Long-lasting Mobile Infrastructure Solutions

Q: What new opportunities has ATCO México (ATCO) uncovered in the commercial and industrial real estate sector?

A: ATCO continues to see opportunities in Mexico for its pre-fabricated buildings division, ATCO Espaciomovil. There are significant areas of participation that translate into business opportunities for us. At the same time, we participate in the infrastructure development of the country for critical sectors such as education and health.

2019 was a difficult year for infrastructure development. Economically speaking, the construction sector registered a significant decline, which took a toll on companies that operate in the sector. That being said, it was a year in which many future plans were also unveiled and many of these projects are already starting to materialize. Moreover, the current juncture has given us the opportunity to look for new projects outside of Mexico. We have had a lot of success in Guatemala in the education sector and we are analyzing projects in Colombia, Ecuador and the Bahamas, where we had already participated.

Q: In Mexico, where does ATCO Espaciomovil see the best growth opportunities?

A: It is different throughout the country. The Mexican government is promoting the development of the south, which leads to more infrastructure projects. The most visible project is Dos Bocas, which will require a significant workforce. This opens up an opportunity for the development of pre-fabricated housing for workers. ATCO has stood out for its ability to open camps for over 3,000 people in places that could be considered inhospitable.

In addition to Dos Bocas, there is a great deal of interest in our company to build camps for infrastructure projects in Monterrey, Baja California and Chihuahua. There is movement and the industry is being reactivated, which is always good news. Other opportunities we perceive are in the education and health sectors. The type of clinics we can build range from mobile units to those that can be fit into any location, even in areas that are heavily secluded. These clinics can easily focus on preventive medicine.

Q: How the market received ATCO Espaciomovil´s solutions?

A: In general, traditional infrastructure is the rule in Mexico. There is a misconception that pre-fabricated buildings are temporary. This could not be farther from the truth. These buildings are just as solid as any other construction and have even more advantages because of the technology they use. Moreover, providing pre-fabricated solutions to the Mexican market allows us to offer fast solutions, since this type of development is ready two to five times faster than traditional construction, depending on the type of product. Technology has also helped us to develop products with improved acoustics and temperature.

We are working to offer these solutions at a lower price. Though the product we make uses more expensive materials due to their advanced technology, this reduces the needed workforce to manufacture them because they can be built using more automated processes, which also reduces waste. In the end, these products end up being more economical and faster to develop. Since we build them in factories, everything is calculated and waste is avoided, while building on site can lead to waste that could add up to 30 percent of the material purchased. One disadvantage could be the location of the construction site. If it is too far away from the factory, the logistics process could entail greater time and resources.

Q: What niches in the Mexican market still offer ATCO Espaciomovil room for growth?

A: In Mexico, we have nine offices where we develop our sales projects. In Los Cabos and Cancun, we see opportunity in the tourism arena. As hotels expand, this generates additional infrastructure growth for cities. In the north of Baja California, we are seeing a lot of exploratory mining, as well as in Sonora and Chihuahua, so we are also focusing our operations there. In Monterrey, we are seeing industrial development and the state of Nuevo Leon has shown significant interest in the development of educational solutions for its inhabitants. In the center of Mexico, we are trying to work on issues that are central for the government, such as education and health, while in the south of the country every niche represents an opportunity.

ATCO México is part of ATCO Group. It is a diversified global corporation that operates in three sectors: electricity, structures and logistics and pipelines and liquids