TOP IOO CONTRACTORS INSTALLERS LATIN AMERICAN HVAC/R INDUSTRY • REPORT 2019-2020 by Latin Press, Inc.

HVAC/R Industry Outlook in Latin America 2019-2020

LATIN AMERICAN

CONTRACTORS INSTALLERS HVAC/R INDUSTRY

REPORT 2019-2020

ECONOMIC PERFORMANCE AND OUTLOOK KEY ASPECTS OF HVAC/R INDUSTRY â&#x20AC;¢ CHARTS THE INTEGRATORS PERSPECTIVES BY REGION TOP 100 CONTRACTORS - INSTALLERS 2019 RANKING SUCCESS STORIES OF THE CONTRACTORS - INSTALLERS IN THE TOP 100

All rights reserved. It is not allowed the total or partial reproduction of this work, nor its incorporation into a computer system, nor its transmission in any form or by any means (electronic, mechanical, photocopy, recording or others) without previous and written authorization of the owners of the copyright. Infringement of these rights may constitute an offense against intellectual property. Original Title: TOP 100 Contratistas Instaladores industria HVAC/R Informe 2019-2020 2nd edition: October 2019 Research and writing: Ana María Mejía Angel ACR Latinoamérica Editor: Duván Chaverra Editorial Direction: Duván Chaverra Translation: Yasmín López Proofreading and style correction: Craig Alan Cottrell Design and layout: Panamericana Formas e Impresos S.A Printed in Colombia by Panamericana Formas e Impresos S.A

Table of contents Top 100 Contractors - Installers in Latin America: How is it done? .........................4 Introduction ...............................................................................................…………….6 Chapter 1: Key aspects of the HVAC/R Industry in charts .......................................8 Use and classification of HVAC/R technologies .....................................................……9 Segments with More Projects Developed ….............................................……………10 Most Common Brands ……….............................................................................…….12 HVAC/R Imports by region and company ...................................................................14 HVAC/R Imports by origin country ………...................................................................15 Chapter 2: The Contractors - Installers perspectives……............................ ……….16 Mexico……...........................................................................................................…….17 Central America and The Caribbean…………........................................................ ….21 Andean Region …………........................................................................................ ….24 Southern Cone …………......................................................................................... ….29 The HVAC/R Consulting Experts perspectives ……............................................……32 Chapter 3: Top 100 Contractors - Installers 2019 …………….................................40 Mexico …………….......................................................................................................42 Central America and The Caribbean ………........................................................…….44 Andean Region ……………..........................................................................................46 Southern Cone ……………..........................................................................................48 Chapter 4: Success Stories of the first places of the Top 100 ….....................……50 RCR Refrigeración: Gorditas Doña Tota - Grupo Femsa at Monterrey ......................52 Instalfrío: Steven’s stores in the Albrook Mall at Panama ……................................ …53 Johnson Controls: telecommunications company at Bogota …...........................……54 Refricentro: Ñuble Organic cold storage at Ñuble, Chile …………............................55 Chapter 5: Interview with the first places of the Top 100 …............................. …56 Mexico: RCR Refrigeración ………......................................................................…….58 Central America and The Caribbean: Instalfrío Panamá ………..........................…….59 Andean Region: Johnson Controls Colombia ……......................................... ……….60 Southern Cone: Refricentro …………..................................................................... ….61 Chapter 6: Economic Outlook Worldwide and the Americas …………............ ….62 Latin America grows moderately in 2019 ……........................................................ …64 Economic Outlook for the Latin American regions …….................................. ………67 Infographic: Exports and Trade Balance in Mexico and Central America 2019 ……..67 Mexico, Central America and The Caribbean ……......................................... ……….68 Infographic: Exports and Trade Balance in South America 2019.................................75 Andean Region ………….....................................................................................…….76 Southern Cone ……...................................................................................... …………80 Index of references……………............................................................................……..86

TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020

Top 100 Contractors - Installers in Latin America: How is it done?

ACR LATINOAMÉRICA highlights once again in 2019 the work of the region’s Contractors - Installers in favor of the growth of the industry, which is why we took on the task of carrying out, for the sixth year in a row, the Top 100 of Contractors - Installers with highest RECOGNITION in Latin America. The RECOGNITION ranking was born as an initiative that has also been successfully carried out by other international economic media, which, through information gathered about each company and voting, include some of the most important companies in the region or countries to which they belong. Every year we consult several sectors, including manufacturers, distributors, as well as the bulk of our readers (consultants, technicians, end users, operators, among others) throughout Latin America, who finally were the ones in charge to legitimize this work and contribute to the recognition of these companies. It’s important to mention the methodology we used for this report. A complete compilation of information was made in order to consolidate a list of 100 of the most outstanding companies in Latin America, divided into four subregions (Mexico, Central America and the Caribbean, Andean Region, and Southern Cone). For this, it was taken into account

the nomination made by the manufacturers and distributors of many of the world’s most prestigious brands of air conditioning and refrigeration, as well as a detailed monitoring by the journalists team of ACR LATINOAMÉRICA, relying on consultants and expert professionals with extensive knowledge of the industry. Subsequently, through a survey conducted online with our readers, the hierarchy and location of the 100 companies in the ranking was determined, divided into 30 companies in Mexico, 15 in Central America and the Caribbean, 35 in the Andean Region and 20 more in the Southern Cone. For this hierarchization, differential elements such as years of experience in the industry, certifications, number of employees, headquarters and belonging to industry associations in the region were also taken into account. That is to say, of the total percentage published in the ranking, 60% of the value is given to the number of votes reached and the remaining 40% to the aforementioned differential elements. The list includes information on the segments that each company serves and the percentage of recognition. You can also postulate your company by writing to editorial@acrlatinoamerica.com.

METHODOLOGY 1

IOO

Mexico 30 IDENTIFICATION Central America 15 AND Andean Region 35 APPLICATION Southern Cone 20 COMPANIES OF THE COMPANIES

COMPILATION OF INFORMATION FROM COMPANIES

VOTE RECOGNITION

Years of the company 10% Number of employees 10% HQs of the company 10% Associations and / or company certifications 10% 40% corresponds to differential elements of the company

40%

60% survey of Recognition made with readers of ACR Latinoamérica

60%

RANKING AND / OR LOCATION OF BUSINESS INFORMATION ACCORDING TO THE ABOVE VARIABLES

100%

TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020

Introduction Increased awareness of the impact of climate change has led all parts of the HVAC/R industry to consider the development and greater use of sustainable and more efficient technologies. This evolution also compels contractors installers to be better trained and become certified to be able to choose the appropriate equipment for each particular installation, even managing to reduce the carbon footprint to a minimum for each of its clients. This is a challenge that requires not only training, but also establishing updated and relevant regulations, and such is the call to action by several HVAC/R industry experts to contractor installer entrepreneurs, especially those in countries that are going through economic conjunctural times –such as Argentina and Venezuela–, “develop and promote regulations and standards, because if they do work on this now, they’ll have the baseline to improve the quality of the interior environments by the time they start moving out of the rut”, as Darío Ibargüengoitia puts it, a Mexican HVAC/R consultant.

The contractors installers of this Top 100 are also aware of the importance of a growing implementation of energy-efficient systems, as well as of natural refrigerants with minimal loads to help counteract the influence of HVAC on climate change. However, despite the entrepreneurs efforts, this industry also faces obstacles mainly by the difficult economical circumstances of several Latin American countries, especially the devaluation of the currency in countries such as Argentina, Colombia and Venezuela slows growth. However, as will be seen in this report, contractors installers have been able to sustain and advance their businesses, even creating outstanding projects. In this regard, the consultant and engineering professor, Camilo Botero, shared a piece of advice which is controversial in his eyes: “it’s in the contractors the interest to change their business model and stop working with such narrow operating margins that take them almost on the verge of bankruptcy. They must leave behind the fear of losing a contract

TARGET AUDIENCES

• HVAC/R industry entrepreneurs. • Manufacturers and distributors of HVAC/R equipment. • Market analysts and researchers. • Government and financial institutions. • Investors. • HVAC/R equipment end users.

and stop allowing customers pressuring them to lower their prices”. On the other hand, in terms of the global and regional economy, 2019 is moving forward as a year of economic uncertainties, mainly due to trade tensions between the United States and China, which is why the Economic Commission for Latin America and the Caribbean of The UN (ECLAC) reviewed the growth prospects for Latin American GDP for 2018 by 1.2%, and projects a growth of only 0.5% in 2019. However, Latin American trade, despite the difficult moment of the Argentine and Venezuelan economies –which have suffered contractions of -2.5% and -23%, respectively– has continued their growth in 2018, as reported by the World Trade Organization, although the increase would be only 2.7% in 2020, when it was previously estimated at 3%. The Top 100 Latin American Contractors Installers – HVAC/R Industry Report 2019 analyzes how this eco-

nomic outlook would impact the industry country by country, from the perspective of entrepreneurs that were part of the Top 100 of Latin American Contractors Installers ranking, made by ACR Latinoamérica. Key industry information, such as figures of imports made by companies in each country, the most used equipment brands in the region, the segments with the highest HVAC/R investment, including sales figures during 2018 of several of the companies are included in this report, along with detailed contact information about the companies that appeared in the ranking in 2019. Readers will also find in this report a complete vision of the HVAC/R industry in Latin America, along with stories of the Contractors Installers trajectories in the business, successful projects, as well as comments and recommendations on technological trends and investment opportunities, told by the same entrepreneurs interviewed for the creation of this document.

MAIN SEGMENTS FOR HVAC/R PROJECTS IN LATIN AMERICA COMMERCIAL CORPORATE

16.9%

26.5%

EDUCATION AND GOVERNMENT HOSPITALS AND PHARMA INDUSTRIAL RESIDENTIAL

8.1%

29.4%

6.6% 12.5%

* Source: Survey conducted on an online platform among the TOP 100 Latin American Contractors/Installers between May 27 and September 30, 2019.

TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020

CHAPTER 1

STATE OF HVAC/R TECHNOLOGIES IN LATIN AMERICA

Itâ&#x20AC;&#x2122;s particularly noticeable that all the consulted contractors installers agree that the main and most important future trend is in regard energy saving and efficiency, for all HVAC/R segments. This includes the use of EC motors, as well as the use of hybrid, VRF and inverter systems in air conditioning. Likewise, entrepreneurs recognize that one of the aspects that should be paying more attention to in these moments of climate crisis is the use of refrigerants that donâ&#x20AC;&#x2122;t add to the greenhouse effect, therefore they consider that gases such as R22 and the like should be classified as obsolete and completely eliminate its use, while most claim that the future, both in air conditioning and refrigeration, is in environmentally friendlier options. A recurring opinion is that the current obsolescence of HVAC/R technologies is directly related to their capability for energy efficiency and environmental friendliness. On the other hand, the still high cost of some of these technologies is what has possibly slowed a massive adoption.

USE AND CUALIFICATION OF HVAC/R TECHNOLOGIES. AIR CONDITIONING

REFRIGERATION

Automation Energy efficiency

Ammonia Compressors BIM technology

VRV / VRF systems

R22 refrigerants and similar

EC motors

Screw rack compressors

CO2 refrigerants

Inverter Systems

Ecological refrigerants

Hybrid systems (hydronic / VRF) Energy efficiency

Chilled water systems

TRADITIONAL

OBSOLETE

INNOVATIVE

FUTURE TRENDS

VENTILATION

HEATING Geothermal heat pump

Energy efficiency

Jet fans

BIM technology

Energy efficiency

Glycol technology

EC motors

TRADITIONAL

OBSOLETE

INNOVATIVE

FUTURE TRENDS

* Source: Survey conducted on an online platform among the TOP 100 Latin American Contractors/Installers between May 27 and September 30, 2019. TOP IOO CONTRACTORS-INSTALLERS â&#x20AC;¢ REPORT 2019-2020

MAIN SEGMENTS OF HVAC PROJECTS IN 2018

The most interesting change in the market distribution in 2018, compared to the previous year, is for the Residential segment. In 2017, the number of projects carried out in this segment was 12.4% in Latin America, while in 2018 we observed an increase of almost five percentage points, especially for Mexico and Central America. When analyzing this variation for this particular segment, we can conclude that households are increasingly deciding to install AC systems, probably because of the temperature increases caused by global warming. For its part, the Industrial segment had the largest increase compared to 2017, surpassing a 10% growth in Latin America. The contractors installers consulted mentioned that their biggest market is in the food industries, as well as in the chemical industry and clean rooms. It should be noted that the Hospital and Pharmaceutical segment also grew in all regions, while the Education and Government segment had a slight decrease. However, entrepreneurs mentioned in 2018 that they expected this to happen, because of the election seasons that took place in different Latin American countries.

