Knowing when to brake and when to hit the accelerator.

Headquarters in Michigan, this stamping company fabricates the metal brake components for many of the world’s leading Tier 1, 2, and 3 automotive suppliers. In recent years the company has doubled its revenue from $30 million to $60 million.

Over the last six years, Plante & Moran Global Services has assisted senior management in analyzing the benefits of adding a stamping operation in Mexico for continued growth. With more and more of the company’s clients doing business in Mexico, the need to be close by and take advantage of the country’s low labor costs was becoming overwhelming. However, in 2000, after a thorough review of the opportunities and an evaluation of potential joint venture and acquisition targets, we recommended against any immediate commitment south of the border.

But timing is everything. By the end of 2004, conditions were right for the establishment of operations in Mexico. We helped the company set up and staff an office in Queretaro (northwest of Mexico City) and secure contracts that would not have come their way without a presence in the country. The company’s Mexican affiliate is working with a Mexico-based accounting firm at Plante & Moran Global Services recommendation, and the operations are profitable.