TECMA: NAFTA in Motion Since 1986

Interview with K. Alan Russell By Arturo Chretín – Juarez-El Paso Now Magazine.  January 2010

Tecma provides virtually everything a company in Mexico needs when looking to outsource or manufacture off-shore without the inherent hurdles and hassles. This is done at tremendous savings with 100% control in the client’s hands – guaranteed.

K. Alan Russell is Co-Founder and President of The TECMA Group headquartered in El Paso, Tex. The firm has a subsidiary in Mexico with locations in Ciudad Juarez, Camargo, Chihuahua, Torreon, Coahuila and Leon, Guanajuato. He was interviewed by Juarez El Paso NOW.

 “What sets Tecma apart from its competitors” he explained, “…was that it began more than 15 years ago and was the result of the industrial real estate industry. The market for industrial buildings at that time,” he continued, “was for the most part built to suit. In other words there were no spec-buildings being built and very little available vacancy.” 

 During this time, according to Mr. Russell, Tecma did not have the ability to develop industrial sites or construct facilities for their clients.  “In order to compete,” he explained, “our Sheltered Services had to be much better than the advantaged builders and developers that also offered shelter services.” 

 In today’s market with a large amount of real estate to choose from, Tecma has the advantage. 

 The Company has grown since its conception over 20 years ago and so has the Tecma philosophy. As co-founder of the Company, Russell sees it and explains: “Experience is always the best teacher. We have learned that our true competition is not China, it is not another region or another Shelter Provider.” 

“Our real competition” Mr. Russell continues, “is a company coming to Mexico and doing their own Integration into the country and then running Stand-Alone without us.”  

Tecma accepts all operational liability in Mexico for its clients; they can facilitate the lowest employee turnover. The Company can also put 25 years of experience on the table in all disciplines.  This is what is expected of them. “The real test is that we can do this,” said Russell, “at a cost that is competitive to what a client, any client, can do for themselves. And we understand this at Tecma and use our economies of scale to bring this advantage to our clients.”

Tecma is really not diverse at all. They are extremely focused on their core competency. Even though their clients range in industries from textiles, automotive, electronics, plastics, magnetics, fiber optics, pet products and even fire arms, Tecma’s product quality remains the same and Tecma’s clients are able to see the border as an opportunity rather than a barrier.

What does it mean to operate under the Tecma Umbrella? It means that the Company’s professional services facilitate working in Mexico while boosting their clients’ productivity and profitability. K. Alan Russell pointed this out: “First, there are the integration services. This is the step where we help our client pick the correct region, the correct city and then the correct site within the city decided on. We assist with cost analyses, budgeting, construction or lease negotiations and other front-end requirements which all business transfers require.” 

“Once established,” Russell said as he elaborated on the Tecma Umbrella, “then the sheltered services begin. This is where the symbol of the Umbrella becomes significant. The Umbrella represents the shelter which protects our clients from the many complexities and distractions of operating a manufacturing plant in Mexico. Tecma also provides independent cafeteria, payroll and Mexican accounting services for clients in their own stand-alone operations.”

Tecma is a Company that bases their success on their qualified labor force. In this way, K. Alan Russell, who is the President of the Company commented: “We believe that all companies are valued by the stability, loyalty and quality of their labor force. It just so happens that these core principles are the foundation of Tecma´s services. Training alone will not do it. You must really care a lot and take the culture, emotions and opinions of your workforce into account.” 

The year 2010 is just beginning and the expectations for the industry as well as for Tecma are relying on the improvement over the situation we just lived through in 2009.

Mr. Russell also had this to say: “The unfortunate part of the down-turn was the required lay-offs of some of our loyal and valued family members. However, if the past 60 days is a good indicator of what 2010 will be like, we are going to need these people back.  We believe that with a waiting list of good people ready to return to work, that Tecma has the experienced surge capacity to seize the moment as the economy turns around.  We will emerge stronger at the end of 2010 than ever before.”

“Never in our recent history,” according to Russell, “have all the cards been stacked so much in favor of manufacturing in Mexico.” The Co-Founder and CEO of The TECMA Group concluded: “As the market turns, the Mexico plants will be the first to deliver on that demand. Mexico has the facilities available and an experienced workforce to address this demand. Those individuals and companies with experience in the Maquila Industry will see the greatest opportunities of our carriers unfold over the next five years.”