Family-Run Supplier with Heavy-Duty PresenceMon, 09/01/2014 - 10:18
SYDA has been providing high quality automotive products to the automotive industry since the 1980s, first as an importer and then as a manufacturer. “We used to import all our materials as the available quality in Mexico was not that good at the time. Our contributions have been to first control what is being imported, ensuring the quality of the materials, and then manufacturing the product here,” explains Jorge Elías García, President of SYDA. The company imported finished products, such as clamps used in the motors, but detected the possibility of providing complete products in Mexico while making them in the country. SYDA is part of Industrias Elías, a family business run by Elías García and his brother, who is in charge of DAI. But while DAI is focused on light equipment, SYDA, is focused on heavy duty equipment, especially in the production of constant-velocity (CV) joints and hoses used in a wide range of trucks. Viridiana Elías Prieto, Director General of SYDA and daughter of Elías García, explains that the partnership with DAI has allowed both companies to focus on the needs of their respective segments of the Mexican market. They teamed up to work on the development of a complete line of CV joints. This gave SYDA the manufacturing expertise it needed to make products for itself and for DAI, as well as distributors and OEMs. The latter category are firmly in Elías García’s crosshairs as he sets his sights on the opportunities to be created by new plants coming to Mexico and by Mexican firms going abroad. For example, Mexican truck manufacturer DINA is growing in Central and South America, with SYDA being one of its trusted suppliers. Another customer whose expansion has been good for SYDA, is Grupo ADO that uses SYDA equipment in its maintenance workshops.
In 2013, SYDA reported 30% growth, which Elías Prieto attributes to the company’s market approach. “A key to our success has been our focus on heavy-duty together with the high-quality products we offer. In the heavy-duty segment, quality plays an important role since people are willing to pay more for a product that will guarantee the best performance of the vehicle. The quality of our products is the reason why we have been in the market for 15 years and continue to grow,” explains Elías García. “It is what has positioned us apart from other competitors.” As the automotive industry is growing in Mexico, SYDA will have to keep up. “Production is currently at 40% of our plant’s capacity, which means we still have plenty of room to grow. We aim to be at 60% by the end of 2014 or early 2015, before reaching 90% by the end of next year,” states Elías Prieto. “The first stage of this growth is to approach the purchasing departments of OEMs and top suppliers to offer them quality products, service, and counseling.” After that, the company approaches the design department to which it provides information about SYDA’s product portfolio. SYDA is actually in touch with OEMs even before they enter the Mexican market to create brand presence and ensure that these new entrants know where to find a quality supplier for the aftermarket.
The fact that SYDA is centered on the aftermarket sees its managers concerned about the new vehicles coming into the market. When new models are rolled out here, SYDA gathers information and begins working on products that it anticipates will be needed in the next two years. “As we are focused on the aftermarket, we have to look to the future needs of those new vehicles. We are being proactive and preparing our warehouse to be able to provide these products the moment they are needed,” explains Elías García. “Our production right now is geared toward vehicles made between 1995 and 2000. However, this market segment will decrease in importance as the proportions of vehicles made in 2005 and afterwards is getting higher. We will keep providing service to older vehicles, current vehicles, and new models,” states Elías García. The company stocks three months’ worth of product inventory to be prepared for any situation. “We can be a warehouse for our clients and distribute the products when they are needed, from one day to another,” explains Elías Prieto. Steady growth has been translated into a diverse product portfolio. Among its latest innovations, SYDA is now offering silicon hoses that are compatible with the clamps the company has been providing to the market for almost 30 years. SYDA has also worked closely with a Mexican company to launch a new line of water pumps. These developments are not only aimed at driving growth, but also at better positioning the company’s brand name. The company may have a solid reputation among its clients but father and daughter alike understand the need for the SYDA brand to gain more exposure.