TOP IOO CONTRACTORS- INSTALLERS LATIN AMERICA HVACR INDUSTRY • REPORT 2018-2019 by Latin Press, Inc.

HVAC/R Industry in Latin America Outlook 2018-2019

REPORT 2018-2019 Economic PERFORMANCE AND OutlOoK Key aspects of the HVAC/R Industry in charts The CONTRACTORS - INSTALLERS perspectives BY REGION Top 100 CONTRACTORS - INSTALLERS 2018 Ranking Success Stories of the CONTRACTORS - INSTALLERS in the Top 100

© Latin Press, Inc., 2018 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 Contractors - Installers Report 2018 1st edition: October 2018 Research and writing: Ana María Mejía Angel ACR Latinoamérica Editor : Duván Chaverra Editorial Direction: Duván Chaverra Proofreading and style correction: Craig Alan Cottrell Design and layout: Fabio David Franco

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 Segments with More Projects Developed ...............................................................9 Most Common Brands............................................................................................11 HCAV/R Imports by region and company...............................................................12 HCAV/R Imports by origin country.........................................................................13 Chapter 2: The Contractors - Installers perspectives...............................................14 Mexico....................................................................................................................15 Central America and The Caribbean .....................................................................21 Andean Region.......................................................................................................24 Southern Cone........................................................................................................35 Capítulo 3: Ranking Top 100 Contractors - Installers 2018......................................37 Mexico ...................................................................................................................38 Central America and The Caribbean .....................................................................40 Andean Region.......................................................................................................42 Southern Cone........................................................................................................44 Chapter 4: Success Stories of the winner Contractors - Installers in the Top 100 2018....................................................................................................46 TTQ: Nuevo Sur Torre II Business Center at Monterrey.........................................48 Grupo Clima: Codisa’s third data center at San José.............................................49 Aire Caribe: Torres Atrio at Bogotá .......................................................................50 Termofrío: HP’s (today Movistar) data center at Paine...........................................51 Chapter 5: The winners of the Top 100 Contractors - Installers in the Latin American regions....................................................................................52 Mexico: TTQ...........................................................................................................53 Central America and The Caribbean: Grupo Clima................................................54 Andean Region: Aire Caribe...................................................................................55 Southern Cone. Termofrío......................................................................................56 Chapter 6: Economic Outlook Worldwide and the Americas..................................58 Economic Performance in Latin America................................................................60 Financial Outlook in Latin America ........................................................................61 Forecast for Latin America in 2018.........................................................................62 Chapter 7: Economic Outlook for the Regions in Latin America............................64 Infographic: Exports and Trade Balance in Mexico and Central America 2017.....65 Mexico, Central America and The Caribbean .......................................................66 Andean Region.............................................................................................................75 Infographic: Exports and Trade Balance in South America 2017...........................79 Southern Cone........................................................................................................80 Index of references......................................................................................................86

TOP IOO CONTRACTORS – InstaLLERS • REPORT 2018-2019

Top 100 Contractors - Installers in Latin America: How is it done? ACR LATIN AMERICA highlights once again in 2018 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 fifth 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 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 LATIN AMERICA, 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 hierarchy and location, 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

Mexico Identification Central America & the Caribbean and Andean Region application Southern Cone of the companies

Compilation of information from companies

Years of the company Number of employees HQs of the company Associations and / or company certifications

30 15 35 20

10% 10% 10% 10%

IOO COMPANIES

40%

40% corresponds to the differential elements of the company

Vote recognition

60% Survey of recognition made with readers of ACR Latinoamérica

60%

Ranking and / or location of business information according to the above variables

100%

TOP IOO CONTRACTORS – InstaLLERS • REPORT 2018-2019

Introduction The world economy is going through a period of sustained growth: for 2018 and 2019 a growth of 3.9% is expected, while in Latin America, the UN Economic Commission for Latin America and the Caribbean (ECLAC) concurs that the projections by the end of 2018 will be above 3%, according to the “Preliminary Overview of the Economies of Latin America and the Caribbean, 2017”. In general, the Gross Domestic Product of Latin America had a positive performance, recovering from a recessionary environment, and ECLAC projects that in 2018 it will reach 1.3%, and 1.8% in 2019, despite the difficult political and economic circumstances faced by countries such as Argentina, Nicaragua and Venezuela, which would have decreases in their GDP

Target audiences • HVAC/R industry Contractors and Installers. • HVAC/R equipment manufacturers and distributors. • Market analysts and researchers. • Government and financial institutions. • Investors. • HVAC/R equipment end users.

in 2018, while the rest of the Latin American economies will grow between 2% and 4%. The Top 100 Latin American HVAC/R Contractors - Installers - Industry Report 2018 analyzes how this economic prospect would impact the industry, country by country, from the perspective of the entrepreneurs that were part of the Top 100 of Latin American Contractors - Installers ranking made by ACR Latin America. For example, Central America was one of the most dynamic regions in this industry, with imports of US $ 92 million between January and June 2018, mainly in Costa Rica and Panama, which imported 51% of the equipment, according to the report by CentralAmericaData website.

Included in this report is key information of the industry, such as figures of imports made by companies in each country, the most-used brands of equipment in the region, the segments with the highest investment in HVAC/R projects, in addition to the 2017 sales figures of HVAC/R installation companies. This report will also provide readers with a complete overview of this region’s HVAC/R industry, with the success stories of some of the Latin American Contractors - Installers, as well as their comments and recommendations on trends and investment opportunities, as told by the businessmen interviewed for this document.

MAIN SEGMENTS OF HVAC/R PROJECTS ALL LATIN AMERICA

12.4%

20.2%

12.4%

25.8% 19.1%

CORPORATE COMMERCIAL EDUCATION GOVERNMENT RESIDENTIAL HOSPITALS Source: information provided by the integrators interviewed in Latin America.

10.1%

TOP IOO CONTRACTORS – InstaLLERS • REPORT 2018-2019

CHAPTER 1

Key aspects of the hvac/r Industry in charts The Commercial segment is clearly the leader in Latin America, mainly composed of projects in shopping centers, hotels and supermarkets, and it has the highest annual growth. On the other hand, the Industrial and the Corporate segment remain at a stable growth rate. It should be noted that the installed projects for this segment also include those carried out for the Government for cold chain processes and state scientific laboratories. Given that 2017 was a presidential pre-election year in some Latin American countries, itâ&#x20AC;&#x2122;s understandable that the Government segment didnâ&#x20AC;&#x2122;t have a higher participation, because most government agencies hold off the signing of new contracts for all kinds of installations, maintenance, etc., until the elections are over.

The Residential segment, although it is covered by several contractors in the region, doesnâ&#x20AC;&#x2122;t represent the highest income or growth for the HVAC business, although there are large-scale projects carried out mainly for residential complexes or buildings. The Industrial segment, which in this case covers the processes of agro-industry, food and manufacturing, maintains at a steady growth rate. It is important to bear in mind that in the Refrigeration business, maintenance and equipment renewal services are more common than new installations. It should be noted that the Logistics and Distribution Centers segment was mentioned by some of the Contractors - Installers as the ones that would present the greatest growth in the future for the Refrigeration business, and would develop significantly in the coming years, hand in hand with the Agroindustrial segment. The Pharmaceutical and Education segments are currently the least growing, however, the first has the potential to increase significantly due to the growing development of medical technologies in the region in the coming years. Source: Information supplied by interviewed Contractors - Installers in Latin America.

Main segments of HVAC projects Mexico, Central America & the Caribbean

Latin America

5.1%

12.4%

20.2%

15.4%

25.7%

12.4% 17.9% 25.8%

19.1%

28.2% 7.7%

10.1%

Corporate

Commercial

Education

Industrial

Residential

Hospitals

Andean Region

16.2%

16,2%

Southern Cone

23.1%

15.4%

10.8% 24.4% 21.6%

23.1%

7.6% 15.4%

10.8%

Corporate

Commercial

Education

Industrial

Residential

Hospitals

15.4%

TOP IOO CONTRACTORS – InstaLLERS • REPORT 2018-2019

Main segments of refrigeration projects Latin America

Mexico, Central America & the Caribbean

8.4%

13.3% 26.7%

27.8%

13.9%

13.3% 11.1% 19.4%

19.4%

6.7%

13.3% 26.7%

Industrial & Manufacturing

Agroindustrial & Food

Commercial

Education

Logistics & Distribution Centers

Pharmaceutical

Andean Region

Southern Cone

7.6%

13.1%

15.4%

30.8%

9.5%

28.6%

7.7% 7.7%

24.4% 30.8%

Industrial & Manufacturing

Agroindustrial & Food

Commercial

Education

Logistics & Distribution Centers

Pharmaceutical

24.4%

TOP BRANDS IN LATIN AMERICA Compressor for Industrial Refrigeration with ammonia

Air Conditioning Carrier

Frick

Trane

11.6% 2.7%

19.6%

2.7%

Daikin

6.3%

13.4%

8.0%

Vilter

13.3%

York

Hill Phoenix Bitzer

14.2%

42.9%

Samsung

Mycom

Lennox

9.8% 12.5%

13.4%

Mitsubishi Electric

14.4%

Midea

15.3%

OTHERS: Gree, Panasonic, Mitsubishi Heavy Industries, Climaveneta, CIAC, Stulz, Westric, Hitachi, ComfortStar, Toshiba, Rheem.

Evaporation for Industrial Refrigeration with Ammonia

Condensation for Industrial Refrigeration with Ammonia Evapco

Evapco Guntner

9.1% 9.1%

BAC (Baltimore

12.5%

Colmac Coil

Aircoil Company) Hill Phoenix

Kevlion

45.5%

9.1%

Thermofin

25.0%

62.5%

27.3%

Compression System for Commercial Refrigeration **

Ventilation

Copeland

17.4%

Bitzer

21.7%

Tecumseh

Soler & Palau

Guntner

4.4%

Frascold

4.4%

17.4%

6.5% 10.9%

Carlyle Krack

13.0%

** Including compressors, condensing units, evaporators.

Larkin OTHERS: J&E Hall, SRM, Stefani, Hussmann, Lu-Ve, Dunham-Bush, Data Aire, Imbera.

Systemair

30.0%

BOHN

2.1% 2.3%

Greenheck

18.0% 4.0% 4.0% 4.0%

Sodeca Multi-Wing Trox Munters

8.0% 10.0%

22.0%

OTHERS: Comefri, Loren Cook, Danfoss, Rheem, Weger, Clivet, Zielh-Abegg, Casals, Nortek.

Source: Survey conducted on an online platform among the Contractors - Installers of the Top 100 Latin American Contractors - Installers between August 6 to 22, 2018. TOP IOO CONTRACTORS – InstaLLERS • REPORT 2018-2019

HVAC & REFRIGERATION IMPORTS A significant number of the Contractors – Installers companies interviewed in the different countries are direct distributors of the manufacturers, both for their own projects and for sales to other contractors, so we can see some of these companies with quite high import figures.

CENTRAL AMERICA Country

Date range

Costa Rica

Jan-Dec 2017

It’s important to keep in mind that in some countries, like Argentina, imports are heavily taxed, so Contractors - Installers companies decide to reduce costs by purchasing from companies specialized in imports or the manufacturer’s distributors, therefore they’re considered as local purchases. Note: Only the import information of compressors, fans, air conditioning machines, refrigerators and freezers was taken into account for these charts. Components or spare parts data was not included. The complete list of tariff codes analyzed in this chapter can be found in the Index of References in page 86.

VALUE US$

MULTIFRÍO

2,068,922 CIF

SAIRE

124,787 CIF

GRUPO CONSTRUFRÍO Panama

On the other hand, there are cases in which the Contractors - Installers companies decide to import specific equipment for a project as required, while the rest of the equipment needed, usually of more common use, is acquired from the aforementioned distributors.

Company

Jan-Dec 2017

COMPAÑÍA CLIMATIZADORA

18,762 CIF 1,603,685 FOB 98,203 FOB

ANDEAN REGION Country

Colombia

Date range

Jan-Dec 2017

Company

VALUE US$

REFRINORTE

3,830,703 FOB

SERVIPARAMO

1,852,087 FOB

WESTON

1,070,691 FOB

THERMOTAR

1,032,738 FOB

LARCO COMERCIAL Y SERVICIOS

969,949 FOB

JOHNSON CONTROLS

950,092 FOB

CARVEL

700,913 FOB

THERMOANDINA

666,102 FOB

ALFRÍO

356,279 FOB

OMEGA

316,472 FOB

GRIVAN INGENIERÍA

155,622 FOB

SAEG

145,735 FOB

FRÍO AIRE

95,748 FOB

AIRE AMBIENTE

71,035 FOB

AIRE CARIBE

11,774 FOB

Ecuador

Jan-Dec 2017

CENTURIOSA

866,519 CIF

Peru

Jan-Dec 2017

COLD IMPORT

5,171,278 FOB

SOUTHERN CONE Country

Date range

Company COSTAN EPTA FRIO RAF

Argentina

Chile

Uruguay

Jan-Jun 2017

Jan-Dec 2017 Jan-Dec 2017

VALUE US$ 166,436 FOB 77,107 FOB

ARNEG

59,307 FOB

SINAX

37,738 FOB

TERMAIR

11,103 FOB

INSTAPLAN

800,725 CIF

REFRICENTRO

173,168 CIF

INEMA

160,438 CIF

FRYMON

65,920 CIF

FOB (Free on Board) CIF (Cost, Insurance and Freight) Source: Descartes Datamyne with Official Information

Origin of HVAC & Refrigeration imports 2017 Central America United States China

5.3%

Mexico

5.3%

26.3%

5.3%

Republic of Korea Panama

5.3%

Thailand

5.3%

Japan

15.8%

10.5%

Malaysia Colon Free Trade Zone

15.8%

Not Identified

andean region United States China Mexico Germany Brazil Italy France Spain Malaysia Taiwan

1.9% 1.9%

3.9% 3.9% 3.9%

32.7%

7.7% 7.7% 13.5%

23.1%

Southern Cone 4.0%

Italy

4.0%

Germany

4.0% 4.0%

24.0%

4.0%

China Spain Brazil

8.0%

United States Argentina

12.0% 16.0%

20.0%

Slovakia Belgium France

Source: Descartes Datamyne with Official Information

TOP IOO CONTRACTORS – InstaLLERS • REPORT 2018-2019

chapter 2

THE PERSPECTIVES OF THE CONTRACTORS INSTALLERS We spoke with several of the entrepreneurs of the Top 100 Latin American Contractors - Installers of 2017 and we asked them about their results, their outstanding projects and their opinions on expectations and trends of the HVAC and Refrigeration market for 2018.

Mexico

Climas S.A.

Sergio Quintana General Manager

De Buen & Asociados Carlos de Buen General Director

• Completed projects in 2017: We delivered around fifty projects of different sizes.

• Completed projects in 2017: In 2017 we made approximately thirty projects.

• Sales value for developed projects in 2017: Over US$ 25 million.

• Sales value for developed projects in 2017: Around US$ 9.5 million.

• Cities where the majority of projects were developed: We work in most cities of the Mexican territory, including Chihuahua, Ciudad Juárez, Monterrey, San Luis Potosí, Guadalajara, El Bajío, Querétaro, Saltillo, Aguascalientes, Hermosillo.

• Cities where the majority of projects were developed: We work mainly in Mexico City, although we also have projects in Guadalajara, Acapulco and Mazatlan.

• The most outstanding projects of 2017: Of the fifty projects we had, those that stand out have been made for different industries, such as the BMW plant in San Luis Potosí, the expansion of the Pirelli plant in Guanajuato, and the Heineken plant in Meoqui, Chihuahua. • Other outstanding projects were at the TPI industrial plants in Ciudad Juarez, Mingua and Autoneum in San Luis Potosí, Faurecia, Shaeffler and NSK in Guanajuato, Unitec in Querétaro, and the Alsuper stores in Chihuahua, Lerdo, Jiménez and Saltillo. Many of these projects started in 2017 and continue in construction during 2018. • Sales growth and project expectations for 2018: For this year we expect a 20% growth in sales. Regarding projects, we’ll complete three projects that we started in 2017 and will work in industrial plants such as TPI, Atem, Taylor Farms, among others, also in hotels like the Hyatt in Aguascalientes and the Marriot in Cd. Juárez, and the Oracle building in Guadalajara, among other projects.

• The most outstanding projects of 2017: This year we can highlight the projects carried out in the building of the Federation Superior Audit and the Santa Fe Hills complex, which integrates a hotel, offices and residences in Mexico City, as well as the Park Inn Hotel in Mazatlan, Sinaloa. • Sales growth and project expectations for 2018: It’s difficult to calculate considering that this is an elections year, but we expect to increase sales by 10%, and grow in the maintenance services business. On the other hand, I see a great interest in investing in HVAC solutions, although the momentum has been affected and has slowed a bit because of the elections. • Most used brands: We work with almost all brands of the market, including Trane, Carrier, York, Soler & Palau, and Innes S.A., a Mexican company.

• Most used brands: We work with all the HVAC brands in the market. TOP IOO CONTRACTORS – InstaLLERS • REPORT 2018-2019

THE PERSPECTIVES OF THE CONTRACTORS - INSTALLERS

Eolis

Grupo Ipasa

• Completed projects in 2017: We finished approximately 50 projects this year.

• Completed projects in 2017: We completed six projects.

• Sales value for developed projects in 2017: Around US$ 21.1 million.

• Sales value for developed projects in 2017: Around US$ 1.1 million.