LATIN AMERICA

16.9%

MEXICO, CENTRAL AMERICA AND THE CARIBBEAN

20.0%

26.5%

8.1%

29.4%

26.2%

7.7% 27.7%

7.7%

6.6% 10.8%

12.5%

COMMERCIAL

CORPORATE

EDUCATION AND GOVERNMENT

HOSPITALS AND PHARMA

INDUSTRIAL

RESIDENTIAL

ANDEAN REGION

SOUTHERN CONE 10.0% 15,7%

15.7% 29.4%

21.1% 29,4%

26.1% 33.3%

7.8% 9.8%

3.9% 3.9% %

10.0%

33,3% 24.2%9,8%

7,8% 8.6% 3,9% 3,9% %

COMMERCIAL

CORPORATE

EDUCATION AND GOVERNMENT

HOSPITALS AND PHARMA

INDUSTRIAL

RESIDENTIAL

RESIDENTIAL * Source: Survey conducted on an online platform among the TOP 100 Latin American Contractors/Installers between May 27 and September 30, 2019. TOP IOO CONTRACTORS-INSTALLERS â&#x20AC;¢ REPORT 2019-2020

TOP MOST USED HVAC/R BRANDS IN LATIN AMERICA IN 2018

AIR CONDITIONING

6.5% 6.5% 4.0% 4.0% % 4.8% 4.8% %

COMPRESSION FOR INDUSTRIAL REFRIGERATION WITH AMMONIA CARRIER YORK

17.7% 17.7%

DAIKIN TRANE

4.8% 4.8% %

3.0% 3.0% % 3.0% 3.0 0% 3.0% 3.0% % 3.0% 3.0% 6.1% 6.1%

FRICK MYCOM 27.3% 27.3%

GEA

5.7% 5.7%

14.5% 14.5%

6.5% 6.5% 10.5% 10.5%

12.9% 12.9% 12.1% 12.1%

SAMSUNG

VILTER BITZER DORIN

15.2% 15.2%

MIDEA

HOWDEN

LENNOX

SABROE

RHEEM MITSUBISHI ELECTRIC

24.2% 24.2%

15.2% 15.2%

YORK

OTHERS * * BERLINERLUFT, CLIMAVENETA, DUNHAM BUSH, GREE, HISENSE, HITACHI, KENDAL, MIRAGE, MITSUBISHI HEAVY INDUSTRIES, PANASONIC, TEMPSTAR, TOSHIBA

EVAPORATION FOR INDUSTRIAL REFRIGERATION WITH AMMONIA EVAPCO

2.8% 2.8% % 2.8% 2.8% % 8.3% 8.3% 8.3% 8.3%

GUNTNER THERMOFIN 38.9% 38.9%

KEVLION COLMAC COIL KRACK LUVE

13.9% 13.9%

25.0% 25.0%

* Source: Survey conducted on an online platform among the TOP 100 Latin American Contractors/Installers between May 27 and September 30, 2019.

TOP MOST USED HVAC/R BRANDS IN LATIN AMERICA IN 2018

CONDENSATION FOR INDUSTRIAL REFRIGERATION WITH AMMONIA EVAPCO

3.0% 3.0% % 3.0% 3.0% % 6.1% 6.1%

HILL PHOENIX REYMSA 48.5% 48.5%

COPELAND

11.4% 11.4%

BAC ( BALTIMORE AIRCOIL COMPANY ) LUVE

39.4% 39.4%

COMPRESSION SYSTEMS FOR COMMERCIAL REFRIGERATION

22.7% 22.7%

2.3% 2.3 3% 2.3% 2.3% 3.4% 3.4% % 3.4% 3.4% %

BITZER BOHN CARLYLE TECUMSEH

4.6% 4.6%

HUSSMANN 15.9% 15.9%

8.0% 8.0%

FLEXCOLD GUNTNER FRASCOLD

11.4% 11.4%

KRACK

14.8% 14.8%

OTHERS * * BALLY, BOCK, CLIMATUF, DANFOSS, LARKIN, LUVE, MANEUROP, RUSSEL, SUTRAK, TRANE

VENTILATION

7.4% 7.4% 2.1% 2.1% % 3.2% 3.2% % 4.2% 4.2% %

SOLER & PALAU GREENHECK 27.4% 27.4% %

SYSTEMAIR TROX

5.3% 5.3%

ZIELH-ABEGG

5.3% 5.3%

SODECA MUNTERS

7.4% 7.4%

CASALS 20.0% 20.0%

8.4% 8.4% 9.5% 9.5%

EMBPAST MULTI-WING OTHERS * * BIG ASS FANS, LAU, LOREN COOK, NORTEK, PENN BARRY, ROSENBERG, SONY

HVAC/R IMPORTS BY REGION AND COMPANIES CENTRAL AMERICA COUNTRY

DATES

COMPANY

MAIN ORIGINS

VALUE IN USD

Costa Rica

Jan-Nov 2018

MULTIFRÍO

USA – Japan

3.009.641 CIF

Panama

Jan-Dec 2018

COMPAÑÍA CLIMATIZADORA

USA

2.375.469 FOB

ANDEAN REGION COUNTRY

Colombia

DATES

Jan-Dec 2018

COMPANY

MAIN ORIGINS

VALUE IN USD

REFRINORTE

China

2.002.854 FOB

LARCO COMERCIAL Y SERVICIOS

China – USA

1.447.558 FOB

JOHNSON CONTROLS

China

1.409.488 FOB

SERVIPÁRAMO

USA

1.141.902 FOB

INDUSTRIAS THERMOTAR

USA – China

1.042.636 FOB

WESTON

USA

526.057 FOB

CARVEL

USA – China

483.710 FOB

ALFRÍO

USA – Italy

363.129 FOB

THERMOANDINA

USA

314.406 FOB

FRÍO AIRE

China

310.157 FOB

GRIVAN INGENIERÍA

USA

259.717 FOB

SAEG

USA

256.551 FOB

AIRE CARIBE

Italy

180.307 FOB

AIRE AMBIENTE

China

99.384 FOB

Ecuador

Jan-Dec 2018

CENTURIOSA

China – USA

910.365 CIF

Peru

Jan-Dec 2018

COLD IMPORT

Brazil – China – USA

4.999.676 FOB

SOUTHERN CONE COUNTRY

Argentina

DATES

Jan-Jun 2017*

COMPANY

MAIN ORIGINS

VALUE IN USD

COSTAN EPTA

Spain

166.436 FOB

FRIO – RAF

Germany

77.107 FOB

FRIMONT

Denmark – Italy

70.358 FOB

TERMAIR

Germany

11.103 FOB

Chile

Jan-Dec 2018

REFRICENTRO

Brazil

48.907 CIF

Uruguay

Jan-Dec 2018

FRYMON

Brazil

605.260 CIF

FOB (Free on Board) CIF (Cost, Insurance and Freight) *Most recent available data **Source: Descartes Datamyne with Official Information

Compared to the import figures that we recorded in the first edition of this report in 2018, we found that most import figures decreased, significantly in some cases, although these figures themselves do not indicate the sales performance of these companies. It’s important to highlight that, although some of these companies import equipment as distributors, many others choose to import only certain equipment and components for their projects, and the rest is acquired through local distributors. Finally, considering that 2018 was an electoral and post-election year in many Latin American countries, a slight decrease in the acquisition of equipment for new projects was to be expected, while customer uncertainties are eased and new contracts are signed. Note: Only the import information of compressors, fans, air conditioning machines, refrigerators and freezers was taken into account. Imports for components or spare parts were not included. The complete list of tariff codes analyzed in this chapter can be found in the Index of References in page 86.

HVAC/R IMPORTS BY COUNTRY MEXICO AND CENTRAL AMERICA 1.1% 1.5% 1.8% 2.5% 3.0% 3.7%

CHINA USA MEXICO

5.1%

COLON FTZ

38.7%

SOUTH KOREA TAIWAN

13.8%

BRAZIL PANAMA THAILAND 28.9%

MALAYSIA

ANDEAN REGION CHINA

1.6% 2.4% 2.6% 2.8% 3.9%

USA BRAZIL

4.1%

SPAIN

4.6%

MEXICO

45.8%

ITALY

6.7%

PANAMA GERMANY NETHERLANDS

25.5%

TAIWAN

SOUTHERN CONE** 1.5% 2.7% 3.2% 3.6% 3.8%

CHINA USA ITALY SPAIN

5.4%

BRAZIL

5.8% 52.6%

GERMANY SINGAPORE

9.6%

SOUTH KOREA 11.6%

HONG KONG SWEDEN

*Source: Descartes Datamyne with official information ** Except Argentina, since the most recent available data is from 2017.

TOP IOO CONTRACTORS-INSTALLERS â&#x20AC;¢ REPORT 2019-2020

CHAPTER 2

PERSPECTIVES OF THE LATIN AMERICAN CONTRACTORS INSTALLERS Again this year we spoke with several of the entrepreneurs of the Top 100 Latin American Contractors Installers 2019 about their results in 2018 and their growth and sales expectations, as well as the market trends of the HVAC/R industry for 2019. Some of them also shared some details about outstanding projects they worked on during the last year. We also asked three experts in the industry about their perception of this sector in recent years and the aspects that all the actors in this industry should strengthen to boost the growth of their companies during this year and in the immediate future.

Mexico

ABA Depot (before ABA Confort) Areche Ingenieros Miguel Rodríguez Managing Director

Carlos Arechederra Administrator

• HOW MANY PROJECTS DID YOU WORK ON DURING 2018?

We carried out 500 projects. • APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018:

USD 1 million. • SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018:

We have carried out projects in prominent hotels in the city of Guadalajara, educational centers and renowned restaurant chains. • WHERE’S YOUR MAIN OFFICE? IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION?

We’re based in Guadalajara. • DO YOU BELONG TO ANY ASSOCIATION AND HOLD CERTIFICATIONS?

We’re part of ASHRAE.

We carried out six projects. • APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018:

USD 3 million. • WHERE’S YOUR MAIN OFFICE? IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION?

We only have an office in Villahermosa, Tabasco state. Our largest participation is in Villahermosa, Coatzacoalcos, Veracruz and Ciudad del Carmen. • DO YOU BELONG TO ANY ASSOCIATION AND HOLD CERTIFICATIONS?

We’re affiliated to the Mexican Chamber of Construction Industry. • TELL US ABOUT YOUR GROWTH AND SALES PROSPECTS FOR 2019:

We expect to grow by 10%. • TELL US ABOUT YOUR GROWTH AND SALES PROSPECTS FOR 2019:

We look forward and strive to become great contractors that offer excellent service and customer service to all types of construction.

TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020

PERSPECTIVES OF THE CONTRACTORS-INSTALLERS

Climas Ipasa

Cold Chain & Engineering

• HOW MANY PROJECTS DID YOU WORK ON DURING 2018?

Martín Benavides Managing Director

We carried out seven projects of at least 100 tons, in addition we had small residential and commercial projects. • APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018:

Over USD 1.5 million. • SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018:

We had several, in particular we’d like to mention a project of over 400 tons with VRF and intelligent control in the Judicial Branch of Nuevo León, which has the particularity of using a three-tube VRF system. • WHERE’S YOUR MAIN OFFICE? IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION?

We’re based at Monterrey, Nuevo León. • DO YOU BELONG TO ANY ASSOCIATION AND HOLD CERTIFICATIONS?

We are affiliated to ASHRAE and are certified for VRF systems from Carrier, Toshiba, Trane, LG, Mitsubishi Electric, MHI, Hitachi, Panasonic, Sanyo, Midea, Rheem, Comfort Star and more. • TELL US ABOUT YOUR GROWTH AND SALES PROSPECTS FOR 2019:

We’re working for a 10% growth, although we don’t have very favorable prospects because of the slowdown in the construction sector, in addition to a very low investment outlook in the country. However, we have interesting current projects.

Edgar Hernández CEO

We carried out six projects. • APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018:

USD 10,500. • SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018:

Our most relevant project took place at the Marquez Museum. • WHERE’S YOUR MAIN OFFICE? IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION?

We’re located in Coyocana, we have offices in Monterrey, Cancun, Mexico City and Jalisco. • DO YOU BELONG TO ANY ASSOCIATION AND HOLD CERTIFICATIONS?

We are associated to ASHRAE, the International Refrigeration Institute of Ammonia (IIAR) and we have certifications on diverse brands. • TELL US ABOUT YOUR GROWTH AND SALES PROSPECTS FOR 2019:

We expect a 25% growth.

De Buen y Asociados

Grupo Aislacon

• HOW MANY PROJECTS DID YOU WORK ON DURING 2018?

Carlos de Buen Managing Director

We carried out 30 projects. • APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018:

USD 6,500,000. • SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018:

At the Artz Pedregal mall we installed a 2,400ton ice water plant, with a primary variable volume pumping system. • WHERE’S YOUR MAIN OFFICE? IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION?

We’re located in Mexico City. Most of out participation happens in this city, as well as León at Guanajuato state, Guadalajara, Acapulco, Querétaro. • DO YOU BELONG TO ANY ASSOCIATION AND HOLD CERTIFICATIONS?

Oscar González Head of Continuous Improvement

We carried out over 1,500 projects. • APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018:

USD 50 million, approximately. • WHERE’S YOUR MAIN OFFICE? IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION?

We have offices in Monterrey, Guadalajara and Mexico City. • DO YOU BELONG TO ANY ASSOCIATION AND HOLD CERTIFICATIONS?

The National Association of Manufacturers for the Refrigeration Industry (ANFIR in Spanish), the Global Cold Chain Alliance, the Chamber of Transformation Industry of Nuevo León (Caintra), and the Mexican Institute of Quality Control (Imecca A.C.)

We belong to the Mexican Association of Construction Facilities Companies, Americ. • TELL US ABOUT YOUR GROWTH AND SALES PROSPECTS FOR 2019:

We expect to increase sales by 15%.

TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020

PERSPECTIVES OF THE CONTRACTORS-INSTALLERS

Tecnoclima

TTQ

• HOW MANY PROJECTS DID YOU WORK ON DURING 2018?

Héctor Terrazas Director of Operations

We worked on 250 projects. • APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018:

USD 250,000. • SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018:

We worked installing the extraction and air conditioning systems of the Anderson Group restaurants, and the maintenance of air conditioning systems in all Game Planet stores, Honda, BMW, Ford, Toyota. • WHERE’S YOUR MAIN OFFICE? IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION?

Our market is mainly in Mexico City and the state of Mexico.

