TBY talks to Javier Carral Trigueros, Executive Vice President of Sanmina Mexico, on reaching markets in the Americas, investing in Mexico, and creating a positive regional impact.

Javier Carral Trigueros
Javier Carral Trigueros holds a bachelor’s degree in administration and finance from Universidad Panamericana, a degree in business management from Instituto Tecnológico y Estudios Superiores de Occidente (ITESO), and an MBA from IPADE. He was a collaborator at Banamex and Alpha Laboratory. He joined Sanmina in 1999, serving as Project Manager, Business Unit Manager, Plant Manager, VP and General Operations Manager, and Senior VP of Operations Sanmina Mexico, and has been Executive Vice President for Sanmina Mexico since 2012.

What factors explain the growth of your domestic client base in Mexico?

This growth is driven by a combination of factors. Some companies did not have a presence in Mexico; they were fulfilling their markets elsewhere, and we filled the gaps in their supply chain. In the past, most of what we produced was exported, but increasingly, we have been working with our clients in the local market and it has been a success. We developed the market, designed the product bearing in mind the specifications for the Mexican market, and we produced a Mexican product. Previously, there were customers that did not have a presence here with Mexican companies fulfilling some needs in the market. But, Sanmina was able to develop innovative supply chain solutions here in order to consolidate our position in the market.

How has the Mexican market changed and in what ways has Sanmina contributed to it?

During the past few years, many companies have adopted a regional manufacturing strategy. The Americas represent a huge market for large, multinational companies. Mexico is an excellent manufacturing location for products, enabling quick and efficient shipment to markets in the Americas. Determining the right manufacturing location depends on many factors, including the region where the product will be sold, logistics, and total landed cost. For example, for heavy and complex industrial or medical systems, Mexico is often a better choice for markets in the Americas. If built offshore, ocean freight might add another three weeks to the supply chain and increase inventory size and capital costs. Another important factor is maturity of the product design. Some of our customers prefer working with Sanmina in a similar time zone during the launch phase for complex products in order to decrease their overall time to market. For complex products in new product introduction (NPI), you may process 10 or more product changes per week. If prototypes or early production units are being shipped across the ocean, a significant number of ECOs may be processed before these units arrive in the Americas.

What motivates Sanmina to invest in Mexico and what investment plans do you have for the coming years?

Mexico is growing increasingly relevant to the market. As a country we have major opportunities for growth because Mexico sells products to the NAFTA market in an efficient and cost-effective way. We build unique solutions for specific customers within 24 hours. That it is a value proposition we offer to customers from our plants in Mexico, which plants in Asia and Europe cannot offer. Distance and logistics play a crucial role in our business today; it has been fueling our growth for the last few years, and it will continue to do so. Sanmina invests heavily in our Mexico facilities, and our factories have state-of-the-art surface mount and manufacturing automation equipment.

What is the importance of Sanmina for Guadalajara in particular, and Jalisco in general?

We are one of the largest companies in Jalisco, employing around 12,000 people in the state, plus an additional 4,000 throughout the rest of the country. We have created a cluster around the company, so that it is not only the 16,000 people who are directly employed in Mexico by Sanmina—we influence three or four times that number through indirect employment. We are also proud of the ways we help build our community with many programs related to social responsibility. One example is Sanmina offering jobs and a bright professional future to disabled people in our country. We also support different non-profit associations through activities such as Sanmina soccer, golf, and basketball tournaments. Sanmina works closely with different organizations to support education in Mexico and provide a better future for our kids. During 2015, we worked with 28 non-profit organizations in order to improve our community. Sanmina is committed to this region, and we want to help promote a stronger community.