• Cities where the majority of projects were developed: We have businesses in Mexico City, Guadalajara, Puebla, Lerma, Querétaro, Saltillo, Apizaco, Petacalco and Piedras Negras.

• Cities where the majority of projects were developed: We work in the Monterrey metropolitan area.

Ignacio Hernández Industrial Division Manager

• The most outstanding projects of 2017: We have carried out projects in different companies dedicated to the health sciences, including biotechnology, and industrial production, such as the PISA Real Estate pharmaceutical plant in Guadalajara, the production areas of Bayer Lerma, the expansion of production areas in Sancela (Essity) and Philip Morris (Cigatam), as well as the paint booths of Gunderson Monclova. • Sales growth and project expectations for 2018: For this year, we plan to maintain our sales budget at a similar level as 2017, although this may be increased due to new investments in the pharmaceutical industry and the growth of the textile industry in Mexico and Central America. For this reason, this year we have worked on important pharmaceutical projects in Mexico and textiles in Guatemala, Honduras and El Salvador. We will also work on the expansion of auto parts plants and clean rooms for the production of sterile plastic containers for the Pharma segment. • Most used brands: We use a variety of brands in our projects, such as Carrier, York, Siemens, ABB, Calelec, Bell & Gossett, Soler & Palau, Comefri, Ferrari HVAC Systems, Fläkt, Fairbanks Morse, Snyder and Namm.

Martín Benavides General Director

• The most outstanding projects of 2017: We worked in the Tower Two of the Metropolitan Center, a complex that includes residential, commercial and office areas, and a hotel. There, we installed a 500ton Heat Pump VRF system. • Sales growth and project expectations for 2018: We calculate a 30% growth in sales, however, there is uncertainty among investors about issues such as the exchange rate and the election season. Among the most common trends that we observe for new projects is a greater interest in energy saving systems. • Most used brands: Carrier

Johnson Controls

Luis Fernando Sánchez Vice President and General Manager, Building Technologies & Solutions During 2017, Johnson Controls participated in projects in airports, manufacturing plants, hospitals, food industry, shopping centers and stores, office buildings, among others, offering heating, ventilation and air conditioning solutions, as well as systems integration for buildings, with presence in 150 countries. The most remarkable trend in the sector is the implementation of systems that comply with energy efficiency standards, and to find these indicators, Johnson Controls annually conducts the global survey “Energy Efficiency Indicator”, including 560 industry leaders in Latin America. In Mexico, 62% of organizations are giving greater importance today to the issue of energy efficiency than a year ago, and 40% have plans to increase their investments in energy efficiency and renewable energy over the next year. It is important to highlight that the current growth scenario in the industry is encouraging; however, because of the demand, a greater number of players have appeared in the market offering similar products and services. Therefore, our experience and trajectory backs us up for the development of integration projects including the design, implementation and start-up.

Termo Técnica Quin Eduardo Quintanilla Commercial

• Completed projects in 2017: We delivered twenty projects. • Sales value for developed projects in 2017: Over US$ 9 million. • Cities where the majority of projects were developed: We work in several Mexican cities, such as Monterrey, Saltillo, Leon, Celaya, Irapuato, Lagos de Moreno, Mexico City, Queretaro and Vallarta. • The most outstanding projects of 2017: We’ve had projects in industrial plants, as well as in commercial and cultural spaces, such as the UMC Electronics plant in Lagos de Moreno, the Fashion Drive shopping center in Monterrey and the library of the Technological Institute of Monterrey. • Sales growth and project expectations for 2018: We expect an increase of 20% for this year, exceeding 10 million dollars in sales, and we have projects under development with important clients from different sectors, such as Pepsico and Femsa in food, Tecnológico de Monterrey, construction companies and investors such as Hazama, Orange and the International Investment (IDEI), among others. • Most used brands: We are not exclusive distributors for one manufacturer, we work with different brands such as Carrier, York, LG, Daikin, Toshiba, Samsumg, Trane, Greenheck, Soler & Palau, Victaulic, Siemens, Schneider Electric, General Electric, Potter Roemer, Geberit, Uponor, Armstrong, Taco, Reymsa, BAC and Industrial Mexicana.

TOP IOO CONTRACTORS – InstaLLERS • REPORT 2018-2019

THE PERSPECTIVES OF THE CONTRACTORS - INSTALLERS

RCR Refrigeración Luis Ballesteros General Director

• Completed projects in 2017: Approximately forty projects throughout Mexico. • Sales value for developed projects in 2017: About US$ 16.5 million. • Cities where the majority of projects were developed: We have offices in Tijuana, Hermosillo, Culiacán, Guadalajara, Monterrey, León, Mérida and Baja California Sur, but our operations extend to all cities in Mexico and Costa Rica with a commercial partnership, and in Colombia through local alliances. • The most outstanding projects of 2017: We worked in the implementation and installation of refrigeration systems, with natural refrigerants, ammonia and CO2, in the new Alsea Group distribution center. This is a Mexican company that has franchises of different brands of fast food restaurants and coffee shops, among others, and is having an important growth.

We also had an installation in Michoacán for a guacamole processing plant where we installed all components from panels to refrigeration systems.

• Sales growth and project expectations for 2018: This year is complicated because of the election season and the renegotiation of the FTA with the US, which is why companies prefer to be conservative in their investments. This makes us calculate a 10% growth in 2018, but we expect the dynamics to normalize after the elections and the negotiation of the FTA.

Among the clearest trends is the need of entrepreneurs to invest in efficient and environmentally friendly equipment. Increasingly, we have customers who ask for projects that meet this requirement. We are preparing ourselves for this demand with refrigeration equipment that operates with natural gas or ammonia in small quantities and CO2 to reach ultra-low temperatures, taking advantage of the partnerships we have with the manufacturers that use these types of systems.

• Most used brands: We work with Bohn, Bitzer, Güntner, HillPhoenix equipment, and we use Parker Sporlan, Danfoss, Emerson and Hansen components.

Uribe Ingenieros Raúl Uribe García CEO

• Completed projects in 2017: We finished 27 projects and have one still in the works. • Sales value for developed projects in 2017: About US$ 116.1 million. • Cities where the majority of projects were developed: We work throughout Mexico and in other Latin American and Caribbean countries, such as Panama with a project on the canal, and in Cuba and the Bahamas with hotels. • The most outstanding projects of 2017: The largest project we have is with the Mexican Institute of Social Security. We’ve also taken part in important projects in high-rise towers, such as the Mítikah Tower and the BBVA Bancomer Tower in Mexico City. In these projects we have carried out electromechanical installations, ranging from electrical, sanitary and PCI installation, to automation and lighting control.

• Sales growth and project expectations for 2018: We have about 23 projects to complete in 2018, and we have very high growth expectations, despite the uncertainty that exists in private and government initiatives for the election season. Among the trends to highlight in Mexico, I believe there’s a great opportunity for growth in the construction sector, and there’s also a significant opening of the clean energy market, especially with the regulation that requires employers to use at least 5% of green energy, from the three generation plants of this type in the country. This is a business opportunity for integration companies. • Most used brands: In electromechanical components we mainly use Schneider Electric, APT Electric, General Electric, Siemens, Canada Power Technology, Lutron Electronics and Condumex, in HVAC we use Carrier and Eaton, and in PCI we use Aurora Picsa, Honeywell, Johnson Controls, among others.

TOP IOO CONTRACTORS – InstaLLERS • REPORT 2018-2019

THE PERSPECTIVES OF THE CONTRACTORS - INSTALLERS

Grupo Clima

Chris Elizondo Deputy General Manager Costa Rica • Completed projects in 2017: The number of projects we deliver exceeds 1,000 per year, due to the diversity of activities that Grupo Clima carries out, and the different sectors that we serve. • Sales value for developed projects in 2017: Major projects are undoubtedly an important component of our business volume, exceeding US$ 30 million per year. • Cities where the majority of projects were developed: Grupo Clima strives to be present in all the Costa Rican territory. Currently, we have branches in Jacó, Liberia, Heredia and our headquarters in San José. We also have an office in Managua, Nicaragua since 2001. • The most outstanding projects of 2017: In 2017, through CMI, our electromechanical company, we started two very interesting projects in which we unified all the Clima Group specialties in a comprehensive solution for the client: the development of a new hotel in Playa Danta within the Las Catalinas Tourism complex, and the expansion of Codisa’s new Data Center. We also deliver important projects in industrial refrigeration in Costa Rica and Nicaragua, such as the distribution center of Mayca and Cargill. For HVAC, we carried out hospital projects such as the new Hospital de la Anexión and the National Center for Palliative Care, both in Costa Rica. In the area of Tourism we were present in the construction of the National Center of Congresses and Conventions of Costa Rica.

It was a significant year as well for renewable energy projects, a sector that we serve through a strategic alliance with GreenEnergy firm. A project of this type was done for Grupo Acón in the Atlantic area, one of the largest private-sector projects that has been carried out in Costa Rica.

• Sales growth and project expectations for 2018: In 2018, we relied on our experience to encourage the use of ammonia in industrial refrigeration projects. In addition, we contribute to the growth of the Free Zones in Costa Rica, both the growth in offices and the application of facilities and hospital projects. For Grupo Clima, the most important thing is our people and the professional development of all of us who are part of this group of companies. Currently, approximately 800 families depend directly on us, not counting those that are indirectly dependent. This is why our main responsibility is to keep growing in an orderly manner and hold our leadership in the market. • Most used brands: We have represented Carrier and Carrier Transicold companies for more than forty years, and we carry out refrigeration projects with Hussman and Imbera. In automation we’ve worked for ten years with Johnson Controls and Incom, among others. Additionally, in our company Refrimundo we work with Samsung, Tempstar and Coolteck equipment.

Central America

Multifrío

Salo Ponchner General Director Costa Rica • Completed projects in 2017: Between projects and maintenance contracts, and equipment replacement, we had 1,243 projects for different sectors. • Sales value for developed projects in 2017: Nearly US$ 20 million. • Cities where the majority of projects were developed: Throughout Costa Rica, also in Nicaragua, Panama, El Salvador, Guatemala and Honduras. • The most outstanding projects of 2017: Mainly projects for clean rooms, critical applications in laboratories, industrial production areas and offices. These installations were carried out in different multinationals of the pharmaceutical sector and the medical devices industry, such as Roche, GSK, Bayer, Pfizer, among many others. We have also worked in call centers, retail stores, banks and universities, including HP, Amazon, Western Union, INCAE business schools, the Latina University of Costa Rica and the University of Medical Sciences (Ucimed), among others. We have also participated in residential, commercial and hotel mega-projects where both the common areas of each project, as well as the refurbishment of their subsidiary estates had installations.

• Sales growth and project expectations for 2018: We expect a 20% increase in sales. We currently have many ongoing projects, and others in plans. One of the most important activities in which we’ve participated is on replacement programs for obsolete equipment that use prohibited refrigerants or are energetically inefficient. This involves offering customers all services from design and budgeting to commissioning, up to after-sale service, supporting the equipment’s complete life cycle, because we must be innovative while facing the uncertainties and expectations that the new government brings for the next four years, making us more cautious until we can see how the market is evolving. • Most used brands: Among the most important is Daikin, from whom we received the sales prize for Latin America in 2017. Also, Johnson Controls, Mitsubishi Heavy Industries, Systemair, Greenheck, among others.

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Inelec

Javier Dávila General Manager Honduras • Completed projects in 2017: We delivered 15 important projects in 2017. • Sales value for developed projects in 2017: Approximately US$ 4 million. • Cities where the majority of projects were developed: We operate nationwide, with a greater presence in Tegucigalpa and San Pedro Sula. • The most outstanding projects of 2017: Among the most important projects we had was the 1847 Master’s Building and the main cafeteria in the Autonomous University of Honduras; the corporate building of Banco Davivienda, a Colombian banking multinational, and the cinemas of Multicines Plaza in Tegucigalpa; the Megalarach hardware store in San Pedro Sula; the Convention Center of the Gualiqueme Hotel in Choluteca, as well as several stores of the Tigo telephone company nationwide.

• Sales growth and project expectations for 2018: Our expectation is a 15% growth from the potential of the construction sector in the country. This is added to our entry this year to the Costa Rican market and the six years we’ve had a presence in El Salvador. In relation to the HVAC market in our region, I would like to comment that it is growing. I have observed that these types of projects are handled in a more technical and professional way, taking into account new technologies that trend in the more developed markets. The growth of the construction of both shopping centers, office buildings and apartments, as well as important tourism developments, have made air conditioning systems an important need. • Most used brands: Our leading brand is Mitsubishi with VRF equipment.

Compañía Climatizadora

Instalfrío

• Completed projects in 2017: About 32 projects were handled.

• Completed projects in 2017: We delivered 15 projects.

• Sales value for developed projects in 2017: Only in projects, sales were around US$ 10 million.

• Valor aproximado por ventas en 2017: We had sales for US$ 320,000.

• Cities where the majority of projects were developed: Mainly in Panama City and David.

• Ciudades donde se desarrollaron la mayoría de proyectos: Panama City.

• The most outstanding projects of 2017: Among the most outstanding projects is the Ensa Santa María office building, the Galera Motta and Galera Panafoto warehouses. VRF systems were used in the latter two with commercial handlers for the conditioning of the storage area and offices. Specifically for Galera Motta, the supply and installation of cooling racks was included for the storage area. We also carried out the installation of the refrigeration system of diverse different King Supermarket locations.

• Los proyectos más destacados de 2017: We’ve had commercial, corporate and residential installations, such as Dairy Queen El Dorado, Payless Chitré, Super Sports Town Center, Banistmo Gallery Plaza Carolina, National Bank of Panama Villa Lucre, and in residential apartments The Reserve Santa María and Green View Santa María, among others.

Carlos Rojas Project Manager Panama

• Expectativa de crecimiento de ventas y de proyectos, y tendencias para 2018: We are betting on an increase of around 6%, a goal we’ve been fulfilling according to our figures for the first quarter. We also have expectations for this year in the development of opportunities in the interior of the country, as well as upgrading projects with the use of high efficiency VRF and chiller equipment.

Rafael Cordero Project Engineer Panama

• Sales growth and project expectations for 2018: Our growth perspective for this year is 50% to reach a turnover of around US$ 600,000, as our portfolio of clients increases for both small and large projects. In 2018 we already have several ongoing and approved projects which will help us reach our growth goal. • Most used brands: We have Carrier, Samsung, Trane, Daikin, Lennox, Rheem, Climate Master, LG and Panasonic.

• MARCAS MÁS USADAS: We represent different brands, including Carrier, Evapco, Belimo, Grundfos, SystemAir, Alfa Laval, Hussmann, Wanzl, Bitzer, ABB.

TOP IOO CONTRACTORS – InstaLLERS • REPORT 2018-2019

Andean Region

Aire Caribe

Gabriel Jiménez General Manager Colombia • Completed projects in 2017: We completed some installations in 2017 and others that started later in that year but continued in 2018. Counting the most important, there were over ten projects. • Sales value for developed projects in 2017: Approximately US$ 13.7 million. • Cities where the majority of projects were developed: Cali, Medellin, Barranquilla, Bogota, Cartagena, Valledupar, Montería, Cúcuta, among others. • The most outstanding projects of 2017: We’ve had uninterrupted business with the Cerrejón mining project since 1982, including the refurbishment of 120 houses in the nearby town of Puerto Bolívar. We are currently continuing to work with the Drummond Company in the maintenance of all their HVAC equipment. Another important industrial project we have is in Cota, Cundinamarca, a laboratory where dialysis processes are handled, in which the installation is designed not only for comfort, but also to maintain a high quality of air, without contaminants. We also have other facilities of this type for the hospitals of Aguachica (Cesar), Arauca and Clínica La Colina in Bogotá, where they have strict regulations regarding air management.

• Sales growth and project expectations for 2018: Our objective now is to consolidate ourselves to offering quality results rather than continuing to grow without a quality management system. We also seek to create alliances. We won’t see results immediately, but that will help us to retain our customers with higher innovation. At this moment, the most remarkable trend, and one that generates more income for contractors, is the renewal of equipment in compliance with the Kyoto and Montreal Protocols. We are also raising awareness about the “quality” of the air that is breathed in, not only the temperature and humidity, but rather the absence of contaminants. • Most used brands: We use brands such as Trane, Johnson Controls, Daikin, Carrier, LG, Samsung, Soler & Palau, Greenheck, Loren Cook, PACO Pumps, Armstrong, Grundfos, Laminaire.

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Grivan Ingeniería Fernando Grisales General Manager Colombia

• Completed projects in 2017: We carried out and finished 96 projects. We have other projects that began in 2017 and continue in 2018. • Sales value for developed projects in 2017: In projects only, we invoiced over US$ 5 million in 2017. In total, including maintenance, box sales and other services, we invoiced about US$ 5.5 million. • Cities where the majority of projects were developed: Cali, Bogotá and its suburbs, Villavicencio, Barranquilla and t he Atlantic coast area, and the Colombian Coffee Region. We also have business in Cuba with intermediation with Panama, in Honduras, Venezuela, Ecuador and Chile. • The most outstanding projects of 2017: Since our establishment we have focused more on industrial refrigeration, like cold rooms, and it is how we are renowned in the market, but we have increasingly entered the HVAC business with the arrival to the company of the engineer Alexander Villamil, who in a few years helped us grow this business from 5% to almost 30% of the company’s income. Precisely in HVAC we started the most significant project of the company in 2017 at the headquarters of Coomeva, a Colombian business group, in Cali. This project is being carried out in a twenty-year-old building with 390 tons of refrigeration, an installation that will take two years to complete.

