Offering Quality Products at Appropriate Adequate Prices

Q: The energy market represents 5 percent of Mitsubishi Electric’s operations. How has that percentage evolved?

A: It has been a marginal evolution through organic growth. In the energy sector, the investment has been slow. Nevertheless, Mitsubishi Electric’s offer is still directed toward electric distribution equipment and automation on an industrial level. The demand for energy keeps growing because there is still private investment and a need for modernization. Here, Mitsubishi maintains a strong presence through its network of distributors and commercialization channels. Mexico’s energy sector has not had the growth we were expecting and wanted, but we are relaunching our offer nonetheless. We expect to have an even more integrated solution for the energy sector available soon, which can be installed directly by clients.

Q: What could the Mexican government do to improve the number of opportunities found in the Mexican energy sector?

A: There would need to be a reactivation of public investment, as the industrial and residential markets have a growing energy demand. The Mexican national electricity system (SEN) needs to be renewed and more investments to increase power production capacity are required. Mexico is still an attractive market for us and if there is still a demand for new power plants where we can present our offer, we will keep working to make this happen.

Q: In the industrial segment. Mexico is experiencing a boom of nearshoring and industrial park development. What is Mitsubishi’s strategy to tackle that demand?

A: The company maintains a strong presence through its authorized commercialization channels. Fortunately, investment is continuing in the automotive clusters of the north and center of the country. Much of that investment is coming from Asia, especially from Japan, which has a strong presence here. Relaunching our low voltage equipment business line will be key to meet this demand. The market has demanded additional products that comply with the regulatory norms but that enable a more efficient and therefore competitive operation.

Q: What unique value does the company add?

A: Even though Mitsubishi does not directly approach the final user, the brand has a global presence. Therefore, our clients have asked us to import product lines that are not yet present in the Mexican market. We oblige because we want our industrial clients to have a quality offer.

Offers from different brands may be cheaper but they do not offer the quality Mitsubishi provides. All the company’s products are still manufactured in Japan, at Mitsubishi Electric’s plants. No other company does equipment for manufacturing plants like we do. We own all our technology from development to manufacturing and even have a semiconductor division. Despite the pandemic’s effect on the global supply chain, Mitsubishi Electric continued operating successfully, granting the company an enhanced position in the global market.

Mitsubishi is one of the few suppliers of electronics that offer products with a three- to five-year guarantee, which speaks volumes about the quality of our equipment. The company’s clients appreciate this. They want to invest in quality and are highly concerned about the safety of their employees, as well as about the security and continuity of their industrial processes and the efficiency of their plants. This is where Mitsubishi Electric adds its value.

Q: How has the balance between the price and the cost of automation products evolved over time?

A: It is all about supply and demand and the current global issues regarding a shortage of key products for the industry. Our strategy of being a premium brand without going overboard on costs means we are not forced to enter every industrial segment. After all, some segments are cost-driven. Mitsubishi does not offer the most expensive products but not the cheapest, either. Instead, the company’s prices are both effective and appropriate. Our commercial strategy attempts to transmit that quality, research and development carry a cost, even though the company itself absorbs most of it. Mitsubishi Electric invests nearly US$2 billion a year in R&D.

The company has research centers in Boston and California, where new products are developed yearly. It also has centers in Europe, Asia and Japan. Maintaining that infrastructure is part of the investment to bring new technology to clients. Today, the availability of products is almost more of an issue than building confidence in it.

Q: What are the company’s main objectives in the Mexican market for the end of 2022?

A: The goal is to keep growing our market share and maintain our presence in the energy industry. We want to be an active technology supplier for Mexico’s general industry.

Mitsubishi Electric offers automation products, including programmable logic controllers, variable frequency drives, operator interfaces, motion control systems, computer numerical controls, industrial robots, servo amplifiers and motors.