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MEXICO
REGIONAL REPORT
NOVEMBER 2014
ACT
Hal Lundgren
reports
thatMexico’s crane
and transport sector
is optimistic, despite
government tax reforms
that have slowed growth.
Mixed signals in
Mexico’smarket
Tradelossa spokesman said. Those changes
alsowhackedagriculture, stockbreeding,
fishingand forestry especiallyhard.
Each reform strives topepupanational
economy thatwill probably end theyear
witha riseof onlyabout 2percent over
2013.
Tradelossahopes amassiveBajawind
initiative andother keyprojectswill offset
the impact of higher taxes. The company
hasbecome thekeyBaja transporter in
the firstU.S.-Mexico cross-borderwind
generationproject.
Thewindplant’s $300-million first phase
calls for the erectionof 47Tradelossa-
hauledwind turbinesonBaja.
Tradelossahasbeenbringingblades
fromPlasterCity,CA to theBajawind
farm. The companyhas also carried
three-section towers, nacelles, hubs and
drive trains fromMexico’sEnsenadaport
toBaja.
AMassachusetts-basedutility, Sempra,
is thewindproject’sU.S. partner. Sempra’s
SanDiegoGas&Electrichas agreed to
purchase thewind-produced electricity
under a20-year agreement. Theproject
supportsMexico’s goal of delivering–one
decade fromnow–one-thirdof its energy
from renewable sources.
“It hasbeenadifficult year forheavy
haul inMexico,”he said. “But it hasbeen
averygoodyear forour cranebusiness.
We expect to finish theyearwithoverall
businessupbyabout 15percent.Our
heavyhaul businesswill only increaseby
about 1percent.”
Cortez andmanyotherpeoplebelieve
this year’s far-reaching tax reforms
have softened severalMexicanbusiness
segments.
Tradelossa, aMonterrey-basedheavy
haul specialist, hasbeenhardhit by
changes. Beginning in2014, thenew tax
structure essentiallyupped taxes and
dumpedbenefits, bothpersonal and
business.
“The tax reformshavemade this year
more challenging forour company,” a
Y
oungBernieCortezwent to
college classes eachmorning
atMonterreyTech. Each
afternoon, the familybusiness,Gruas
ABC, claimedhim.
Themidday endofmorning economics
studiesmeant aquick trip to theoffice,
wherehis father, BernabeCortez, led the
company. Eveningswere forhomework.
People thought early exposure to the
cranebusiness (gruas is theSpanishword
for crane)wouldhelpyoungBernie learn
it from thegroundup. Theywere right.
Now inhis early40s and the company’s
managingdirector,Cortezoversees the
company’s fourpillars– finance, sales,
human resources andoperations.All
fourhave functionedwell in2014.He
anticipates improvement in2015.
Heavy haul businesses have been
affected by recent tax reforms, but
Mexico continues to generate large-
scale projects such as this 900-ton
transport.
Tradelossa has become the key Baja transporter in the first
U.S.-Mexico cross-borderwind generation project.