Moreover, in Refrigeration we worked with the Port Society of Santa Marta where we built the inspection rooms for refrigerated cargo, preventing interruptions in cool chain, and with the food importer Atlantic Food Service in Barranquilla. We also highlight the project we carried out with the specialized Open Market logistics operator for refrigerated pharmaceutical products transport and storage. With them we worked on increasing the volume of storage, inspection rooms, and more.

• Sales growth and project expectations for 2018: We started the year with an expectation of 20% but by May 2018 we have already grown 150% in projects. Initially we measured taking into account the electoral season in the country, and that in the past two years we’ve decreased. So, we prepared for a difficult season, but we are happy because that was not the case. In terms of trends, we see that logistics centers are at their peak, especially for customers who import products that require cool chain. We see an increasing demand to supply the lack of refrigeration volume that exists in Colombia. • Most used brands: We don’t have one-brand exclusivity, but we do have preferences and relationships with some of them, such as Daikin, Carrier, Trane, York, Lennox for HVAC, and meTecno panels and the entire Heatcraft line for Refrigeration.

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Johnson Controls

Richard Monestel General Manager, Building Technologies & Solutions, Middle America Colombia

The Colombian construction sector has been one of the main engines of the economy in recent decades. However, in 2017 and so far in 2018 we haven’t reached the levels of the past. Although this has directly impacted the Johnson Controls business, we have created strategies to mitigate this downward trend and to be able to meet our objectives. In our global Energy Efficiency Indicator survey, which includes 560 industry leaders in Latin America, we found that the interest in energy efficiency continues to grow in the Colombian market, and 55% of organizations have given greater importance to this matter. This is why 43% of the surveyed companies plan to increase their investment in renewable energy over the following year, and an additional 48% plan to maintain their current investment level. It’s important to note that 56% of Colombian companies are planning to invest in improving their heating, ventilation and air conditioning systems in the first place. However, there’s still a long way to go, and there are barriers such as ignorance, awareness and lack of economic stimuli that directly impact the market. Even so, our business continues to grow at a sustained pace.

Comercial y Servicios Larco Natalia Arango Commercial Director Colombia

• Completed projects in 2017: We finished about 70 projects. We must add that we renewed most of the maintenance contracts that we had in 2017. • Sales value for developed projects in 2017: We met the goals we projected and reached US$ 28.3 million. • Cities where the majority of projects were developed: Bogotá, Medellín, Barranquilla and Cartagena. • The most outstanding projects of 2017: Mainly, the market of large retailers in Colombia boosted the growth of the sector. It’s important to mention the projects we carried out in the Viva Envigado mall in Medellin, Mall Plaza Buenavista III in Barranquilla, El Edén shopping center in Bogotá, among others in different cities of the country. We also highlight a significant increase in hotel beds. And among the most outstanding projects we can mention - the Hilton Corferias in Bogota, Ibis Itagüí and Salvio Bogota. And as an exceptional and very significant project because of its infrastructure of unique dimensions, we were contracted for the Air Conditioning and Ventilation project of the Ituango Hydroelectric plant, one of the largest engineering projects of this type currently under construction in Colombia.

Servipáramo

Carlos Hoyos Commercial Manager Colombia • Completed projects in 2017: 37 projects were delivered. • Sales growth and project expectations for 2018: Thanks to the strength of our company and the market perspectives, we have budgeted for 2018 to grow between 5% and 10%. It is important to keep in mind that we are also growing nationwide in contracting maintenance. This item represents approximately 20% of our sales. • Most used brands: The variety of equipment and current manufacturers give us the option to offer our customers the best technical option, while fulfilling the requirements of the designers. We always work with suppliers that offer support, trajectory and reliability.

• Sales value for developed projects in 2017: US$ 42 million in the region. • Cities where the majority of projects were developed: We cover the entire Colombian territory with the largest participation in Barranquilla, Cartagena, Santa Marta, Bogota, Medellin and Cali. We’re also present in Peru and Chile. • The most outstanding projects of 2017: We highlight the Serena del Mar Hospital Center and the solar energy cogeneration system at the Conrand Karibana Hotel in Cartagena, as well as the start of the Serena del Mar Thermal District in this city, and Lo Nuestro Montería shopping center where a cogeneration plant was installed, in addition to the HVAC internal systems. • Sales growth and project expectations for 2018: We expect a 10% growth. • Most used brands: We use Trane, York, Carrier and Daikin in applied equipment. In light commercial or residential equipment, we use LG and Samsung. With VRF we work with Carrier, Daikin, LG and Samsung.

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Omega Ingenieros Gustavo Adolfo Cruz General Manager Colombia

• Completed projects in 2017: In total, we worked for about 50 clients with projects; in 15 of them we had medium and large size projects. • Sales value for developed projects in 2017: Our global sales figures reached almost US $ 5.2 million. Of that figure, 75% were projects. The rest corresponds to maintenance work and our environmental line. • Cities where the majority of projects were developed: Our three offices have allowed us to consolidate work in Cali, Bogotá and Cartagena. The growth of the (Atlantic) Coastal region is also important. • The most outstanding projects of 2017: 2017 had an important dynamic that allowed us to carry out installations in different cities. We highlight the installation of the VRF Heat Recovery system at City Express hotels in Bogotá and VRF Cooling Only at City Express Medellín. Additionally, we worked on the installation and renovation of the ice water systems for the Coomeva Contact Center in Cali, the Universidad Autónoma de Occidente in Cali and Genfar in the Cauca region. • Sales growth and project expectations for 2018: This year’s growth prospects are not high because the

uncertainties of the new presidential term have held back diverse sectors. We believe that we will be at a very similar level to 2017. We have undertaken a series of changes, some ambitious, but with a clear strategy of differentiation that we hope will bear fruit in a very short time. We also estimate that the growth in projects will be more focused on VRF systems than chilled water, because of the initial installation costs. And we will see a greater growth dynamic in the educational and industrial sectors, although we could see a pick up in the hotel sector for renovations.

• Most used brands: In 2017 we worked with LG, Trane, York, Carrier, Armstrong, Grunfoss, Reymsa, Danfoss, Soler & Palau, among others.

Refridcol

Héctor Torres Manager Colombia • Completed projects in 2017: In projects only, we received 130 orders. In total, taking into account the different sales categories we have, including equipment supply, we had 730 orders. • Sales value for developed projects in 2017: Approximately US$ 9 million in projects, of the US$ 10.7 that the company sold in total. • Cities where the majority of projects were developed: We have four offices in Colombia in the main cities: Cali, Bogotá, Medellín, Barranquilla. We also work in El Salvador and Panama. • The most outstanding projects of 2017: For the Casablanca meat company, the whole refrigeration system was remodeled. We changed the existing forced air condensers for evaporative condensers with Freon systems, which is the most common refrigerant in Colombia, reaching an energy saving of approximately 25%. Two years ago, we took part in the construction of the two large distribution centers of Nutresa in Montería and Cartagena, which were completed that same year, as well as the renewal of a cellar owned by Nutresa for the Suizo meat brand that was damaged in a disaster and rebuilt with a fully automated ammonia system.

• Sales growth and project expectations for 2018: This year we bet on growing by 7%. This year’s prospects are very uncertain on the side of the companies until the election season passes, a situation that affects us a lot. We are very focused on the topic of the protection and conservation of the environment in the future, using ecological and efficient systems based on ammonia and CO2, which is one of the strongest trends and we hope will be adopted in Colombia. We see the market with good eyes in the next ten years; however, the economies are cyclical and it is up to us as entrepreneurs to work up the curve, especially since we consider that Latin America is called to be the pantry of the world, which is why it’s important to invest more resources in the food refrigeration industry. • Most used brands: Mainly meTecno, Güntner, Bitzer, Copeland, among others.

TOP IOO CONTRACTORS – InstaLLERS • REPORT 2018-2019

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Weston

Cold Import

• Completed projects in 2017: We delivered over 60 projects, 36 of them in HVAC, and 27 projects in Industrial refrigeration.

Richard Osma General Manager Colombia The refrigeration industry in Colombia, and in Latin America in general, is going through what could be called “a turning point”, in which the challenges of using low GWP (Global-warming potential) refrigeration substances and the development of high energy efficiency systems, are taking us down a path of great challenges in innovation and the use of cutting-edge technologies.

In our case, we promote the use of refrigeration systems with CO2 as the only refrigerant gas, systems with secondary refrigerants, equipment with natural refrigerants, among others.

The implementation of these new technologies implies great challenges for which we are prepared as an industry, and will continue in continuous processes of improvement to respond to market demand.

Adán Cruz General Manager Peru

• Sales value for developed projects in 2017: In HVAC we invoiced US$ 7.25 million and in Industrial refrigeration, US$ 6.35 million. • Cities where the majority of projects were developed: The most part in Lima, approximately 60% of the projects. We also have direct presence in Arequipa, in Piure and Trujillo, and we also have a network of distributors in all provinces of Peru. • The most outstanding projects of 2017: We equipped with HVAC the Aloft and Talbot hotels, the Totus supermarket chain, the Good Hope Clinic and the Roosevelt School in Lima, these projects were the largest. As for Refrigeration, we installed in the Wong supermarket chain and Plaza Vea, as well as in Totus supermarkets. • Sales growth and project expectations for 2018: We expect a growth of 10% in HVAC, and in Refrigeration we want to grow over 15%, especially this year as we’re celebrating 60 years of our foundation in September. Today we have several ongoing HVAC projects in hotels, shopping centers, supermarkets and office buildings, and in Refrigeration we plan to continue serving the three main supermarket chains in the country. We also have projects in fishing and agribusiness sectors. • Most used brands: For HVAC projects we use Carrier and CIAC, while in Refrigeration we use Eletrofrio, Lu-Ve Contardo condensers, Emerson Copeland and Tecumseh compressors, and Carel automation.

Corporación Uezu

SAEG

• Completed projects and Sales value in 2017: We consider this information confidential.

• Completed projects in 2017: In the year, we closed more than two dozen projects in different vertical markets.

Manuel Uezu General Manager Peru

• Cities where the majority of projects were developed: Our sales are concentrated mainly in Lima, where the greatest development of the commercial, industrial and construction sectors is found. • Los proyectos más destacados de 2017: Our most highlighted projects were in the commercial sector: Cineplanet, the largest chain of cinemas in Peru, where air conditioning systems were supplied and installed in several Peruvian cities. The equipment was Lennox Rooftop, Energence, Ultra High Efficiency packages, of the latest generation and highest efficiency. • Sales growth and project expectations for 2018: Unfortunately, we consider the growth of HVAC sales almost nil for 2018, because of the government’s economic mismanagement and the political situation that caused the dismissal of President Kuczynski, that ended up deepening the country’s economic problems. In the first semester of 2018, there has been a decrease in the HVAC sector, but we believe that there are good recovery expectations for the economy for the second semester. Our project expectation for this period is in the commercial retail sector, mainly in supermarkets. • Most used brands: In air conditioning equipment, we distribute Lennox, York and Gree; in fans we distribute ACME, Vents and Tecnifan.

María Isabel Ucha VP of Operations Peru

• Cities where the majority of projects were developed: Our offices in Peru and the Dominican Republic are the most active, and we have businesses in a significant part of the region, with an eight-office network and ten commercial representations. • The most outstanding projects of 2017: We had the Stingray project for our client Medtronic, a multinational of technology and medical solutions in the Dominican Republic, which was undoubtedly the most important one in this period. We did the engineering, procurement and construction of an area of 50,000 cubic feet, including an ISO class 8 clean room. In Peru, we highlight the Toquepala project for the Southern mining company, where we provided the imagery, procurement and construction management for a dust collection system. • Sales growth and project expectations for 2018: Our plans for this fiscal year include the expansion of our footprint to new geographies, the diversification of our products and services, as well as the increase of our market share. We will also deepen our strategy of participation in the vertical markets that we’ve prioritized in the region, such as hospitals, pharmaceutical, mining and energy. • Most used brands: We represent approximately 200 equipment and supplies manufacturers for the HVAC-R industry, fire protection systems, automation and control. TOP IOO CONTRACTORS – InstaLLERS • REPORT 2018-2019

THE PERSPECTIVES OF THE CONTRACTORS - INSTALLERS

Feibo

José Enrique Fernández Director Venezuela • Completed projects in 2017: We have several lines of business in the company, including construction and installation, maintenance, design and control. In 2017 we had about 20 installation projects and 31 maintenance contracts. • Cities where the majority of projects were developed: Caracas, Maracay, Valencia and Margarita. We’ve also reached the Dominican Republic in Santo Domingo and Punta Cana, and the island of Curaçao. • The most outstanding projects of 2017: We worked at the Esmeralda Business Center, which is still in process. There are about 60,000 square meters of offices and commercial area, two towers of 21 floors where we installed 2,200 tons of refrigeration with four chillers of 550 tons of water cooling. This is an important engineering job in which about 25,000 liters of water are recovered from all the HVAC units, and we use technology on the roof to pull fresh air and bring it to the interior of the building, allowing a 35% energy saving. Although it’s not certified as LEED, it has all the required features. We also have a project that we adapted and modified for a clinic in Margarita, with 600 HVAC tons for eighty offices and six operating rooms. We also highlight the Las Plazas project in the city of Valencia, a commercial center with 400 stores, an office tower and a hotel. It’s 4,500 tons of HVAC project, where we have been working for two years.

• Sales growth and project expectations for 2018: We have interesting projects this year, which allow us to continue growing as a company. We currently have 160 people in our staff plant and we hope to make it grow a little more. Our main challenge now is to reduce the turnover of trained personnel. Although in Venezuela energy is very cheap, we want to emphasize energy saving, water recovery and automation to improve efficiency. We see that VRF systems are growing a lot and their penetration in this market is increasing. • Most used brands: For more than 22 years, we’ve been working with Trane, recently with Samsung in VRF, Armstrong, Greenheck, Belimo, Protec, Evapco, Danfoss, P3ductal, among others.

Refriamerica

Omar Yvan Vivas General Director Néstor Sánchez Project Manager Venezuela • Completed projects in 2017: We participated in five major projects of HVAC and automation systems. • Sales value for developed projects in 2017: Approximately US$ 5 million. • Cities where the majority of projects were developed: Our main participation covers the Greater Caracas, Maracay, Valencia, Barquisimeto, Puerto La Cruz and Margarita. Likewise, we serve projects in the rest of the country with commercial partners in the different regions. • The most outstanding projects of 2017: One of the most highlighted was the replacement of the central HVAC system in the former corporate headquarters of Petroquímica de Venezuela. The new system consists of a machine room for Carrier chilled water coolers and a condensation system of two Evapco cooling towers. The main engineering challenge of this installation was the adaptation of a basement to house the equipment, and the handling of thermal loads, especially in the case of an overpopulated building with over fifty years of construction. We also highlight the project for the first data center with Tier III certification in Venezuela. We participated in the engineering, supply and installation phases for almost 36 months, where a central air conditioning system with chilled water was installed for a projected

thermal load of 1,500 tons for a 6,000 square meter space, with Carrier air-cooled water chillers, operating in conjunction with comfort air management units for common areas and offices. For this particular project, we had to conduct tropicalization, because the designs and energy requirements were planned to operate as they would in America, which was not consistent with the environment in Venezuela. • Sales growth and project expectations for 2018: With the inclusion in our portfolio of the new VRF lines and I-vu controls, we are betting on an additional 15 to 20% growth in our annual sales. We believe that it is important to see more investment in energy saving systems, because although energy in Venezuela is cheap now, that will not last forever, so we should think that in the future it may become very expensive. We also think that our growth in the upcoming years will be based on the development of VRF systems projects, as well as the automation of all systems in order to reach higher energy savings. • Most used brands: We are the main distributors of Carrier in Venezuela, we use Evapco cooling towers and automation with IVu-Carrier, we also use American Marsh Pump, Belimo, Modine-Luvata, Carlyle and Copeland compressors, and Extech Instruments and Robinair measuring equipment.

TOP IOO CONTRACTORS – InstaLLERS • REPORT 2018-2019

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Frimont

Inema

• Completed projects in 2017: Between final and partial deliveries, we carried out 30 installations.

• Completed projects in 2017: In Chile alone we delivered over 100 projects.

Gustavo De la Torre David Gómez Development and Business Support Commercial Director Argentina Chile

• Sales value for developed projects in 2017: Only in equipment US$ 4.9 million, and in services US$ 2.4 million. • Cities where the majority of projects were developed: Mainly in Buenos Aires, Mendoza, Rosario and Santiago de Chile. • The most outstanding projects of 2017: We worked in industrial projects for BASF in the Tortuguitas Plant and in Papelera del Plata; we had projects in the food sector, such as Los Haroldos Winery, Quilmes breweries in Ypané Plant (Paraguay), Acheral Plant (Tucumán) and Tres Arroyos Plant, as well as at the San Fernando Plant of Nestlé in Chile. • Sales growth and project expectations for 2018: We expect a growth of over 10%, and in projects we will seek to increase our participation in the moving of the Dioxitek nuclear fuel plant, as well as in frozen food and beverage projects. We also hope to consolidate our relationship with different compressor suppliers. • Most used brands: In compressors we use Frascold, Hall, Vilter, SRM; Thermokey heat exchangers, Onda, Thermowave; Moeller and Telemecanique electrical components, and Dixell and Parker electronics.