Génesis Carreón Marketing

We had 21 MEP (Mechanical, Electrical and Hydrosanitary) engineering projects and 19 MEP installations. • SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018:

We worked on the MEP designs of the new Poniente Tower of Christus Muguerza High Specialty Hospital of Monterrey. This building has a built area of 23,697 m2, that comprises an eight-level building for medical and clinical specialties areas, a level for rooftop event hall, a basement for a medical cyclotron, an eleven-floor parking lot, as well as a connection bridge with the Hospital which is located next to the new Tower. • WHERE’S YOUR MAIN OFFICE? IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION?

We have our office based in the city of Monterrey. • DO YOU BELONG TO ANY ASSOCIATION AND HOLD CERTIFICATIONS?

We are in the process of ISO 9000 certification. • TELL US ABOUT YOUR GROWTH AND SALES PROSPECTS FOR 2019:

We expect to have a 20% growth.

• TELL US ABOUT YOUR GROWTH AND SALES PROSPECTS FOR 2019:

We’re working on campaigns focusing on boosting sales in facilities projects.

Central America

Climatizadora

Grupo Clima

• HOW MANY PROJECTS DID YOU WORK ON DURING 2018?

• SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018:

Carlos Rojas Commercial Manager Panama Over 100. • APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018:

USD 20 million. • SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018:

The horizontal property building Dream Plaza in Panama City, which is a LEED project where a cold water plant was installed, with cooling towers for offices and water condensation system for commercial premises. • WHERE’S YOUR MAIN OFFICE? IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION?

We’re located in Panama City and serve this city, also in David and Santiago. • DO YOU BELONG TO ANY ASSOCIATION AND HOLD CERTIFICATIONS?

We’re part of the Green Building Council, the Panamanian Association of Facility Management (Apafam), ASHRAE, the Panama Green Building Council, the Ammonia International Refrigeration Institute (IIAR), among others.

Chris Elizondo Deputy General Manager Costa Rica We had very important projects such as the National Congress and Convention Center of Costa Rica in San José, a 15,600 m2 construction with capacity for 4,600 people, where our subsidiary company Clima Ideal was 100% responsible for the air conditioning system, which has custom design and noise levels specs. We also highlight the O2 Wellness Center, where we used a series of backflow chillers system. • WHERE’S YOUR MAIN OFFICE? IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION?

The main offices are at the Industrial Zone of Pavas, San José, Costa Rica. We’ve mainly carried out projects in several Central American countries, and our automation company, ISA Controles, has developed projects in Honduras, Venezuela, some Caribbean islands and also at the National Sports Village in Lima, Peru, one of the main venues of the 2019 Pan American Games. • DO YOU BELONG TO ANY ASSOCIATION AND HOLD CERTIFICATIONS?

Grupo Clima holds ISO 9001:2015 certification. • TELL US ABOUT YOUR GROWTH AND SALES PROSPECTS FOR 2019:

As in any industry, we’ve gone through years with uncertainty due to the macroeconomic conditions, but having diversified businesses in construction, remodeling, and maintenance contracts, has allowed us to sustain a stable business and continued growth levels.

TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020

PERSPECTIVES OF THE CONTRACTORS-INSTALLERS

Grupo MPG

Inelec

• HOW MANY PROJECTS DID YOU WORK ON DURING 2018?

Andrés Mera Business Director Dominican Republic We carried out 215 projects. • SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018:

We installed 650 tons of VRF modular chillers at a hotel project. • WHERE’S YOUR MAIN OFFICE? IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION?

In Santo Domingo and Punta Cana. • DO YOU BELONG TO ANY ASSOCIATION AND HOLD CERTIFICATIONS?

To the Association for the Promotion of Renewable Energies (Asofer, in Spanish), ASHRAE, the National Energy Commission. • TELL US ABOUT YOUR GROWTH AND SALES PROSPECTS FOR 2019:

We expect a growth of 20%.

Javier Dávila General Manager Honduras Only in the HVAC field, we developed about 40 projects. • APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018:

Nearly USD 4 million. • SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018:

One of our outstanding projects was the set-up of the AC system at the 1847 building of the National Autonomous University of Honduras, the most technologically equipped building on campus. • WHERE’S YOUR MAIN OFFICE? IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION?

We’re based in Tegucigalpa, Honduras and we have regional offices in San Pedro Sula, in San Salvador and San José, Costa Rica. Our largest participation is in Tegucigalpa and San Pedro Sula. • DO YOU BELONG TO ANY ASSOCIATION AND HOLD CERTIFICATIONS?

We’re part of the College of Mechanical, Electrical and Chemical Engineers of Honduras (Cimeqh, in Spanish). • TELL US ABOUT YOUR GROWTH AND SALES PROSPECTS FOR 2019:

This year we have a great expectation of increasing the chilled water business with the new Mitsubishi Electric VRF chiller.

Instalfrío Panamá

Multifrío

• HOW MANY PROJECTS DID YOU WORK ON DURING 2018?

Roberto Malavé Director Panama

We carried out 30 projects. • APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018:

USD 1 million. • SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018:

We installed 300 tons in VRF systems at the Steven’s shopping center in the Albrook Mall of Panama. We will mention more details about this project later in this report. • WHERE’S YOUR MAIN OFFICE? IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION?

In Panama, and we also have operations in Peru and Venezuela, covering their entire territory. • DO YOU BELONG TO ANY ASSOCIATION AND HOLD CERTIFICATIONS?

We have certifications in chilled water, VRF and controls for the most popular brands in the HVAC market. • TELL US ABOUT YOUR GROWTH AND SALES PROSPECTS FOR 2019:

We expect to bill 1.5 million dollars in 2019.

Salo Ponchner General Manager Costa Rica More or less 1,000 projects, we have the capacity to manage 200 projects and about 180 maintenance contracts at the same time. • APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018:

About USD 20 million. • SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018:

We worked in ten buildings at the Zona Franca América in Heredia, Costa Rica, each with an area of between 8,000 to 10,000 m². • WHERE’S YOUR MAIN OFFICE? IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION?

Our headquarters are in Atenas, Costa Rica, very close to the airport and the country’s free trade zones. Our most important projects have taken place in the Costa Rican Central Valleybut we also cover projects at coastal areas, throughout the country. • DO YOU BELONG TO ANY ASSOCIATION AND HOLD CERTIFICATIONS?

We belong to ASHRAE and we have ten engineers certified in LEED AP. We also hold the ISO TOP 9001:2015 certification since 2008. • TELL US ABOUT YOUR GROWTH AND SALES PROSPECTS FOR 2019:

We plan to grow at least 5 to 10 percent. TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020

PERSPECTIVES OF THE CONTRACTORS-INSTALLERS

Carvel

Comercial y Servicios Larco

• HOW MANY PROJECTS DID YOU WORK ON DURING 2018?

Sebastián Delgado Marketing Coordinator Colombia We carried out five projects. • APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018:

USD 6 million.

Natalia Arango Commercial Director Colombia

We implemented approximately 400 projects. • APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018:

We had a sales figure of USD 27,064,705.

• SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018:

We worked at the new Zonamerica business park, located south of the city of Cali.

In 2018 we delivered a project at the Viva Envigado Shopping Center, the largest commercial and business complex in Colombia with an area of 137,000 m², which was built under international sustainability standards and seeks to obtain LEED certification in the Gold category.

• WHERE’S YOUR MAIN OFFICE? IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION?

We have offices in Cali, Bogota, Medellín and Barranquilla, with the most participation in Cali and Bogota. • DO YOU BELONG TO ANY ASSOCIATION AND HOLD CERTIFICATIONS?

We belong to ASHRAE, the Colombian Association of Air Conditioning and Refrigeration (Acaire), the Institute of Air Conditioning, Heating and Refrigeration (AHRI), the Colombian Council of Sustainable Construction, with NAFA, RUC and ISO 9001:2015 certifications.

• WHERE’S YOUR MAIN OFFICE? IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION?

Our headquarters are in Medellín and we have offices in Bogota and Barranquilla, we carry out projects mostly in these cities and their surroundings. We have the capacity to work on projects throughout the country. • DO YOU BELONG TO ANY ASSOCIATION AND HOLD CERTIFICATIONS?

We hold ISO 9001:2015 certification and are part of Acaire. • TELL US ABOUT YOUR GROWTH AND SALES PROSPECTS FOR 2019:

We expect to have a 3% growth.

• TELL US ABOUT YOUR GROWTH AND SALES PROSPECTS FOR 2019:

We believe we’ll have a 5% growth for 2019, compared to the previous year.

Andean Region

Enfriarservicios

Grivan Ingeniería

• HOW MANY PROJECTS DID YOU WORK ON DURING 2018?

María Elisa Zúñiga Manager Colombia

We implemented ten projects. • APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018:

USD 300,000. • WHERE’S YOUR MAIN OFFICE? IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION?

We’re located in Cali. • DO YOU BELONG TO ANY ASSOCIATION AND HOLD CERTIFICATIONS?

We hold the Certification of the Ozone Technical Unit (UTO), issued by the Colombian government. • TELL US ABOUT YOUR GROWTH AND SALES PROSPECTS FOR 2019:

We expect to double our billing, reaching USD 600,000.

Fernando Grisales General Manager Colombia

We carried out 20 projects ranging between USD 100,000 and USD 2 million, and closed over 100 projects below these amounts. • APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018:

USD 8 million. • SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018:

We worked in the inspection and cross-docking rooms at the Port of Buenaventura; we also installed the AC systems of the engineering and music buildings at the ICESI University, and the AC for the labs of the “Seeds of the Future” project of the International Center for Tropical Agriculture (CIAT). • WHERE’S YOUR MAIN OFFICE? IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION?

Our headquarters are located in Cali and we have offices in Bogota and Barranquilla. We also have participation in the city of Medellín. • DO YOU BELONG TO ANY ASSOCIATION AND HOLD CERTIFICATIONS?

We hold ISO 9001:2015, RUC and RUP certifications. • TELL US ABOUT YOUR GROWTH AND SALES PROSPECTS FOR 2019:

We expect to grow 20%. TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020

PERSPECTIVES OF THE CONTRACTORS-INSTALLERS

Grupo Uniclima

Omega Ingenieros

• HOW MANY PROJECTS DID YOU WORK ON DURING 2018?

Isaac Blum Director Venezuela

50 projects, approximately. • APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018:

USD 10,000,000.

Gustavo Cruz Manager Colombia

We carried out 20 projects. • APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018:

USD 4 million.

• SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018:

We had outstanding projects in office towers, supermarkets, department stores, multi-family buildings, banks, among others.

We carried out an important project for the Banco de la Mujer Foundation in Cali with variable refrigerant, where we did not only set up the air conditioning systems, but also an entire solar panels system.

• WHERE’S YOUR MAIN OFFICE? IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION?

Our headquarters are in Caracas, and we have offices in Valencia, Puerto Ordaz, Margarita Island in Venezuela, Panama City and David in Panama, and Miami in the United States. Our largest participation is in Venezuela and Panama. • TELL US ABOUT YOUR GROWTH AND SALES PROSPECTS FOR 2019:

We expect to grow by 30% compared to the previous period.

• WHERE’S YOUR MAIN OFFICE? IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION?

Our main office is in Cali and we have agencies in Bogota and Cartagena, where we have our largest participation. • DO YOU BELONG TO ANY ASSOCIATION AND HOLD CERTIFICATIONS?

We are affiliated to Acaire, the National Air Duct Cleaners Association (NADCA) and the International Kitchen Exhaust Cleaning Association (IKECA). • TELL US ABOUT YOUR GROWTH AND SALES PROSPECTS FOR 2019:

We expect to grow by 10%.

Refriamerica

Robaina Ingenieros

• HOW MANY PROJECTS DID YOU WORK ON DURING 2018?

María Milagros Merino Marketing Manager Venezuela We carried out 30 projects. • APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018:

USD 3 million, approximately. • SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018:

We highlight the project at the Torre Pequiven in Caracas, where the central AC system of the former corporate HQ of the Petrochemical company of Venezuela (Pequiven) was replaced. The new system includes a machine room with water chillers, water condensation with screw technology, and a condensation system with two 1,400ton cooling towers. • WHERE’S YOUR MAIN OFFICE? IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION?

Our HQ is in Caracas, we have other branches in Valencia, Venezuela and Weston, USA. Our largest participation is in Caracas, La Guaira and Valencia.

Alfonso Robaina President Venezuela

We worked on 18 projects. • APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018:

USD 180,000. • WHERE’S YOUR MAIN OFFICE? IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION?

We have offices in the cities of Caracas, Barcelona and Valencia, in Venezuela. • DO YOU BELONG TO ANY ASSOCIATION AND HOLD CERTIFICATIONS?

We are affiliated to Venacor, ASHRAE, and the American Society of Mechanical Engineers (ASME). • TELL US ABOUT YOUR GROWTH AND SALES PROSPECTS FOR 2019:

We expect to have a 6% increase in projects.

• DO YOU BELONG TO ANY ASSOCIATION AND HOLD CERTIFICATIONS?

We belong to the Venezuelan Chamber of Air Conditioning and Refrigeration (Venacor) and we have all the Carrier certifications for installation, commissioning and servicing of commercial and industrial equipment, including all their automation systems.

TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020

PERSPECTIVES OF THE CONTRACTORS-INSTALLERS

Saider

Sutrak

• HOW MANY PROJECTS DID YOU WORK ON DURING 2018?

• APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018:

José Luis Alos Director Venezuela We carried out four projects. • APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018:

USD 2,000,000. • SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018:

We worked on the expansion of a fish processing plant. We also have industrial and commercial refrigeration projects for beverages, beers, meat, poultry and fishing products. • WHERE’S YOUR MAIN OFFICE? IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION?

