How UK tech is supporting Mexico’s post-pandemic recovery
By: Uk In Latin America, The Caribbean
Tags: Investment, Mexico, Business, United Kingdom, Internationalization

By Juliana Correa, Director at Department for International Trade — Mexico

Covid-19 has created major social and economic challenges around the globe.

According to the International Finance Corporation, one of the most affected sectors by the pandemic has been transportation — specifically airports — which are essential to developed economies. The pandemic has forced airlines worldwide to cut capacity and to reduce passenger traffic in order fight the spread of Covid-19, and Mexico is no different.

In 2019, more than 100 million people used Mexican airports, where the top three airport groups contributed over £450m of revenue to the Mexican economy. The reduction in people’s movement through airports has created a challenge for the Federal and Local Mexican governments, which have had to look for international suppliers to provide products and services to increase their security standards.

More investment for security and defence

In this environment, Mexico offers trading opportunities for UK companies due to the size of the market. Various national infrastructure protection projects are being developed over the next three years with buyers looking to modernise equipment, services and systems.

The DIT Security team in Mexico has promoted UK expertise in security and defence equipment, including that of Thermoteknix, a British manufacturer of thermal imaging systems.

How DIT helps UK businesses succeed in Mexico

Over the last three years, the DIT Mexico Security team has helped Thermoteknix raise its profile in Mexico and Latin America, including through the LATAC roadshow, tailored meetings, online promotion and digital publications. All these have raised visibility of the brand and showcased the company’s solutions to potential customers, end users, and resellers. Over the past three years, the company has booked over £1m worth of sales in this region.

A recent success materialised after DIT enabled the introduction and promotion of Thermoteknix and local partner CMP (Protection Mexican Company) with the Governor of the Yucatan State, Mr. Mauricio Vila Dosal.

The State Government of Yucatan and the aviation sector were impressed by the company’s skin temperature measuring system, and thus the company secured the deployment of this solution at the Merida Airport. It has since been helping local authorities to process and implement key protocols for containing potential Covid-19 cases.

Do business in Mexico

If you are a UK company considering Mexico, you can get advice from our DIT team as there are some cultural aspects that you should bear in mind.

For Thermoteknix, the key findings are:

a. Having a good local knowledge and cultural understanding is key to success in any market, but especially in Mexico. Try to say a few words in Spanish as Mexicans will appreciate you making an effort; face-to-face meetings are key for business development as well as to build a good relationship, especially when working with the Mexican government.

b. Selling to any country in Latin America and the Caribbean is not a fast process and working with a qualified and experience local partner has proven a successful business model for Thermoteknix. In Mexico, negotiations can be slow, long, and bureaucratic. This is why it’s important to have a local representative to keep these conversations going.

c. Ensure product literature and support is available in the local language. Even though English is widely spoken in Mexico, not everyone is fluent, so it’s important to produce reports, fact-sheets, manuals, and any other materials in Spanish.

I know starting businesses in a new country can seem challenging.

However, DIT is here to provide a professional view of the market and opportunities available that will give you the necessary tools to make informed decisions on the best path for expansion.

Whether you are interested in Mexico or one of the other fast-growing markets in Latin America and the Caribbean, I encourage companies to take advantage of the assistance DIT can provide.

Contact our team in Latin America and the Caribbean now to learn more about expanding to the region.