Wider Product Range for Effective DistributionWed, 10/18/2017 - 13:39
Q: What has been the key to the company’s success over the past 10 years?
A: When Sitsa was formed in 2007, the global economy crashed so persistence and long-term commitment has been the key to our success. Although the mining industry enjoyed prolonged success until 2012, our portfolio at that time was not geared toward the sector and only 15 percent of our revenue was generated by the extraction industries. Thankfully, we realized from day one that diversification would be crucial for our success and to hedge our bets we have always worked in a number of industries, including oil and gas, infrastructure and agriculture. This has allowed us to continue growing despite the turbulence in various sectors.
Given the current global economic picture, we are now doubling our efforts to expand our portfolio and gear it more toward the mining sector. According to most predictions, the cycle of the metals and minerals industries is now on an upward curve again with gold, iron ore and silver prices rising. We see a lot of opportunities to grow our business in the sector, whereas other sectors in Mexico like infrastructure are stagnant. We have a long-standing relationship with a number of the major mining companies in Mexico, in particular Minera Frisco, for whom we provide tires and a range of technical support. We hope to increase our participation in the coming months and years.
Q: How do you plan to expand your client base in the mining sector?
A: As a distributor, the way to expand is to offer a wider range of products. In 2017, we signed a contract to start representing Afex, which is a US-based manufacturer with 45 years of experience in fire-suppression systems for installation on loaders, bulldozers and excavators. The technology works by detecting any abnormal rise in temperature on the vehicle and automatically activates an extinguishing mechanism. It is highly regulated and wellrespected throughout the industry and is a vital safety component for modern mines. This is the newest contract we have secured and it will complement our existing tire distribution network perfectly.
During 2H17, we will also be constructing an office – our eighth in total – in Hermosillo, specifically to reach out to the mining sector. We believe that this sector represents the best opportunity for the growth of our company in the short to-medium term, and to effectively tap into this market we decided we had to have a base in Hermosillo. We already have offices in both Durango and Chihuahua but the new location will serve clients in Sonora, Sinaloa and Baja California, where there are a lot of new mining projects starting up.
Q: What are the main products you provide for the mining sector and what value do you add for your clients?
A: Our primary products are Grove and National cranes, Schwing Bioset piston pumps and tires from a variety of brands including Yokohama, Michelin and Pirelli. We do not provide any heavy machinery. The main reason why these international corporations choose to outsource their distribution to Sitsa is our knowledge of the market and our expertise in doing business in Mexico. Our first client was Metso and we managed to secure that contract because we convinced the company we would represent the Metso brand across Mexico in a professional and passionate manner. We continue to work with this company 10 years later.
Q: What do you look for when deciding to represent a new brand?
A: First and foremost, we have to be sure that we will be able to form a strong, mutually beneficial partnership. Both parties must show commitment to the product and to the objective and be willing to compromise to achieve success. We are the first point of contact with the clients and we cannot provide the level of service required if we do not have the complete support and trust of our partners. After that, of course the quality of the product is paramount.