Our office is located in Caracas, we serve nationwide in Venezuela.

Juan Carlos Yepes General Manager Colombia USD 6,250,000. • SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018:

We worked on the construction of the Westfalia Fruit Colombia avocado selection plant in the municipality of Sonsón, Antioquia, as well as the expansion of the production plant of the Crepes and Waffles restaurant chain in Medellín. • WHERE’S YOUR MAIN OFFICE? IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION?

Our head office is located in Medellín and we have an office in Bogota. We have projects in Medellín, Bogota, Barranquilla, Cartagena, Ibagué and Bucaramanga. • TELL US ABOUT YOUR GROWTH AND SALES PROSPECTS FOR 2019:

We expect to have a 10% increase in turnover compared to 2018. On the other hand, we are implementing new refrigeration technologies with natural refrigerants.

Southern Cone

MED Termomecánica

Bicsa

• HOW MANY PROJECTS DID YOU WORK ON DURING 2018?

Mario Zito Director Uruguay

We carried out over 100 projects. • APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018:

USD 22,000,000.

Fernando Apa Director Uruguay We carried out four or five minor projects. • APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018:

USD 2,000,000, approximately.

• SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018:

We continued the Antel Arena Uruguay project, one of the largest air conditioning projects of the last ten years in the country. This is the first closed stadium in Uruguay, and it was inaugurated in November 2018. There were 5,000 kW of hot and cold water installed, and the chillers are multipurpose condensed by air. There are also air handlers connected to a plug-andplay system.

We’ve had several projects in the industrial, hospital and laboratory areas. To highlight, the Gramón Bagó Laboratory in Montevideo was completely remodeled, with thermal conditioning systems including a four-tube heat pump chiller and handlers for different areas, several of them with a recuperator, to avoid crossover between the extracted air and the injected air.

• WHERE’S YOUR MAIN OFFICE? IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION?

Our headquarters are in Montevideo, and we have a branch in Punta del Este city. Also, Importclima company is part of our business group, and is located in the city of Asunción, Paraguay. In these three cities we have the largest participation. • TELL US ABOUT YOUR GROWTH AND SALES PROSPECTS FOR 2019:

We expect to have a 10% growth for 2019.

• WHERE’S YOUR MAIN OFFICE? IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION?

Our main office is in Montevideo, and our company develops its activities throughout the national territory, including the cities of Canelones, Maldonado, Colonia, Soriano, Río Negro, Tacuarembó, Rivera, Salto and Artigas. • TELL US ABOUT YOUR GROWTH AND SALES PROSPECTS FOR 2019:

We expect to remain stable in 2019, we do not foresee a growth in sales because Uruguay is going through a period of economic recession.

TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020

PERSPECTIVES OF THE CONTRACTORS-INSTALLERS

INRA Refrigeración Industrial Klaus Peter Schmid General Manager Chile

• HOW MANY PROJECTS DID YOU WORK ON DURING 2018?

We carried out approximately fifteen new projects or expansions. • APPROXIMATE SALES FIGURES FOR PROJECTS CARRIED OUT IN 2018:

USD 1,500,000, plus technical services and maintenance. • SHARE WITH US SOME DETAILS OF A HIGHLIGHTED PROJECT IN 2018:

We worked on the assembly of a new mushroom plant, with a heat recovery chiller of our design and manufacturing, installed with cold and hot water networks. • WHERE’S YOUR MAIN OFFICE? IN WHICH CITIES DO YOU HAVE MORE PROJECT PARTICIPATION?

We’re located in the city of Santiago, we don’t have other offices. Our largest participation is in the metropolitan area of Santiago and the regions of Valparaíso and O’Higgins. We have presence with our manufacturing equipment throughout the country, including Easter Island. • DO YOU BELONG TO ANY ASSOCIATION AND HOLD CERTIFICATIONS?

We’re affiliated to the Chilean Chamber of Refrigeration and Air Conditioning, and I’m also an ASHRAE member. • TELL US ABOUT YOUR GROWTH AND SALES PROSPECTS FOR 2019:

We expect to remain without major changes for this year.

TOP IOO CONTRACTORS-INSTALLERS â&#x20AC;¢ REPORT 2019-2020

THE HVAC/R EXPERTS PERSPECTIVES

HVAC/R CONSULTING EXPERTS

Despite the conjunctures of Latin American economies, especially in Venezuela and Argentina, contractors installers show optimism for this year and many of them hope to continue the growth trend in the near future, although they’re also aware of the constant challenges that must be overcome, especially as some industries –such as construction– are going through stagnation periods in some countries. Analyzing this point of view from another perspective, in this edition of the report of the Top 100 Latin American Contractors Installers, we invite three industry experts: Darío Ibargüengoitia, consultant and partner of Ibalca in Mexico; Camilo Botero, Mechanical Engineering professor and founder of CBG Ingeniería in Colombia; and Carlos Grinberg, consultant and partner of Estudio Grinberg in Argentina.

They all agree that one of the biggest gaps in the HVAC/R industry is currently the lack of specific regulations for each country, in addition to the need and importance of adequate engineering training, further than the certifications offered by equipment manufacturers, in order to strengthen the industry and standardize the best installation and maintenance practices.

“IN DIFFICULT TIMES, REGULATIONS SHOULD BE STRENGTHENED”, THE EXPERTS SAY

TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020

“ENTREPRENEURS SHOULD TAKE ADVANTAGE OF THIS TIME TO DEVELOP AND PROMOTE REGULATIONS AND STANDARDS”.

Darío Ibargüengoitia Ibalca

Founder Partner

• WHAT IS YOUR PERCEPTION OF THE INDUSTRY AND THE HVAC/R ENTREPRENEURS IN 2019?

“The industry is going through great growth, and due to climate change it’s increasingly necessary to have spaces with environmental comfort, which helps drive the industry. However, we must recognize that we are partly responsible for the emission of greenhouse gases, so we must strive to become increasingly efficient. As for the contractor installers, I think that their work has become more difficult, as project builders and developers lead them to reduce costs, even at the cost of lowering quality. This leads to a little less ‘loyal’ market than before, and the use of good practices –that have characterized this industry– has stopped, forced in many cases by developers who constantly try to reduce installation costs. In this sense, compliance with ASHRAE or SMACNA international standards is also left out”.

HVAC/R CONSULTING EXPERTS

• IN WHICH LATIN AMERICAN COUNTRIES IS THE INDUSTRY GROWING, AND IN WHICH WOULD IT BE STAGNATING?

“The current panorama in Mexico, as during the first year after any change of government, a slowdown happens. Brazil, Colombia, Paraguay and Uruguay were very strong and now they’re moving a little slower, but they are strengthening again. I think that this market grows more in the residential sector than in the commercial, it’s something curious, but I believe that the commercial segment will pick up in 2020-21”. • HOW DO YOU THINK THE INDUSTRY HAS EVOLVED IN RECENT YEARS?

“It has evolved very favorably towards efficiency. There are many organizations that have driven the technology improvement –such as the World Green Building Council– leading to the emergence of Inverter technologies and the magnetic centrifuge, allowing for a better air conditioning, with lower energy consumption.

is what they need. In Mexico and the US there has been a lot of talk on how to educate users, on clearly ‘labeling’ the equipment mentioning its efficiency and type of refrigerant, to easily identify whether the equipment suits them or not, either by its longterm energy consumption or its safety features. Thus, the client can begin to make better informed decisions, allowing the contractor the benefit of not having to look for the cheapest, rather the most suitable for each installation”. • WHAT ADVICE WOULD YOU OFFER TO ENTREPRENEURS WHO ARE GOING THROUGH DIFFICULT TIMES?

“That they should take advantage of those moments to develop and promote regulations and standards, because if they do work on this now, they’ll have the baseline to improve the quality of the interior environments by the time they start moving out of the rut.

• ARE CUSTOMERS AND USERS INCREASINGLY BETTER INFORMED ABOUT THE TECHNOLOGIES AVAILABLE TO THEM?

On this, local regulations are needed in each country, although this work has already begun with the creation of Mesoamerican regulations. For example, ventilation and indoor air quality is one of the issues that most worries me and its fundamental in HVAC projects, since it dilutes contaminants, such as carbon dioxide. In Latin America we’re lagging behind with this, unlike Europe or the US.

“We know that many customers initially have a requirement, mostly ‘to cool a space’, but because of ignorance, they tend to buy cheap equipment or whatever they find available, which not necessarily

Ultimately, it’s time to stop doing things as we always have. We still hear a lot: ‘I’ve always done it that way and it works’. Such a mentality has to be eliminated, we have to work hard to improve”.

However, I feel that more training is needed from manufacturers to designers, for a better knowledge on how to apply this technology in new designs”.

TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020

“I HAVE LONG ADVOCATED THE CREATION OF AN AC AND REFRIGERATION INSTITUTE IN COLOMBIA”.

Camilo Botero CBG Ingeniería Founder

• REGARDING KNOWLEDGE AND TRAINING, HOW IS THE HVAC/R INDUSTRY AT THIS MOMENT?

“Definitely, there’s a lack of educational offer. There are many universities or technological institutes that no longer teach air conditioning courses. In my training as a mechanical engineer at the National University of Colombia, and later in my postgraduate degree in Thermal Engineering at the University of Rio, 600 classroom hours were taught and approximately 1,800 hours in total, including project work. In comparison, today mostly we find only a 120-hour diploma, which already includes project work. I’m a educator, and when I’m invited to teach, I see a great deficiency of knowledge in this regard. This greatly concerns me, because as long as we don’t come out of the low level of knowledge, we’ll continue to do things at the most elementary level. For this reason, I have long advocated the creation of an AC and refrigeration institute in Colombia. Not only must we enforce theoretical learning, the certifiable technical type as well”.

HVAC/R CONSULTING EXPERTS

• AND WHAT IS YOUR PERCEPTION IN TERMS OF ECONOMY FOR ENTREPRENEURS AND THE INDUSTRY IN GENERAL, IN 2019?

• WHAT WOULD YOU RECOMMEND TO ENTREPRENEURS WHO ARE GOING THROUGH DIFFICULT TIMES, SUCH AS IN ARGENTINA OR VENEZUELA?

“It’s a conjunctural moment. Most countries are not growing as they should, including Colombia. This affects all industries, including AC and refrigeration, as I prefer to call it. However, I believe that we are going through an interesting moment in our discipline, of major technological changes, such as variable speed in turbo machinery, control systems, also in the regulation that has become more rigorous, thus having a favorable impact when economic conditions improve.

“They’re going through a complex political problem. I would say to them that they must greatly rely on their trade unions, that they should begin to enforce more training and regulations and take advantage of the low activity time to define consulting rates, for example.

As for entrepreneurs, I have a fairly critical opinion: I think there’s a fundamental problem with the way contractors approach their businesses, with very small operating margins. They work almost on the verge of bankruptcy. While it’s true that customers can be very complicated and sometimes they even take advantage of contractors, it’s also in them to change their business model”.

It’s also important that they stop thinking about doing projects of a one or two-year lifespan; projects must be functional for at least twenty years and be future-ready, while sustainable and continuously compliant with specs. One way to make this possible is by following the ASHRAE Standard 202, for example, thus ensuring project quality. At the end of the day, I’m always in touch with brand representatives that constantly travel all over Latin America, and what they’ve told me is that Peru has a very good AC market, same as Chile, although there’s been some decline; Dominican Republic and Panama have very good projects. I’ve also been told that Colombia is a complicated country, especially when it comes to negotiation with contractors, as I mentioned before, the issue of operating margins”.

TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020

“THE TRUTH IS THAT, IN ARGENTINA, ENTREPRENEURS ARE CONSTANTLY GOING THROUGH ‘CRISIS GYMNASTICS’”.

Carlos Grinberg Estudio Grinberg

Partner and General Coordinator

• WHAT IS YOUR PERCEPTION OF THE HVAC/R INDUSTRY IN 2019 AND HOW HAS IT EVOLVED IN RECENT YEARS?

“It’s well known that Argentina is going through a process of government change with an economic crisis, but the market has been growing, slowly. Neighboring countries have grown much more, I have worked in Peru, Bolivia, Paraguay, and in all of them the growth rate is much higher. Ours is basically a market where VRF prevails in the residential segment, while mixed systems are used in the commercial area, with 60-70% VRF and 30% chilled water. It’s important to know that VRF has been a great protagonist in recent years in Argentina, especially in luxury residential projects, where we see an increasingly brand variety, so we have a fairly large market in that regard”.

HVAC/R CONSULTING EXPERTS

• AND HOW DO YOU ANALYZE THE WORK OF CONTRACTORS INSTALLERS? WHAT BUSINESS ASPECTS SHOULD THEY STRENGTHEN?

• WHAT WOULD YOU LIKE TO SAY TO CONTRACTOR INSTALLERS FOR THE REMAINDER OF THIS YEAR AND 2020?

“We depend on the dynamics in the construction industry; in Argentina the crisis has slowed the momentum it had up until 2015, and then we have had a fairly large setback, although the blow has been less hard for the luxury residential market. Therefore, the HVAC/R market has been less affected in central facilities, but residential split-type equipment has had much decline.

“The first thing is to invite them to try to uphold their project’s design and avoid modifications that sacrifice the quality of installation, only to satisfy the developer. This is common occurrence because of the fear of losing a contract, but problems in the operation become apparent further on, and finally the client ends up feeling that they received a ‘worse’ solution when it was supposed to improve. Unfortunately, this happens much too often due to cost pressures.

