UKTI supports Renishaw’s launch in Mexico
Headquartered in Gloucestershire, Renishaw is a global company specialising in measurement, motion control, spectroscopy and precision machining. It develops innovative products that significantly enhance its client’s operational performance, from improving manufacturing efficiencies and raising product quality, to maximising research capabilities and improving the efficacy of medical procedures.
Renishaw was set up in 1973 by David McMurtry (now Sir David McMurtry), Chairman and Chief Executive, and John Deer, now Deputy Chairman. Over the years, the company has responded to customer demand to design products used in a diverse range of fields, including aerospace, energy and neurosurgery. Today, it has 60 offices in 32 countries around the world. Export accounts for 94 per cent of its business, but the majority of its R&D and manufacturing still takes place in the UK.
“Innovation is a core part of what we do and we currently invest between 15 and 18 per cent of our revenue into R&D,” says Alejandro Silva, Director General of Renishaw Mexico. “Over the years, we’ve been proud to win numerous awards, including 15 Queen’s Awards, recognising our Technological Achievement, Export Achievement and Enterprise (Innovation). One of the reasons that we are so successful is that we control every step of the process, from start to finish, so we can guarantee the highest quality in all our products.”
Making it in Mexico
As well as its overseas offices, Renishaw has a network of distributors selling its products in-market. Alejandro had been a distributor for the company in Mexico since 2007, building a reliable business around the country. Towards the end of 2010, Alejandro proposed to open a local subsidiary to better support both customers and distributors. Alejandro was appointed Director General to head up the new operation.
In March 2012, whilst transitioning into this new phase, Renishaw exhibited at Expo Manufactura, a trade show for the international engineering community held in Monterrey. The Deputy Head of UKTI Mexico approached the company’s stand to offer her team’s support. She and Alejandro began to discuss the possibility of organising an inauguration event to let people know that Renishaw Mexico was open for business. Over the next few weeks, plans took shape for an evening reception, followed by an open house at the company’s new offices. UKTI sent out invitations on behalf of the company, to existing and potential customers, and helped with the practical arrangements such as catering.
“Mexico has a booming automotive sector at the moment which is set to keep growing over the next six or seven years, so we anticipate that there will be lots of work for us here,” says Alejandro. “Operating as a subsidiary allows us to streamline our processes and management, standardise our prices and offer a higher level of after-sales care to our customers. This change in our status was an opportunity for us to raise our profile in Mexico, and the inauguration event and open house did just that. UKTI had great ideas for how to market the events, and took a very hands-on approach to helping with the practical arrangements. They also secured an impressive level of media coverage by local, national and regional newspapers, industrial magazines and news stations to really maximise the impact of the initiative.”
Sector: Advanced Engineering
Target Market: Mexico
UKTI Services: Overseas Market Introduction Service
The events were a great success. The evening reception was attended by over 80 people, including key customers, British and Mexican companies and diplomats. The US Consul General was among the guests, as was the President of Renishaw Inc. in the US who addressed the crowd. The Deputy Head of UKTI Mexico gave a welcome speech, highlighting the long-standing relationship between UKTI and the company. The following day, around 60 people including OEMs, distributors and end users, took the opportunity to visit Renishaw’s new offices, taking part in workshops and seeing a selection of its products in action.
Since then, UKTI has stayed in touch with Renishaw. The company has been invited to various networking events and will soon be exhibiting at the Mexico NOW Aerospace Summit under the UKTI banner.
“Having UKTI on board as we launched our new subsidiary was incredibly valuable,” says Alejandro. “As well as all the practical support that they gave us with our events, our association with them gives us a certain element of distinction. UKTI really should be the first point of contact for any UK business looking to promote itself in an overseas market. They have resources and connections that can make a huge difference to your success. We have a very strong relationship with UKTI, the British Consulate in Monterrey and the British Embassy in Mexico City. We will undoubtedly continue to work with them as we continue to grow our business throughout Mexico.”
The UK and Mexico
Mexico is the UK’s second largest trading partner in Latin America and there has never been a better time to consider Mexico as a place to do business. Mexico regularly ranks in the top three emerging markets in which to do business, and is the fourteenth largest economy in the world.
Over the past decade, the country has seen economic growth and stable inflation. With its impressive network of Free Trade Agreements (including North America and the EU) and its strategic location in-between the US and Latin America, Mexico has the potential to act as a springboard into the region as well as being an attractive proposition in its own right.
For further information about business opportunities in Mexico, please go to www.ukti.gov.uk/mexico