• Sales value for developed projects in 2017: US$ 30 million. • Cities where the majority of projects were developed: We’re in all Chile, and we also have projects in Peru, Panama, Ecuador and Paraguay. • The most outstanding projects of 2017: We had all the projects for the Walmart chain stores. With them we have a two-year contract to serve 100 supermarkets, including panels, doors, furniture and refrigeration. Another important project we had in Chile was in Temuco, where we worked at a distribution center cooling loading areas. In Panama, we worked at the cool chain market for their government, a US$ 3.5 million project which was built during 2017, and started to be occupied in 2018. • Sales growth and project expectations for 2018: Sales growth, project expectations and trends for 2018: This year will be very good for us, we hope to increase sales by 20% and we already have ongoing projects in Peru and Panama. We see that the main trend is towards energy saving which is something we implement. All our projects are focused on the sustainable, and although the investment for this is a little higher, the cost of its use is more profitable. • Most used brands: Bitzer compressors, MTH refrigeration chambers, Carrier and Waterloo.

Southern Cone

Refricentro

Termofrío

• Completed projects in 2017: Between refrigeration projects and cold rooms, about 600 projects. Throughout the history of the company, we have built some 12,000 projects.

• Completed projects in 2017: Although this was not the best year for us, we delivered 47 projects that included the supply, installations and assemblies in HVAC.

• Sales value for developed projects in 2017: Approximately US$ 11 million, considering large and medium projects.

• Sales value for developed projects in 2017: Taking into account the above, an approximate sales figure is US$ 9 million.

• Cities where the majority of projects were developed: Our head office is in Santiago de Chile, and we have offices and warehouses in the south of the country to serve the meat and fishing market. We also opened an office and warehouse in Lima two years ago, and we have an office in Miami and distribute all over South America. We’ve had projects in El Salvador, Costa Rica, Bolivia, Paraguay, Uruguay, Ecuador, Panama and Mexico.

• Cities where the majority of projects were developed: Termofrío has a nationwide participation, but our main focus is Santiago.

Klaus Sösemann Business Development Manager Chile

• The most outstanding projects of 2017: We had a project with the Lufthansa Group in Panama; it was an engineering challenge for environmental air conditioning. In the south of Chile, we also had quite a large project with the Agrícola Covadonga company, where all refrigeration equipment for the fruit area was installed. • Sales growth and project expectations for 2018: This year will be very good for us. We are projecting a 5% growth, taking advantage of the market boom in Chile due to the change of government. We are working a lot with energy saving technology that allows for optimizing the cooling process, and investing in the construction of new doors. • Most used brands: We have alliances with Emerson, Frascold, Stefani, among others.

Osvaldo Gómez Corporate Operations Manager Chile

• The most outstanding projects of 2017: Among the highlighted projects, thirteen of them required the greatest presence and dedication, and are the most representative because of their level of technical complexity, economic investment, deadlines and logistics. Among them: the Puente Alto Health Referential Center, the Cruz Blanca Clinic building, the new Santa María Tower, the San Damián Towers A and B, the expansion of the Dávila Clinic, the Valech Emergency Hospital, and at the Las Condes Clinic: the Peñalolén Medical Center and the Edificio Verde A. • Sales growth and project expectations for 2018: We hope that by the end of this year we’ll have the same results as 2017, and in the upcoming years we will gradually return to the level we had four years ago. Real estate and related projects, such as office buildings, are among the markets that we expect to reactivate in the near future. • Most used brands: The brands are recognized worldwide and established in Chile, such as Trane, Midea-Carrier, Daikin, LG, Samsung, Climaveneta, Honeywell, Toshiba, among others. TOP IOO CONTRACTORS – InstaLLERS • REPORT 2018-2019

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MED

Mario Zito Director Uruguay • COMPLETED PROJECTS AND APPROXIMATE VALUE FOR SALES IN 2017: I prefer not to comment. • Cities where the majority of projects were developed: We have headquarters in Montevideo and Punta del Este. We also have an establishment in Paraguay. • The most outstanding projects of 2017: We had a project in the Las Piedras shopping center, it’s the most important project we made. We also worked at a disco in Punta Carretas, as well as in the Hampton Hotel of the Hilton hotel chain. The three projects were carried out with diverse HVAC systems. At Las Piedras, we used condensing chillers with water and air handlers where we supplied and installed all equipment. We also have ongoing projects with the Banco de Seguros del Estado Hospital, which we can describe as a hybrid - cold water and central hot water, Daikin VRV systems and HVAC in operating rooms and halls. The interesting thing about this project is that it has every type of equipment in thermal conditioning systems. We also have the largest thermal conditioning project for the last ten years in Uruguay, the Antel Arena, the

first closed stadium in the country. Its estimated delivery is by the end of 2018. There, 5,000 kW of cold and hot water are being installed, with polyvalent chillers condensed by air. It also has air handlers connected to the Climaveneta’s ClimaPro plug and play system. • Sales growth and project expectations for 2018: Sales growth, project expectations and trends for 2018: Although the business activity has been very slow and the real growth has been low, we had good results last year; and so far this year, we consolidated as the market leaders, but we believe that the market will remain stagnant. In Paraguay, where we have offices, the sales of equipment move a lot, while in Uruguay we have a stable market. However, we depend on the behavior of the Argentina and Brazil economies, which takes a big toll on us in Uruguay. We anticipate a very low growth in construction. It will remain stable, although this does not mean it’s a negative situation. • Most used brands: Climaveneta, Lennox and Daikin.

CHAPTER 3

2018

RANKING BY REGION

Mexico No.

COMPANY

SEGMENT

TERMO TÉCNICA QUIN

Air Conditioning

RECSA REFRIGERACIÓN

Refrigeration

MITSUCLIMATIZACIÓN

Air Conditioning

CALEFACCIÓN Y VENTILACIÓN (CYVSA)

Air Conditioning

GRUPO IPASA

Air Conditioning

CLIMAS

Air Conditioning

HUMICLIMA MÉXICO

Air Conditioning

EOLIS AMÉRICA LATINA

Refrigeration

JOHNSON CONTROLS MÉXICO

Air Conditioning

ABE REFRIGERACIÓN

URIBE INGENIEROS

Air Conditioning

AIRE ACONDICIONADO ÁRTICO

Air Conditioning

ARECHE INGENIEROS

Air Conditioning

REINMEX (REFRIGERACIÓN INDUSTRIAL MÉXICO)

Refrigeration

CAURUS ECO INGENIERÍA

Air Conditioning

Refrigeration

REPRESENTATIVE

WEB INFO

Eduardo Quintanilla

equintanilla@ttq.com.mx

52 81 8359 8660

www.ttq.com.mx

Fernando López

fernandol@recsarefrigeracion.com.mx

52 55 5525 2003

www.recsarefrigeracion.com.mx

Adrián Salcedo

adrian@mitsuclimatizacion.com.mx

52 55 5640 6552

www.mitsuclimatizacion.com.mx

José Luis Ruiz Rodríguez

jruiz@cyvsa.com

52 55 5350 5350

www.cyvsa.com

Adriana Villarreal Novelo

avillarreal@climasipasa.com

52 81 8989 6797

www.climasipasa.com

Nefris Andrea Rosales Soto

nrosales@climas.com

52 61 4439 3999

www.climas.com

David Luceño

dluceno@humiclima.com

52 98 4879 4989

www.humiclima.com/mexico

Ignacio Hernández

ignacio.hernandez@eolis.com.mx

52 55 3640 1407

www.eolis.com.mx

Santiago Echeveste

santiago.echeveste@jci.com

52 55 5249 8295

www.johnsoncontrols.com/es_mx

Manuel Alarcón López

abecursos@abe-ref.com

52 55 5683 6288

www.abe-ref.com

Tania Uribe

t.uribe@uiasa.mx

52 55 5568 4149

www.uiasa.mx

Beatriz León

ventas@articoaire.com

52 55 5662 7383

www.articoaire.com

Carlos Azuara Arechederra

carlos.azuara@areche.com.mx

52 99 3312 3322

www.areche.com.mx

Germán Velásquez

gvelazquez@reinmex.net

52 33 3699 2217

www.reinmex.net

Marco Torróntegui

marco.torrontegui@caurus.com.mx

52 66 7752 2459

www.caurus.com.mx

% Votes 14.18%

10.97%

9.74%

5.89%

5.45%

4.01%

3.85%

3.48%

2.87%

2.80%

2.77%

2.71%

2.68%

2.53%

2.47%

HVAC/R industry No.

COMPANY

SEGMENT

REFRIMART DE MÉXICO

Refrigeration

IACSA & ASOCIADOS

Air Conditioning

RCR REFRIGERACIÓN

Refrigeration

WATCO REFRIGERACIÓN

Refrigeration

HIGH-SIS AIRE ACONDICIONADO

Air Conditioning

DE BUEN Y ASOCIADOS

Air Conditioning

GRUPO AIREXS

Air Conditioning

AC PROYECTOS

Air Conditioning

ABA CONFORT

Air Conditioning

TECNOLOGÍA EN FRÍO

Air Conditioning and Refrigeration

IAASE

Air Conditioning and Refrigeration

HUBARD Y BOURLON

Air Conditioning

PISA

Air Conditioning

INPROAMBIENT

Air Conditioning

RLB

Air Conditioning

REPRESENTATIVE

WEB INFO

Jorge Aguilar

jorgem.aguilar@refrimartmexico.com

52 99 9290 8220

www.refrimartmexico.com

Edgar Cruz

edgar.cruz@iacsa.net

52 55 5399 3203

www.iacsaasociados.com

Ana Contreras

anacontreras@rcr.com.mx

52 66 2251 0692

www.rcr.com.mx

Francisco Noyola

ventas@watco.com.mx

52 33 3812 0556

www.watco.com.mx

Elizabet Lara

gerencia@high-sis.com

52 99 8888 4847

www.high-sis.com

Christian de Jesús

cdejesus@debuenyasociados.com

52 55 3095 7898

www.debuenyasociados.com

Manuel Angulo

ventas@airexs.com.mx

52 33 3612 7815

www.airexs.com.mx

Ana Torres

ana@acproyectos.com

52 81 8333 3394

www.acproyectos.com

Cesar González Mendivil

ventasgdl@mayoreodeconfort.com

52 33 3647 5858

www.abaconfort.com

Raúl Irigoyen

ventas@serviciosdeenfriamiento.com

52 55 6354 8943

www.serviciosdeenfriamiento.com

Manuel Chairez

mchairez@iaase.com.mx

52 68 6555 3803

www.iaase.com.mx

Gerardo Minchaca

gminchaca@hubardybourlon.com.mx

52 55 5810 0949

www.hubardybourlon.com.mx

Sandra Lucía Magallón

sandra.magallon@pisaclimas.com.mx

52 55 5271 4300

www.pisaclimas.com

Mirian Vega

mvega@mitsubishiclimas.com.mx

52 55 5539 0539

www.inproambient.com

Santos Rodríguez Hernández

contacto@rlb.com.mx

52 81 8114 5080

www.rlb.com.mx

% Votes 2.47%

2.43%

2.40%

2.16%

1.91%

1.85%

1.57%

1.48%

1.11%

1.02%

0.92%

0.83%

0.65%

0.37% 100.00%

TOP IOO CONTRACTORS – InstaLLERS • REPORT 2018-2019

Central America No.

COMPANY

GRUPO CLIMA

EUROAIRE

COMPAÑÍA CLIMATIZADORA

INSTALFRÍO

MULTIFRÍO

AIRE SISTEMAS

GRUPO CONSTRUFRÍO

MPG & ASOCIADOS

SEGMENT

Air Conditioning

Refrigeration

Air Conditioning

REPRESENTATIVE

WEB INFO

Chris Elizondo Salazar

celizondo@grupoclima.com

506 2299 5353

www.grupoclima.com

Melvin Escobar

melvin.escobar@euroaire.com.sv

503 2524 5900

www.grupoeuroaire.com

Carlos Rojas

crojas@climatizadora.com.pa

507 300 9356

www.climatizadora.com.pa

Roberto Malavé

instalfriopanama@gmail.com

507 387 5107

www.instalfrio.net

Cindi Quirós

cquiros@multifrio.com

506 2455 1700

www.multifrio.com

Lisy Perez

lisy@airesistemas.com

507 271 7900

www.airesistemas.com

Maria Venegas Leitón

ventas@grupoconstrufrio.com

506 2440 3010

www.grupoconstrufrio.com

Miguel Paiewonsky

gerencia@mpg-aire.com

809 531 6666

www.grupompg.com

COUNTRY

% Votes

COSTA RICA

22.07%

EL SALVADOR

11.88%

PANAMÁ

10.86%

PANAMÁ

9.91%

COSTA RICA

6.29%

PANAMÁ

6.12%

COSTA RICA

5.59%

REPÚBLICA DOMINICANA

5.55%

HVAC/R industry No.

COMPANY

COPANAC

INELEC

ECA ELECTROMECÁNICA

SINTER

CARIBBEAN INTERNATIONAL AIR CONDITIONING SERVICE

YS INTERNATIONAL

SAIRE

SEGMENT

Air Conditioning

REPRESENTATIVE

WEB INFO

Ramsés Cajar

ramsesc@copanac.net

507 233 9900

www.copanac.net

Glenda Hernández

ghernandez@inelechn.net

504 3176 8161

www.inelechn.net

Carlos Vásquez

cvasquez@ecaelectromecanica.net

502 2327 9797

www.ecaelectromecanica.net

Carlos de Jara

mercadeo@sinter.com.ni

505 2255 7900

www.sinter.com.ni

José Luis Arenas

jlarenas@ciacs.com

242 356 4315

www.ciacs.com

Norberto Yunsán Medina

nyunsanm@ysintern.com

Air Conditioning

507 223 0898

www.ysintern.com

Marcela Ulibarri Leiva

mbulibarri@sairecr.com

506 4035 0535

www.sairecr.com

COUNTRY

% Votes

PANAMÁ

4.64%

HONDURAS

3.90%

GUATEMALA

3.48%

NICARAGUA

3.02%

BAHAMAS

2.60%

PANAMÁ

2.11%

COSTA RICA

1.97%

100,00%

TOP IOO CONTRACTORS – InstaLLERS • REPORT 2018-2019

Andean Region No.

COMPANY

SEGMENT

AIRECARIBE

Air Conditioning

JOHNSON CONTROLS COLOMBIA

Air Conditioning and Refrigeration

THERMOANDINA

Air Conditioning

EOLIK ENGINEERING GROUP

Air Conditioning

GRUPO UNICLIMA

Air Conditioning

SAEG

Air Conditioning and Refrigeration

REFRIAMERICA

Air Conditioning

AVILAIRE

Air Conditioning

SERVIPARAMO

Air Conditioning

SAIDER

Refrigeration

GRIVAN INGENIERÍA

Refrigeration

FEIBO

Air Conditioning

COLD IMPORT

REPRESENTATIVE

WEB INFO

Gustavo Ospina

ingenieria@airecaribe.com

57 1 742 7527

www.airecaribe.com

Luz Helena Mosquera

luz.helena.mosquera@jci.com

57 1 423 6682

www.johnsoncontrols.com/es_latinamerica

Maribel Rodríguez

ingenieria@thermoandina.com

57 1 418 1983

www.thermoandina.com

William Campos Villarraga

william.campos@eolikgroup.com

57 1 237 6478

www.eolikgroup.com

Isaac Blum Cohen

isaacblum@uniclima.net

58 212 237 9777

www.uniclima.net

María Isabel Ucha

info@saeg.com

51 1 715 3880

www.saeg.com

Maria Milagros Merino

maria.merino@refriamerica.com

58 0424 622 4711

www.refriamerica.com

Demetrio Viejo

demetrioviejo@avilaire.com

58 0212 232 8756

www.avilaire.com

Carlos Hoyos

choyos@serviparamo.com.co

57 5 373 4851

www.serviparamo.com.co

Miguel Rodríguez Perruolo

miguel.rodriguez@saider.com.ve

58 0212 793 0719

www.saider.com.ve

Sandra Chacón

mercadeo@grivaningenieria.com

57 2 387 7570 Yennifer Gómez

ygomez@feibo.com.ve

58 416 636 6970

www.grivaningenieria.com.co

Air Conditioning and Refrigeration

Ernesto Sanguinetti

esanguinetti@coldimport.com.pe

51 1 242 9100

www.coldimport.com.pe

FRÍO AIRE

Air Conditioning and Refrigeration

Carlos Andrés Rodríguez Campo

ingproyectos2.frioaire@gmail.com

57 4 411 1670

www.frioaire.com.co

LARCO COMERCIAL Y SERVICIOS

Natalia Arango Restrepo

narango@cslsa.com

Air Conditioning

57 4 360 3600

www.cslsa.com

Ricardo García

ricardo.garcia@melcol.com.co

MELCO MITSUBISHI ELECTRIC COLOMBIA

Air Conditioning and Refrigeration

57 1 326 7300

co.mitsubishielectric.com/es

ENFRIAR SERVICIOS

Air Conditioning

María Elisa Zúñiga Villaquirán

gerenciaser@enfriarservicios.com.co

57 2 666 1813

www.enfriarservicios.com.co

COUNTRY

% Votes

COLOMBIA

6.41%

COLOMBIA

6.11%

COLOMBIA

5.57%

COLOMBIA

5.13%

VENEZUELA

5.04%

COLOMBIA/ PERU

4.76%

VENEZUELA

4.12%

VENEZUELA

3.89%

COLOMBIA

3.64%

VENEZUELA

3.61%

COLOMBIA

3.53%

VENEZUELA

3.28%

PERU

2.83%

COLOMBIA

2.80%

COLOMBIA

2.77%

COLOMBIA

2.69%

COLOMBIA

2.66%

HVAC/R industry No.