The truth is that in Argentina, us businessmen are constantly going through a ‘crisis gymnastics’, making us quite skilled to get around them and recover. Regarding sustainability issues and technologies for LEED buildings certification, I believe the market is becoming updated and the installers that offer engineering services in their offices have responded to this demand”.

On the other hand, I think it’s necessary for contractors to focus on building more engineering. A problem with VRF systems is that they come too ‘canned’, reducing the ability to create engineering. I also believe that BIM systems should continue to prevail in the design, replacing AutoCAD. I also want to highlight that I’m seeing young people interested in learning and ASHRAE’s contribution in each country helps to stimulate the knowledge dynamics. Such a boost must be used to increasingly improve the industry”.

TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020

CHAPTER 3

2019 RANKING BY REGION

TOP IOO CONTRACTORS-INSTALLERS â&#x20AC;¢ REPORT 2019-2020

CONTRATISTAS INSTALADORES

Mexico

No.

COMPANY

SEGMENT

RCR REFRIGERACIÓN

Refrigeration

JOHNSON CONTROLS MÉXICO

Air Conditioning

HUMICLIMA MÉXICO

Air Conditioning

GRUPO AISLACON

Air Conditioning

GRUPO IPASA

Air Conditioning

CALEFACCIÓN Y VENTILACIÓN (CYVSA)

Air Conditioning

TERMO TÉCNICA QUIN

Air Conditioning

TECNOCLIMA

Air Conditioning

CLIMAS

Air Conditioning

REFRIMART DE MÉXICO

Air Conditioning

ABE REFRIGERACIÓN

Refrigeration

WATCO REFRIGERACIÓN

Refrigeration

AIRE ACONDICIONADO ÁRTICO

Air Conditioning

ABA DEPOT (PREV. ABA CONFORT)

Air Conditioning

IACSA - INGENIERÍA, AIRE Y CONTROL

Air Conditioning

REPRESENTATIVE

WEB INFO

Luis Ballesteros

lballesteros@rcr.com.mx

+52 66 2251 0692

www.rcr.com.mx

Daniel Sandoval

daniel.sandoval.gonzalez@jci.com

+52 81 8100 6420

www.johnsoncontrols.com/es_mx

Ignacio Blasco

iblasco@humiclima.com

+52 98 4879 4989

www.humiclima.com/mexico

Oscar González

ogonzalez@grupoaislacon.com.mx

+52 81 8625 1100

www.grupoaislacon.com.mx

Martín Benavides

mbenavides@climasipasa.com

+52 81 8989 6797

www.climasipasa.com

Carlos Vidal García

agarcia@cyvsa.com

+52 55 5350 5350

www.cyvsa.com

Eduardo Quintanilla

equintanilla@ttq.com.mx

+52 81 8359 8660

www.ttq.com.mx

Héctor Terrazas

tecnoclimamx@gmail.com

+52 55 5532 3812

https://tecnoclima.com.mx

Nefris Andrea Rosales

nrosales@climas.com

+52 61 4439 3999

www.climas.com

Jorge Aguilar

jorgem.aguilar@refrimartmexico.com

+52 99 9290 8220

www.refrimartmexico.com

Adolfo Blásquez

adolfo@abe-ref.com

+52 55 5683 6288

www.abe-ref.com

Francisco Noyola

ventas@watco.com.mx

+52 33 3812 0556

www.watco.com.mx

Miguel Linares Quintero

ventas@articoaire.com

+52 55 5662 7383

www.articoaire.com

Adolfo Barba

adolfo.barba@abaconfort.com

+52 33 3647 5858

www.abadepot.com

José Luis Trillo

josel.trillo@iacsa.net

+52 55 5399 3203

www.iacsaasociados.com

%* 13.09% 11.04% 6.30% 5.92% 5.77% 4.86% 4.46% 4.11% 3.75% 3.31% 3.05% 2.98% 2.90% 2.87% 2.85%

INDUSTRIA HVAC/R No.

COMPANY

SEGMENT

URIBE INGENIEROS

Air Conditioning

GRUPO AIREXS

Air Conditioning

EOLIS AMÉRICA LATINA

Refrigeration

AC PROYECTOS

Air Conditioning

REINMEX (REFRIGERACIÓN INDUSTRIAL MÉXICO)

Refrigeration

MITSUCLIMATIZACIÓN

Air Conditioning

COLD CHAIN & ENGINEERING CCMX

Air Conditioning and Refrigeration

ARECHE INGENIEROS

Air Conditioning

ARSA

Air Conditioning

IERI - INGENIERÍA ESPECIALIZADA EN REFRIGERACIÓN INDUSTRIAL

Refrigeration

INTERCLIMAS DE MÉXICO AIRE ACONDICIONADO

Air Conditioning

DE BUEN Y ASOCIADOS

Air Conditioning

CMI - CABO MANTENIMIENTO INTEGRAL

Air Conditioning

ECMSA - EQUIPOS Y CLIMAS DE MÉXICO

Air Conditioning

ABEASA

Air Conditioning

REPRESENTATIVE

WEB INFO

Tania Uribe

t.uribe@uiasa.mx

+52 55 5568 4149

www.uiasa.mx

Estefanía Hermosillo

coordinador.proyectos@airexs.com.mx

+52 33 3612 7815

https://airexs.com.mx

Ignacio Hernández

ignacio.hernandez@eolis.com.mx

+52 55 3640 1407

www.eolis.com.mx

Aurelio Castillo

info@acproyectos.com

+52 81 8333 3394

www.acproyectos.com

Germán Velásquez

gvelazquez@reinmex.net

+52 33 3699 2217

www.reinmex.net

Adrián Salcedo

adrian@mitsuclimatizacion.com.mx

+52 55 5640 6552

www.mitsuclimatizacion.com.mx

Edgar Hernández

edgar.hernandez@cce.com.mx

+52 55 4444 2580

www.ccemx.com

Carlos Arechederra

carlos.arechederra@areche.com.mx

+52 99 3312 3322

https://arecheingenieros.com

Dulce Karina Martínez

arsaaire@hotmail.com

+52 77 7322 6368

www.arsaaire.com

Mario Mendoza

ieri@ieri.com.mx

+52 33 3650 2470

https://ieri.com.mx

Víctor Beltrán

interclimas.mexico@gmail.com

+52 55 6354 8943

www.climasencuernavaca.com

Christian de Jesús

cdejesus@debuenyasociados.com

+52 55 5277 1523

http://debuenyasociados.com

Omar Rodríguez

ventas@cmiloscabos.com

+52 624 146 9699

www.cmiloscabos.com

Enrique Zárate

ecmsa100@msn.com

+52 55 5341 1018

https://equiposyclimasdemexico.mx

Ana Lilia Pérez

abeasa@abeasa.com

+52 55 5339 3777

www.abeasa.com.mx

%* 2.54% 2.49% 2.47% 2.29% 2.25% 2.06% 1.89% 1.54% 1.38% 1.28% 1.19% 1.18% 1.04% 1.04% 0.99%

100%

* Percentage of recognition and trajectory of the Contractors / Installers companies in Mexico.

TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020

Central America No.

COMPANY

INSTALFRÍO

GRUPO CLIMA

MULTIFRÍO

COMPAÑÍA CLIMATIZADORA

AIRE SISTEMAS

COPANAC

MPG & ASOCIADOS

SEGMENT

Air Conditioning

REPRESENTATIVE

WEB INFO

Roberto Malave

instalfriopanama@gmail.com

+507 387 5107

http://instalfrio.net

Chris Elizondo Salazar

celizondo@grupoclima.com

+506 2299 5353

www.grupoclima.com

Salo Ponchner

sponchner@multifrio.com

+506 2455 1700

www.multifrio.com

Carlos Rojas

crojas@climatizadora.com.pa

+507 300 9356

www.climatizadora.com

Lisy Pérez

lisy@airesistemas.com

+507 271 7900

www.airesistemas.com

Ramsés Cajar

ramsesc@copanac.net

+507 233 9900

www.copanac.net

Andrés Mera

clientes@grupompg.com

+1 809 531 6666

www.grupompg.com

COUNTRY

PANAMA

12.82%

COSTA RICA

11.59%

COSTA RICA

10.73%

PANAMA

9.60%

PANAMA

9.42%

PANAMA

8.47%

DOMINICAN REP.

6.70%

No.

COMPANY

AIR QUALITY

ECA ELECTROMECÁNICA

EUROAIRE

INELEC

CLIMATECSA

FRÍO FENIX

RTEK

GRUPO AYRE

SEGMENT

Air Conditioning

Refrigeration

Air Conditioning

REPRESENTATIVE

WEB INFO

Juan Carlos Madrid

jmadrid@airqualityhn.com

+504 2544 0360

www.airqualityhn.com

Gabriela Perdomo

gperdomo@ecalectromecanica.net

+502 2327 9797

http://ecaelectromecanica.net

Melvin Escobar

melvin.escobar@euroaire.com

+503 2524 5900

https://grupoeuroaire.com

Javier Dávila

jedavilar@inelechn.net

+504 3176 8161

www.inelechn.net

Kenny Iraheta

servicioalcliente@climatecsasadecv.com

+503 2228 0757

http://climatecsasadecv.com

Gerardo Ramírez

gramirez@friofenix.com

+506 2560 1655

www.friofenix.com

Nik Lashley

nlashley@rtekservices.com

+1 246 437 4883

www.rtekservices.com

Benjamín Membreño

bmembreno@grupoayre.com

+504 2504 2121

www.grupoayre.com

COUNTRY

HONDURAS

5.23%

GUATEMALA

4.53%

EL SALVADOR

4.23%

HONDURAS

4.03%

EL SALVADOR

3.76%

COSTA RICA

3.30%

BARBADOS

3.24%

HONDURAS

2.35%

100%

* Percentage of recognition and trajectory of the Contractors / Installers companies in Central America.

TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020

CONTRATISTAS INSTALADORES

Andean Region

No.

COMPANY

SEGMENT

JOHNSON CONTROLS COLOMBIA

Air Conditioning and Refrigeration

LARCO COMERCIAL Y SERVICIOS

Air Conditioning

GRUPO UNICLIMA

Air Conditioning

AIRECARIBE

Air Conditioning

SAEG

Air Conditioning

SERVIPÁRAMO

Air Conditioning

CARVEL

Air Conditioning

COLD IMPORT

Refrigeration

THERMOANDINA

Air Conditioning

REFRINORTE

Air Conditioning

GRIVAN INGENIERÍA

Refrigeration

REFRIAMÉRICA

Air Conditioning

AIRE AMBIENTE

Air Conditioning

FRÍO AIRE

Air Conditioning and Refrigeration

FEIBO

Air Conditioning

WESTON

Refrigeration

INDUSTRIAS REFRIDCOL

Refrigeration

WME CONTRATA

Air Conditioning

REPRESENTATIVE

WEB INFO

Johana Camacho

johana.camacho.gonzalez@jci.com

+57 1 655 3600

www.johnsoncontrols.com/es_latinamerica

Natalia Arango

narango@cslsa.com

+57 4 360 3600

www.cslsa.com

Isaac Blum

isaacblum@uniclima.net

+58 212 237 9777

www.uniclima.net

Gustavo Ospina

ingenieria@airecaribe.com

+57 1 742 7527

www.airecaribe.com

Ingrid Velasco

ivelasco@saeg.com

+57 1 617 9140 +51 1 641 3800

www.saeg.com

Carlos Hoyos

choyos@serviparamo.com.co

+57 5 373 4851

www.serviparamo.com.co

Álvaro Payán

mercados@carvel.com.co

+57 2 446 4333

www.carvel.com.co

Ernesto Sanguinetti

esanguinetti@coldimport.com.pe

+51 1 242 9100

www.coldimport.com.pe

Santiago López

santiago.lopez@thermoandina.com

+57 1 415 9809

www.thermoandina.com

Nohora Camargo

ncamargo@refrinorte.com

+57 5 385 1080

www.refrinorte.com

Fernando Grisales

gerencia@grivaningenieria.com

+57 2 387 7570

www.grivaningenieria.com

María Milagros Merino

maria.merino@refriamerica.com

+58 424 622 4711

www.refriamerica.com

John Jairo Villa

john.villa@aireambiente.com

+57 4 444 7217

www.aireambiente.com

Manuel Gómez

info@frioaire.com.co

+57 4 411 1670

http://frioaire.com.co

Yennifer Gómez

ygomez@feibo.com.ve

+58 416 636 6970

www.feibo.com.ve

Francisco Noyola

ventas@weston.com.co

+57 1 290 7700

www.weston.com.co

Héctor Torres

hector.torres@refridcol.com

+57 2 690 4440

https://refridcol.com

Alberto Cuadros

a.cuadros@wmecontrata.com

+51 1 273 3509

www.wmecontrata.com

COUNTRY

COLOMBIA

6.79%

COLOMBIA

5.50%

VENEZUELA

4.76%

COLOMBIA

4.69%

COLOMBIA/ PERU

4.59%

COLOMBIA

4.49%

COLOMBIA

4.38%

PERU

4.30%

COLOMBIA

4.15%

COLOMBIA

3.85%

COLOMBIA

3.43%

VENEZUELA

3.37%

COLOMBIA

3.29%

COLOMBIA

2.85%

VENEZUELA

2.71%

COLOMBIA

2.60%

COLOMBIA

2.48%

PERU

2.44%

No.

