Norberto Gómez
Commercial Director
Conductores del Norte
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Insight

Evolve with the Industry to Succeed

Wed, 02/22/2017 - 15:49

As the industry evolves and new players enter the power market, the needs of the sector change. Companies that have the ability to adapt quickly to the new conditions will reap the biggest benefits, says Norberto Gómez, Commercial Director of Conductores del Norte.

“Conductores del Norte was founded to cover CFE's needs in the north and now has 40 years of experience in the sector. As the market changed we adapted our offer to attract new clients from the private sector, particularly after companies were allowed to enter the electricity sector under different schemes.” Its rapid adaptation to the new market conditions allowed the company to diversify its client portfolio and stay one step ahead of the competition, he says.

The Energy Reform has reshaped the market’s dynamics, with small and medium-sized contractors winning tenders for large installations and opening windows of opportunity for fast-response companies such as Conductores del Norte while increasing the number of foreign manufacturers in the country. The rise in competition in this sector is good for the industry. “We see fiercer competition as an incentive to increase our competitiveness and we are already investing in new equipment and developing new business models,” Gómez says.

PRODESEN represents another opportunity. The government’s plan to expand the National Electricity System allowed Conductores del Norte to develop pilot projects in the Bajio region. The Bajio projects faced specific technical and economic challenges due to their development by small-sized contractors but they were all successfully completed thanks to the company’s strategic alliances and close collaboration between the parties involved. “Our previous experience with these contractors opened the door to participate in the Bajio projects. We are proud to have our customers’ trust and we are now working on strengthening our electricity transmission services and products and particularly distribution, where we already have a strong offer of services.” Alliances are at the heart of Conductores del Norte’s strategy to stand

out from its competitors, especially those with electrical material distributors that offer integral services. “The goal of our partnerships is to provide customers with a complete service and not just cable products. Through our partners we can complement our offer with auxiliary equipment such as transformers or pipes, covering all the requirements of a typical electricity project.”

Such strategies are crucial as new construction companies enter the electricity sector, especially with the growing interest in renewable energy projects. Conductores del Norte believes participation in associations can help build the necessary ties, citing groups such as the Chamber of Commerce, Services and Tourism (CANACO), the Chamber of the National Processing Industry (CANACINTRA) and the National Association of Electromechanical Contractors (UNCE), which groups a large share of the contracting companies in Mexico. “As an active member of these organizations we get first-hand information about relevant upcoming projects and can establish business relations with important players from across the industry,” says Gómez.

To continue adapting to the Mexican power industry the company is planning to focus on improving its electricity distribution projects. “Electricity distribution is attracting most of the sector’s attention, representing a great opportunity for our company due to the leadership position we play in this area,” says Gómez. “We expect electricity distribution to remain our core business."

Given the increased competition in the distribution sector, companies cannot stand still. Conductores del Norte is looking to expand to other areas with high potential for power generation growth. “In the next two to three years we will focus on strengthening our commercial operations,” says Gómez. “We also have plans to continue optimizing our production processes, improving our response time. We foresee several challenges in the coming months, particularly as the number of projects in the sector has been lower than expected. For this reason, we see great value in increasing our manufacturing efficiency, diminishing our costs and improving our quality.”

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