COMPANY

SEGMENT

REPRESENTATIVE

WEB INFO

REFRINORTE

Air Conditioning and Refrigeration

Nohora Camargo

ncamargo@refrinorte.com

57 5 385 1080

www.refrinorte.com

AIRE AMBIENTE

Air Conditioning

John Jairo Villa Cataño

john.villa@aireambiente.com

57 4 444 7217

www.aireambiente.com

CS AYRE

Air Conditioning

Edgar Bowers Toro

gerencia@csayre.com.co

57 2 439 6973

www.csayre.com.co

CARVEL

Air Conditioning

Daniel Delgado Prada

dd.ingenieria@carvel.com.co

57 2 446 4333

www.carvel.com.co

ELGA DE VENEZUELA

Air Conditioning

Eduardo Ferrer Oquendo

eferrer@elgadevenezuela.com

58 0261 721 2366

www.elgadevenezuela.com

OMEGA

Air Conditioning

Andrés Felipe Hurtado Caicedo

andres.hurtado@omegaingenieros.com

57 2 883 5779

www.omegaingenieros.com

INTEG

Air Conditioning

Rubén Carrillo

ruben.carrillo@integ-sac.com

51 1 225 1113

www.integ.com.pe

TECNO NORTE

Refrigeration

Gustavo Ordóñez Durán

gordonez@tecnonorte.com

58 0212 241 6433

www.tecnonorte.com

CORPORACIÓN UEZU

Air Conditioning

Manuel Uezu

manueluezu@uezuperu.com

51 1 500 0400 / 01

www.uezuperu.com

WME CONTRATA

Air Conditioning

Alberto Cuadros

a.cuadros@wmecontrata.com

51 1 273 3509

www.wmecontrata.com

ALFRÍO

Refrigeration

Raúl Perea

rperea@alfrio.com

57 1 211 3834

www.alfrio.com

INDUSTRIAS THERMOTAR

Air Conditioning

Jennys González

jgonzalez@thermotar.com

57 5 344 4411

www.thermotar.com

CENTURIOSA – ECUADOR

Air Conditioning

Raúl Barón Casanova

rbaron@centuriosa.com

593 2 370 9590

www.centuriosa.com

ROBAINA INGENIEROS

Air Conditioning

Reinaldo Robaina

rrobaina@robainaingenieros.com

58 212 238 8178

www.robainaingenieros.com

FESER

Refrigeration

Fabiola Zúñiga

ventas@feser.com.pe

51 1 683 1319

www.feser.com.pe

WESTON

Refrigeration

Francisco Noyola

ventas@weston.com.co

57 1 290 7700

www.weston.com.co

FRÍOTEMP

Air Conditioning

Marco Retamozo Carpio

mretamozo@friotemp.com.pe

51 1 461 2277

www.friotemp.com.pe

ECOAIRE

Air Conditioning and Refrigeration

Pablo Rosero

gerencia@ecoaire.ec

593 2 2042138 / 9

www.ecoaire.ec

COUNTRY

% Votes

COLOMBIA

2.52%

COLOMBIA

2.32%

COLOMBIA

2.27%

COLOMBIA

2.21%

VENEZUELA

2.18%

COLOMBIA

2.18%

PERU

1.90%

VENEZUELA

1.85%

PERU

1.65%

PERU

1.65%

COLOMBIA

1.60%

COLOMBIA

1.60%

ECUADOR

1.51%

VENEZUELA

1.48%

PERU

1.37%

COLOMBIA

1.20%

PERU

0.90%

ECUADOR

0.73% 100.00%

TOP IOO CONTRACTORS – InstaLLERS • REPORT 2018-2019

Southern Cone No.

1 2

COMPANAnd

TERMOFRÍO

TERMAIR

CLIMA AIRE

VENTILACIÓN TEVA

5 6 7

REFRICENTRO

FRÍO – RAF

FRICON

ARNEG

COSTAN (EPTA GROUP)

INSTAPLAN

SEGMENT

Air Conditioning

Refrigeration

Air Conditioning

Refrigeration

Air Conditioning

REPRESENTATIVE

WEB INFO

Lorenz Kullak

lkullak@termofrio.cl

56 2 2599 0800

www.termofrio.cl

Eduardo Schmitt

eschmitt@termair.com

54 11 4545 5559

www.termair.com

Margarita Salamanca

contactoclimaaire@gmail.com

56 4 1279 0811

www.climaaire.cl

Clement Mara

recepcion@ventilacionteva.com.ar

54 11 4760 6274

www.ventilacionteva.com.ar

Klaus Sösemann

ksosemann@refricentro.cl

56 2 2411 2900

www.refricentro.cl

Juan José Galliano

juan.galliano@frioraf.com

54 34 9243 2174

www.frioraf.com.ar

Paola Valle

fricon@fricon.com.ar

54 11 4301 0422

www.fricon.com.ar

Mauro Vallone

mvallone@arneg.com.ar

54 34 1410 6100

www.arneg.com.ar

Claudio Ciccarella

ventas@epta-argentina.com

54 34 1461 5000

argentina.costan.com

Roberto Gerlach

rgerlach@instaplan.cl

56 2 2792 7000

www.instaplan.cl

COUNTRY

% Votes

CHILE

12.05%

ARGENTINA

6.94%

CHILE

6.94%

ARGENTINA

6.89%

CHILE

6.83%

ARGENTINA

6.21%

ARGENTINA

5.37%

ARGENTINA

5.16%

ARGENTINA

5.11%

CHILE

5.06%

HVAC/R industry No.

11 12

COMPANY BENECH INDUSTRIAL Y COMERCIAL

FRIMONT

FRYMON

INRA REFRIGERACIÓN INDUSTRIAL

15 16 17 18 19 20

BRITAM

MED

INEMA

SEGMENT

Air Conditioning

Refrigeration

Air Conditioning

Refrigeration

BOOSTER GROUP

Refrigeration

SINAX

Air Conditioning and Refrigeration

INGERPRO

Air Conditioning and Refrigeration

REPRESENTATIVE

WEB INFO

Roberto Benech

info@bicsa.com.uy

598 2 916 2307

www.bicsa.com.uy/html

Gustavo de la Torre

gustavo.delatorre@frimont.com

54 26 1524 8350

www.frimont.com

Gustavo Peláez

gustavo@frymon.com.uy

598 2401 4040

www.frymon.com

Klaus Peter Schmid Spilker

info@inrafrigo.cl

56 2 2855 3305

www.inrafrigo.cl

Jorge Daniel Piatti

ventas@britam.com.py

595 21 670 411

www.britam.com.py

Mario Zito

mariozito@med.com.uy

598 2924 1894

www.med.com.uy

David Gómez Bernal

dgomez@inema.cl

56 2 2482 9600

www.inema.cl

Marinella Gabaglio

ventas@boostergroup.com.ar

54 23 7405 0190 / 91

www.boostergroup.com.ar

Nicolás Letang

nicolas.letang@sinax.com.ar

54 11 4756 9800

www.sinax.com.ar

Alfredo Crespo

acrespo@ingerpro.com

54 11 4787 9080

www.ingerpro.com

COUNTRY

% Votes

URUGUAY

4.69%

ARGENTINA

4.28%

URUGUAY

4.17%

CHILE

4.17%

PARAGUAY

3.76%

URUGUAY

3.55%

CHILE

3.44%

ARGENTINA

2.35%

ARGENTINA

1.98%

ARGENTINA

1.05%

100.00%

TOP IOO CONTRACTORS – InstaLLERS • REPORT 2018-2019

chapter 4

SUCCESS STORIES OF THE TOP 100 CONTRACTORS - INSTALLERS We invited the Contractors - Installers that occupied the first places in each region in the Top 100 of ACR Latin America magazine to share their success stories for this report, giving them the opportunity to talk about new trends and interests of potential customers, as well as possible business opportunities in each of the Latin American regions.

TOP IOO CONTRACTORS – InstaLLERS • REPORT 2018-2019

Mexico

TTQ – Termo Técnica Quin Mexico THE PROJECT’S CHALLENGE The new Centro Empresarial Torre II building is the second phase of the Nuevo Sur commercial complex in Monterrey, Nuevo León. Abiding by the philosophy of flexible spaces, one of them is reserved for the Instituto Tecnológico y de Estudios Superiores de Monterrey (ITESM) offices, and also serves diverse purposes, including commercial, residential and general services. This project required a comprehensive work, covering air conditioning and electromechanical systems for different spaces for a total area of 7,328 m². The main objective of the project was to create comfort in each and every one of the areas, as well as to integrate a monitoring center at the ITESM Monterrey Campus. Along with this, engineers of the Mechanical specialty had to make preparations for the future extension of the existing anti-fire and hydrosanitary systems in the tower, as well as the distribution of electricity from the electrical substation at each level, and from there to each space. THE INSTALLED SOLUTION AND ITS RESULTS Due to the complexity and size of the project, multidisciplinary teamwork was carried out in which the MEP engineering was elaborated based on the existing distribution system of the building. As for air conditioning, an ice water system interconnected to a chillers system located on the roof of the building was installed, using air handling units, a cooling coil, electric heating and VAVs for the zoning of spaces, allowing an evenly greater comfort in summer and winter, and also ensuring greater energy savings. An energy recuperator was also installed which makes a pre-cooling process of the external air, thus saving 40 refrigeration tons. As for the plumbing systems, the existing bathrooms

in levels 1, 2 and 3 were expanded, while in the fire protection systems, automatic sprinklers were installed for each area and additional hose cabinets were installed, in compliance with local and international regulations. Finally, the electrical system of the project included the installation of wiring for a total electrical load of 1,097kW in the office areas, which was located under a false floor and directly supplying the furniture, offering a high quality presentation.

Project information: Design and installation of MEP systems (air conditioning, electrical, hydraulic-sanitary and fire-fighting) in the eight levels of 916 m² each in the Nuevo Sur Torre II tower in Monterrey. Installed brands: Carrier GreenHeck Johnson Control Siemens

Viakon Stabiloy Mobiliario: Herman Miller

Central America

Grupo Clima Costa Rica THE PROJECT’S CHALLENGE Codisa is a Costa Rican company that offers IT products and services for the financial, government, industry and commerce sectors, both locally and internationally. The project was a high-level demanding challenge from the client to the companies of Clima Group, in terms of strict compliance with standards, procedures and specialized recording for data centers, specifically TIA-942 Rated 3, Tier III Certification of Constructed Facility and Uptime Institute M&O certification, among others. THE INSTALLED SOLUTION AND ITS RESULTS One of the key aspects for successful implementation and customer satisfaction was the joint participation of the Group’s different companies, with a meticulous coordination and integration of different systems to achieve the highest efficiency in construction. Therefore, this multidisciplinary team was in charge of the supply and commissioning of the ice water system that includes the supply and installation of three high efficiency Carrier chillers with a nominal capacity of 140 tons of refrigeration each, in addition to the supply and installation of the entire mechanical distribution network of ice water required for the operation of the precision air conditioners inside the different suites of the building.

It should be noted that the project is going through the LEED certification process thanks to the work of the Group, which represents a key element for obtaining the certificate, along with the rest of the participating companies, through good practices such as the elimination of gray areas in the project, guaranteeing the delivery of an installation with high quality standards with which the Group positioned itself as an integral supplier of “building systems”, especially for information technologies related projects.

Project information: Construction of Codisa’s third data center, located in San José, Costa Rica. Installed brands: Carrier

Xtralis

Installer companies involved: CMI Consorcio de Montajes Industriales S.A., Integración de Servicios Automatizados ISA S.A. and Clima Ideal S.A.

The supply and implementation of the medium and low voltage electrical systems, electrical power boards, power outlets, lighting, grounding, lightning rods, transformers, switchgears, fire protection systems and Vesda smoke detection devices was also carried out within the framework of the project, along with the supply and assembly of the telecommunications system with single-mode and multimode fiber optic links, Cat6 UTP cabling for voice and data, CCTV and access control, and interconnection with existing data centers.

TOP IOO CONTRACTORS – InstaLLERS • REPORT 2018-2019

Andean Region

Aire Caribe Colombia THE PROJECT’S CHALLENGE The Torres Atrio buildings are located in Bogota’s international center area, its first phase is the North Tower, a 42-story building, with offices, commercial establishments, a lobby, five basements and a public area, with a total area of about 65,500 m² for offices and 12,000 m² for commercial venues. The first stage objective of the project, whose designs and specifications were carried out by the Chilean engineering company Poch, was to provide a comfortable air conditioning with optimum humidity and clean air for the building’s occupants, as well as to achieve adequate conditions for the machinery, in addition to the integration of the control system with the building’s BMS. For this, condensation water systems, mechanical ventilation, air supply and extraction in basements, stairs pressurization, and special technical rooms were installed.

THE INSTALLED SOLUTION AND ITS RESULTS Due to the magnitude of the project, it’s essential to count on the coordination, cooperation and reliable information for its implementation, for which, by following the BIM (Building Information Modeling) methodology, computer tools were involved in order to generate a centralized 3D model, to simulate, analyze, design and create the deliverables for each phase of the project. In this way, the condensation water system that was installed consists of three cooling towers on the top floor, each with a capacity of 1,370 gallons per minute in a 2N+1 configuration (two in operation, one backup), with frequency variators that allow the evacuation of thermal loads while maintaining energy efficiency. It should be noted that the system uses a water treatment that removes particles and sediments without the use of chemical substances, allowing additional savings and guaranteeing a supply of water free of pathogens. On the other hand, the mechanical ventilation system includes two ventilation rooms with a grid in the façade for external air intake between floors 2 and 35, while floors 36 to 40 have a perimeter grating, while inside

the elevators, air is provided and extracted by air recovery units. Both supplies exceed the minimums required by the 2007 ASHRAE 62.1 standard by 30%. It’s important to note that CO sensors were installed in the basements which activate the extraction fans located in four main points, and the pressurization system in the stairs was designed to comply with the NFPA 90 A standard, with which the centrifugal pressurization fans start running only in case of fire.

Project information: Installation of HVAC systems in the offices, premises and commercial spaces of the Torres Atrio buildings in Bogota. Installed brands: Soler & Palau Trane Reymsa Grundfos

Belimo Danfoss Johnson Controls

Estimated duration of the project: 2 years, 5 months - Dec. 2016 to May 2019.

Southern Cone

Termofrío Chile THE PROJECT’S CHALLENGE The Hewlett Packard Data Processing Center (currently owned by Telefónica Movistar), is located at the Paine commune outside the Metropolitan Region of Santiago, a space of 5,000 m² which required compliance with strict standards for efficient air conditioning of these types of buildings, including national and international regulatory regulations regarding safety and protection of equipment within the building. One of the client’s main conditions was the use exclusively of equipment and supplies mandated by them, not allowing other alternatives, in order to comply with their own standards established in other countries, which was respected in its entirety during the development of the project in order to deliver a satisfactory service for temperature and environmental humidity control, while defining which systems were more or less critical. THE INSTALLED SOLUTION AND ITS RESULTS In order to meet all the client’s requirements, Termofrío designed a cooling plant with three Trane screw chillers cooled by air of 400 tons of refrigeration each, primary and secondary pumps to supply 23 precision handlers, 25,000 kilos of air distribution ducts, and over 2,000 meters of steel pipes with diameters ranging between 2½ and 12 inches. Also, to maintain reliability in the event of unforeseen events required by the customer, a centralized Honeywell control system was implemented as well.

Something that stands out is that this project was designed considering a potential 25% expansion of its capacity in the future, so starters for chillers, pumps and air handlers were installed for a rapid expansion without interfering with the building operation. Finally, the client expressed their satisfaction with the results of the workmanship after the review of their technical inspector during the start-up, giving Termofrío the leverage to participate in more projects of the kind, eventually reaching 22,000 m² of surface and 4,500 tons of refrigeration installed in total.

Project information: Project information: Climate control of the Hewlett Packard Data Center (currently Movistar) in the Paine commune, south of Santiago de Chile. Installed brands: Trane Grundfos

Liebert Honeywell

Duration of the project: During 2010.

Likewise, inside the data processing rooms or “clean rooms”, the cooling systems have Liebert-type air handlers terminal units with hydraulic, mechanical and electrical backup. On the other hand, the implementation of the BMS for the data center was developed with joint work between Termofrío and its subsidiary company Ingetrol. It should be noted that all implemented solutions also have seismic control. TOP IOO CONTRACTORS – InstaLLERS • REPORT 2018-2019

chapter 5

The winners of the Top 100 Contractors Installers 2018 in Latin America Being among the first places of the Top 100 of Latin American Contractors - Installers is not without its merit, because itâ&#x20AC;&#x2122;s the recognition that colleagues and customers of the HVAC/R industry give to each of the companies that participated in this ranking. We spoke with the representatives of the companies that obtained the first places in each of the Latin American regions and asked them to tell us about their companies, and to share their experiences and forecasts for the Air Conditioning and Refrigeration market.

Mexico

one exciting aspect of this industry is “the innovation in MEP design technology, installations and maintenance”, which covers various elements such as

TTQ – Termo Técnica Quin Sergio Quintanilla CEO

For over 46 years, TTQ (Termo Técnica Quin), has offered its services to the construction sector with over 130 employees in different areas, such as Quality, Design, Facilities and Service for numerous cities in Mexico. They perform MEP engineering with state-of-the-art technological platforms to manage precision and quality designs, while optimizing investment. They also have alliances with the Monterrey Institute of Technology and Higher Education (ITESM), specifically for the Architecture degree, where they educate students in the use of the Autodesk Revit MEP and the Principles of Air Conditioning, Electrical and Mechanical Design.

air conditioning, electrical, mechanical, fire protection systems and special systems.