COMPANY

SEGMENT

AVILAIRE

Air Conditioning

CORPORACIÓN UEZU

Air Conditioning

OMEGA

Air Conditioning

CS AYRE

Air Conditioning

INTEG

Air Conditioning

ELGA DE VENEZUELA

Air Conditioning

ALFRÍO

Refrigeration

ROJAS Y HERMANOS

Refrigeration

SAIDER

Refrigeration

INDUSTRIAS THERMOTAR

Air Conditioning

CENTURIOSA

Air Conditioning

ENFRIAR SERVICIOS

Air Conditioning

ROBAINA INGENIEROS

Air Conditioning

SUTRAK

Refrigeration

EOLIK ENGINEERING GROUP

Air Conditioning

FREEZEAS

Air Conditioning and Refrigeration

JE REFRIGERACIÓN

Refrigeration

REPRESENTATIVE

WEB INFO

Ileana Viejo

ileana.viejo@avilaire.com

+58 212 232 8756

www.avilaire.com

Manuel Uezu

manueluezu@uezuperu.com

+51 1 500 0400 / 01

www.uezuperu.com

Andrés Felipe Hurtado

andres.hurtado@omegaingenieros.com

+57 2 883 5779

www.omegaingenieros.com

Edgar Bowers

gerencia@csayre.com.co

+57 2 439 6973

www.csayre.com.co

Rubén Carrillo

ruben.carrillo@integ-sac.com

+51 1 225 1113

www.integ.com.pe

Eduardo Ferrer

eferrer@elgadevenezuela.com

+58 261 721 2366

www.elgadevenezuela.com

Raúl Perea

rperea@alfrio.com

+57 1 211 3834

www.alfrio.com

Sonia Salcedo

sonia.salcedo@rojas-hermanos.com

+57 1 288 2011

www.rojas-hermanos.com

Miguel Rodríguez Perruolo

miguel.rodriguez@saider.com.ve

+58 212 793 0719

www.saider.com.ve

Jennys González

jgonzalez@thermotar.com

+57 5 344 4411

www.thermotar.com

Ernesto Amador

eamador@centuriosa.com

+593 2 370 9590

http://centuriosa.com

María Elisa Zúñiga

gerenciaser@enfriarservicios.com.co

+57 2 666 1814

www.enfriarservicios.com.co

Alfonso Robaina

arobaina@robainaingenieros.com

+58 212 238 8178

www.robainaingenieros.com

Juan Carlos Yepes

jyepes@sutraksa.com

+57 4 444 8735

www.sutraksa.com

William Campos

info@eolikgroup.com

+57 1 477 5196

www.eolikgroup.com

Carlos Zeas

info@freezeas.com

+593 4 213 3409

www.freezeas.com

Raúl Quispe

proyectos@jerefrigeracion.org

+51 941 822 861

www.jerefrigeracion.org

COUNTRY

VENEZUELA

2,43%

PERU

2.31%

COLOMBIA

2.24%

COLOMBIA

2.12%

PERU

2.06%

VENEZUELA

1.91%

COLOMBIA

1.86%

COLOMBIA

1.85%

VENEZUELA

1.74%

COLOMBIA

1.61%

ECUADOR

1.52%

COLOMBIA

1.51%

VENEZUELA

1.51%

COLOMBIA

1.48%

COLOMBIA

1.35%

ECUADOR

0.97%

PERU

0.85%

100% * Percentage of recognition and trajectory of the Contractors / Installers companies in the Andean Region.

TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020

CONTRATISTAS INSTALADORES

Southern Cone

No.

COMPANY

SEGMENT

TERMOFRÍO

Air Conditioning

REFRICENTRO

Refrigeration

VENTILACIÓN TEVA

Air Conditioning

ABC REFRIGERACIÓN INDUSTRIAL

Refrigeration

CLIMA AIRE

Air Conditioning

TERMAIR

Air Conditioning

RL CLIMATIZACIÓN

Air Conditioning

FRIMONT

Refrigeration

FRYMON

Refrigeration

FRICON

Air Conditioning

REPRESENTATIVE

WEB INFO

Augusto Medina

amedina@termofrio.cl

+56 2 2599 0800

www.termofrio.cl

Claudio Concha

cconcha@refricentro.cl

+56 2 2411 2900

www.refricentro.cl

Mariano Clement

mclement@ventilacion-teva.com.ar

+54 11 4760 6274

http://ventilacionteva.com.ar

Guillermo Murillo

info@abcrefrigeracion.com.ar

+54 11 5238 3762

http://abcrefrigeracion.com.ar

Margarita Salamanca

contactoclimaaire@gmail.com

+56 4 1279 0811

www.climaaire.cl

Harry Pablo Assorati

hassorati@termair.com

+54 11 4545 5559

http://termair.com

Leonardo Paronsini

administracion@rlclimatizacion.com

+54 22 1351 6886

www.rlclimatizacion.com

Omar Escalante

omar.escalante@frimont.com

+54 26 1524 8350

https://frimont.com

Jorge Peláez

gustavo@frymon.com.uy

+598 2401 4040

www.frymon.com

Gabriel Cruz

gcruz@fricon.com.ar

+54 11 4301 0422

www.fricon.com.ar

COUNTRY

CHILE

12.73%

CHILE

7.93%

ARGENTINA

6.61%

ARGENTINA

6.28%

CHILE

6.06%

ARGENTINA

6.06%

ARGENTINA

5.39%

ARGENTINA

4.72%

URUGUAY

4.66%

ARGENTINA

4.55%

No.

COMPANY

SEGMENT

FRÍO - RAF

Refrigeration

COSTAN (EPTA GROUP)

Refrigeration

INSTAPLAN

Air Conditioning

MED TERMOMECÁNICA

Air Conditioning

CHILE CLIMA

Air Conditioning

INGECLIMA

Air Conditioning

CLIMATIZACIÓN EL AIRE

Air Conditioning

CLIMATIKA

Air Conditioning

LOS BUENOS AIRES

Air Conditioning

ECOREF CHILE

Refrigeration

REPRESENTATIVE

WEB INFO

Juan José Galliano

juan.galliano@frioraf.com.ar

+54 34 9243 2174

www.frioraf.com.ar

Fernando Galante

fernando.galante@epta-argentina.com

+54 34 1461 5000

www.eptalatam.com

Roberto Gerlach

rgerlach@instaplan.cl

+56 2 2792 7000

www.instaplan.cl

Mario Zito

mariozito@med.com.uy

+598 2924 1894

www.med.com.uy

Stefanía Baini

ventas@chileclimaspa.cl

+56 2 2555 4589

www.chileclimaspa.cl

Marcelo Luit

termomecanica@ingeclima.com.ar

+54 11 4741 5507

https://ingeclima.com.ar

Leonardo Aguilera

laguilera@climatizacion.cl

+56 2 3224 9417

www.climatizacion.cl

Claudio Matus

cmatus@climatika.cl

+56 2 2880 6038

http://climatika.cl

Santiago Costaguta

lba.aireacondicionado@gmail.com

+54 11 4750 9206

https://lba-losbuenosaires.com.ar

Elia Carla Romero

ventas@ecorefchile.cl

+56 5 7233 9813

http://ecorefchile.cl

COUNTRY

ARGENTINA

4.49%

ARGENTINA

4.24%

CHILE

4.21%

URUGUAY

4.16%

CHILE

4.13%

ARGENTINA

3,60%

CHILE

3.43%

CHILE

3.38%

ARGENTINA

3.27%

CHILE

0.11%

100%

* Percentage of recognition and trajectory of the Contractors / Installers companies in the Southern Cone.

TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020

CHAPTER 4

SUCCESS STORIES OF THE FIRST PLACES IN THE TOP 100 2018 was a productive year for the Contractors Installers that made part of this Top 100, as observed in each of the contributions theyâ&#x20AC;&#x2122;ve shared for this reportâ&#x20AC;&#x2122;s Chapter 2. And again this year, we offered the space for entrepreneurs ranked in the first places of each region to showcase their outstanding project of the year, giving them the opportunity to introduce new trends and interests of potential clients, as well as possible business opportunities.

TOP IOO CONTRACTORS-INSTALLERS â&#x20AC;¢ REPORT 2019-2020

Mexico

RCR Refrigeración THE PROJECT’S CHALLENGE The processing plant of one of the Femsa Group’s food companies, Gorditas Doña Tota –which has over 200 restaurants in 60 Mexican cities–, produces various types of stews for a typical Mexican dish called “gorditas”, which are distributed from there to all sales locations. The main requirement of this client was to freeze the daily 21-ton food production, which is vacuum packed after cooking, at an average temperature of 85°C. The challenge of the project was to lower its temperature down to -18°C in less than 90 minutes, using a system with an ecologically friendly and non-toxic coolant, because the plant is based in an urban area. With these requirements, a custom designed refrigeration system with R-507A refrigerant was chosen, avoiding the use of ammonia (NH3) due to neighboring residential areas.

“stations” in the plate freezer. Once the freezer is loaded, a hydraulic system closes the stations, so that the plates come into direct contact with the product surface, both at the top and bottom. The average weight of each batch is 700 Kg, depending on the presentation of each product. The system also has a parallel compression equipment, with screw-type compressors capable of modulating their capacity and allowing energy saving, a vertical refrigerant recirculator, and evaporative condenser. This process stands out because it maintains the organoleptic properties of the preparation, that is, taste, texture, smell, and color, while preventing bacteria growth by achieving pasteurization and allowing for a longer shelf life. As a result, the customer can save up to eight times the production cost. PROJECT INFORMATION:

THE INSTALLED SOLUTION AND ITS RESULTS It was decided on a direct contact freezing system, considering the high heat transfer capacity by direct contact of two flat surfaces with a ample temperature differential. In this case, the system receives the product at 85°C on the plates, which are at -35°C, achieving the freezing point at -15°C in an average of 70 minutes. This system is composed of two stationary plate freezers that work alternately for continuous operation, thus minimizing the waiting time. R-507A refrigerant circulates inside the plates at a 4:1 ratio without using a secondary medium such as air, thus accelerating the process to be more efficient than traditional systems. As the product is processed and packed, it’s placed in aluminum trays that enter the different levels or

Installation of a customized cooling system for “Gorditas Doña Tota”, a Femsa Group company, in Monterrey. INSTALLED EQUIPMENT: Stationary plate freezers, screw-type compressors and evaporative condenser.

Central America

Instalfrío Panama THE PROJECT’S CHALLENGE Steven’s is a department store located in the Albrook Mall in Panama City, considered the largest in Latin America, where 300 tons of refrigeration with Carrier VRF systems were installed, to improve an existing system in the store. These types of systems offer a “variable refrigerant flow”, that is, the compressor sends the precise amount of refrigerant gas that each evaporator needs, according to the generated thermal load. The main purpose of the installation was to improve the efficiency of the AC system, thus enabling energy and monetary savings. Automation was also required for remote control of most of its variables.

PROJECT INFORMATION: Installation of VRF systems in the Steven’s store at the Albrook Mall in Panama.

INSTALLED BRANDS: Carrier.

DURATION OF THE PROJECT: 2018-2019.

THE INSTALLED SOLUTION AND ITS RESULTS To achieve the expected result, the combination radius of the installed VRF system was reduced to improve efficiency. The process consisted of increasing the number of condensation machines compared to evaporation machines, allowing for a rate of approximately 88%. To achieve this, 100 tons of condensation and evaporation, along with an additional 200 tons of condensation, were supplied and installed to lower the combination radius. This action is recommended for spaces that handle large volumes of air, where condensers work below maximum capacity. Thus, the consumption of kWh was reduced, resulting in high levels of customer satisfaction.

TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020

Andean Region

Johnson Controls Colombia THE PROJECT’S CHALLENGE The project involves the air conditioning of rental spaces at a real estate complex in Bogotá, which is operated by a renowned Latin American telecommunications company, and includes commercial, business and residential development. For this, the client required the installation of AC systems in the Tower 3 of the complex. Johnson Controls had already offered solutions for the previous stages of the project in Towers 1 and 2, with positive results, so they were chosen again by the client to develop the new stage. It was necessary that the systems of the second stage in Tower 3 were integrated with those of Towers 1 and 2. It should be noted that the client already had an chiller control system from another brand. However, Johnson Controls technology would be used for the new chilled water plant. In addition to this, the project required systems with high performance technology, energy savings, flexibility and maintenance cost savings. THE INSTALLED SOLUTION AND ITS RESULTS It was decided on the installation of a York chiller with magnetic bearings and modular handlers, while the Metasys integrated control system was chosen for the operation. The chilled water plant will then be used to condition offices and commercial premises, while the handlers, thanks to their installation flexibility, can adapt to the reduced space in the technical rooms. For its part, the magnetic bearings centrifugal chiller will be located in the basement of the tower and will operate with a central condensation network, composed of two cooling towers that will be located on the roof of the building, simultaneously with the variable pumping system. Each of these towers has a capacity for 70% of the condensation water needed by the chiller. In case of failure in one of them, the other can support up to 70% of the water in the condensation circuit. The chilled water system will have a capacity of 550 tons. It should be noted that, by not using oil, this chiller will produce future savings in maintenance and service costs.

On the other hand, the project includes the installation of sixteen freezing water modular units along with a cabinet with filtration, cooling and ventilation sections, two for each floor of Tower 3. For each floor, the tower will have two air handlers with a pressure valve and energy meter, allowing to calculate monthly the energy consumption by the use of chilled water. As a result, the client expressed their satisfaction with both the results of the first stage and the progress of the second stage, and even chose Johnson Controls to perform the installations in the final stage of the project. The benefit of operating all these complex’s systems in an integrated way with Metasys technology is significant, together with a noteworthy impact on energy savings and maintenance costs. PROJECT INFORMATION: Installation of air conditioning in a real estate complex of a telecommunications company in Bogotá. INSTALLED BRANDS: Johnson Controls, York, Metasys. DURATION OF THE PROJECT: During 2019.

