What We Can Learn From This Summer’s Business Trends
If you’ve identified Mexico as a place you would like to do business, then you probably already know a few things.
It would likely not surprise you if I said that Goldman Sachs anticipates Mexico to be the world’s fifth largest economy by the year 2050. You probably wouldn’t bat an eye after learning that, in addition to reforming its energy sector to become more attractive to foreign investment, Mexico has also cultivated one of the finest tech hubs in the Western Hemisphere.
Regardless of your industry, the important thing to remember is this – opportunities exist outside of your domestic borders. From where we are standing now, it’s quite clear that business expected to boom in Mexico. And while almost nothing in business is absolute, one thing is – business thrives on opportunity, and there are opportunities abound in Mexico.
Energy, But Not Just Oil & Gas
When Mexico restructured its energy industry to be open to foreign investment, oil and gas was at the forefront.
What you might not know is that Mexico’s energy sector got a significant boost late this summer, when California-based SolarCity acquired ILIOSS, one of Mexico’s largest commercial and industrial solar developers. The deal, which was valued at $15 million, marked the first international acquisition by the company.
So what made SolarCity take the leap of faith and expand into Mexico? Clearly, they saw the opportunity, and it wasn’t just about SolarCity already being a leading rooftop solar company in the United States.
When SolarCity made the move to Mexico, Marco Krapels, the company’s senior vice president of global strategies and expansion, cited the ability to provide clean energy to Mexico’s homes and business, at a fraction of the cost – as much as 15 percent less. Pair that with the fact that Mexico offers some of the most attractive terrain for cultivating renewable energy hubs, and I call that an opportunity.
Earlier this month, Telefonica SA announced that it was open to agreements and deals with wireless communication rivals, including the U.S.’ AT&T and Mexico’s America Movil, in an attempt to cultivate a stronger and more accessible telecommunications infrastructure in Mexico.
The Spanish provider, which remains Europe’s premier investor in Latin American communications, is one of the largest mobile network providers in the world. However, the company couldn’t make an immediate move to Mexico – they needed to build an infrastructure. They needed help sharing networks or accessing existing towers.
What does that mean for people outside of the telecommunications bubble?
Telefonica is essentially building a wireless network from scratch. Although they have the foundations for growth, a solid network is a distant goal. Their growth relies on investment and collaboration with companies like AT&T, America Movil or other communications providers.
Sounds like an opportunity to me. I like to think that opportunities come in many forms. While we are sometimes presented with the chance to take the lead, or separate from the pack, other times we are dealt a hand that encourages collaborative thinking and mutually investing in innovation.
So, why do you need to know this? I figure the question has crossed your mind at least once or twice, especially if you have never considered doing business with our neighbor to the south.
I say you need to know because this is our future. Business does not need to be restricted to domestic borders, and it certainly won’t be for long. We live in a digital age, and the advent of social media has created a global forum for business. You now have a global audience, whether you realize it or not. And if you are based in Houston, or any part of Texas for that matter, you have an international audience right in your own back yard.
Mexico isn’t just filled with raw, organic business opportunities – there are chances for companies of all shapes and sizes. Whether you are looking to get in on the ground floor or join forces with existing operations, there is a place for you in the burgeoning Mexican economy.
With more than 18 years experience in translation and interpretation, Flor Dimassi, CEO of Global Speak Translations stays on the pulse of what is happening in the international oil and gas arena. She turns language and cultural diversity into business opportunities for her clients. Learn more at www.globalspeaktranslations.com.