Stable sales figures

Cheap imports from southern Europe, the USA and more recently from PR China erode prices for pumps and compressors on the Mexican market. In 2003 German manufacturers of premium equipment suffered losses in market shares. Falling groundwater levels have produced a relatively stable demand for replacements in hydraulic engineering, but for the same reason the construction of new wells is very limited. The brightest sales prospects are to be found in the development and operation of new offshore oil fields.
Insiders consider that the demand for water pumps in Mexico has remained more or less constant in 2004. Admittedly sinking groundwater levels have induced the public sector to curtail the number of new deep wells, which require greater pumping distances, but also in many cases necessitate new pumps or propulsion engines and other spare parts. In agriculture the regular clientele consists primarily of larger companies in the north of the country, whereas the majority of small farmers lack the financial means for the necessary investments. Extremely low prices are the only factor that counts.

On the Mexican market a feeling for quality, durability, service and the benefits of guarantees has hitherto not been very evident. In most cases the crucial argument with investments is the price, thus it is easy to find purchasers for one-way aggregates from America or sparingly dimensioned devices from Italy. Many potential clients in Mexico first need to be convinced of the fact that reliability despite fluctuating voltage, or easy maintenance and repairs are advantages.
The demand for industrial buyers is cyclically linked to investments in new plants. Thus the construction of 47 production platforms in the Gulf of Mexico by the Mexican state petroleum company Pemex has incurred a corresponding demand for salt-water resistant pumps, such as those manufactured by Bombas Alemanas of Querétaro. This company, similar to KSB which is also based in Querétaro, has reacted to stagnating domestic sales by intensified export orientation, particularly to other Latin-American countries.
With transnationally operating corporate groups the opening-up of the Mexican market and Mexico’s integration in NAFTA have given intra-corporate trade a distinct boost. This holds especially for assembly components, such as fuel pumps for vehicle motors or compressors for cooling aggregates which account for a substantial part of foreign trade. This explains the growth rates recorded in recent years in Mexico’s exports of pumps (2002: 7.3%, 2003: 26.2%) and compressors (2002: 62.5%, 2003: 19.6%). In the case of turbo compressors this means almost exclusively turbo-charged engines for heavy vehicles over 99% of which go to the USA.
Compressors for use in industry or in the construction sector are not produced in Mexico. Importers from these sectors anticipate stable sales in this area for 2004, too. Germany’s share of total imports of compressors for 2003 was 6.6%, following 7.4% in the previous year, thus taking second place after the USA with 73.3%. With imports of pumps the USA also account for approx. 75% of supplies. Germany’s share of 7.2% places it before Canada with 3.6% which has made perceptible gains in the past two years.