Mexico Report: Getting a foot in the door
By Michael Legault
Mexico City -- Talk to companies that have penetrated a foreign market to any extent and they all say the same thing: e-mail and phone contacts are great but sooner or later you have to get bodies on ...
Mexico City — Talk to companies that have penetrated a foreign market to any extent and they all say the same thing: e-mail and phone contacts are great but sooner or later you have to get bodies on the ground and rub shoulders with your potential clients.
One of the quickest and most cost-effective ways to do this, especially at the early stages of market development, is to exhibit at a trade show.
The Plastimagen show is the premier plastics trade show for the Mexican market. The show is held every other year in Mexico City. This year’s show featured 718 exhibitors from 19 countries; including at least 27 companies headquartered in Canada. While the majority of the Canadian companies were suppliers of various types of primary and auxiliary processing equipment, approximately 25% were moldmakers. Additionally, one Canadian injection molder, Horizon Plastics, provided literature at the Canadian Plastics Industry Association/Canadian government information booth within the Canadian pavilion.
Garrtech Inc. was one of 11 companies that purchased booth space within the Canadian pavilion. Garrtech, based in Stoney Creek, ON, is a manufacturer of blow molds for the packaging, automotive and industrial markets. According to president Tony Paget, the company has picked up work in Mexico and South America as a result of attending trade shows. Additionally, trade shows provide a venue for the company to discuss and set up marketing arrangements with local businesses and sales agents.
“It’s difficult to find good sales representatives in Mexico,” Paget said. “The country does not have a lot of experience in the moldmaking industry and its service requirements.”
Paget said Garrtech is looking to secure a representative in Mexico, noting that the increasing number of American OEMs and large Tier 1 suppliers with Mexican operations makes it even more imperative that his company have a presence in Mexico.
“Black & Decker moved all its manufacturing from Pennsylvania to Monterey, and now we supply them in Mexico,” Paget reported. He said he expected to see representatives of the company at the show.
CONTACTS EMERGE
Miguel Petrucci, president of Compact Mould Ltd., an exhibitor within the Canadian pavilion, said being at Plastimagen provides him with the chance to build customer relations.
“One of the most important aspects of a show like this is seeing people you already know.” Petrucci has observed the Mexican trade show becoming more of a magnet for Caribbean and Central American plastics companies.
While not all Canadian companies at the show exhibited within the Canadian pavilion, those who did received heightened visibility, as the pavilion was centered below a suspended scale model of Canadarm 2. The pavilion was organized by the Canadian Plastics Industry Association, and promotional funds were provided by the federal government.
A company does not need to be a member of the CPIA to exhibit in these pavilions at foreign trade shows, although members receive a discounted rate for exhibit space.
Horizon Plastics, which distributed company promotional literature at the Canadian pavilion, has been doing business in Mexico for a number of years, reported president Brian Read. The company specializes in injection molding of structural foam to make products for a wide variety of markets. Typically, Horizon will contract mold or assemble parts for a customer with a supplier in Mexico. For example, the company presently injection molds the parts of a product, then ships the parts to Mexico for assembly. Horizon built the assembly jigs and fixtures and manages the project for the customer.
“Our customers are typically on the marketing side, so we have to be a full-service firm,” Read said. He said it served Horizon’s business strategy to have promotional material at the show.
“Most people know who we are. In Mexico, we’re looking to find common ground to work on projects with certain companies and suppliers. Typically, companies in Mexico do not have our capabilities, so we can bring a lot to the table.”
Read praised the staff at the pavilion information booth, noting that after the show he received a complete list of all companies that asked for information about Horizon.
“We usually come out of it with a couple of good contacts. That’s all you want.”
