Four D’s Ensure Results in Both Public and Private EnvironmentsBy Cas Biekmann | Mon, 11/08/2021 - 10:04
Q: How has DOMINION bounced back from last year’s results in Mexico?
A: Last year was very challenging. However, at DOMINION we managed to deliver a very solid performance. We have many business units all over the world. In Mexico, the Fortive Business Unit’s 2020 financial results turned out slightly below 2019. Considering our local market’s situation, it was an outstanding achievement, since we did not cut key resources. We had to look towards the long-term, as we always do. In general, we plan 5 to 10 years in advance and we do not lose sight of the direction we have set. This philosophy has been successful: we had a very productive year in 2020 and we are generating outstanding growth in 2021 thus far, despite the market’s complexity. Some of the solutions we have been most successful with include Fluke’s thermal imaging, gas-leak detection, power-quality analyzers and thermometers, with our company being one of the first to provide the latter solution in Mexico, when the pandemic hit.
Q: What challenges did DOMINION face in Mexico over the past year?
A: The biggest challenge was the macroeconomic situation, since we are focused on industrial businesses, technology and telecommunications, among other areas. Cash flows were restricted and our customers’ ability to pay on time diminished. We were not sure if some of our distributors would be able to survive last year — some of them are still struggling. The exchange, inflation and interest rates added to the difficulties in operations, as did local security.
COVID-19 and its health protocols were very challenging, to say the least. Health, safety, empathy and support for our employees were essential, allowing them to remain safe, engaged and productive.
Another challenging issue was long lead times. Delivery times for semiconductors or industrial solutions are about 3-5 times longer than before. It is still a major challenge that we are solving with our suppliers and distributors. Nevertheless, our partners’ commitment and support have been essential to DOMINION’s outperforming the market. In Mexico, Fortive Corporation is our main partner and supplier. Fortive’s outstanding partnership and engagement, through its Fluke test & measurement solutions and Latin American team, have been key to our success.
Q: How did the company set about to solve these issues?
A: DOMINION’s strategic philosophy is: it is not what we do but how we do it. Our vision and search for efficiency has led us to offer our clients a wide range of solutions and services in many different industries. At DOMINION, we base our strategy on four core concepts, each involving the letter D.
Digitalization is the first core concept. Our processes and solutions have always been digital, so when we had to move to a home/hybrid office environment, there was no need to reinvent the wheel.
Diversification is our second concept: we have a diverse solutions and services portfolio in almost 35 countries. If one business area or geography falters, another usually has an uptick. That said, we’ve always focused on our customers’ success. For example: in 2009 we supplied thermal imagers to the main Mexican airports. In 2020, this technology became relevant again. So we visited these airports, to see whether they were still using our technology and found out they were not employing it optimally. We immediately helped them make optimal use of it, without any additional cost. We’ve ensured our customer’s success, 11 years after we installed these solutions.
Decentralization is the company’s third core concept. Because we are decentralized, the company has a great deal of flexibility and autonomy in different markets. Each Business Unit can choose where to focus or allocate its resources, which is rare for a company of our size, featuring around 10,000 employees globally.
Finally, our fourth “D” is Discipline, as in financial discipline. This concept has been essential for the company to overcome the market’s volatility. Our finances are solid, achieving a strong, positive cash flow even during the pandemic. Our stock price has been growing steadily and outperforming the market.
We could even add another concept: Diversity. In our Fortive business unit, for example, almost 40 percent of the managers are women. Usually in engineering and technology, men mostly dominate the environment. Our diversity has been very successful in making the company more efficient. With our long-standing focus on ESG and social responsibility, we add value to local communities and clients in every project.
Q: Considering the company’s experience in supporting the public sector, how could it help CFE become a market leader in clean energy generation?
A: CFE has been one of our main customers in Mexico, for many years. If CFE is to become more of a central player, we can help it optimize the operation of its current, more traditional power production portfolio. We can measure and foster power quality and efficiency, for example. On the other side, DOMINION GLOBAL has built wind, biomass and solar power plants in many countries, including several plants in Mexico. We can be a partner and help ensure CFE’s success. We are certain that the state utility wants to diversify and get the best results, so we are ready to support and add value.
In terms of the power grid, which is also managed by CFE, DOMINION can help it visualize potential problems. Unfortunately, transmission and distribution are very difficult services to provide. Every single building block of the greater structure matters, so all aspects need to work optimally for a stable grid and optimal energy quality. Through the different Fluke solutions, we measure these building blocks integrally, detect inefficiencies and help CFE solve problems, before they occur. This is also helpful for clients looking to comply with the grid code and have an optimal power factor, which is adding to the quality of the grid.
DOMINION GLOBAL is a provider of multi-technology services, specialized engineering solutions and is active in many sectors of the global economy. In Mexico, it is especially adept at increasing industrial processes efficiency through the Fluke predictive maintenance solutions, telecom solutions, services and green energy.