HVAC/R Industry Outlook in Latin America 2019-2020
LATIN AMERICAN
CONTRACTORS INSTALLERS HVAC/R INDUSTRY
REPORT 2019-2020
ECONOMIC PERFORMANCE AND OUTLOOK KEY ASPECTS OF HVAC/R INDUSTRY • CHARTS THE INTEGRATORS PERSPECTIVES BY REGION TOP 100 CONTRACTORS - INSTALLERS 2019 RANKING SUCCESS STORIES OF THE CONTRACTORS - INSTALLERS IN THE TOP 100
All rights reserved. It is not allowed the total or partial reproduction of this work, nor its incorporation into a computer system, nor its transmission in any form or by any means (electronic, mechanical, photocopy, recording or others) without previous and written authorization of the owners of the copyright. Infringement of these rights may constitute an offense against intellectual property. Original Title: TOP 100 Contratistas Instaladores industria HVAC/R Informe 2019-2020 2nd edition: October 2019 Research and writing: Ana María Mejía Angel ACR Latinoamérica Editor: Duván Chaverra Editorial Direction: Duván Chaverra Translation: Yasmín López Proofreading and style correction: Craig Alan Cottrell Design and layout: Panamericana Formas e Impresos S.A Printed in Colombia by Panamericana Formas e Impresos S.A
Table of contents Top 100 Contractors - Installers in Latin America: How is it done? .........................4 Introduction ...............................................................................................…………….6 Chapter 1: Key aspects of the HVAC/R Industry in charts .......................................8 Use and classification of HVAC/R technologies .....................................................……9 Segments with More Projects Developed ….............................................……………10 Most Common Brands ……….............................................................................…….12 HVAC/R Imports by region and company ...................................................................14 HVAC/R Imports by origin country ………...................................................................15 Chapter 2: The Contractors - Installers perspectives……............................ ……….16 Mexico……...........................................................................................................…….17 Central America and The Caribbean…………........................................................ ….21 Andean Region …………........................................................................................ ….24 Southern Cone …………......................................................................................... ….29 The HVAC/R Consulting Experts perspectives ……............................................……32 Chapter 3: Top 100 Contractors - Installers 2019 …………….................................40 Mexico …………….......................................................................................................42 Central America and The Caribbean ………........................................................…….44 Andean Region ……………..........................................................................................46 Southern Cone ……………..........................................................................................48 Chapter 4: Success Stories of the first places of the Top 100 ….....................……50 RCR Refrigeración: Gorditas Doña Tota - Grupo Femsa at Monterrey ......................52 Instalfrío: Steven’s stores in the Albrook Mall at Panama ……................................ …53 Johnson Controls: telecommunications company at Bogota …...........................……54 Refricentro: Ñuble Organic cold storage at Ñuble, Chile …………............................55 Chapter 5: Interview with the first places of the Top 100 …............................. …56 Mexico: RCR Refrigeración ………......................................................................…….58 Central America and The Caribbean: Instalfrío Panamá ………..........................…….59 Andean Region: Johnson Controls Colombia ……......................................... ……….60 Southern Cone: Refricentro …………..................................................................... ….61 Chapter 6: Economic Outlook Worldwide and the Americas …………............ ….62 Latin America grows moderately in 2019 ……........................................................ …64 Economic Outlook for the Latin American regions …….................................. ………67 Infographic: Exports and Trade Balance in Mexico and Central America 2019 ……..67 Mexico, Central America and The Caribbean ……......................................... ……….68 Infographic: Exports and Trade Balance in South America 2019.................................75 Andean Region ………….....................................................................................…….76 Southern Cone ……...................................................................................... …………80 Index of references……………............................................................................……..86
TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020
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Top 100 Contractors - Installers in Latin America: How is it done?
ACR LATINOAMÉRICA highlights once again in 2019 the work of the region’s Contractors - Installers in favor of the growth of the industry, which is why we took on the task of carrying out, for the sixth year in a row, the Top 100 of Contractors - Installers with highest RECOGNITION in Latin America. The RECOGNITION ranking was born as an initiative that has also been successfully carried out by other international economic media, which, through information gathered about each company and voting, include some of the most important companies in the region or countries to which they belong. Every year we consult several sectors, including manufacturers, distributors, as well as the bulk of our readers (consultants, technicians, end users, operators, among others) throughout Latin America, who finally were the ones in charge to legitimize this work and contribute to the recognition of these companies. It’s important to mention the methodology we used for this report. A complete compilation of information was made in order to consolidate a list of 100 of the most outstanding companies in Latin America, divided into four subregions (Mexico, Central America and the Caribbean, Andean Region, and Southern Cone). For this, it was taken into account
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the nomination made by the manufacturers and distributors of many of the world’s most prestigious brands of air conditioning and refrigeration, as well as a detailed monitoring by the journalists team of ACR LATINOAMÉRICA, relying on consultants and expert professionals with extensive knowledge of the industry. Subsequently, through a survey conducted online with our readers, the hierarchy and location of the 100 companies in the ranking was determined, divided into 30 companies in Mexico, 15 in Central America and the Caribbean, 35 in the Andean Region and 20 more in the Southern Cone. For this hierarchization, differential elements such as years of experience in the industry, certifications, number of employees, headquarters and belonging to industry associations in the region were also taken into account. That is to say, of the total percentage published in the ranking, 60% of the value is given to the number of votes reached and the remaining 40% to the aforementioned differential elements. The list includes information on the segments that each company serves and the percentage of recognition. You can also postulate your company by writing to editorial@acrlatinoamerica.com.
