Mexican Human Capital a Symbol of SuccessTue, 04/10/2018 - 16:13
Like many other countries, Mexico has put in place clear local content rules that must be followed by every operator looking to invest here. But a new NAFTA deal could shift the focus to broader personnel requirements amid regional energy security concerns, says Miguel Marmolejo, External Strategic Researcher in Energy Affairs at Access to Energy (A2E), who adds that the result could benefit all sides.
“It will be very interesting to see how the NAFTA renegotiations modify certain concepts such as energy security and human capital,” Marmolejo says. “It seems like the vision is shifting toward regional energy security and regional human capital content. This small change could represent an increase in trading of energy sources and also human capital.”
Marmolejo says that allowing national rules to take a backseat to regional objectives will give the North American region a better footing to compete against economies such as China and India, which are both making a strong push into the energy market. He also says that companies like A2E, a multidisciplinary corporate service shelter that integrates knowledge and experience to usher its clients into the Mexican energy market, can help companies navigate the paradigm resulting from any new trade deal.
“With offices in San Antonio we will be able to capitalize on the possibility of an easier trade of human capital, therefore offering the opportunity to US and Mexican companies and workers to increase the value they offer in both countries amid lower operational costs,” Marmolejo says. “One clear example of this is our staff, which has the broad experience in US shale development that could help increase production in Mexico.”
While opportunities are significant in the regional area, Yisel Varela, A2E’s CEO, says it is equally important to ensure that national development objectives, which are reflected in public policy, are aligned with the goals of the private sector for the benefit of both parties. “In that area, A2E likes to see itself as the hinge between both, always focusing on implementing the best solutions for its customers to create an attractive market while providing benefits to the country,” she says.
Although IOCs are a strong market for A2E, Varela says the company wants to deepen its footprint with SMEs and strengthen the local value chain. “By offering them opportunities to apply economies of scale, their costs decrease and therefore their competitive advantage increases,” she says. Varela adds that boosting the presence of Mexican human capital domestically and worldwide will not be difficult because of the huge amount of talent in the country. “Mexicans are hardworking people who look for continuous improvement,” she says. “At A2E, our objective is to offer those workers the best opportunities.”
That also benefits companies, says Varela. “At A2E, we provide integral advice for human capital management that includes legal, accountancy, fiscal and even the cultural element, which can be critical to ensure profitability. We have experience in the Mexican industry and our differentiator is that we are specialized in managing Mexican human capital.”
Marmolejo adds that the oil and gas industry has all it needs to become stronger, pointing to the success of the automotive industry as an appropriate model. “We have a very good example of what we can achieve through the Mexican automotive miracle, which turned Mexico into a manufacturing hub for automobiles and auto parts,” he says. “We believe that this miracle can be replicated in the oil and gas industry and we are working with that objective in mind.” The best way to see that happen is by betting on Mexico’s human capital, he adds.