Q: What is Expeditors doing to establish a deeper presence in Mexico’s aerospace industry?
A: Expeditors’ relationships with aerospace companies in the US are more established than those in Mexico. We are only beginning to make waves in this industry. One of the reasons for opening the office in Queretaro was to create a closer relationship with these businesses. As a service integrator, we want to provide flexible and varied services to our customers. For this need to develop strong partnerships with a wide variety of companies. We have excellent relationships with all the airlines, trucking companies and warehouses and have developed solid partnerships with companies not related to airfreight. Our Mexican operations are the fastest growing of all Expeditors’ facilities around the world. The airfreight market is increasing in Mexico at a quicker rate than the rest of Latin America.
Our market penetration here is similar to our market share in the rest of the world and the company is growing because we can offer integrated solutions to clients and promise excellent customer service. Expeditors is a company that organically grows based on opportunities and we have a strong sales presence that is based on expert knowledge and experience. While the company’s market share in the country is below 5 percent, there are enormous opportunities for us to grow.
Q: How does Expeditors capitalize on its global network for its operations in Mexico?
A: We have a number of solutions for all industries but at the core is our single platform and business solutions department implemented across all branches. When customers do business with us, they work with one single system no matter where they are in the world. The platform is electronically integrated, giving us a wide variety of customer data. It is reliable and gives real time information for tracking.
Q: What strengths are fueling Expeditors growth and how does this apply to Mexico?
A: Our main strength is our organic growth with our systems and staff. The fact that we have not sold, bought or merged with other companies has allowed us to have a single platform. This ensures a clear strategy for human resources. We hire mainly from Mexican schools. The company has an internship program, in-house training that motivates our employees and a very low turnover rate. Our staff’s low turnover creates stability within the company, which is as important as client retention to a company’s prosperity.
Q: What are the main challenges you face here and how do those impact your operations?
A: Infrastructure presents the main challenge, especially for airfreight, which has been developing at the pace of the country’s growth. The inadequate number of direct international flights from most Mexican cities results in expensive and time-consuming cargo changes. Old infrastructure, such as AICM with its limited customs holding areas, also make it more difficult for companies that manage airfreight.
Q: What specific solutions have you created for manufacturing industries?
A: Although airfreight is our strongest sector, we consider ourselves logistics integrators. The more our business solutions department can integrate different areas for customers, the stronger our offering will be. We have a department that integrates end-to-end solutions for automotive customers and we manage a large number of airfreight operations for this sector because we have new technological tools to help them with reliable tracking. We are working closely with automotive companies because this industry will always require airfreight services. They must react quickly to changes and orders to keep production going. In addition to vehicle manufacturers, Tier 2 and Tier 3 companies also require airfreight solutions.
Q: What are your expectations for 2017?
A: We have very high expectations for next year. Our customers’ growth has not slowed and this is encouraging for our business. Our own growth in the past five to six years has been rapid and there are still some industries and markets we intend to penetrate. We expect 2017 to be a big year for Expeditors in Queretaro and we hope to gain more business in the Bajio region.