Luz María Lozano
Director General
IS Company
View from the Top

Market Expertise Fosters Supply Chain Growth

By MBN Staff | Tue, 01/01/2019 - 13:38

Q: How does IS Company’s benefit businesses in the automotive industry as a local consultant in Guanajuato?

A: IS Company began as a supporting entity for companies in Leon, Guanajuato, that sought growth in the region but missed their opportunity because they did not comply with the requirements specified by the government, mainly in the area of taxes. For over 10 years, we have focused on helping SMEs become eligible for bank loans, as well as state and federal financial support. IS Company has helped its clients understand the benefits of constituting as a proper company and how to follow all fiscal and legal regulations established by the authorities. 

We saw a great opportunity specifically in the automotive industry because there were very few national providers in Guanajuato. The industry has grown noticeably here but most players come from other states or even other countries. 

Q: How is IS Company differentiated from other shelter and supporting companies in the region?

A: We have ensured constant growth by diversifying our target client base. Furthermore, we have grown our service portfolio to better support all kinds of companies. Beyond helping clients with their administrative or human capital management processes, we developed shelter solutions so companies could outsource our services and let us manage their entire personnel. Instead of hiring individuals, clients hire a company that does the work for them, resulting in several economic and administrative benefits. 

This broad scope of services has allowed us to participate in boosting the capabilities of the local supply chain among international companies. We are focused on helping small players grow so large Tier 1s and Tier 2s realize they can source their components directly in Guanajuato instead of importing them from their home country. Our key expertise is in the area of human capital management, accounting and fiscal advisory and organizational logistics. Recently, we have also become experts in understanding labor reforms and dealing with demands from workers, thus leaving companies room to focus on their business without worrying about these challenges. 

Q: What strategies have you implemented to attract new clients to IS Company’s solutions?

A: We have established close collaboration with the clusters of regions where we participate and we have also set offices in Guanajuato Puerto Interior to be close with potential clients. However, it is important to mention that international companies should be open to work with local players, especially after being given the opportunity to work in such a blooming region like Guanajuato. We would love to collaborate with large players like Pirelli and Volkswagen and we are ready to support them to make their operations more efficient. We have already approached many of these companies but their decisions are still made abroad in many cases, which makes it difficult for us to participate even though we are in the perfect position to help these players. 

Q: What partnerships have you formed to support your clients in a more efficient way?

A: We are in close communication with the state government, since it is in charge of attracting new investment. Similarly, we collaborate with industrial real-estate developers, both local and international, as well as banks that share with us their financing schemes to support new players. Our goal is to be a reliable partner for potential investors in Mexico so they can understand how to do business in the country, how to comply with all the requirements from the government and in the end generate more employment. At the same time, our partners benefit from our wide range of contacts through which they can generate more business. 

Q: What is the biggest challenge preventing the arrival of more investment to the country?

A: The biggest challenge at the moment is the heavy rotation of human capital as there is a surplus of job offers. We are working with municipal and state governments to help people understand the job opportunities they have here so they do not go to the US looking for employment that might not even be there. We want to break that culture and boost the local capabilities of the national workforce. There is also a cultural issue between employers and employees. Global companies must learn to work with Mexican people and be open to understanding our culture and our way of working. Similarly, the local workforce must be willing to adopt best practices and embrace their company’s corporate culture even if it is different to what they are used to. 

Q: How can companies address the issue of talent retention?

A: Focusing on the employee is key. Global companies are accustomed to seeing their employees as their most important asset. However, when operators do not receive the same treatment from middle management, they tend to leave in search of something better. Salaries are also a matter of concern given their low range when compared to the overall labor market. We are conducting market research regarding salaries and we have noticed that operators receive a low income in this industry. To solve this, recruiters, employers and the government should work together to find better remuneration schemes. 

We have already approached the new Guanajuato administration led by Diego Sinhue to offer our support in understanding the real conditions of the labor market within the industry and to merge these with the plan the government has to incentivize the industry. From our side, the best way to move forward should be to build collaboration between companies to unify salaries and promote the idea of a corporate culture. 


IS Company is a Mexican firm providing shelter and advisory services to local players and foreign companies entering Mexico, including fiscal support, human capital management and organizational logistics 

Photo by:   MBP
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