There are several sub-sectors in manufacturing that operate successfully in the region. However, depending on the specific end market, many manufacturing companies have been under important pricing pressures, forcing them to innovate toward more efficient technologies and processes in order to remain competitive on a global scale. Depending on the country where the goods are produced, there are certain advantages and disadvantages in land and infrastructure costs, energy costs and labor costs, making some of the countries in the region more competitive than others, assuming they possess the human capital base that is fit for the application.
At Capital, we have worked in a varied array of sub-sectors in manufacturing such as:
This has enabled us to accumulate widespread knowledge of manufacturing processes, capital and labor requirements, in addition to a deep understanding of how each manufacturing sub-sector thrives within its production landscape and locally available resources.
As in many other industries, there are in manufacturing Global Consolidating Enterprises in many of its sub-sectors. These are corporations that tend to be very specialized in their production processes and marketing in one or several related product lines, and which go around the world participating in the different consolidation waves and frenzies that tend to happen when macroeconomic conditions are favorable. As local players, it is very important to understand where the real value of the operation lies (proprietary production process, distribution, IP, contracts, human capital, etc.) so that when the opportunity to create value and liquidity presents itself, it can be realized in the most successful manner. Capital is the perfect partner in order to maximize shareholder value, taking advantage of our expertise, know-how and network, guaranteeing a successful M&A process.