Reference image, does not correspond to this project.

Southern Cone

Refricentro Chile THE PROJECT’S CHALLENGE The installation took place at the Ñuble Organic Refrigerator where mostly organic apples are stored at 0°C, at a stage prior to the selection and cleaning for export and marketing in the United States. The conditions of the area required that the project would have a low water consumption, which is scarce in the region, therefore the system should be able to recover and recirculate the liquid, maintaining its quality and cleanliness. Thus, the project was designed to build and supply the insulating panels, refrigeration doors, and cooling system for the storage of this perishable product, added to the savings in water consumption.

PROJECT INFORMATION: Installation of refrigeration and insulation system for the Ñuble Organic Refrigerator, at the Ñuble region, Chile. INSTALLED BRANDS: Frascold, Stefani, Heatcraft, Eliwell.

DURATION OF THE PROJECT: During 2016.

THE INSTALLED SOLUTION AND ITS RESULTS The installation covered the engine room and the distribution hall, three large chambers and three medium-sized chambers, for storage of the freshly harvested apple from the crop, arranged in containers. The system sought to improve construction standards, considering 125 mm thick insulation panels, high thermal efficiency doors, open screw type compressors, evaporators with water thaw (and water reuse), and oversized air condensers. In addition, the system monitors and records the temperature at all times, using an Eliwell Televis Go supervising system. This efficient and environmentally friendly solution was one of the client’s most stringent requirements, who explicitly requested a system with high energy efficiency standards, keeping in line with the concept of their product, which is organic and environmentally friendly, ultimately leaving as a result the fulfillment of all objectives, both technical and aesthetic, to the client’s satisfaction.

TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020

CHAPTER 5 56

THE FIRST OF THE TOP 100 LATIN AMERICAN CONTRACTORSINSTALLERS

To be among the first places in the Top 100 of Latin American Contractors Installers has merit, because it is the recognition that colleagues and clients of the HVAC/R industry give to each of the companies that participate in the ranking. We spoke with the representatives of the companies that were among the first places in each of the Latin American regions, and asked them to share their appreciations and forecasts about the industry for 2019, as well as the business opportunities they consider most relevant for the immediate future.

TOP IOO CONTRACTORS-INSTALLERS â&#x20AC;˘ REPORT 2019-2020

Mexico

“IT’S IMPORTANT TO TAKE ADVANTAGE OF THE NEW TECHNOLOGIES IN REFRIGERATION CONTROL SYSTEMS, TO ACHIEVE SIGNIFICANT SAVINGS IN

RCR Refrigeración Mexico

ENERGY CONSUMPTION”.

Daniel Caldera

RCR Refrigeración is a company that offers refrigeration systems for the commercial sector and the food industry, beginning in Hermosillo, Sonora in 1971 as a technical service for refrigeration systems, later establishing as a company in 1990. In 2003 they opened their main production plant for project development, including engineering services, production, among others. The mechanical engineer Daniel Caldera, graduated from the Technological Institute of Hermosillo, is currently the leader of the company’s Engineering Department since 2012, and has been working with the company since 2008, when he began as a project engineer in charge of the design of refrigeration projects. He expresses that he considers all aspects related to energy savings and the use of natural refrigerants in industrial refrigeration systems solutions to

be of the highest relevance, as well as the design of refrigeration equipment with the best possible energy efficiency. In this regard, Caldera says that in most refrigeration plants “there’s available energy that goes unused and is released into the air”, as is the case with the rejection heat in a condenser, “which can be used to heat water via an exchanger, optimizing the fuel savings required for steam generation”. On the other hand, the engineer points out that an interesting opportunity is in the new technologies for control of refrigeration systems, “which can help optimize the operation of refrigeration equipment and obtain significant energy savings,” added to the greater use of natural or mixed refrigerants, in order to obtain the best possible performance coefficients, which leads to lower energy consumption, he concludes.

Central America

“BOOSTING THE USE OF VRF SYSTEMS IS AN OPPORTUNITY FOR BOTH CUSTOMERS AND ENTREPRENEURS”.

Instalfrío Panama

Roberto Malavé

Specializing in air conditioning and forced ventilation solutions, Instalfrío Panamá is a company dedicated to projects development, installation, maintenance and automation of AC systems for the industrial, commercial and residential vertical markets, and operates with qualified professionals with over 40 years of experience in the industry. Roberto Malavé has been partner and director of Instalfrío Panamá since 2015 and the allied company Grupo Todoclima, based in Peru and Venezuela since 2008. He’s an Industrial Engineer with fourteen years of experience in the HVAC/R industry.

He mentions that one of his greatest motivations for working in this industry is the “continuous improvement of the different branches of the HVAC/R business” and comments that, for him, one of the most noteworthy opportunities for clients and businessmen is the promotion of systems VRF. “VRF has made its way by leaps and bounds because of its efficiency and versatility. Potential customers should always consider and evaluate this technology, which, although it’s not new, it has become widely known in recent years”, he explains and adds that it’s also worth highlighting that chilled water systems,“don’t stay behind with all the improvements that has been receiving”, he concludes.

TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020

Andean Region

“THE FUTURE IS BUILT TODAY, AND WE WANT TO MAKE THAT FUTURE MORE PRODUCTIVE, SAFE AND SUSTAINABLE”.

Johnson Controls Colombia Richard Monestel

Johnson Controls is a multi-industrial diversified technology company that provides services in over 150 countries, with its beginnings registered since 1885 with the invention of the first electric ambient thermostat. Currently, the company is dedicated to the creation of intelligent buildings, energy-saving solutions, integrated infrastructure, and state-ofthe-art transportation systems, meeting its objective of building smart cities and communities. The computer engineer, Richard Monestel Umaña, is its General Manager for Colombia and Central America for the Technologies & Solutions Controls segment. He has a degree in Computer Sciences from the University of Costa Rica and a postgraduate degree in Financial Administration from the International Institute of Administration of Maastricht in the Netherlands. He has held this position for a little over three years, and began at the HVAC/R industry in 2016, after the merger between Johnson Controls and Tyco.

Monestel believes that this industry is “extremely dynamic, where marketing is highly technical and specialized”, and highlights that they are generating a “strong impact” on the environment, in addition to the company’s commitment to their customers with their after-sales service. The manager also highlights the “adaptability of HVAC equipment to any space requirement and capacity”, which allows to offer customers “the best possible benefits, at the best possible cost”. Lastly, as for the opportunities for the immediate future, he expresses that the industry “is in constant motion, updating everyday, so it’s important that customers don’t lose sight of the diverse options in automation and optimization systems”, that allow savings in energy consumption, operation and maintenance, such as the case of magnetic chillers.

Southern Cone

“WE MUST BE VERY ATTENTIVE TO THE EVOLUTION OF NEW REFRIGERANTS AND BEGIN REPLACING THEM WITH CO2”.

Refricentro Chile Andrés Concha

Refricentro is a company with 40 years of experience in the construction of refrigeration plants and provision of services for food preservation, with a work team that includes refrigeration engineering specialists, such as engineers, electricians, architects, builders, technicians, and even import experts. The company has two equipment, doors and panels construction plants, as well as offices in Santiago and Puerto Montt in Chile, and Lima, Peru. Andrés Concha has been the president of this company for 40 years, he’s a mechanical engineer with a 46-year career in the HVAC/R industry, remembering that he began in this business at the invitation of his colleague Ronald de Soto “who was returning to

Chile from the United States after the government of Salvador Allende”. This director says that it’s very gratifying for him to have the ability to respond to the requirements of the food preservation industry “and to see these projects take shape”. He also expresses that the HVAC/R industry must move forward and be attentive to the evolution of new refrigerants: “we’re currently working to replace ammonia, which is a high-risk gas, with CO2”, he explains, and concludes that another key technology for the future is in automation, and that when is connected to digital platforms, “allows for remote operation and control”.

TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020

CHAPTER 6 62

ECONOMIC OUTLOOK WORLDWIDE AND THE AMERICAS

The year 2019 continues as a period with increased global economic uncertainties, coming from different fronts, and affecting the growth of economic activity in Latin America. The tightening of global financial conditions and the strong increases in US dollar prices in several Latin American countries generated in large part by trade tensions between the United States and China, are some of the causes. The new World Trade Uncertainty index by the International Monetary Fund (IMF) indicates that it shot up during the first quarter of 2019, when the United States decided to substantially extend the tariffs applied to imports from China since March 1st. What’s more, the average GDP growth in the region has also been affected, and with each new revision of ECLAC it is increasingly reduced, due to the situation in the Argentine, Nicaraguan and Venezuelan economies, which decreased -1.8%, -5% and -23% respectively, according to estimates by the Economic Commission for Latin America and the Caribbean (ECLAC), revised in July 2019, resulting in a growth of only 0.5% compared to the 1.3% estimated in April.

0.5 % WOULD INCREASE THE LATIN AMERICAN GDP IN 2019, ACCORDING TO ECLAC.

And, although the International Monetary Fund (IMF) began this year with more optimistic estimates, in its “World Economic Outlook Update, July 2019” they adjusted growth in Latin America and the Caribbean by 1% in 2018, and estimate a growth of only 0.6% by 2019, almost one percentage point down in contrast with their original 1.4%. The agency holds its forecast of 2.3% economic growth by 2020. The IMF explains that “the considerable downward revision for 2019 reflects the reductions in credit ratings of Brazil and Mexico” due to uncertainties over the policies of these governments, as well as the deterioration of confidence. Argentina’s economy contracted again in the first quarter of the year, although by 2020 a moderate recovery is expected. Moreover, the humanitarian crisis and the implosion of the Venezuelan economy continues to be critical; the IMF expects that “the economy will contract around -35% in 2019, which imposes a considerable brake on the region’s projected growth”.

“REVISED ESTIMATES OF GLOBAL TRADE GROWTH INDICATE ONLY 1.2% IN 2019, COMPARED TO THE 2.6% ESTIMATE AT THE BEGINNING OF THIS YEAR”. WORLD TRADE ORGANIZATION

TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020

LATIN AMERICA GROWS IN 2019 TO A MORE MODERATE RHYTHM AVERAGE GDP IN LATIN AMERICA ESTIMATION 2018 PROJECTION 2019

3.7 3.2 2.9

2.6

1.8 1.3

1.2

0.5

WORLD

LATIN

MEXICO ,

ANDEAN

SOTHERN

AMERICA

CENTRAL AMERICA

REGION

CONE

AND THE CARIBBEAN

Note: The Latin American and Andean Region growth averages donâ&#x20AC;&#x2122;t include Venezuela due to its exceptional circumstances. If Venezuela was taken into account, the GDP variation average for the Andean Region would be of a -0.6% in 2018 and a projected 0.4% in 2019. Source: ECLAC and IMF

Regarding the variation of inflation in Latin American countries, the ECLAC estimated an average growth of 1.7% in the region during the first ten months of 2018. The Southern Cone was the subregion that recorded the greatest variation, due to the strong rise of 22.6 percentage points in Argentina in the second half of the year. In contrast, inflation in Central America and Mexico slowed in the first ten months of 2018, particularly in

September and October, owing to the appreciation of currencies and the lower price of oil. Venezuela continues with an overflowing increase in its CPI. In 2017, the inflation reported to the IMF by the Venezuelan National Assembly was 2,616% and by the end of 2018, the agency calculated an approximate figure of 1,370,000%. For 2019, the projections indicate a variation of 10 million percent.

PERCENTAGE VARIATION OF THE CONSUMER PRICE INDEX (CPI) IN 12 MONTHS, BETWEEN MAY 2017 TO MAY 2019. 14 12 10 8 6 4

2017

2018

MAY

ABR

MAR

FEB

ENE

DIC

NOV

OCT

SEP

AGO

JUL

JUN

MAY

ABR

MAR

FEB

ENE

AGO

JUL

JUN

MAY

SEP

2019

MEXICO AND CENTRAL AMERICA THE CARIBBEAN SOUTH AMERICA, EXCEPT VENEZUELA Source: ECLAC

All of the above adds to the uncertainty about the implementation of economic policies after the 2018 election season in different Latin American countries, which according to the IMF’s Diálogo a Fondo blog for Latin America, “could discourage future investments and harm the growth prospects for the region”. Moreover, global trade has been affected by the US-China trade war, in addition to the various cir-

cumstances mentioned, and economists at the World Trade Organization (WTO) “warn that the risk of the situation worsening remains high”. Thus, the increase in world trade would only be 2.7% in 2020, when it was previously estimated at 3%. In the following sections of this paper, we will address every subregion, analyzing the circumstances and economic landscape of each country individually.

TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020

EXPORT GROWTH AND TRADE BALANCE IN MEXICO AND CENTRAL AMERICA 2018 % EXPORT GROWTH 2018

Source: IADB and ECLAC

TRADE BALANCE 2018* Mexico

Costa Rica

Guatemala

Honduras

Nicaragua

Panama

Dominican Republic

-25,469,000

1,042,000

-7,988,000

-4,078,000

-1,618,000

792,000

-3,148,000

In US Dollars. *Estimate by ECLAC

TOP IOO CONTRACTORS-INSTALLERS â&#x20AC;¢ REPORT 2019-2020

Mexico The improvement in trade with the United States, as well as the reconstruction work following the natural disasters of 2017, resulted in the ECLAC estimating a GDP growth of 2.2% in 2018 to be met; however, the IMF revised growth downward to 0.9% in 2019, due to a lesser dynamism and uncertainty regarding economic policies, “although it is expected a rebound to 1.9% in 2020 when conditions become normalized”, said the agency.

