In this aftermarketNews Executive Interview, Cal Ganda, Head of Aftermarket Distribution, ContiTech Industrial Solutions Americas, discusses the company’s new hydraulic hose plant in Mexico, what growth areas the company is looking at in 2024, how the reorganization of ContiTech affected operations in the Americas, and more.
aftermarketNews: Continental recently announced the construction of a new hydraulic hose plant in Mexico. Describe the company’s growth in this sector and how the plant will set up the company for more opportunities.
Cal Ganda: Our leadership strongly believes in the hydraulic market potential. They fully recognize the importance of the region’s contribution to the organization. Out of this conviction comes the commitment to invest in products that supports our customers’ growth.
From an aftermarket perspective, we are extremely excited for the opportunities these investments will present, especially for our heavy-duty customers that focus on hydraulic hoses.
To emphasize this, I would like to reference some key comments from our leadership in a recent press release.
“Strengthening our industry business in the Americas region is a focus for us,” explained Philip Nelles, member of Continental’s Executive Board for the Group Sector ContiTech. “This investment is our answer to the demand and growth of the hydraulic hose market in the region and underlines our strategic approach to become the innovation leader and full range supplier for hydraulic hoses.
Andreas Gerstenberger, Head of Industrial Solutions Americas, added: “The hydraulic market is the largest hose and fittings market segment in our region. We have been in the hydraulic hose business for over half a century. With our new plant in Mexico, we will double our capacity in this field and address current and new customers in multiple industries, embracing our ‘in the region, for the region’ approach.”
AMN: Looking into 2024, what product areas is ContiTech focused on growing in the aftermarket?
Ganda: With our recent re-organization into a One ContiTech Aftermarket team, we have combined the former Power Transmission and former Air Springs Aftermarket teams into one powerful Aftermarket organization.
From a product perspective, the breadth of our offering – which now comprises belts, hoses, kits, air springs & hydraulics – sets us apart in the market, and we are focused on growing this entire portfolio with our customers.
As a major global automotive supplier that’s actively involved in shaping tomorrow’s vehicle architecture, we maintain a strong pulse on potential future product introductions.
AMN: How has the reorganization of ContiTech affected operations in the Americas?
Ganda: Our re-organization in ContiTech saw us move from a product-centric into a customer-centric approach. From our customers’ perspective, this is a major plus. They will have a single ContiTech sales contact representing all of our Aftermarket products. Our internal supporting teams and processes were re-designed to create a high collaboration environment that is ultimately focused on customer centricity.
AMN: As an aftermarket distribution executive, what challenges are you seeing from a distribution standpoint? What opportunities do you see to leverage data and technology, such as AI, down the line?
Ganda: Product availability remains the most important factor in our industry. When our customers order parts, they expect to get them on time and get their customers up and running as soon as possible!
Optimizing supply chain and stabilizing supply is one of the most important strategic topics. Following up our leadership’s mantra of “in the market, for the market,” being organized in a regionally focused approach also means that we are positioning ourselves to be operationally better – all to the benefit of our customers.
Robust data analytics processes are important in the design and implementation of SCM solutions, and AI will surely play a major role in this process.
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