Los Angeles-based industrial lubricant maker Chem Arrow is expanding its presence in Mexico, where the manufacturing sector is experiencing a resurgence due to global economic changes.
The independently owned company said its Southern California manufacturing facility, coupled with Mexicos growing economy, made Mexico the ideal location to begin its push for global expansion.
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The company has invested in local representation to help service existing customers and prospects in Mexico. That includes adding an area sales manager, Arturo Guerrero, to continue growing the companys HVAC business in the country.
Mike Drieseberg, Chem Arrows corporate sales vice president, said the companys product range – industrial metalworking fluids, lubricants, cleaners and specialty chemical products – is used in a variety of industrial segments such as stamping, machining, forging, and tube bending, along with general fabrication and maintenance. The main industry types we see in Mexico include automotive, aerospace/aircraft, electronics, consumer goods (appliances etc.) and HVAC, Drieseberg told Lube Report.
Chem Arrow recently contracted a new distributor in Mexico, Chihuahua-based Tanner Machines and Tools, as an additional route to market. Its operation covers some of the most critical industrial zones in Mexico, the company said, including the north, central and southern regions. This is in addition to the companys existing distributors in Mexico – H & J Precision Tools in Tijuana, and MAS CNC Suministros Ind. SA DE in Tlaquepaque.
Company officials explained that several factors have benefited Mexicos manufacturing sector.
Drieseberg noted the Mexican economy is currently taking advantage of increased labor costs in China. Several companies have closed plants in China, returning back to North America and into Mexico to take advantage of skilled, competitively priced labor, he said. The close proximity to trading partners in North and Central America have helped justify the shift in manufacturing.
Jose Zapata, area sales manager – Mexico for Chem Arrow, pointed out that the improvement of the U.S. economy and increased purchasing power of the United States have triggered an increased demand for goods currently being manufactured in plants throughout Mexico. These products include automobiles, appliances, electronics, etc., Zapata told Lube Report.
In terms of market challenges, Zapata said that the local water in most parts of Mexico provides challenges to formulators. Chem Arrows products have been designed to help minimize the effects of the hard water, he said. These products help reduce operating costs through longer service life and minimized disposal costs.