Humberto Treviño
Director General
BECK Mexico
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Insight

Integration Changes Rules of the Market

Wed, 11/01/2017 - 13:56

Today’s society is demanding ever more convenience and construction companies are no stranger to this trend. Twenty- four years ago, US construction company BECK merged with an architecture firm from Dallas. With this transaction, executives began to see the value in offering a service that was quite unique in the market: integration. “We are one of the few companies that offer both architecture and construction services,” explains Humberto Treviño, BECK Mexico’s Director General. “We can serve as both the designers and the builders of the projects.” This is something that few companies are doing well in the commercial market, so he believes the future opportunities with the integrated model are significant.

But rather than competing with architecture firms, Treviño says that BECK respects the work that they do and highlights that the services are completely different. “We do not compete with architecture firms in that we do not sell a design,” he says. “We sell an integrated model that involves the design and construction and this is where we are unique in the market.” This is a relatively new service in the market, he says, but he anticipates a warm reception from developers and institutional clients. “One of the advantages of our integrated services is that a project becomes much more efficient under the collaboration model, with architects, contractors and technology experts working on it from the concept stage through to completion,” he points out. “It helps reduce the overall schedule of the project and a more efficient project will inevitably create cost reduction.”

Reading the needs of the market is something that is inherent within the company. Although BECK was initially deeply involved with the tourism sector, it gradually moved into almost every other type of development, constructing mixed- use, retail, office, residential hospitality, interiors and even higher education stadium projects. Treviño explains that this is due to BECK’s desire to create long-term relationships with its clients. “A few years ago, we did not carry out construction in cities, but rather built developments in coastal areas due to the strength of the hospitality and second-home sectors,” he says. BECK concentrated developments on the emerging tourism hubs like Cancun, Puerto Vallarta and Loreto. “But the market changes and we follow our clients,” says Treviño.

When the tourism industry slowed, BECK found that urban projects began to gain traction so it moved with its clients into major cities like Mexico City, Monterrey, Queretaro and Guadalajara. Although these locations still enjoy a high degree of dynamism, Treviño says that the trends are now shifting and that clients are looking to return to tourism. “Urban construction will continue, at least in the next five years,” he says. “But we will return to our original tourism markets due to the desire of several existing clients to develop major hotels and resorts.” This will create additional growth for the company, he says, rather than attention being taken away from urban bases.

BECK has seen a lot of success in its 105 years, but the relationships it cultivates with existing clients is key to its business strategy. Rather than working on one major project with a developer, Treviño says the company has a more long- term vision when it seeks partners. “We are a company that stakes a great deal on our reputation,” he says. “While many construction companies fail to complete a project on time or on budget, our company is built on following through on our promises.”

This is shown by some of the projects in which BECK is invited to participate and the repeat clients that it attracts. Right now, the company is present across almost all infrastructure segments, and in cities including Mexico City, Monterrey, Toluca and Veracruz. With some of the largest construction projects in the country, BECK is building major mixed- use projects and large office buildings in Mexico City and a large office building in the Santa Fe neighborhood, as well as multiple shopping centers and high-end residential developments. “We differentiate ourselves to make sure the client comes back,” says Treviño. In this way, BECK’s target audience is a little different than that of most companies in that the construction company. “We serve sophisticated clients who have the vision to demand something different,” he says. This is a path that BECK is committed to, says Treviño, and the future will entail strengthening these core markets and fostering relationships with key clients. He believes that, for these sophisticated clients, the integrated model BECK offers is exactly what they need.