Valspar taking new approach in Mexico
By Powell Slaughter -- Furniture Today, March 31, 2003
Delicias, Mexico — Finish supplier Valspar is hoping a new distribution center and color lab at this furniture manufacturing center in northern Mexico will serve as a model for expanding business throughout the country.
Valspar currently is leasing a facility, but plans to build a 20,000-square-foot permanent warehouse and lab staffed by two full-time technicians. The first shipments of product, which originate at Valspar's plant in Montebello, Calif., arrived in February, said Mike Hodges, international sales manager.
While it will keep its color lab and distribution operation for wood coatings located at its plant near Monterrey, Mexico, Valspar will cease wood-coatings production there and will bring all product for the Mexican market in from the United States.
Mexican government regulations on chemicals have added to production costs in Mexico, making it more affordable for customers to bring coatings from Montebello, Hodges said.
"Our selling cost was higher than we wanted it to be," he said. "Customers now can draw materials on a daily or weekly basis and we can serve their needs without having to order way in advance."
Valspar invested in Delicias as part of an agreement with about 20 furniture manufacturers there to use only Valspar coatings. Those plants include factories already providing product for the U.S. market such as Delsa, Issa, Conestoga and Ponderosa. Together, the 20 plants represent considerable business and are deserving of the investment Valspar is making, said Ralph Sheppard, the company's sales manager for Mexico.
"If they're giving 100% support, we're giving 100% support," he said.
With a shrinking domestic market and ever-increasing competition from Asia in the U.S. market, Mexican producers have to get finishing right — an area where many have had trouble.
"They're going to have a High Point connection with U.S. customers through Valspar, and we'll be able to attract U.S. customers into this area," Sheppard added. "This is our business model in Mexico, and we're going to grow it from here. If we can make this work, and it should, we're planning on doing the same thing in other key manufacturing areas in Mexico."
Valspar will start its new model with Issa, one of the most modern plants here. Sheppard said it will take six months to establish the program at participating manufacturers in Delicias.
-
Valspar drops wood coatings in Mexico
Feb 15, 2004
Featured Company
-
Brandwise Inc.
Brandwise serves a model - not just an industry - by integrating, automating, and optimizing the entire sales channel, from wholesale Suppliers to their Reps and the Retailers they service. In short, our software helps Reps and Suppliers sell more and create... more
VIEW ALL GALLERIES