For him, an exciting aspect of this industry is “the innovation in MEP design technology, installations and maintenance”, which covers various elements such as air conditioning, electrical, mechanical, fire protection systems and special systems. Quintanilla emphasizes this methodology as precisely one of the most important tools currently for the implementation of new projects, together with the BIM (Building Information Modeling) platform, highlighting that since TTQ began to use it, they have achieved better designs with less investment using 3D modeling, with savings between 10 and 30 percent.

Mechanical Electrical Engineer Sergio Quintanilla –son of TTQ’s founder, Gerónimo Quintanilla– is currently the company’s CEO, who began working in the HVAC/R industry in 1988, the year in which new design technologies were implemented and a maintenance services department was created.

TOP IOO CONTRACTORS – InstaLLERS • REPORT 2018-2019

Andean Region

Jiménez is motivated to work in the HVAC industry to contribute to “managing global warming in the most favorable way possible for society, and without harming nature”

Aire Caribe Colombia

Gabriel Jiménez General Manager

Founded in 1976 in Cartagena by the mechanical engineer Aurelio Jiménez, Aire Caribe is a company dedicated to the Design, Supply, Installation, Maintenance and Consulting for HVAC solutions. In 1980, his brother, the electrical engineer Gabriel Jiménez joined the company, who came from working in the 70’s as a director of large electric projects in Venezuela, and is currently Aire Caribe’s General Manager. Gabriel Jiménez is a graduate of the National University of Bogotá, with studies in Senior Management and Philosophy, a knowledge that “has undoubtedly served me well in this industry and also in all the fundamental aspects of life”, he says. His experience began from his youth in his father’s company, where electrical transformers were manufactured. During school breaks, they worked on basic tasks, such as sweeping: “my dad used to say to us ‘how do you expect to be someone in life if you don’t

know how to use a broom?’ It was a very important learning, that a job dignifies.” He also emphasizes that they are “born engineers” in his family. Jiménez is motivated to work in the HVAC industry to contribute to “managing global warming in the most favorable way possible for society, and without harming nature” and emphasizes that by going deeper into this topic, “many opportunities are found”, especially in research topics, new technologies and applications, and new criteria. One of those opportunities in particular is the use of a method known since the time of the ancient Egyptians: the evaporative cooling, which in cities of a milder climate like Bogotá, “allows to easily achieve comfortable conditions inside a building, without using refrigerant, by just pulling air from the outside and making it pass through a wet barrier”, a trend that they are increasingly working on in their projects. Finally, this engineer comments that Aire Caribe is the dream of two brothers: he and Aurelio. “When I began back in the 80’s, the business was still small and I got to push the efforts for that dream”, adding that after the passing away of his brother, the company began a “knowledge management” process, allowing to consolidate good practices and thus guaranteeing customers that “we are doing things right”.

Southern Cone

Also, Gómez mentions that among the trends that customers and investors should not ignore are the technologies and solutions of greater energy efficiency,

Termofrío Chile

Osvaldo Gómez Studies Manager

Termofrío is a company that specialized in HVAC with over 250 employees which, over almost 40 years of existence, have sought to stay at the forefront of technology and adapt to the needs of their clients, installing projects that require compliance with strict international standards, and obtaining certifications such as ISO 9001:2000 in 2004. Osvaldo Gómez has been its Studies Manager for the last 20 years. He’s a mechanical engineer specialized in HVAC, and his experience in the HVAC industry began back in 1991.

since the development of engineering and implementation of this kind of technology is currently at its peak.

For this professional, the aspects that he is most passionate about in the industry include “the number and variety of systems” that exist, as well as the “new challenges in which we can participate”, in the different stages of a project, such as design or engineering, facilities, assemblies, start-up, including maintenance services. Also, Gómez mentions that among the trends that customers and investors should not ignore are the technologies and solutions of greater energy efficiency, since the development of engineering and implementation of this kind of technology is currently at its peak.

TOP IOO CONTRACTORS – InstaLLERS • REPORT 2018-2019

Central America

Grupo Clima Costa Rica

Chris Elizondo Deputy General Manager

Clima Group is a Costa Rican corporate holding company with over 50 years of experience and is comprised of pioneering companies in different branches of engineering: Transclima de Centroamérica, Integración de Servicios Automatizados, Consorcio de Montajes Industriales, and Refrimundo - Clima Ideal, with over 800 collaborators working for the Group. Chris Elizondo is the General Deputy Manager of Clima Ideal and Transclima of Central America, with 17 years of experience in the HVAC/R industry. This industrial engineer from the University of Costa Rica also has a Master’s Degree in Marketing from the SBS Swiss Business School and an MBA from the Francisco de Victoria University in Madrid. She’s also a member of the Foreign Trade Commission of the Chamber of Commerce of Costa Rica. This engineer began at her current position in March 2017, when Alejandro Rojas took on the Ge-

neral Management of Clima Ideal and Transclima de Centroamérica. At that time, she became Deputy General Manager, accompanying the Group’s growth and transformation processes. A special anecdote for her was when she began the Management induction process, and made visits as an assistant in different projects that the company was working on. “Back then, it wasn’t common to find a woman assisting a ducting technician or a mechanic at a construction site. These experiences allowed me to understand and improve the needs of our staff and thus better support the processes in a more comprehensive and conscious way”, she highlights. In line with her desire to learn constantly, Elizondo explains that what she is most passionate about in the HVAC/R industry is “that you can always learn more, deepen your knowledge in engineering, market, automation, trends, marketing and its impact

Elizondo explains that what she is most passionate about in the HVAC/R industry is “that you can always learn more, deepen your knowledge in engineering, market, automation, trends, marketing and its impact on the environment”

on the environment”, and especially in the search for solutions for customers and the different applications. “I think I’ll someday die while studying something, because I’m passionate about learning new things all the time”, she states. Finally, she assures that this industry is in a process of greater and more rapid growth in the recent years “because it has been favored by a recovery of the economy” in the region, adding to the boom of the tourism in Costa Rica as one of the biggest motivators of investment. In addition, the companies in the group are “committed to delivering energy-efficient, innovative and high-value solutions, and we want to change the mentality of the air conditioning and refrigeration sector so as to adapt to these expectations”. She emphasizes that the Internet of Things (IoT) and new technologies will allow clients to consume resources more efficiently and consciously, based on the principle of “paying for what is used”.

TOP IOO CONTRACTORS – InstaLLERS • REPORT 2018-2019

chapter 6

ECONOMIC OUTLOOK WORLDWIDE AND THE AMERICAS

Analysis to October 2018.

The world economy continues to go through a positive stage of growth and trade dynamism after the 2015-2016 recession. The estimates of the International Monetary Fund (IMF) of a GDP growth of 3.8% in 2017 were met, and for 2018 and 2019 the body expects an increase of 3.9%, thanks to more favorable financial conditions than in previous years. The emerging and developing economies market growth will be further strengthened, according to projections; the emerging economies of Asia and Europe will maintain vigorous growth, according to the IMF report “Outlook for the global economy April 2018”. However, despite a present and a near future that promise a positive economic result, the IMF, the UN Economic Commission for Latin America and the Caribbean (ECLAC), and the World Bank all agree that this is a bonanza that will not last for too long, and the IMF estimates that the decline in the dynamism of world economies would begin in 2020.

3.9% world economy growth, estimated for 2018, according to the IMF.

The shadows in this positive outlook come from some effects of the 2008 crisis that have not yet been overcome. For example, high levels of public and private debt, and widespread skepticism about the ability of governments to boost growth. Likewise, the increase in restrictions on trade and the intensification of geopolitical tensions could undermine confidence and damage this activity. Regardless of the above, the World Trade Organization (WTO) published the updated trade forecasts for 2017 and 2018, which states that if these estimates are realized, “the trade volume growth of developing economies will outpace developed economies on both the export and import sides”. This organization also pointed out that it would be the first time since 2013 “in which imports of developing economies will have grown faster than those of developed countries”.

“the trade volume growth of developing economies will outpace developed economies on both the export and import sides” World Trade Organization

TOP IOO CONTRACTORS – InstaLLERS • REPORT 2018-2019

The recovery of economic performance in Latin America It should be noted that after two years of regional GDP contraction, Latin America went from -1% in 2016, to a recovery of 1.3% in 2017. Although their forecasts are not exactly the same, several international organizations have projected that in 2018 the regional GDP will continue to grow: 2% according to the World Bank, 1.9% according to the IMF and 2.2% according to ECLAC, a behavior resulting from the improvement of domestic demand and the growth of regional exports. However, the expert Rodrigo Valdés, former Minister of Finance of Chile and professor at the School of Government of the Catholic University of Chile, says

that the growth pace has been very slow, only 1.9% during the last five years (2012-2016) compared to the same period nine years ago (2002-2007). This is mainly due to “trade tariffs put in place by some relevant countries, fragmentation of trade agreements, poor infrastructure” as well as to other aspects that “hinder a more vigorous exchange”, which entails that “we would be missing out on an opportunity (in Latin America)”, he says. Regarding the commercial aspect in the region, the former minister’s opinion is supported by the report “Trade Trend Estimates for Latin America and the Caribbean, 2018”, prepared by the Inter-American Development Bank (IADB). In this report, the orga-

Volume of commodities commerce 2015-2018* Annual % variation 2015

2016

2017*

2018*

2.6

1.3

3.6

3.2

Developed Economies

2.7

1.4

2.8

Developing Economies

1.9

1.3

4.7

4.1

Central and South America

2.5

0.5

1.3

Developed Economies

4.7

2.9

Developing Economies

0.5

0.2

5.1

3.7

-5.8

-8.7

1.1

2.4

World Trade Volume

Exports

Imports

Central and South America *Projection Source: WTO

nization highlights that while the value of exports in the region grew at a rate of 13% in 2017, above the world average, “the recovery is still fragile, as starting in the second quarter of the year export growth started to slow down”. However, despite its optimistic estimates of the growth of trade in the world, the WTO stated that this dynamic would not be sustained in 2018. Firstly, because trade growth will no longer be measured against a weak base year as was the case for 2017. Secondly, the tightening of monetary policies in the United States, with the increase of interest rates and the fact that Europe is phasing out quantitative easing in the euro area, will lead to a moderate global economic growth, which in turn will impact the performance of trade indicators in several Latin American countries.

ECLAC holds a more auspicious view: the regional GDP went from a negative figure of -1 % in 2016 to a recovery of 1.3% in 2017, and an average of 2.2% in 2018 is expected

Financial stability maintains in Latin America The financial realm is particularly favorable for Latin America and the Caribbean, which can benefit from low international interest rates, lower financial volatility and declining risk perceptions, according to the ECLAC analysis. The organization also highlights that current inflation levels in the region are the lowest they have been since the end of 2013, stressing the rapid drop of this indicator since mid-2016, with the exception of Venezuela. This analysis is consistent with the information published by the Federation of Latin American Banks (FELABAN), which delves into this regard, noting that the region showed a gradual recovery in 2017, driven mainly by positive figures from Brazil and Argentina. Still, despite the optimistic assessments of these organizations, some situations in the world create uncertainty, for example, changes in the internal policies of developed countries such as the trend towards greater financial deregulation; the tax reform proposed in the United States; geopolitical risks resulting from greater protectionism and nationalism observed in some countries, such as the United Kingdom with Brexit in 2017. Regarding the behavior of exchange rates of Latin American countries against the US dollar, it should be noted that as of September 2017, FELABAN reported a low volatility in the depreciation of currencies against the US currency. Later in this chapter, this behavior will be discussed for each country.

TOP IOO CONTRACTORS – InstaLLERS • REPORT 2018-2019

Optimistic forecast for Latin America in 2018, but uncertainties for 2020 All the organizations mentioned above agree that the world economy will continue to show very positive growth and dynamism both in 2018 and 2019, increasing at a rate similar to that of 2017, and highlighting the performance of emerging economies, including the Latin American economies.

In general, other countries in the region that have been growing at a moderate rate up until now will show an acceleration of their economic activity. According to the World Bank, the country with the highest growth in 2018 will be Panama (5.6%), followed by the Dominican Republic (4.9%) and Nicaragua (4.4%).

ECLAC is optimistic in estimating Latin American GDP growth by 2.2% for 2018, while the IMF projects economic growth by 2.8% by 2019. The Brazilian economy consolidates its recovery and would grow by 2% this year, while the Mexican economy maintains a moderate expansion of 2.1%. Venezuela contrasts, as its economy would plunge into a deep recession with negative growth rates in the next two years (-15% in 2018 and 6% in 2019).

On the other side, thereâ&#x20AC;&#x2122;s Venezuela (-15%), Ecuador (0.8%) and El Salvador (1.8%). All the other economies of Latin America will grow between 2% and 4%. However, the discouraging future that economic organisms anticipate for the world economy would also affect Latin America, an uncertainty coming from external factors that could slow down the GDP growth, as published by ECLAC

average gdp in latin america projection 2018 3.9%

3.0%

3.0% 2.2%

1.2%

world

Source: ECLAC

latin america

mexico & central america

andean region

Brazil & southern cone

Inflation in Latin America 2016 2017

in its report “Latin American Economic Outlook 2018: Rethinking Institutions for Development”, where it is mentioned that “policy uncertainty in the US is perhaps the most relevant external source of risk that Latin America faces in the short term, because of its size and multiple (commercial) linkages”. In this regard, Munir Jalil, Citibank’s head of Economic Studies for the Andean Region, has said to the media that the impact of the global economic slowdown would have in Latin America is that “in the process of recovery, albeit slow or even mediocre, is that just when we are in the process of returning to positive growth rates, we will suffer a negative blow in 2020, with a global slowdown” and mentions that such an alert also applies to robust economies like the United States. Regarding inflation, the expert mentions that “the market begins to worry after several years in which no inflationary pressures were experienced, and that creates volatility”. Thus, the IMF points out that the current situation offers the opportunity to promote policies and reforms to strengthen the upward economic phase and improve growth in the medium term, such as increasing the possibilities for more inclusive growth, completing the economic recovery and creating maneuver margins, the promotion of multilateral cooperation, among others.

world

2,8 3,1

latin america

8,5 4,2

40,5 Argentina 24,8 Bolivia

3,6 2,7

Brazil

8,7 3,0

Chile

3,8 2,3

Colombia

7,5 4,9

Costa Rica

0,0 2,6

1,7 Ecuador -0,2 El Salvador

0,6 2,0

Guatemala

4,4 5,7

Honduras

2,7 4,7

Mexico

2,8 6,8

Panama

0,7 0,9

Paraguay

4,1 4,5

Peru

3,6 1,4

Dominican rep.

1,6 2,9

Uruguay

9,6 6,6

Note 1: Latin American average does not include Venezuela due to its exceptional circumstances. Note 2: The inflationary increase in Venezuela has been measured above 3 digits since 2016, so it was not taken into account for this graphic. In 2016, the Central Bank of Venezuela (BCV) reported to the IMF an increase of 302.7%, while the Venezuelan National Assembly indicated that inflation reached 857.6%.In 2017, the BCV didn’t present new figures, however the National Assembly reported an increase of 2,616%.

Source: ECLAC and IMF

chapter 7

ECONOMIC OUTLOOK FOR THE REGIONS IN LATIN AMERICA From a very broad perspective, Latin America will grow by 2% in 2018 according to the World Bank forecasts, a significant increase compared to the 0.9% estimated for 2017. According to the forecasts of this agency, growth will gain momentum as investment and private consumption are consolidated, particularly in the economies that export basic products. Despite the above, and considering that Latin America is made up of 20 countries and spreads over three continents, with over 625 million inhabitants, according to the ECLAC Demographic Observatory, it would be neither appropriate nor accurate to carry out a general analysis of the region without regard for each countryâ&#x20AC;&#x2122;s unique circumstances. Consequently, this chapter will be analyzing every sub-region, addressing the economic outlook for each individual country.

Exports and Trade Balance in Mexico and Central America 2017 % EXPORT GROWTH 2017

Source: IADB and ECLAC

Trade Balance 2017* Mexico

Costa Rica

El Salvador

Guatemala

Honduras

Panama

Dominican Republic

-19,435,000

564,000

-4,107

-6,110

-3,434

1,404

-2,454

In US Dollars. *Estimate by ECLAC

TOP IOO CONTRACTORS – InstaLLERS • REPORT 2018-2019

Mexico, Central America and the Caribbean Mexico In 2017, the National Institute of Statistics and Geography of Mexico (INEGI) reported an annual economic GDP growth of 2.3%, although this is a decrease, compared to the 2.9% registered in 2016. During the fourth quarter of 2017, the Mexican economy expanded as a result of growth in the manufacturing and services activities, as well as the reconstruction work in areas affected by Hurricane Irma and the earthquakes of Chiapas and Puebla. ECLAC estimates that by 2018, Mexicoâ&#x20AC;&#x2122;s economy will again grow by 2.4%, marked by a more optimistic expectation of world trade, oil export revenues and reconstruction activities. In turn, the IMF projects a GDP growth of 3% in 2019.

meXICO: GDP and inflation, 2015-2017

Regarding trade dynamics, HVAC/R imports in Mexico reached US $ 2,387 million FOB (Free on Board) in 2017, according to the INEGI data, originating from the United States (42.6%), China (31.9%) and South Korea (7.8%).

