Gates became an international manufacturing company in the early 1900s, providing a wide range of goods and services for different industries. The company can transfer its products and technological developments from one industry to another, giving it leverage to span different sectors. Even though Gates is renowned in the automotive sector, it also plays an important role in the oil and gas industry by mostly supplying power transmission products. Being a provider for PEMEX, Mexico is a key part of Gates’ global business strategy. The company’s focus on high technology means Gates is not the cheapest provider on the market but its products are among the least expensive components of machinery, making the difference between a plant running smoothly or facing costly downtime due to damages or maintenance.
Safety and risk management regulations put a lot of pressure on Mexico’s main productive sectors. For example, Gates representatives explain that a lot of power is driven by hydraulic systems, which can cause environmental liabilities if they do not function properly. For example, hoses conducting oil at high pressures can contaminate both land and water bodies when they leak. The firm’s hoses used in oil fields exceed the requirements of the Society of Automobile Engineers as well as norms in the oil and gas industry. Gates’ defective rates, measured in parts per million, are close to zero throughout the suggested working life of its products. This is important from an occupational safety perspective, since hoses used for industrial purposes are subjected to 10,000psi. An operator would have very little chances of surviving if a hose containing such pressure exploded.
The guarantee of premium quality is combined with having many field engineers working in remote places to ensure that clients keep their operations running in case of unexpected situations. For Gates’ representatives, complying with global certification and quality standards is an important way to show customers that they are getting robust products and services. Employees in the Mexican subsidiary are encouraged to visit the company’s training and engineering centers around the world in order to bring back the latest technological advances. Gates’ technological centers have a heavy focus on environmental and security research to develop new products with added value. Improving the bottom line through product quality and services limits the occurrence of accidents and damage occurring in the workplace whilst also increasing productivity by avoiding potential downtime. With global mobility being one of its greatest strengths, Gates can offer PEMEX the latest technology available for the development of the deepwater segment, particularly regarding power transmission. The company can set high standards thanks to its global footprint, which will increase productivity, reduce costs, and diminish risk. Some of Gates’ solutions have been used in deepwater activities in the US side of the Gulf of Mexico, enabling the company to draw on similar experiences when working with PEMEX. Gates’ work with PEMEX often involves maintenance operations and technical support that require expert knowledge on certain technologies. Being a global player, the firm can draw on skilled labor from any country to solve problems that may arise.