Rodrigo Vega
Marketing Manager
Víctor Lindoro
Víctor Lindoro
Director General
View from the Top

Price Is no Substitute for Quality

Fri, 01/24/2020 - 12:11

Q: How important is the automotive sector in Insur’s client portfolio?

A: The automotive industry is an important part of our portfolio, representing about 25 percent of our clients. It has been exciting to work with companies like Ronal, NarMX and Kirchhoff. Every time we complete a project, it opens up a new opportunity to work with another company in this sector.


Q: What competitive advantages have prompted world-class automotive companies such as Kirchhoff, Ronal Group or Aceway to trust Insur with their construction needs?

A: Our offer is based on experience. For 35 years, we have dedicated ourselves fully to industrial construction. We know how different industries work and continue to evolve with them. Today, plants have a higher degree of mechanization and robotization. We adapt to the latest technological requirements and listen to our clients’ demands. Construction will not move toward zero-cement concrete in one day but there is a great amount of room to personalize designs so clients get exactly what they need for their operations.


Q: What is Insur’s strategy to raise awareness of its competitive advantages to market more industrial spaces?

A: Our commercial strategy ranges from very basic to highly personalized. We use the web and other platforms to showcase our portfolio. But above all, networking is crucial to us. We approach international chambers of commerce and attend automotive summits. Recognition also comes from completed projects, which demonstrate our capabilities to potential clients. We invite clients to come to our offices to see the kinds of projects we have done and discuss what we can do for them.


Q: What is Insur’s preferred construction model, build-to-suit or speculative buildings, and why?

A: We are not real estate investors or developers. Our focus is on constructing projects based on the specific wishes of a client. We conduct elaborate studies to determine how we can realize these wishes. Few companies go through such extensive preparations but we feel it is essential to provide the highest quality. We work with a turn-key model, which means that we offer a complete package where the client receives a finished facility ready for use. We also have a fast-track model for clients with tight deadlines, where we complete part of these studies during the construction phase of the project.


Q: What are the main demands from automotive companies?

A: Our focus is on auto parts suppliers that require high-quality construction at good prices. These companies often demand delivery within specific time frames using the newest types of construction.


Many of our competitors will offer their services at a lower cost but only a few can guarantee the same quality. This creates a problem when competing for contracts. Companies will look at six different bids and may choose the cheapest choice even if it is inadequate. Construction companies that offer such low prices disrupt the balance in the market. Ultimately, the quality of our work is reflected in the final product. We have a sophisticated department that evaluates the costs of every activity in the construction phase. This includes the specialist companies we subcontract for certain services. We scout the whole region and beyond to find the best subcontractors. Ultimately, the client has full transparency in our offer and knows exactly what they can expect. They end up satisfied, which shows in our 40 percent client return rate.


Q: What is the most exciting project that Insur is developing for an automotive company?

A: One of our clients is NarMX, part of the Canadian Narmco Group. Its services include metal stamping, roll forming, assembly and other automotive-related services. We were able to develop special foundations for 1,000-ton hydraulic presses. We also built a 120m tunnel for scrap. The company brought supervisors from Canada to evaluate the plant and we passed their checks. We continue to work with the company in future projects. Another client is a Swiss-based company called Ronal Group. It produces wheels for cars and commercial vehicles. We are going to construct a training center that will have designated robotics areas.


Q: What opportunities are you anticipating from the arrival of Toyota to Apaseo el Grande and BMW to San Luis Potosi?

A: This is certainly very important. These large OEMs come with satellite Tier 1, 2 and 3 companies that are often organized together in complete parks. Big OEMs are often not our primary targets because their construction is planned at their headquarters. However, our niche is those that provide the auto parts these carmakers need. These businesses have boomed in this region. There is no large carmaker in Queretaro but there are many companies that provide to those in the Bajio region.


Q: What is Insur’s expansion strategy for 2019-2020?

A: We are planning to continue cementing our presence with new offices in San Luis Potosi. We want to be closer to our clients in that region to meet their demands 365 days a year. This will also allow us to work on new developments and look for new clients. We are also developing an internal strategy to position the company in new sectors such as aerospace, energy and technology developments in emerging economies. Our goal is to expand the opportunities for our services to reach potential customers and to explore the newest industrial trends.


Q: What are the key factors to consider when companies are choosing a new investment location and how can developers help in this process?

A: Location is key. How connected is it to the outside world in term of infrastructure, such as highways? What is the availability of services in the area, including workforce? Are there companies in the area that can meet the company’s external needs? These factors also impact the ability to carry out construction. Queretaro has invested significantly into building the infrastructure to connect the state to other parts of the country. There are strong connections with Mexico City, Guanajuato (through Celaya), San Luis Potosi and the north of the country. Additionally, both Guanajuato and Queretaro have invested in academic institutions tailored specifically to the fields of technical expertise required by different industries. Lastly, companies should consider other factors like security, traffic, a clean environment and the ability to operate with competitive prices.