28
ACT
NOVEMBER 2013
REGIONAL REPORT
MEXICO
Hal Lundgren
reports
how government reforms
could improve Mexico’s
economic outlook.
A
K Industrial Contractors, Ervin
Equipment and Tradelossa
carry different outlooks
for Mexico in 2014. For AK Industrial
Contractors, it is likely that 2014 will look
much like 2013. From its early days, the
Searcy, AR-based company has planned
and toiled to become a leading provider of
machinery moving, machinery installation
and heavy haul services in and to Mexico.
AK Industrial Controller Daniel Velasco
sees little variation from 2013 to 2014.
Illinois-based Ervin Equipment puts an
asterisk after its 2014 Mexico outlook.
Enjoying a big year will depend on
Pemex, Mexico’s 75-year-old national oil
company. Pemex is Latin America’s second
largest enterprise after Brazil’s national oil
company.
Ervin’s John Connor predicts that
2014 might turn out to be an ordinary
Hopeful signs
rigging.
“Developing a 2014 strategy for
Tradelossa is difficult because we don’t
know how many projects we will have,”
the company says. “(Promised) reforms
have been delayed. Once those reforms
take place, we will see strong improvement
in business. At least that’s my mindset.”
Most reforms would be a favorable
development for Mexico’s energy business
and infrastructure, primarily highways.
“We anticipate most of the president’s
reforms will get approved by our
Congress,” the Tradelossa spokesman says.
“Of course, we don’t now know how far
those reforms will go.”
A boost in activity
Mexico’s recent economic growth rate has
surpassed that of the United States, Brazil
and Canada. However, it has hovered
only at or below 2 percent annually.
Reforms could boost it to 5 to 6 percent.
That higher activity level would create
economic year for Mexico and companies
doing business there. But if Pemex
commits to an anticipated spending spike
for improvements and expansion, Ervin’s
business might soar. Ervin is the exclusive
supplier for Talbert Manufacturing in
Mexico.
At Tradelossa, a large, Mexican heavy
haul and specialized transport company,
predictions are on hold. A Tradelossa
spokesman said Mexico’s economic
progress awaits the impact of new
President Pena Nieto’s reforms.
“Our second half of 2013 has been soft,”
the spokesman says. “For the whole year,
we did not have as many projects as in
2012. The year turned out to be a squeeze
with lots of pressure on all of us (heavy
haulers).”
In addition to heavy haul, Tradelossa
specializes in oversize transport and
AK Industrial Contractors/AK Contratistas
Industriales serves Mexican customers
from its Monterrey headquarters.
AK Industrial’s executive team envisions
no interruption in their company’s steady
requests for plant relocation and installation
of equipment.