In this regard, contractors in different cities of Mexico interviewed for this report mentioned that one of the biggest concerns is the possible imposition of tariffs on imports and exports by President Trump, which would affect all industries, including HVAC/R. On the other hand, they also state that one of the greatest challenges of this industry is the absence of

Mexico imports of HVAC/R equipment

2015

2016

T2 2017

42.6% USA

3.1% BRAZIL

31.9% CHINA

2.0% THAILAND

7.8% SOUTH KOREA

12.5% OTHERS

GDP, variation rate over 4 quarters Inflation, variation rate over 12 months Source: ECLAC, based on official data

BY DECEMBER 2017 Source: Descartes Datamyne - Inegi

The Bahamas skilled labor, so they must be cautious when accepting projects, due to the high demand for qualified human resources. In this regard, itâ&#x20AC;&#x2122;s important to mention that according to data from the Mexican Association of Real Estate Professionals, the construction sector will grow by 4% in 2018, with investments in corporate buildings, shopping centers and multipurpose spaces, which will boost the market of HVAC/R.

bahamAs imports of HVAC/R equipment

Economic growth in the Bahamas rebounded in 2017 and grew by 2.7%, compared to the modest 0.4% increase in 2016, although itâ&#x20AC;&#x2122;s still low compared to the 7.6% of 2015, according to information published by the Department of Statistics of the Bahamas in April 2018. This upturn is due to the positive performance of construction, wholesale and retail trade, professional and administrative services, as well as a higher government consumption, which increased by 12% compared to 2016. In turn, ECLAC mentions that the growth was not greater because hotel activity had a slower pace, especially in Grand Bahama, caused by the damage of Hurricane Matthew in 2016. This agency foresees that GDP growth will exceed 2% growth in 2018, driven by the improvement of tourism activity as a result of the gradual opening of several tourism projects and the reconstruction after Hurricane Irma. For its part, the IMF estimates that in 2018, GDP will reach 2.5% and another 2.2% in 2019. In the Bahamas, imports of HVAC/R equipment during 2017 were US$ 23.2 million, where the main origins of purchases were the United States with 91.2%, China (5.7%) and Spain (1.1%), according to data published by the International Trade Centre (ITC).

91.1% USA

0.8% ITALY

5.7% CHINA

0.3% ARGENTINA

1.1% SPAIN

1.1% OTHERS

DURING 2017 Source: ITC

Costa Rica After the hurricane season of 2017, especially with Irma passing, Costa Rica saw its economic growth significantly affected, reaching only 3.9% in 2017, compared to 4.5% in 2016. The decrease in private consumption was also an important factor for the low growth of Costa Rican GDP. However, ECLAC expects 2018 to be a favorable year for the Central American country with an acceleration of the economy that will lead to a 4% growth in reconstruction efforts after the adverse weather phenomena that hit the country in 2017. However, the “Analysis of the performance of the economy and forecast for the 2nd quarter of 2018”, a study revealed in May 2018 by the Research Institute of Economic Sciences of the University of Costa Rica, estimates a lower rate of economic growth in this country over the year, due to a slow growth of private consumption, the fall in gross capital formation and increases in the interest rate.

HVAC/R equipment imports in 2017 reached US$ 79.7 million CIF (Cost, Insurance and Freight), according to information from the National Customs Service, the main exporters being the United States (35%), China (29.8%) and Mexico (16.8%). Despite the positive expectations for the economy, some of the interviewed Contractors - Installers mention that there is a “great uncertainty” about the behavior of the new government in the following four years that might affect the market, while others believe that they expect the construction sector could receive the “support it needs to continue being the engine of the economy”, by the government. They also comment that companies in the HVAC/R sector must offer “more innovation” from the technical point of view, brands and offered services knowledge, and to “understand the market and foresee the needs of potential customers”.

COSTA RICA imports of HVAC/R equipment

costa rica: GDP and inflation, 2015-2017 5 4 3 2 1 0

2015

2016

T2 2017

GDP, variation rate over 4 quarters Inflation, variation rate over 12 months Source: ECLAC, based on official data

35.0% USA

2.3% MEXICO

29.8% CHINA

2.0% THAILAND

16.8% UNIDENT.*

14.3% OTHERS

BY DECEMBER 2017 Source: Descartes Datamyne – Servicio Nacional de Aduanas *Origin country was not informed to the Customs Authority in Costa Rica.

El Salvador The expansion of exports and the positive performance of Salvadoran domestic demand allowed the economy to maintain the growth rate of 2016, and reached 2.4% in 2017. The main drivers were private consumption, due to a lower level of inflation, and the growing access to commercial bank financing. However, inflation increased by 1.8% in 2017, a figure significantly higher than -0.9% in 2016, according to ECLAC data. The agency concludes that the economy will maintain the rate of growth in 2018 and 2019 by 2.4%, due to the dynamics of private investment, re-

mittances and exports, although the Salvadoran Foundation for Economic and Social Development (FUSADES) in its Economic Situation Report of May 2018, indicates that the Salvadoran economy has had a weak start to the year, “so it is expected that in 2018 it will not exceed the growth figures recorded last year”. Between January and September 2017, the international trade performance was highly dynamic. HVAC and Refrigeration equipment imports in 2017 exceeded US$ 39.6 million, with China (41.3%), the United States (29.3%) and Mexico (8%) as the main exporters, according to the ITC records.

el salvador imports of HVAC/R equipment

el salvador: GDP and inflation, 2015-2017 3

0 T1

2015

2016

T2 2017

41.3% CHINA

3.5% TAIPEI CHINA

29.3% USA

2.3% SOUTH KOREA

8.0% MEXICO

15.6% OTHERS

GDP, variation rate over 4 quarters Inflation, variation rate over 12 months Source: ECLAC, based on official data

DURING 2017 Source: ITC TOP IOO CONTRACTORS – InstaLLERS • REPORT 2018-2019

Guatemala The IMF estimated Guatemalaâ&#x20AC;&#x2122;s GDP growth in 2017 at 2.8%, driven mainly by private consumption and more dynamic remittances. Among the most dynamic sectors are commerce, restaurants and hotels, that recorded an increase of 4.3%, and transport with 3.4%. For 2018, ECLAC forecasts an economic growth of 3.5%, as a result of the continuous impulse of the internal demand, mainly of private consumption and increase of public expenditure in infrastructure. The IMF in turn estimates that growth in 2019 will be 3.6%. On their part, the Monetary Board of Guatemala in the review of the first quarter of the year is optimistic and maintains the range of growth of the economy between 3 and 3.8 percent, and

guatemala: GDP and inflation, 2015-2017

calculates an increase between 3.1 and 4.1 percent for 2019. In 2017 measures were taken to put into effect a customs union between Guatemala and Honduras, although the wrap-up of negotiations on a free trade treaty with South Korea was postponed until 2018, as the Central American country has placed special emphasis on the protection of its agricultural and industrial sectors, according to EFE news agency in February 2018. Imports of goods increased by 7.3% in 2017, and specifically purchases of HVAC/R equipment exceeded US$ 52,8 million. The main commercial partners of the country were the United States (48,8%), China (16,1%) and Brazil (8,7%), according to the records of the ITC.

GUATEMALA imports of hvac/r equipment

6 5 4 3 2 1 0

2015

2016

T2 2017

48.9% USA

4.9% PANAMA

16.1% CHINA

4.5% TAIPEI CHINA

8.7% BRAZIL

17.0% OTHERS

GDP, variation rate over 4 quarters Inflation, variation rate over 12 months Source: ECLAC, based on official data

DURING 2017 Source: ITC - Banco de Guatemala

Honduras The expansion of private consumption and the improvement in coffee exports, as well as other favorable external conditions, allowed Honduras GDP growth of 4.8% in 2017 according to the IMF. Likewise, inflation for the year grew 4.7%, placing it within the target range established in the revision of the Monetary Program 2017-2018 (4% and plus or minus one percentage point), as reported by the Central Bank of Honduras. For 2018, the IMF projects that the GDP will grow by 3.5%, because of the growth of the United States, Honduras’ main trading partner, as well as the increase in general international prices and rising coffee production. Regarding the dynamics of international trade in 2017, the total value of exports and imports increased at a year-on-year rate of 12.3% and 8.6%, respectively, in part due to the enforcing of the customs agreement between Guatemala and Honduras.

HONDURAS: GDP and inflation, 2015-2017

It should be noted that the imports of HVAC/R equipment in 2017 exceeded US$ 40.5 million USD CIF, with China (46.4%), the United States (26.5%) and Taiwan (7.8%) being the main origins, according to data from the General Directorate for Control of Duty-Free Imports. The contractors contacted for this report believe the country has an important need for the air conditioning of spaces, because cities that until a few years ago had a more temperate climate, “now require HVAC systems to achieve a more pleasant atmosphere”. They also highlight that the most important business opportunities are in shopping centers, office and apartment buildings, as well as tourist developments, “where there’s an increasing demand for air conditioning systems”.

HONDURAS imports of HVAC/R equipment

5 4 3 2 1 0

2015

2016

T2 2017

46.4% CHINA

4.6% MEXICO

26.5% USA

4.0% BRAZIL

7.8% TAIWAN CHINA

10.7% OTHERS

GDP, variation rate over 4 quarters Inflation, variation rate over 12 months Source: ECLAC, based on official data

BY DECEMBER 2017 Source: Descartes Datamyne - Dirección General de Control de Franquicias Aduaneras TOP IOO CONTRACTORS – InstaLLERS • REPORT 2018-2019

Nicaragua Although at the beginning of 2018 the Central Bank of Nicaragua projected a GDP growth of 5.2%, the political crisis unleashed by the repressive actions of President Daniel Ortega against the peaceful protests that took place in the country mid-year, meant millionaire losses for the Nicaraguan economy. Because of these circumstances, ECLAC was forced to recalculate Nicaragua’s growth projection, and in October 2018 it estimated GDP growth for the year at -3.1%, although it expects a recovery in 2019, calculating -0.3%. Speaking to Nicaraguan media, the economist Luis Murillo declared that “inflation levels increased, there is unemployment, indebtedness, reduction of

NICARAGUA: GDP and inflation, 2015-2017

foreign investment, but above all, trust has been lost” in the country. According to ITC records, in 2017 imports of HVAC/R equipment reached US$ 11.4 million and the main origins were the United States (61.7%), China (7.8%) and Mexico (5, 7%). Regarding the perspectives of the Central American country, Chris Elizondo of Grupo Clima, one of the Contractors - Installers with presence in different countries of the region, mentioned that “our expectation is that a peaceful solution towards democratization can be achieved” in this country, because she considers that there is a great potential for growth.

NICARAGUA imports of HVAC/R equipment

8 7 6 5 4 3 2 1 0

2015

2016

T2 2017

61.7% USA

4.7% PANAMA

7.8% CHINA

3.3% TAIPEI CHINA

5.7% MEXICO

16.8% OTHERS

GDP, variation rate over 4 quarters Inflation, variation rate over 12 months Source: ECLAC, based on official data

DURING 2017 Source: ITC

Panama The Panamanian economy grew by 5.4% in 2017, maintaining one of the highest rates in the region, a dynamism due to the positive evolution of the transport, storage and communications sectors, which increased by 12.6%, as well as the construction of residential developments and public infrastructure, which increased by 8.1%. For 2018, ECLAC expects the Panamanian GDP to continue its growth by 5.5%, while IMF calculates a growth of 5.6%. The construction sector will continue to be one of the most dynamic. Panama recorded a significant increase in its imports, attributable to an increase in the international price of fuels. Additionally, the agreements recently

PANAMa: GDP and inflation, 2015-2017

signed with China will have a strong impact on both the economy and the trade of the Central American country. Regarding imports of HVAC and Refrigeration products, they reached US$ 103.8 million FOB, which came mainly from the United States (30.4%), China (17.4%), while 16.3% was reported entering from the Colon Free Trade Zone, according to the National Customs Authority. For the interviewed Contractors - Installers, the cities of the interior of the country hold the greatest expectations for new opportunities, in addition to the projects for equipment replacement and update, such as VRF and high efficiency chillers.

pANAMa imports of HVAC/R equipment

6 5 4 3 2 1 0

2015

2016

T2 2017

GDP, variation rate over 4 quarters Inflation, variation rate over 12 months Source: ECLAC, based on official data

30.4% USA

12.4% S. KOREA

17.4% CHINA

4.3% MALASYA

16.3% COLÓN FREE TRADE ZONE

19.2% OTHERS

BY DECEMBER 2017 Source: Descartes Datamyne – Autoridad Nacional de Aduanas

TOP IOO CONTRACTORS – InstaLLERS • REPORT 2018-2019

Dominican Republic The Dominican Republic was the only country in the region to present a significant slowdown in its economy, going from 6.6% in 2016 to 4.6% in 2017, due to the stagnation of domestic demand. However, both ECLAC and the IMF forecast that the Dominican GDP will begin to recover in 2018 and reach a growth rate of 5.1% and 5.5% respectively, driven by the growth in the world economy. It should be noted that the Dominican peso has been showing a depreciation trend against the dollar over the last three years, according to records of the Fe-

dOMINICAN republic: GDP and inflation, 2015-2017

deration of Latin American Banks (FELABAN), going from 44 pesos in January 2015 to 48 in the same month of 2018. As for the international trade, the Caribbean country maintained its dynamism with an increase of 6% in export value and 3.7% in import value during the first half of 2017. The import of HVAC/R equipment in 2017 peaked at US$ 71.5 million and the main trading partners were China (47.3%), the United States (24.4%) and Chinese Taipei (7.7%), according to ITC records.

DOMINICAN rep. imports of HVAC/R equipment

9 8 7 6 5 4 3 2 1 0

2015

2016

T2 2017

43.7% CHINA

2.7% BRAZIL

24.4% USA

2.7% MALASYA

7.7% TAIPEI CHINA

18.8% OTHERS

GDP, variation rate over 4 quarters Inflation, variation rate over 12 months Source: ECLAC, based on official data

DURING 2017 Source: ITC

Andean Region Colombia Although the Colombian economy has just begun to emerge from stagnation with small quarterly GDP growths, since 2015 the country has registered a weakened domestic demand, coupled with a sharp increase in interest rates and indirect taxes, discouraging private consumption. The result of this stagnation was a moderate GDP growth of 1.8% in 2017, according to the National Administrative Department of Statistics (DANE). However, ECLAC states in its reports that there are some indications that the “slowdown bottomed out” and that GDP is expected to experience a gradual growth in 2018. This assertion is supported by the IMF, which estimates a growth of 2.7% in 2018 and 3.3% in 2019. While this has impacted imports, recently this downturn trend was reversed and until September 2017 there was an increase of 4.4%, while exports grew 19% peaking at US$ 44,000 million FOB.

colOMBIA: GDP and inflation, 2015-2017

Regarding imports of HVAC/R equipment, they reached US$ 200 million FOB, coming mainly from China (42.8%), Mexico (17.7%) and the United States (14.2%), according to the records of the National Directorate of Taxes and Customs (DIAN). “We have many opportunities and an immense potential of possibilities to implement and develop our own innovations and investigations”, the Colombian contractors interviewed in this report concur, who also point out that this is the best time to begin renovating old equipment that’s currently installed, specifically referring to HVAC systems. Also, regarding Refrigeration systems, the businessmen comment that it is important to start implementing the strategy of “cold districts” as they’re known in Europe and the United States, as well as to expand the volumes of refrigerated spaces, “and reaching the same levels of our neighboring countries that are strong in this regard, such as Peru and Ecuador”, without neglecting the main trend of energy saving.

COLOMBIA imports of HVAC/R equipment

2015

2016

T2 2017

GDP, variation rate over 4 quarters Inflation, variation rate over 12 months Source: ECLAC, based on official data

42.8% CHINA

7.4% BRASIL

14.7% Mexico

3.4% TAIWAN

14.2% EEUU

17.6% OTROS

BY DECEMBER 2017 Source: Descartes Datamyne – Dirección de Impuestos y Aduanas Nacionales

TOP IOO CONTRACTORS – InstaLLERS • REPORT 2018-2019

Ecuador Ecuador is going through a process of economic recovery, following the drop of GDP that began in 2015, posted a variation of 1.5% in 2016 and recovered by 3% in 2017 according to the Ecuadorian Central Bank, thanks to the increase in spending on final consumption by households and the government. Inflation remained very low with a variation of -0.2% due to a weak domestic demand, although during the first six months of 2017 consumption increased by 3.8%, thereby boosting trade and financial services, as well as generating a 9.4% increase in the volume of imports, according to ECLAC. This agency foresees Ecuador continuing its econo-

ecuADOR: GDP and inflation, 2015-2017

mic recovery and calculates a growth of around 1.3% in 2018, while the IMF is more optimistic and estimates a 2.5% increase in 2018 and 2.2% in 2019. In terms of imports, in 2017 income from consumer goods imports grew by 28%. As for HVAC and Refrigeration products, imports peaked at US$ 134.5 million CIF, the main origins being China (38.8%), Spain (20%) and Panama (10.3%). The Contractors - Installers interviewed in the Andean region agree that Ecuador, along with Peru, are the strongest countries in the Refrigeration business due to their volume of exports of products that require cool chain.

ecuADOR imports of HVAC/R equipment

6 4 2 -1 -3 -5

2015

2016

T2 2017

GDP, variation rate over 4 quarters Inflation, variation rate over 12 months Source: ECLAC, based on official data

38.8% CHINA

5.9% PANAMA

20% NOT DECLARED*

5.4% BRAZIL

10.3% SPAIN

19.6% OTHERS

BY DECEMBER 2017 Source: ITC â&#x20AC;&#x201C; Servicio Nacional de Aduana *Origin country was not informed to the Customs Authority in Ecuador.