METHODOLOGY 1
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Mexico 30 IDENTIFICATION Central America 15 AND Andean Region 35 APPLICATION Southern Cone 20 COMPANIES OF THE COMPANIES
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COMPILATION OF INFORMATION FROM COMPANIES
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VOTE RECOGNITION
Years of the company 10% Number of employees 10% HQs of the company 10% Associations and / or company certifications 10% 40% corresponds to differential elements of the company
40%
60% survey of Recognition made with readers of ACR Latinoamérica
60%
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RANKING AND / OR LOCATION OF BUSINESS INFORMATION ACCORDING TO THE ABOVE VARIABLES
100%
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Introduction Increased awareness of the impact of climate change has led all parts of the HVAC/R industry to consider the development and greater use of sustainable and more efficient technologies. This evolution also compels contractors installers to be better trained and become certified to be able to choose the appropriate equipment for each particular installation, even managing to reduce the carbon footprint to a minimum for each of its clients. This is a challenge that requires not only training, but also establishing updated and relevant regulations, and such is the call to action by several HVAC/R industry experts to contractor installer entrepreneurs, especially those in countries that are going through economic conjunctural times –such as Argentina and Venezuela–, “develop and promote regulations and standards, because if they do work on this now, they’ll have the baseline to improve the quality of the interior environments by the time they start moving out of the rut”, as Darío Ibargüengoitia puts it, a Mexican HVAC/R consultant.
The contractors installers of this Top 100 are also aware of the importance of a growing implementation of energy-efficient systems, as well as of natural refrigerants with minimal loads to help counteract the influence of HVAC on climate change. However, despite the entrepreneurs efforts, this industry also faces obstacles mainly by the difficult economical circumstances of several Latin American countries, especially the devaluation of the currency in countries such as Argentina, Colombia and Venezuela slows growth. However, as will be seen in this report, contractors installers have been able to sustain and advance their businesses, even creating outstanding projects. In this regard, the consultant and engineering professor, Camilo Botero, shared a piece of advice which is controversial in his eyes: “it’s in the contractors the interest to change their business model and stop working with such narrow operating margins that take them almost on the verge of bankruptcy. They must leave behind the fear of losing a contract
TARGET AUDIENCES
• HVAC/R industry entrepreneurs. • Manufacturers and distributors of HVAC/R equipment. • Market analysts and researchers. • Government and financial institutions. • Investors. • HVAC/R equipment end users.
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and stop allowing customers pressuring them to lower their prices”. On the other hand, in terms of the global and regional economy, 2019 is moving forward as a year of economic uncertainties, mainly due to trade tensions between the United States and China, which is why the Economic Commission for Latin America and the Caribbean of The UN (ECLAC) reviewed the growth prospects for Latin American GDP for 2018 by 1.2%, and projects a growth of only 0.5% in 2019. However, Latin American trade, despite the difficult moment of the Argentine and Venezuelan economies –which have suffered contractions of -2.5% and -23%, respectively– has continued their growth in 2018, as reported by the World Trade Organization, although the increase would be only 2.7% in 2020, when it was previously estimated at 3%. The Top 100 Latin American Contractors Installers – HVAC/R Industry Report 2019 analyzes how this eco-
nomic outlook would impact the industry country by country, from the perspective of entrepreneurs that were part of the Top 100 of Latin American Contractors Installers ranking, made by ACR Latinoamérica. Key industry information, such as figures of imports made by companies in each country, the most used equipment brands in the region, the segments with the highest HVAC/R investment, including sales figures during 2018 of several of the companies are included in this report, along with detailed contact information about the companies that appeared in the ranking in 2019. Readers will also find in this report a complete vision of the HVAC/R industry in Latin America, along with stories of the Contractors Installers trajectories in the business, successful projects, as well as comments and recommendations on technological trends and investment opportunities, told by the same entrepreneurs interviewed for the creation of this document.
MAIN SEGMENTS FOR HVAC/R PROJECTS IN LATIN AMERICA COMMERCIAL CORPORATE
16.9%
26.5%
EDUCATION AND GOVERNMENT HOSPITALS AND PHARMA INDUSTRIAL RESIDENTIAL
8.1%
29.4%
6.6% 12.5%
* Source: Survey conducted on an online platform among the TOP 100 Latin American Contractors/Installers between May 27 and September 30, 2019.
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CHAPTER 4
SUCCESS STORIES OF THE FIRST PLACES IN THE TOP 100 2018 was a productive year for the Contractors Installers that made part of this Top 100, as observed in each of the contributions they’ve shared for this report’s Chapter 2. And again this year, we offered the space for entrepreneurs ranked in the first places of each region to showcase their outstanding project of the year, giving them the opportunity to introduce new trends and interests of potential clients, as well as possible business opportunities.
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TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020
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