Providing Drilling Components Locally

Before ACE Drilling Supplies, the Mexican mining industry was forced to source its equipment and components from abroad in order to guarantee reliability and quality. “ACE Drillling Supplies provides equipment that is manufactured in Mexico but adheres to international standards,” reveals Luis Martínez, the company’s General Manager. “Instead of having to import the tools, companies working in Mexico can now purchase supplies that were manufactured in the country, saving both time and money.”

Like all companies in the current context, ACE Drilling Supplies has faced its share of challenges and Martínez acknowledges that right now there is less demand for drilling services as a result of reduced budgets and a lack of exploration activity. “As a result, when a tender comes up there is more competition so prices for services had to be lowered in order to remain competitive,” he shares. “Therefore companies must reduce costs, meaning they must develop ways to produce the same level with lower drilling budgets. This inevitably creates an increase in equipment quality.”

After a learning curve of improving the company’s results, Martínez is now confident of the performance of its products. “The consistency of our products allows us to know precisely how many meters each drill bit will sink," he points out. "The more profound the levels drilled, the less expensive it will be for clients." As well as price related performance, he is also extremely proud of the investment in ACE Drilling Supplies’ staff training. As a result, the company has been able to make several technological advances and is constantly working on developing more products that are able to offer cost savings in speed and duration.

As far as product development goes, the company constantly works to adapt to industry changes. “Every time we encounter a new kind of soil, we modify the melting mixture of our product so we obtain optimized performance for that kind of land,” he boasts. “Our advantage is our geological expertise.” The company is testing a new drill bit known as Extreme, which is continually being produced more and more consistently to the necessary specifications. “Our sister company, BD Drilling, is our main client, and it was the first to test our product,” says Martínez. “Although the company was initially reluctant to use ACE Drilling Supplies’ equipment, it now exclusively uses our products.”

Although there are now a few dealers and retailers in Mexico, Martínez believes that ACE Drilling Supplies’ unique differentiator is that it is the only producer of drill bits in the country. “We cover the whole production value chain in Mexico, making it easier for companies to acquire our products and reduce transportation costs,” he claims. “Besides drill bits, we also distribute some drilling lubricants and additives to companies we already have contact with. It is not our core business but given the connections we have we leverage our position to provide the service if our clients need it.”

Now that Martínez is safe in the knowledge that ACE Drilling Supplies is producing a quality product, he shares that the company needs to overcome some challenges. “First of all, we must develop a network of distributors around the country since we currently manage every transaction from Guadalajara,” he explains. “Recently, we signed an agreement with an additive drilling distributer that has presence in Colombia, Peru, and Central America. Hopefully this increases our local participation.” Now the company has revenue, the next step will be to build rods needed for drilling, meaning ACE Drilling Supplies will be able to provide the drill bits and the rod to fit inside. “We are evaluating the most prestigious steel market suppliers so we can find a high quality tube to start testing new products,” he comments. “Companies seek one provider to supply most of their consumables so we are creating this turnkey service."