Beyond Products, Creating Safety Culture is Crucial: Vallen

Q:  How has Vallen evolved over the years, and what have been some key milestones in the company’s growth?

A: We have a strong presence in the United States and Canada, and recently expanded our operations to Europe. We are a private company valued at about US$3 billion that has been in business for about 150 years. Over time, we have grown steadily, always maintaining a strong commitment to ethics and transparency. This has enabled us to develop strategic partnerships in key sectors such as automotive, oil and gas, and aerospace, where we have extensive experience.

In 2022, we were acquired by Nautic Partners, a private equity fund based in the United States. Since then, we have invested in various sectors and businesses. For example, we recently acquired Wesco Integrated Supply, which was one of our largest competitors and a major global player. We can confidently say that we are a leader in integrated supply.

We are also safety experts. Our mission is to solve difficult challenges and provide solutions that add real value to our partners. We do not just sell and distribute safety products; we focus on tackling complex problems and delivering meaningful results.

Q: What strategies does the company implement to avoid being seen just as a product supplier?

A: Our strategy depends on the customer and the market. In Mexico, we have stores that serve the public, distributors and maintenance managers in various industries. These customers tend to see us as suppliers of specific products. However, larger companies and industries recognize us as service providers, especially in the oil and gas sector. In this sector, we not only advise on what products are needed for safety, but also on how to improve productivity.

Vallen adds value by improving both safety and productivity for our customers. We build on our reputation and communication. Our success in industries such as automotive and aerospace, which demand high levels of quality, has earned us recognition and attracted companies to us. We also have unique systems, such as state-of-the-art inventory management solutions. These systems help our customers to be more proactive and improve overall productivity.

We started by selling specific products like glasses in Mexico, and our supplier base has expanded to include thousands. Lately, sustainability has become a top priority for our clients, and we are moving in that direction by partnering with top-tier, environmentally conscious suppliers.

Q: How does Vallen help improve customers’ processes?

A: We worked with a large EU company in the automotive sector that used to rely heavily on disposable safety products, not realizing that it was losing productivity in the long term. We assessed their processes, brought in our team and suppliers to work closely with them on-site, and identified where and why they needed a different product. Together with the supplier, we developed a solution that introduced new gloves that offered better resistance and performance. We also reduced time and waste by introducing vending machines that made it easier for workers to access the products they needed on the production line, eliminating the need to walk to distant dispatch areas. This significantly reduced downtime and improved efficiency. In the end, we cut their expenses by about 25%, and we were recognized as its Partner of the Year as a result.

In the oil and gas industry, we have been working not only on supplying products but also on developing processes that improve safety. It is not just about training; it is about creating a safety culture. Companies initially asked only for basic products to keep their employees safe, but we went beyond that by introducing more comfortable and durable safety gear, which made workers more productive, especially in harsh environments.

Over the last 20 years, we have become a reference in the industry by creating processes that foster a strong safety culture. Our work in the oil and gas sector has helped change the mindset from merely providing safety products to embedding safety into the culture of our clients.

Q: Where does technology fit within Vallen’s operations?

A: We are a data-driven company, and this approach helps us in two main ways. First, by collecting and analyzing data, we can prevent accidents and improve safety. Second, it allows us to make better forecasts for our customers, helping them avoid issues such as shortages. For example, during the pandemic and recent disruptions in Asia, our data-driven insights enabled us to prevent shortages and ensure that operations continued smoothly.

We are also investing in new technologies, including AI and advanced forecasting platforms, as well as robotics to enhance efficiency. Our approach consists of using data effectively, improving productivity, and focusing on people. We hire top talent and engage them in developing and executing our programs, often in partnership with external companies. This emphasis on talent and innovation is crucial to our success in serving various industries.

Q: What have been Vallen’s main achievements during 2024?

A: This year has been highly successful for us. We completed the acquisition of Wesco and recently acquired EES in the European Union. Our performance in Mexico has been excellent. We are investing in new spare parts distribution centers in various locations to be closer to our customers in Mexico and North America.

People are a crucial part of Vallen’s success. We focus on three main pillars: profitability, operational excellence, and a winning team. We take pride in our associates and are committed to providing opportunities for young talent all under an ethical approach that prioritizes respect and human development. For example, we have invested in a Center of Excellence in Guadalajara, Jalisco, where we are bringing in young graduates.

Q: What challenges and future developments will be key to your business?

A: Our main partners are US-based companies, and if they reduce their investments in Mexico, it would significantly affect us. We are closely monitoring the situation. We also need to stay well-informed about the evolving labor regulations in Mexico as they are crucial for our operations. The potential reform of the Judicial power could also lead companies to reduce their investments in Mexico, which could have serious consequences. We also face challenges with currency fluctuations because we purchase goods in US dollars but sell in pesos. This volatility affects our operations.

Despite these challenges, we remain optimistic about the potential of nearshoring. We anticipate significant growth in Mexico over the next 10 to 15 years, and our customers support this outlook. While Mexico's economic growth does not look promising, some sectors will continue to grow. We remain hopeful and committed to investing in Mexico and developing with the country, and we are closely watching the situation to better serve those markets.

Vallen, a US$3 billion global Integrator-Distributor, was founded in 1865 in Charleston, South Carolina. The company is the global market leader in integrated solutions and a leading industrial distributor and provider of safety services and metalworking solutions.