looking to fill immediate supply demands. The key question of “How soon do I need to get to Mexico without being shut out,” is answered in this podcast, hosted by Entrada Group’s Doug Donahue, VP of Business Development, and Daron Gifford, Management Consulting Partner with Plante Moran.
“The urgency is the customer,” Gifford says, speaking of the OEMs. “The BMW 3 Series is supposed to launch in 2018, so we have a three-year window. If you’re a supplier, you need to be online and you need to be through all of your certifications and processes, and make sure your parts are ready to go when that vehicle rolls off the production line,” Gifford says. “That's a lot of time pressure from the OEM and customer standpoint and it’s very expensive to miss those kinds of deadlines.”
For arriving suppliers – especially small-to-midsize manufacturers – that often lack the required in-country knowledge and expertise, Mexico can be too risky and expensive. Gifford and Donahue detail the challenges suppliers face when setting up Mexico operations, such as securing operational financing and justifying the leap to Mexico based on the needs of just a single client. Gifford outlines alternative financing strategies for smaller manufacturers, and reveals why the entry of more foreign suppliers to Mexico may actually benefit American firms in the long run.
Gifford, whose experience includes operations and strategic management consulting with OEMs and suppliers, explains why it’s so important for Tier 2 and Tier 3 manufacturers, as well as for the OEMs they service, to expand beyond their initial clients in Mexico as soon as possible.
Download and/or listen to the podcast and/or read the transcript here. Visit their website www.entradagroup.com. Note to editors: contact us (above) for editorial access to the podcast audio or transcript.
Cameron Heffernan
Mach Media
Phone (US): 1 315-395-3374
cameron.heffernan@machmediagroup.com
About Entrada Group
For nearly two decades, Entrada Group has been guiding manufacturers in establishing and running their own cost-effective Mexican operations in order to enhance global competitiveness. Within Entrada’s manufacturing campuses, and with the support of its shared services teams, manufacturers are able to meet their Mexican corporate obligations, minimize costs and lessen their exposure to risk. Entrada’s turnkey system provides a fast track to the benefits of Mexico and allows manufacturers to fully focus on growth.
Tags: