Diversification: The Key to Succeed During Uncertain Times

Q: How would you describe the company’s performance during the past year?

A: It has been a period full of challenges, mainly due to the international trade environment with the United States, especially since the arrival of President Donald Trump and his changes in foreign trade policy. The tariffs, particularly on steel and aluminum, directly affect the products we manufacture. This led us to refocus our strategy. We took advantage of the Free Trade Agreement and of our legal entity in the United States, Seeräuber Automotive LLC, located in San Antonio. Through this entity, we carry out a large part of our operations, while the plant in Mexico operates under a maquiladora model.

Q: How did the changes in foreign trade rules with the United States affect the company’s strategy?

A: The changes in trade policy led us to shift toward indirect exports. The components we manufacture — mainly high-precision machined parts, along with some assembly and logistics projects — are integrated by Tier 1 companies into their final products. This way, they are classified as part of the USMCA, which allows us to partially bypass the tariffs. We also diversified into other industries outside the automotive sector, including the electronics industry. We manufacture metal-mechanical parts for assemblies ranging from electric meters to racks for cloud storage systems. Despite this diversification, the automotive industry remains our main source of revenue. Having certifications such as IATF 16949 and ISO 9001 has been key to opening doors with clients in that sector.

Despite the higher cost of raw materials, it remains more profitable to manufacture in Mexico due to the high cost of specialized labor in the United States. The key in this highly uncertain global environment is flexibility. We must be prepared to adapt quickly, as conditions can change drastically from one week to the next. 

Q: What are the main problems you solve for your automotive clients?

A: We act as a manufacturing contractor for the automotive industry, providing three main processes: high-precision machining, mechanical assembly, and third party logistics-type services. We operate as an extension of our clients’ production floor, meeting the same quality standards and process controls, thanks to our certified management systems. We also help clients focus on their core competencies. For example, if a company specializes in shock absorber assembly but does not want to invest in precision machining processes, they can outsource those operations to us.

We offer an efficient solution for clients who need to expand their manufacturing or storage capacity without making large infrastructure investments. This not only represents a quick way to scale operations but also a pathway for foreign companies to establish themselves in Mexico without having to build a plant from scratch.

Q: How are you contributing to setting future standards or accelerating innovation for your clients?

A: One of the main problems we solve is product tropicalization. Innovation, in this context, means adapting the product to local conditions and standards. One example is material adjustment: many components are designed for the metric system, as is common in China, but in North America — especially in the automotive and metal-mechanical industries — the imperial system is used. Often, materials or inputs are not compatible, so it is necessary to redesign from that basis.

Last year we collaborated with a client to design a specific screw for a suspension system. The innovation involved optimizing the manufacturing cycle times of the component, resulting in a significant cost advantage. We also conduct tests with different materials to recommend options available in North America that meet the client’s requirements and technical specifications. In that same project, we suggested a material that allowed integration into the local supply chain without compromising quality or performance.

We do not aim to develop our own products or create brands; we aim to work 100% as manufacturers. This gives our clients peace of mind because they know that, although we have design capacity, we will not replicate or appropriate their developments.

Q: How is Seeräuber helping OEMs and suppliers face the new challenges that arise with fleet electrification?

A: The main problem we help solve is time to market. If the client transfers part of the project to us, all the effort and time they would normally have to dedicate to execution is assumed by us. This way, their team only needs to follow up and review status, without investing all their operational resources. This allows manufacturing capacity to be ready much faster for market launch. We also help suppliers to reduce costs, as we frequently identify alternatives of equal or better quality but at a lower cost.

We already worked with many companies that are now migrating to electric mobility, so we will continue manufacturing components for them. Additionally, areas such as logistics and assembly are not as affected by the technological change.

The supply chain of an EV is very different from that of an internal combustion vehicle, both in the number of components and the technology needed for manufacturing. Although certain elements, like bodywork, doors, suspension, or shock absorbers remain similar, the powertrain changes completely. For this reason, we stay alert and prepared to adapt to the new requirements of this transition.

Q: What digital tools are you incorporating into your operations, such as virtual prototypes or real-time collaboration platforms?

A: We have been implementing real-time data capture systems for statistical process control, which strengthens both quality management and productivity monitoring. We have been steadily advancing the digitalization of our production and quality operations for several years. The next step is to extend this digitalization toward energy efficiency, as energy issues become increasingly relevant. This will not only help reduce consumption but also provide more data to improve processes, define more accurate quotations, and optimize the use of tools like lathe inserts by anticipating their wear and replacement frequency.

We are introducing new developments to monitor critical variables in CNC equipment to improve process efficiency. We are also working on integrating these systems with our ERP to strengthen production planning, demand forecasting, and even human resources. The vision is to achieve full integration between management systems — ERP, quality, and planning — and shop floor systems for real-time control and monitoring.

Q: What continuous education program does Seeräuber offer to its employees?

A: We have agreements with institutions like Tecnológico de Monterrey, which allows us to receive students for professional internships. We also have structured processes to identify needs and carry out internal training programs. We also take advantage of courses offered by machinery manufacturers and certify our personnel. These measures are aligned with our management systems and certified under IATF and ISO 9001 standards. Even as part of the recruitment process, we apply tests designed to evaluate specific competencies according to the work area.

Finding qualified technical talent has been challenging. In the last year and a half, it has become increasingly difficult to hire well-trained CNC machine operators. Although we secure engineers thanks to our alliances with universities, the most difficult profile to fill is the intermediate technician: someone with more knowledge than a high school level but without a complete university degree, who can operate, maintain, and troubleshoot on the spot. This profile is key in manufacturing and is scarce.

Q: What are Seeräuber’s short and medium-term priorities for 2025 and 2026?

A: We will continue that strategy we started after the changes in US trade policy. We are accelerating our insertion into indirect export markets, taking advantage of the USMCA, and evaluating a partial refocus of the assembly area. Our main focus will continue to be high-precision machining and direct exports through Tier 1 companies, both in the automotive sector and the electronics industry. 

The local direct export market is broad, especially in Jalisco and other regions of Mexico. We are strengthening our quoting capacity, as demand has grown significantly. Our clients highly value that we have a quality system certified by the International Automotive Task Force (IATF), which is uncommon among Tier 2 suppliers, and that our processes, documentation, and risk management meet high standards.

We are also evaluating an increase in our physical production capacity. Due to financial conditions in Mexico, such as interest rates, we are considering acquiring machinery through our US subsidiary and temporarily importing it.