Peru The Peruvian economy is experiencing a difficult time compounded by the corruption scandals involving Brazilian construction companies, uncertainties in the Ministry of Economy and Finance that changed ownership again in less than two years and the phenomenon of “El Niño Costero”, leaving as a result a GDP that only grew by 2.5% compared to 4% in 2016. It should be noted that the Peru National Society of Industries is concerned about this recession in the Peruvian industry, explaining that “there has been a reduction in its contribution in GDP, from 16.5% in 2007, accounting for only 12.7% in 2016”, thus causing an increase in unemployment in the country. Still, ECLAC expects GDP to recover in 2018 with a 3.5% growth rate with a balance between the external sector and domestic demand, as the latter is forecast to be boosted by a 15% increase in public investment, especially by construction works for the 2019 Pan American Games. The IMF agrees, estimating a growth of 3.7% for 2018 and 4% for 2019.

peru: GDP and inflation, 2015-2017

In spite of the Peruvian economic difficulties, imports of HVAC/R products have performed positively, peaking at US$ 105.9 million FOB in 2017. The main sources of imports were China (42.4%), the United States (19.4%) and Brazil (7.5%), according to data from the National Superintendency of Customs and Tax Administration (SUNAT). Like Ecuador, the Refrigeration business is going through an “overflowing” growth, as qualified by some of the interviewed contractor installers, marked by the dynamism of the market, especially in the shopping centers and supermarkets segment, where the main trend is the use of equipment with ecological gases and inverter compressors. However, the entrepreneurs state that the growth of the HVAC business is not going through its best moment and “the growth in 2018 is close to zero”, which was caused by the poor economic management of the government and the political situation after the dismissal of President Pedro Pablo Kuczynski, which affected this, and other industries in the country.

PERu imports of HVAC/R equipment

5 4 3 2 1 0

2015

2016

T2 2017

42.4% CHINA

4.5% ITALY

19.4% USA

3.9% SPAIN

7.5% BRAZIL

22.3% OTHERS

GDP, variation rate over 4 quarters Inflation, variation rate over 12 months Source: ECLAC, based on official data

BY DECEMBER 2017 Source: Descartes Datamyne – Sunat TOP IOO CONTRACTORS – InstaLLERS • REPORT 2018-2019

Venezuela Analyzing Venezuela’s economic outlook is complex as no official figures have been made public since 2013. Therefore, analysts from organizations such as ECLAC and the IMF are forced to make calculations based on other sources1. The Venezuelan GDP was estimated to have reduced again for the fourth year in a row, showing a contraction of -15 % in 2017, reaching an accumulated variation well above the -32% compared to 2013, along with a growing inflation that reached 2,616% according to calculations of a specialized commission of the Venezuelan Parliament. Deputy José Guerra, chairman of the Parliament’s Finance Committee, said that in order to stop hyperinflation, the exchange control system, in force for the last 15 years and with which the government monopolizes foreign exchange, must be dismantled. In the absence of dollars, employers are forced to find them in the black market (where it’s quoted 40 times overpriced than the official rate) to operate their businesses, shooting up the prices of goods and services, according to the AFP news agency.

veneZUELA imports of HVAC/R equipment

The IMF estimates another -15% contraction of GDP for 2018, but expects a recovery of -6% by 20192. On the other hand, according to information from the Organization of the Petroleum Exporting Countries (OPEC) and to data from Venezuela’s trading partners, Venezuelan exports contracted by 28% and imports decreased by 42% in 20163. Imports of HVAC/R products peaked at US$ 34.8 million FOB in 2017, originating from the United States (43.9%), China (38.1%) and Panama (5.7%), according to the information registered in the Descartes Datamyne database. In spite of the difficult situation of the Venezuelan economy, for Contractors - Installers “the HVAC industry is quite large and there are many opportunities in the market”, and although they mention feeling “restrained” by the politicaleconomic reality, they consider themselves as “experts in crisis and in adapting to changes”, which has allowed them to continue active. Even so, the businessmen mention that because of the economic situation, projects don’t always end on the date that is initially projected, and it’s common to see that they go longer than expected. On the other hand, one of the main objectives that these entrepreneurs have is to obtain more investments in energy saving systems, because although “electric power in Venezuela is very cheap, we must think about the future, when it may no longer be that way”, and likewise “continue to create better engineering each day”, with projects designed to last a long time.

43.9% USA

1.8% ITALY

38.1% CHINA

1.8% BRAZIL

5.7% PANAMA

8.6% OTHERS

BY DECEMBER 2017 Source: Descartes Datamyne and official information from origin countries.

1 The Ministry of Popular Power for Economy and Finance of the Bolivarian Republic of Venezuela has not published the figures corresponding to fiscal management since 2013. Nor has the Ministry published information on public debt since March 2017. 2 The IMF points out that its estimates are not precise as there are no conversations with the authorities, the information that is received arrives at long intervals, with data deficiencies and is incomplete, making it difficult to interpret the few published indicators. 3 Currently, there has been no official information available on the balance of payments or Venezuelan national accounts since 2015.

Exports and Trade Balance in the Andean Region, Brazil and Southern Cone 2017 % EXPORT GROWTH 2017

Trade Balance 2017* Bolivia -2,324 Colombia -11,862 Ecuador -454 Peru 4,867 Venezuela N/A

Brazil 31,663

Argentina -14,235 Chile 3.524 Paraguay -181 Uruguay 4,410

In US dollars *Estimate by ECLAC

Source: IADB and ECLAC

TOP IOO CONTRACTORS – InstaLLERS • REPORT 2018-2019

Southern Cone Argentina The Argentine economy continues to rebound and grew by 2.9% during 2017, after the recession of 2016, maintaining a peculiar dynamic of rapid growth in odd years in which there are elections, and deceleration in even years. It also presents a sharp decline in inflation, falling from 40.5% in 2016 to 24.8% in 2017, with a tendency to a continued declination. It should be noted that the greater economic activity buoyed those sectors in which relaxation of import controls had an effect. However, exports and imports had a negative contribution, accor-

argENTINA: GDP and inflation, 2015-2017

ding to ECLAC, of -0.2% and -1.8%, respectively. In 2018, the agency expects growth to continue, at around 3%, provided there are no changes in international financial conditions, while the IMF doesn’t expect a growth higher than 2%. Regarding imports of HVAC/R equipment, up to June 2017 purchases for US$ 140.4 million FOB had been posted, mainly from China (33.5%), followed by Brazil (27.7%) and the United States (8.4%), according to data from the General Directorate of Customs.

argENTINA imports of HVAC/R equipment

6 5 4 3 2 1 0 -1 -2 -3 -4 -5 T1

2015

2016

T2 2017

33.5% CHINA

5.3% ITALY

27.7% BRAZIL

4.6% THAILAND

8.4% USA

20.4% OTHERS

GDP, variation rate over 4 quarters Inflation, variation rate over 12 months Source: ECLAC, based on official data

BY JUNE 2017 Source: ITC – Dirección General de Aduanas.

Chile In 2017, the Chilean economy maintained a stable but quite moderate rate of growth of 1.5% compared to 1.6% in 2016, mainly due to weak domestic demand and low inflationary pressure. In the first six months of the year, economic activity was driven by non-mining sectors, mainly commerce, communications and services. If external conditions continue to be favorable in 2018, ECLAC estimates that the Chilean economy could achieve a GDP growth rate of 2.8%. The IMF is even more optimistic, forecasting an increase of 3.4% this year. Imports of goods and services had strong growth in 2017, 5.8%, compared to -1.6% in 2016, while exports stalled and only increased by 0.1%.

chiLE: GDP and inflation, 2015-2017

Imports of equipment for the HVAC and Refri industry reached almost US$ 219.8 million CIF in 2017, mainly from China (29.6 %), the United States (13.4%) and Singapore (8.4%), according to data from the National Customs Service. For the Contractors - Installers in the country, the HVAC and Refrigeration business in Chile has been growing significantly in 2018 compared to the previous year, and it’s expected to regain a “better level” by the end of 2019. Regarding the Refrigeration business, Chile is the leader in the Southern Cone in the maintenance of the cool chain given its large fruit growing industry, and in terms of HVAC, the entrepreneurs mention that they expect a reactivation of this business in projects related to real estate projects, particularly in office buildings.

ChiLE imports of HVAC/R equipment

2015

2016

T2 2017

GDP, variation rate over 4 quarters Inflation, variation rate over 12 months Source: ECLAC, based on official data

29.6% CHINA

7.1% SPAIN

13.4% USA

7.0% ITALY

8.4% SINGAPORE

34.4% OTHERS

BY DECEMBER 2017 Source: Descartes Datamyne – Servicio Nacional de Aduanas

TOP IOO CONTRACTORS – InstaLLERS • REPORT 2018-2019

Paraguay Paraguay’s GDP growth was established at 4.3% in 2017, as reported by the Central Bank of Paraguay (BCP), a figure similar to that registered in 2016, and higher than the regional average, taking into account the recessions that took place in other Latin American countries in the last two years.

more optimistic and projects a growth of 4.5%.

This behavior would continue in 2018, according to ECLAC and IMF estimates, although ECLAC estimates that product growth will be slightly lower than in 2017, reaching a rate of around 4%, while the IMF is

Regarding imports of HVAC/R equipment, according to figures from the ITC, it reached US$ 116.1 million, originating from China (65.2%), Hong Kong (13%) and Brazil (8.3%).

paraGUAY: GDP and inflation, 2015-2017

Both exports and imports increased in 2017, although the latter have seen considerable growth in consumer, intermediate and capital goods (19.9% over the October 2016 level).

paraGUAY imports of HVAC/R equipment

6 4 2 -1 -3 -5

2015

2016

T2 2017

65.2% CHINA

3.1% SINGAPORE

13.0% HONG KONG

2.4% ARGENTINA

8.4% BRAZIL

8.0% OTHERS

GDP, variation rate over 4 quarters Inflation, variation rate over 12 months Source: ECLAC, based on official data

BY DECEMBER 2017 Source: ITC – Dirección General de Aduanas

Uruguay After a period of recession and economic recovery between 2015 and 2016, Uruguay’s GDP stabilized in 2017 with a growth of 2.7% as announced by the Central Bank of Uruguay (BCU), although the performance of the activity was 0.3% below what was expected by ECLAC. By 2018, this agency estimates that GDP will again grow by 3% thanks to the favorable conditions of 2017, as well as the recovery of public investment. In turn, the IMF projects growth of 3.4% for this year. The main drivers of activity in 2017 were private consumption that grew at a rate of 4.4%, after two years of stagnation, and exports of goods and services,

uruGUAY: GDP and inflation, 2015-2017

mainly driven by tourism revenues. Regarding imports of HVAC/R equipment, as of December 2017 they have reached US$ 52 million CIF, mainly from China (67.6%), Italy (8.8%) and Brazil (6.3%), according to the information of the General Directorate of Customs. For Mario Zito, a contractor interviewed for this report, the Uruguayan economy maintains the tendency of “staying still” although stable, and mentions that the expectation is about the behavior of Argentina and Brazil next year, because “our business is very affected by what happens with these economies, especially the Argentinian one”.

uruGUAY imports of HVAC/R equipment

-1

-3 T1

2015

2016

T2 2017

GDP, variation rate over 4 quarters Inflation, variation rate over 12 months Source: ECLAC, based on official data

67.6% CHINA

4.1% SPAIN

8.8% ITALY

2.8% USA

6.3% BRAZIL

10.5% OTHERS

BY DECEMBER 2017 Source: Descartes Datamyne – Dirección General de Aduanas

TOP IOO CONTRACTORS – InstaLLERS • REPORT 2018-2019

ANNUAL GDP GROWTH %

2018* 2017 2016

Mexico & Central America world

3.0 2.9 2.4

latin america

2.2 1.3 -1.0

Mexico

2.4 2.2 2.3

Costa Rica

4.1 3.9 4.3

El Salvador

2.5 2.4 2.4

Guatemala

3.5 3.2 3.1

Honduras

3.9 3.9 3.6

DOMINICAN REP.

5.1 4.9 6.6

PANAMA

5.5 5.3 4.9 -1

*Projection - Source: ECLAC

andean region world

3.0 2.9 2.4

latin america

2.2 1.3 -1.0

-5.5 venezuela -9.5 -9.7

-4

-3

-2

peru

3.5 2.5 3.9

ecuador

1.3 1.0 -1.5

colombia

2.6 1.8 2.0

bolivia

4.0 3.9 4.3

-1

brazil & southern cone

-4

-3

world

3.0 2.9 2.4

latin america

2.2 1.3 -1.0

brazil

2.0 0.9 -3.6

argentina

3.0 2.9 -2.2

chile

2.8 1.5 1.6

paraguay

4.0 4.0 4.1

uruguay

3.2 3.0 1.5

-2

-1

TOP IOO CONTRACTORS – InstaLLERS • REPORT 2018-2019

Index of references Cited sources: CentralAmericaData.com, “Air conditioning: Market figures by I Semester 2018”, Press release, October 18, 2018. Agence France-Presse (AFP), “The IMF estimated that Venezuela’s GDP will fall 15% and its inflation will be 13,000% by 2018.” Taken from Portafolio.co, Press release, January 13, 2018. Agencia EFE, “South Korea and Central America sign an important free trade agreement”, Press release, February 21, 2018. Economic Commission for Latin America and the Caribbean (ECLAC), Preliminary Overview of the Economies of Latin America and the Caribbean, 2017 (LC/PUB.2017/28-P), Santiago, 2018. Institute of Research in Economic Sciences of the University of Costa Rica, “Analysis of the performance of the economy and forecast for the II quarter of 2018”, Press release, May 2018. Inter-American Development Bank (IADB), Estimates of trade trends in Latin America and the Caribbean, 2018 edition. International Monetary Fund (IMF), World Economic Outlook, January 2018 update, Washington, DC, January 22, 2018. Salvadoran Foundation for Economic and Social Development (FUSADES), “Economic Situation Report. May 2018 “, Press release, May 24, 2018. World Trade Organization (WTO), Statistics and trade perspectives: “The WTO improves forecasts for 2017 when trade rebounds strongly”, Press release, September 21, 2017. Databases: International Trade Centre (ITC). With information from UN Comtrade (Database of Trade Statistics of the United Nations): • Bahamas. • El Salvador. • Guatemala. • Nicaragua. • Paraguay. • Dominican Republic. Descartes Datamyne. With information from official sources: • Argentina: General Directorate of Customs. • Chile: National Customs Service. • Colombia: National Directorate of Taxes and Customs (DIAN). • Costa Rica: National Customs Service. • Ecuador: National Customs Service. • Honduras: Directorate General for Control of Duty-Free Imports. • Mexico: National Institute of Statistics and Geography of Mexico (INEGI). • Panama: National Customs Authority. • Peru: National Superintendency of Customs and Tax Administration (SUNAT). • Uruguay: General Directorate of Customs. • Venezuela: Central Bank of Venezuela (BCV); Venezuelan National Assembly; Ministry of Popular Power for the Economy and Finance of the Bolivarian Republic of Venezuela. Latin American Federation of Banks (FELABAN), Indicators Exchange rate (as compared to the US dollar), official website (http://indicadores.felaban.net), data as of September 2017.

Analyzed Harmonized System Codes (HS-codes)*: HS-Code

Description

Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof

8414

Air or vacuum pumps, air or other gas compressors and fans; ventilating or recycling hoods incorporating a fan whether or not fitted with filters.

841430

Compressors; of a kind used in refrigerating equipment.

841451

Fans; table, floor, wall, window, ceiling or roof fans, with a self-contained electric motor of an output not exceeding 125 W.

841459

Fans; n.e.c. in item no. 8414.51.

8415

Air conditioning machines; comprising a motor driven fan and elements for changing the temperature and humidity, including those machines in which the humidity cannot be separately regulated.

841510

Air conditioning machines; comprising a motor-driven fan and elements for changing the temperature and humidity, of a kind designed to be fixed to a window, wall, ceiling or floor, self-contained or “splitsystem”.

841581

Air conditioning machines; containing a motor driven fan, other than window or wall types, incorporating a refrigerating unit and a valve for reversal of the cooling/heat cycle (reversible heat pumps).

841582

Air conditioning machines; containing a motor driven fan, other than window or wall types, incorporating a refrigerating unit.

841583

Air conditioning machines; containing a motor driven fan, other than window or wall types, not incorporating a refrigerating unit.

8418

Refrigerators, freezers and other refrigerating or freezing equipment, electric or other; heat pumps other than air conditioning machines of heading no. 8415.

841869

Refrigerating or freezing equipment; n.e.c. in heading no. 8418.

* For the imports charts by company of chapter 1 and the import graphs of chapter 7, this report only considered the Harmonized System Codes of products related to Air Conditioning and Refrigeration systems for transactions carried out during 2017. Technical Sheet “TOP BRANDS IN LATIN AMERICA” survey Dates of data collection: August 6 to 22, 2018. Data collection technique: Online survey on Encuestadatos.com platform. Methodology: six multiple-choice questions. Topics to which it refers: Selection of one or more of the most used brands in HVAC/R equipment. Target group: Exclusively the companies of the Top 100 Latin American Contractors - Installers. Survey developed by Latin Press, Inc.

TOP IOO CONTRACTORS – InstaLLERS • REPORT 2018-2019