Diversification: a Strategic Advantage for SurvivalBy Andrea Villar | Thu, 10/15/2020 - 05:00
As the automotive industry ramps up operations after a prolonged shutdown and an ongoing sales crisis since 2016, the key for companies in the sector to cope in the coming months and years is diversification, says Daniel Romero, CEO of Prettl de México. “The pandemic taught us all that it is necessary to be prepared. We cannot depend only on one line of business. We need to diversify,” he says.
Today, through alliances with other companies and the expansion of its supplier network, Prettl seeks to grow its market share in the automotive sector and at the same time attract new markets.
However, diversification does not only mean moving into new industries. Romero says USMCA’s enforcement on July 1 and the COVID-19 pandemic opened up many possibilities for the automotive industry. “The new treaty and the pandemic have given us the opportunity to collaborate with foreign companies that have come to the country to regionalize their supply chain. Manufacturing is a global business and this became evident when all operations stopped overnight.”
In the automotive sector, Prettl not only pools together its skills in planning, designing and implementing manufacturing processes but also its associated logistics management expertise. “Our skills cover a very wide spectrum of product groups in the automotive sector, such as steering systems, engines and sensor technology,” Romero says. “Prettl brings together its skills in manufacturing coils for pumping systems, magnetic actuators, valves and all specialized assemblies. Our focus is on developing and manufacturing complex products and systems. Our core skills are as many and varied as our clients’ wishes and requirements, no matter whether they are talking about components, assemblies or modules that improve fuel efficiency, reduce harmful emissions or increase the efficiency of the chassis or steering system.”
To support its workers during the crisis, the German company decided in May, along with other businesses in the Bajio region, to start manufacturing medical equipment such as respirators. “This helped us to support the medical staff on the frontline of the pandemic and at the same time help all the employees in the company while all operations related to our core business were stopped. Prettl is very proud to collaborate during a crisis like the one we are going through,” says Romero.
But the road has not been and will not be easy, according to Romero. “We had almost two months without sales. You do not recover from that. Our goal is to stay present and support our clients to end 2020 in the healthiest way possible. We know that it will not be easy because the health and economic crisis will last for many more months but Prettl is prepared to face the challenges ahead.”
Among the company’s plans is the promotion of electromobility within the company and among its suppliers. "In this changing industry landscape, we must keep up to date to always be at the forefront and prepared for what our clients and the sector need," says Romero.