The Right Time to Invest in Mexico

Q: How does UNIRAC assess the investment climate for solar energy in Mexico, and what opportunities does it see for further growth in the market?
A: Without a doubt, this is one of the best moments to invest in the country. The country is witnessing an increase in its GDP and numerous external investments from China, the United States and many countries in the European Union. This influx of investment can be seen in the exchange rate, which has led to the strengthening of the Mexican peso. Despite political conditions and other issues, it is undoubtedly a good time to invest in Mexico.

Q: How does UNIRAC leverage its manufacturing expertise to capitalize on nearshoring trends and meet the demand for solar mounting solutions in Mexico and neighboring regions?
A: We have 25 years of history, which translates into product development, engineering, and being leaders in the United States, Canada, and the Caribbean markets. Each of these markets is different, so we have been developing products that make sense for each region. For example, Florida is frequently affected by hurricanes and high winds, so we developed products suitable for that region. Mexico’s Yucatan peninsula and Baja California face similar climatic conditions. Despite differences in construction methods and types of buildings, we have the knowledge and products to suit the roofing or construction needs of those areas.

We developed Ascender exclusively for the Latin American market in response to the prevalence of concrete roofs. In Mexico, many commercial and industrial roofs are used for storage and require a thermoplastic polyolefin (TPO) coating. Thus, we designed the RM10 specifically for these roofs. We offer seven different products for TPO-coated roofs, each tailored to meet the specific needs of different regions, such as high winds or flexibility. 

We like to give our customers 360° coverage, using both our external channels and working directly with them. By using external distribution channels, we can focus on product development, research, and manufacturing, which are our core activities. However, this does not prevent us from working directly with companies that approach us. We provide direct support through our dedicated commercial team, which helps us analyze and respond to the needs of these customers. 

Q: What products have been most in demand in 2024 in the Mexican market? 

A: There is greater awareness of environmental issues. Homeowners, for example, are becoming more conscious of rising energy costs, leading them to actively seek solutions to reduce their energy expenses. Companies are similarly recognizing the value of being socially responsible and are increasingly choosing to install photovoltaic systems on their roofs to stabilize their energy supply and reduce costs.

This trend led to a significant boom in the commercial and industrial segments over the past three years, during which we undertook numerous projects for warehouses and floors. For example, factories with adjacent land not currently earmarked for development are installing photovoltaic systems. When they analyze the financials and projections alongside their social responsibility goals, they see the added value and greater purpose in installing solar panels in these situations.

Q: How is UNIRAC localizing production and supply chain operations to better serve the Mexican market and enhance responsiveness to customer needs?

A: The COVID-19 pandemic taught us many lessons. We realized that many of our suppliers were heavily focused on China. The pandemic prompted us to reconsider how we manage our supply chains. We now aim to be closer to our markets and take action where it makes more sense. Mexico has played a crucial role in this shift. It is more practical for us to establish operations in the Mexican market, manufacture locally, and create jobs. The pandemic has shown us the unpredictability of logistics; we are experiencing a similar situation with the Russia-Ukraine war and the pirate attacks in the Suez Canal.

These events have reinforced our desire to be closer to our markets and reduce transportation times. This strategy has been particularly effective in Mexico, where we have access to everything we need. For example, the country has aluminum and steel mines producing some of the highest quality steel, which is exported to various regions. 

Q: How would you describe the state of the energy sector?
A: The market is increasingly consolidating, driven by demand for high-quality products and a focus on strengthening the electrical system. The proposed electricity reforms have underscored the importance of enhancing the national electricity system. This is a critical juncture, as we work to facilitate the adoption of renewable energies while ensuring efficient energy delivery. Both the private sector and the government are recognizing the objectives and challenges ahead, highlighting the need for collaboration to achieve our shared goals.

Q: What other ESG initiatives is UNIRAC launching in the short term? 

A: In April, we launched an Ownership Program to ensure that our suppliers meet not only our quality standards but also our ethical requirements, such as no forced labor and compliance with environmental regulations. The Ownership Program also encourages every employee to think about how they can contribute to a greener lifestyle in their daily lives. We provide guidelines and best practices for employees to make small changes that collectively have a big impact. For example, simple actions like turning off the water tap or separating waste can make a difference. We also encourage employees to think about how they can influence their communities and families to reduce their carbon footprint. This program is an exciting step forward in our commitment to sustainability, and we hope all our employees will embrace it wholeheartedly.

Q: What are UNIRAC's strategic priorities and growth objectives for its operations in Mexico over the next few years?

A: 2024 has been quite challenging. Besides Mexico, presidential elections are taking place this year in over 40 countries. Despite this, our goal remains steadfast: to make the world a better place through our products, making the installation process easier for our customers. We want to continue bringing innovative products to the market and creating jobs in Mexico. Overall, we aim to further consolidate our presence in the Mexican market.

We have offices and a warehouse in Guadalajara, and we aim to expand our presence by having more employees in different parts of the country to support our customers.

UNIRAC is the leading manufacturer of photovoltaic mounting systems in North America. With 25 years of experience, it has become a leader in the United States, Canada, and the Caribbean markets.