High Roller

What is the history of your operations, and what trends have you seen in the demand for crane and transportation provisioning?

We started operations 20 years ago, and I started the company myself after graduating from university. At first, we rented cranes locally in city areas, then we moved to central Mexico and increased our crane capacity. The fleet grew. As we grew, we expanded into energy and different infrastructure markets. In addition to renting, we also started selling and distributing construction equipment. Our clients are mainly in the energy sector, and they include Siemens, GE Mitsui, Iberdrola, Abengoa, and Mitsubishi. We have seen a lot of developments all over Mexico, especially in the south in the energy sector. The energy industry there is growing very fast, with wind turbines being located in Ventosa. We also participate in building and servicing thermo-electrical plants, especially in northern Mexico, the Yucatán peninsula, and around the Gulf of Mexico. We also have a branch in Guadalajara that sees a lot of business in Western Mexico, especially in Manzanillo and Lázaro Cárdenas. The energy reforms by the government are a very welcome development and I think they will be a positive stimulus for the energy sector.

How do you attract new clients?

We’ve been in the market for 20 years and work on contracts with a lot of our main clients, so we have a program mapped out and they rely on us. The program covers this year and the coming years, and about 60% to 70% of our fleet is committed to those clients already. Now, we are seeking to expand our fleet so as to attract new customers. We achieve this through personal contacts on job sites. We visit customers in Mexico City, where we have a small office. Our representatives have many contacts within large companies, and we travel a lot to visit customers and clients. Overall, there are only three or four crane companies in Mexico that are reliable, and Auriga is at that level. When there is a project, they call us for a quote and for engineering consultation the same as they do with the other big and dependable companies.

What is your growth and expansion plan for the coming few years?

We have a branch in Villahermosa. We are expecting changes to the energy laws, and Villahermosa in southern Mexico is rich in oil. We want to have a better market share there—we have been there eight years. I see opportunities for heavy equipment there. Auriga has a center in Villahermosa to supply bigger cranes, trucks, and other equipment so we can support our customers and help them do their jobs. Things are always getting bigger and faster, and for that you need bigger and better equipment. We have had strong and continuous growth, and not a year has passed where we haven’t grown. My ultimate goal is to keep the company going for a hundred years and leave the company to my sons and grandchildren. That is a big challenge because 80% of companies in Mexico, or indeed worldwide, don’t last beyond 10 years.

What reforms would you like to see implemented, besides the energy reforms you mentioned earlier?

The energy reforms are the most important for our sector, obviously. A new education reform was also approved recently, but that will have a mid- to long-term effect, although the fact that it’s been approved is very positive. We are also very behind in terms of tax reform. A lot of cities and municipalities have taken in a lot of money recently, but they haven’t managed their funds well. That’s unfortunate. Not all states and municipalities are playing their part equally, and they’re spending irresponsibly. In Mexico there are more than 40,000 municipalities, 60%-70% of which are on the poverty line. There has to be tax reform. Only 20% of Mexicans pay the right amount of taxes. The other 80% do business illegally to one degree or another. The government is missing out on billions and billions of pesos in tax revenue.