Emerson Electric – Mexico

Issue Jan Feb 14


Headquartered in St. Louis, Emerson Electric is a global company with services that span a multitude of diverse markets. The manufacturing and technology powerhouse brought in $24.7 revenue in 2013, which included a sales increase of 1 percent with underlying sales up 2 percent over the previous year. Emerson leads the way in the industrial, commercial and consumer markets through its five major businesses: Process Management, Industrial Automation, Network Power, Climate Technologies and Commercial and Residential Solutions.

In November 2013, Emerson reported that “net sales for fiscal 2013 grew 1 percent, reflecting mixed end-market demand and cautious levels of business investment amid a sluggish global economic environment.”

“We are planning for a modestly better operating environment next year, but still slow relative to previous recovery cycles,” CEO David N. Farr said. “Improving conditions in Europe and China, along with continued strength in energy and chemical end-markets, should provide support into 2014. We also expect an increase in acquisition activity in 2014 to complement growth, including two recently closed transactions with strong strategic alignment within Process Management.”

Emerson handles business in more than 150 countries and has 235 manufacturing locations worldwide, of which approximately 160 are located outside of the United States. Its Latin America division, led by COO Indalecio Montemayor, earned $1.4 billion in 2012, accounting for six percent of global fiscal sales.

Based in Monterrey, Mexico, Montemayor is leading the Latin American division’s 16,000 employees and 30 manufacturing plants on a path of continuous growth. In a recent interview, Montemayor shared some of his insights with Manufacturing Today.

Manufacturing Today: How long have you been with Emerson Electric?

Indalecio Montemayor: I’ve been with the company for 28 years, three of which I’ve worked as COO of Emerson Latin America.

MT: What do you believe are the major factors that separate you from the competition?

IM: Technology, that is to say the new products that Emerson includes in its portfolio day by day, thanks to its commitment to investing in development.

MT: Tell us about the electrical equipment industry and Emerson’s role in it.

IM: The industry in general is growing in most sectors of Latin America, and Emerson is taking advantage of this to increase its presence in the region.

MT:  Do you consider Emerson a leader in your industry? How do describe the company’s growth?

IM: Emerson participates in many sectors of the industry throughout the world, and Mexico is not the exception. Sales in the country have increased 20 percent annually during the last two years, which I believe makes us a leader, to some extent, in the market.

MT: Quality is an important factor in the success of any business. What does Emerson offer in terms of quality?

IM: Emerson’s products are used in very special processes and in high-risk cases due to its high quality and functionality which comply with the highest expectations in the market.

MT: How do your vendors add quality and value to your products?

IM: Supply chain plays an important role in the company’s strategy. Our providers and subcontractors are very carefully selected and developed to participate and commit to the standards established in the Preferred Supplier program.

MT: What are some of the challenges Emerson Latin America deals with?

IM: One of our biggest challenges is the changes in the expectations of our clients. Now, they want much faster service in meeting their demands, which represents shorter delivery times and more variety in their product demands.

MT: How do you deal with that?

IM: For that, Emerson works with programs such as Perfect Execution, which involves understanding what the client requires and when. This optimizes the technology and design of the products worked on by the supply chain and ensures execution by the use of these tools of operational excellence.

MT: Do you have any corporate investments planned?

IM: Emerson, through its different business entities throughout the country, is planning to invest approximately $200 million during the next two years.

MT: How would you describe the culture and climate at Emerson?

IM: The company is known for looking to be the leader in all the business segments it participates in. This means our permanent challenge is to continue developing high-technology products, meeting the expectations of the market and generating a culture of commitment among all the employees that belong to Emerson Electric to achieve this.

MT: What is your company vision?

IM: To take advantage of the opportunities in the region to continue growing based on the corporation’s expectations.


Emerson Electric – Mexico