Case Study: AT&T Product Refurbishing Facility

“JP set us up with a Mexican developer, identified a property that would be suitable based on not just square footage, but by excellent understanding of the business we would be doing. We were up and running in 120 days including all tenant improvements such as electricity, water, sewage and adequately filtered air. There’s no one else down there that has all the relationships he does.”

– Mark T. Livingston, Pres., Solluciones Tecnologicos

Background

Principle Client: Mark T. Livingston, President
Company: SollucionesTecnologicos
Project: Industrial Production Facility

The Situation

Our client and associates secured a promising contract with AT&T to process all of the telecom giant’s open-box returns nation-wide. There was an immediate need to set up a suitable processing operation to handle a work-flow of as many as 20,000 units per week. All elements of the plant, including the set-up in Mexico, had to be put effectively and efficiently in place in an extremely short time. This was to include a suitable building, all tenant improvements and systems needed to establish a high capacity production facility.

Integral to the operation’s success was the need to put in place an excellent work force to handle the complexities and volume of the product flow anticipated.

Challenges Involved

Time, of course, was critical in order to capitalize on a tremendous opportunity. This project demanded a highly experienced and efficient professional to help streamline the diverse requirements of a complex and sizable enterprise quickly and competently. As this was a from-the-ground-up undertaking, a thorough knowledge of the Northern Mexico real estate market along with Mexican law, equipment, systems and labor was crucial. The experience for significant resource planning was key, as well.

The Solution – How We Helped

J.P. De Kervor, of Maquila Properties marshaled numerous resources and valuable relationships in record time to ensure the client’s requirements were met in accordance to their needs and the urgency the project demanded. Elements handled included some of the following:

  • Helped select an experienced Mexican developer
  • Quickly identified an excellent available property with suitable square footage & features
  • Established Maquiladora
  • Facilitated permits process
  • Oversaw building rehabilitation
  • Facilitated building electrical and water
  • Facilitated communications development

Further, through specialized understanding of manufacturing and facility needs and development, J.P. was especially qualified to guide in the numerous tenant improvements which included such specialized elements as clean-room, anti-static, air-quality and communications systems.

Also, through understanding of the business they would be in, J.P. located them on an important transportation line in an area which was also inhabited by such giants as Kyocera and Sanyo, among others. This meant that people had to go by the new facility in development on their way to work. The quality of the tenants in the area assured a work force that was established in the area, less transient, which meant an excellent employment arrangement for employer and employees.

Outcome

In a remarkable 120 days from start to up-and-running, J.P. guided the client through the process of establishing themselves in a robust manufacturing plant with five (5) production lines operating plus expedited the hiring of 350 people to handle all aspects of administration and operation.

The contract did come to represent a very lucrative and productive venture for the client and for the next several years, the plant received a 40-foot truck virtually every day and eventually processed and distributed well over a million units. These were distributed directly to consumers as well as through distributors and auction outlets. The plant served AT&T’s output needs as long as they stayed in the monitor business.