POWER May 2010 - 87

POWER IN MEXICO
innovation capacities on these areas, certain
Mexican companies are thriving.
Raul Reyes is general manager of
PESS (Power Engineering Services and
Solutions), a startup company using proprietary
developed high-tech equipment
to repair turbines and other electrical
equipment. PESS is located adjacent to
the Tecnológico de Monterrey (a leading
university) within a technological cluster.
Reyes believes that the clustering effect
has helped his business: " Every company
offers service, quality, and price. We need
to offer something more. We have an R&D
department to specifically look at clients'
problems and our location close to so
much concentrated knowledge is certainly
a great advantage. "
Carlos Mortera, general manager of
Grupo Omni, a company specialized in the
design and manufacture of cooling towers
with last-generation technology materials,
is also located close to the Tecnológico de
Monterrey. He proudly states: " One of the
key strengths of Grupo Omni is our commitment
to investment in research and design.
We have three international patents.
Not many of our rivals can match us on
this, and it is a fundamental reason for
our success. " Mortera adds that his company
is focusing on high-tech towers and
compliments Reyes' insistence on R&D
by pointing out that Monterrey has seven
world-class universities, meaning that it is
both easy for him to find staff and to find
synergies with nearby companies.
Exports
Another significant challenge facing the
manufacturing sector in Mexico is the
need to take advantage of the freedoms
NAFTA offers-together with the change
in policies introduced by President Vincente
Fox and President Felipe Calderon
designed to liberalize and increase competition
in the economy. Mexico's huge
domestic market, protectionism, together
with the massive purchasing power of the
CFE meant that many manufacturers traditionally
looked inward.
Francisco Haro, managing director of
Ottomotores, believes that one of the biggest
challenges for firms like his is to cultivate
an export-oriented culture: " Until
around 10 years ago, Mexico wasn't an
export-oriented country; it didn't have the
appropriate infrastructure to help companies
like us who want to export overseas.
For example, should I wish to ship a product
overseas, it would cost me considerably
more and take considerably longer than a
company based in the U.S. or Europe. This
makes it more difficult for companies like
May 2010 | POWER
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87
us to compete in the global economy. " He
goes on to say that while the country is
improving, " Mexico still doesn't have an
export-focused culture; we still have a lot
to learn. "
Jorge Lozano, president of Prolec
GE, a world-class transformer producer,
believes, however, that the climate is
changing: " In Monterrey we are forming
mentoring groups whereby large companies
can advise smaller companies on all
ways of running the business, including
the export market. " Lozano points out that
NAFTA offered opportunities for Mexico,
as is demonstrated by the fact that GE
closed three transformer factories in the
U.S. while expanding capacity in Mexico.
He goes on to argue that Mexico needs to
realize it faces competition from low-cost
manufacturing locations and it needs to
focus on tailor-made products, rather than
commodities.
Venezuelan Ygor Guilarte-president
and director for Mexico, Central Ameri
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POWER May 2010

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