Regarding trade dynamics, imports of consumer goods from January to October 2018 increased by 12.9%. Alexandra Loboda, managing director at Maersk for Mexico, a Danish overseas cargo carrier, stated: “while Mexican economic growth is forecast to grow slower than initially expected in 2019, it is also being underpinned by sturdy U.S. consumption. However, trade tensions between China and the United States remain a concern”.

While the NAFTA renegotiation process –now called USMCA–, included improvements in rules of origin and addressed issues such as small and medium-sized enterprises (SMEs), elimination of technical barriers to trade, customs facilitation, e-commerce, among others, possible delays in ratification and implementation of the treaty threaten to slow GDP growth for 2019.

Imports of HVAC/R industry equipment reached nearly USD 2.4 billion FOB as of December 2018, a 0.1% growth compared to 2017, originating mainly from the United States (38.6%), China (36.6%) and South Korea (7.7%), according to data from the National Institute of Statistics and Geography (INEGI).

MEXICO: GDP AND INFLATION, 2016-2018

MEXICO IMPORTS OF HVAC/R EQUIPMENT 7

6 3

5 4

2 3 2

1 0

2016

2017

2018

38.6% USA

2.3% BRAZIL

36.6% CHINA

2% THAILAND

11.9% SOUTH KOREA

12.8% OTHERS

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

BY DECEMBER 2018 Source: Descartes Datamyne - Inegi

Central America and The Caribbean Costa Rica The Costa Rican economy decreased in 2018 due to increased interest rates and a decline in consumer confidence and enterprise confidence, with an expansion of 3% compared to 3.3 % in 2017, according to the ECLAC. In turn, the IMF considers that growth slowed down due to a long election cycle, which required a second round of voting. A year ago, this agency estimated that the country’s production would rebound 3.8% in 2018. This slowdown continues in 2019, according to the report “Evolution of the Monthly Index of Economic Activity (IMAE), April 2019” prepared by the Central Bank of Costa Rica and published in June, which states that, except for the financial and electricity and water services, “the rest of economic activities grew less, or even showed negative variations compared to the previous year, as is the case of agricultural industry, construction and trade”.

5 4 3 2 1

2016

2017

On the trade policy front, the new government has stated its intention to administer existing treaties, rather than negotiate new agreements. In this vein, goods imports rose by 5.5% in the first ten months of 2018. Specifically, HVAC/R equipment imports between January and November 2018 reached USD 57,818,000 CIF (Cost, Insurance and Freight), according to information from the National Customs Service, evidencing a decrease of -27.5% compared with what was recorded in 2017. The main origins are the United States (41.7%), China (33.1%) and Mexico (3.6%).

COSTA RICA IMPORTS OF HVAC/R EQUIPMENT

COSTA RICA: GDP AND INFLATION, 2016-2018

For 2019, ECLAC estimates a 2.5% GDP expansion, mainly affected by lower dynamics of international trade and low levels of trust between consumers and entrepreneurs. In turn, the IMF also indicated that “growth prospects were cut due to weaker activity than expected so far this year”.

11 10 9 8 7 6 5 4 3 2 1 0 -1 -2

2018

41.7% EEUU

2.8% BRAZIL

33.1% CHINA

2.4% SOUTH KOREA

3.6% MEXICO

16.4% OTHERS

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

BY NOVEMBER 2018 Source: Descartes Datamyne – National Customs Service TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020

69 69

Dominican Republic The Dominican Republic would be the country with the highest economic growth during 2018, according to ECLAC estimates, which indicate a growth of 7% in 2018, and projects a growth of 5.5% in 2019. The IMF estimates in turn a growth of 6.4% for this year. Private consumption had the highest impact on GDP growth. The most dynamic sectors were construction and free trade zones. The services sector, the most important in the Dominican economy, grew by 5.7%. The United States will continue to be a key factor in the performance of this sector and in the flow of remittances.

7 6

4 3

1 0

Specifically, imports of HVAC/R products in 2018, according to data from the International Trade Center (ITC), reached USD 100 million, a significant 39.9% growth compared to 2017, and the main trading partners were China with 55.5%, United States (24.6%) and Spain (5.1%).

DOMINICAN REP. IMPORTS OF HVAC/R EQUIPMENT

DOMINICAN REP.: GDP AND INFLATION, 2016-2018 9

In the commercial sphere, the export growth of free zones was 9.1%, while total imports registered an increase of 14%.

2016

2017

2018

55.5% CHINA

3.6% MEXICO

24.6% USA

3.2% BRAZIL

5.0% SPAIN

8.0% OTHERS

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS.

Source: ECLAC, based on official data

BY 2018 Source: International Trade Centre (ITC)

El Salvador The Salvadoran economy would have grown 2.5% in 2018, slightly above the previous year’s 2.3%, according to ECLAC estimates, a result in line with the 1.8% increase in GDP during the first quarter of 2019, revealed in June by the Central Reserve Bank of El Salvador (BCR), favored by the growing inflow of remittances, credit to the private sector, gross capital investment and programs to promote productive activity. However, this sustained growth may be affected by various internal and external factors, according to BCR President Carlos Federico Paredes, including “the slowdown of world trade and economy and the United States economy; the trade war between the United States and different countries such as China, India and Mexico; as well as the costs and impact on the economy due to insecurity and violence, and the country’s vulnerability to natural disasters and climate change.”

ECLAC expects the Salvadoran economy to grow 2.3% in 2019, a slight slowdown that is mainly due to lower economic growth in the United States, its main trading partner. Consumption will continue to show considerable dynamism, driven by remittances and credit. It is worth mentioning that in August 2018, the then President Salvador Sánchez Ceren announced an end to diplomatic relations with the Taiwanese Province of China, and the start of a new era of trade and diplomatic ties with China, which would mean that this country could become the second largest market for Salvadoran exports, after the United States. In the first nine months of 2018, goods imports grew by 12.3% in value and volume was up by 3.2%. During 2018, international purchases of HVAC/R equipment reached USD 43,710,000 million, a growth of 10.35% compared to 2017, and mainly from the United States (35.9%), China (27, 9%) and Panama (7.4%). .

EL SALVADOR IMPORTS OF HVAC/R EQUIPMENT

EL SALVADOR: GDP AND INFLATION, 2016-2018 3

0 2 -1 1 0

-2

2016

2017

2018

-3

35.9% USA

4.5% MEXICO

27.9% CHINA

3.4% HONG KONG

7.4% PANAMA

20.8% OTHERS

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS.

Source: ECLAC, based on official data

BY 2018 Source: International Trade Centre (ITC) - Central Reserve Bank of El Salvador. TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020

71 71

Guatemala ECLAC estimates that Guatemala’s GDP will grow 3.1% in 2018, higher than that observed in 2017 (2.8%), driven mainly by private and state consumption, and projects a growth of 2.9% in 2019. Among the factors that will support this dynamism are the increases in consumer spending, both private and public. In turn, the IMF estimates an expansion of 2.8% in 2018 and 3.4% in 2019.

It should be noted that in July and August 2019 the presidential elections were held, with Alejandro Giammattei winning, who will take office in January 2020. On the other hand, the value of goods exports in 2018 registered a negative rate of 0.2%, while that of imports grew 7.3% due to increases in fuels and lubricants, as well as intermediate goods, construction material and consumer goods.

Although at the end of 2018 growth slowed due to a decrease in business confidence, added to the impact of interregional trade due to the political turmoil in Nicaragua, the IMF said that the country is currently “benefiting from a fiscal impulse”.

During 2018, imports of HVAC/R equipment exceeded US $ 48.4 million, a decrease of -8.3% compared to the same period of 2017. The main trading partners were the United States with 47.6%, followed by China (21.6%) and Brazil (7.5%), according to ITC records.

GUATEMALA: GDP AND INFLATION, 2016-2018

GUATEMALA IMPORTS OF HVAC/R EQUIPMENT

6 6 5 5 4

2016

2017

2018

47.6% USA

6% MEXICO

21.6% CHINA

5.2% CHINA TAIPEI

7.5% BRAZIL

12% OTHERS

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS.

Source: ECLAC, based on official data

BY 2018 Source: International Trade Centre (ITC) – Central Bank of Guatemala.

Honduras Honduras is going through a significant slowdown in its economy and in 2018 it grew only by 3.7%, less than the 4.8% achieved in 2017, according to the ECLAC. This economic stagnation can be attributed to a decline in remittances and a drop in the value of exports in the year, owing to a drop in the price of coffee (15.7%), the country’s main export product.

tinued expansion of the United States, the country’s main trading partner, and a decline in fuel prices. Regarding trade policy, the free trade agreement between Central America and the Republic of Korea is still pending for approval by the National Congress.

Both the ECLAC and the IMF agree that GDP will remain at a growth of 3.6% in 2019, thanks to the con-

International trade in 2018 grew 0.2% in the value of exports and increased 8.4% in the value of imports. It should be noted that HVAC/R equipment imports during 2018 reached USD 39,763,000 CIF, with a slight decrease of -1.8% compared to 2017. The main origins were China (47.5%), United States (26.8%) and Taiwan (6.2%), according to data from the General Directorate of Customs Franchise Control.

HONDURAS: GDP AND INFLATION, 2016-2018

HONDURAS IMPORTS OF HVAC/R EQUIPMENT

In addition to this, the political unrest in Nicaragua over the year impacted international trade, since the interruption of land transport increased the logistical costs for imports and exports.

2016

2017

2018

47.5% CHINA

4.4% MEXICO

26.8% USA

2.8% BRAZIL

6.2% TAIWAN

12.3% OTHERS

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS.

Source: ECLAC, based on official data

BY DECEMBER 2018 Source: Descartes Datamyne – General Directorate of Customs Franchise Control. TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020

73 73

Panama ECLAC indicates a 3.7% growth in the Panamanian economy in 2018, a significant decrease of the 5.3% from the previous year. “This evolution is due to a general loss of dynamism of most of the sectors that make up the Panamanian economy, in particular, the prolonged unemployment of construction workers”, explains the agency in the Economic Survey of Latin America and the Caribbean published in July 2019. Nonetheless, the IMF reiterates that Panama remains among the most dynamic countries in Latin America, so it expects its recovery and a potential growth of 5.5% in 2019, although this forecast is lower than estimated at the beginning of the year, estimating a 6.8% growth. In turn, ECLAC projects a GDP growth of 4.9%.

services sectors, and to a slow recovery”. However, ECLAC indicates that “the construction, transportation and communications, and financial intermediation sectors are expected to continue leading the expansion of the Panamanian economy”. Regarding international trade, imports in the first quarter of 2019 decreased 1.6% due to the reduction in purchases of intermediate goods and capital goods.

According to the Ministry of Economy and Finance of the Government of Panama, “the most recent data point to the weakening in the construction and

Specifically, imports of HVAC/R industry products in 2018 reached USD 86,727,000 FOB, a -16.5% less than the figure recorded in 2017, evidencing the slowdown of Panamanian international trade. This equipment entered the country mainly from the United States (35.3%), China (21.6%), and Taiwan (4.6%), while 18.2% reported that they entered from the Colon Free Trade Zone, according to data from the National Customs Authority.

PANAMA: GDP AND INFLATION, 2016-2018

PANAMA IMPORTS OF HVAC/R EQUIPMENT 4

6 3

1 2 0

2016

2017

2018

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS.

Source: ECLAC, based on official data

-1

35.3% USA

4.6% TAIWAN

21.6% CHINA

4.2% PANAMA

18% TRADE ZONE*

16.1% OTHERS

*Colon Free Trade Zone

BY DECEMBER 2018 Source: Descartes Datamyne – National Customs Authority.

EXPORTS AND TRADE BALANCE IN THE ANDEAN REGION AND THE SOUTHERN CONE 2018 % EXPORT GROWTH 2018

TRADE BALANCE 2018* Bolivia -1,517,000 Colombia -7,892,000 Ecuador -170,000 Peru 5,100,000 Brazil 20,369,000

Argentina -9,624,000 Chile 2,846,000 Paraguay 847,000 Uruguay 2,716,000

In US Dollars *Estimation by ECLAC

Source: IADB and ECLAC

TOP IOO CONTRACTORS-INSTALLERS â&#x20AC;¢ REPORT 2019-2020

Andean Region Colombia In Colombia the economic recovery continued to be driven by higher oil prices in 2017 and, increasingly by stronger private investment, also encouraged by the implementation of 4G infrastructure projects and the positive effect of recent tax reforms. Thus, ECLAC indicates an economic growth of Colombia of 2.6% in 2018 and projects 3.5% for 2019-20, a recovery driven by domestic demand, despite the negative effects of external demand.

and October 2019, according to historic indicators of the Latin American Federation of Banks (Felaban). The ECLAC also points out that imports of goods and services increased by 7%, driven by higher domestic demand, and exports also rose, albeit at a slower pace.

However, despite the positive economic behavior, the Colombian peso continues to devalue against the US dollar, reaching a maximum historical price of $3,497 pesos per dollar in early October 2019. This is a 15% depreciation between September 2018

Regarding HVAC/R equipment imports, USD 214,154,000 FOB was reached as of December 2018, a 7% growth compared to 2017, originating from China with 48.6%, the United States with 11.7 % and Brazil with 8.3%, according to the records of the Directorate of National Taxes and Customs (DIAN).

COLOMBIA: GDP AND INFLATION, 2016-2018

COLOMBIA IMPORTS OF HVAC/R EQUIPMENT

12 10

8 2

6 4

1 2 0

2016

2017

2018

48.6% CHINA

7.6% MEXICO

11.7% USA

3.8% TAIWAN

8.3% BRAZIL

20.1% OTHERS

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

BY DECEMBER 2018 Source: Descartes Datamyne â&#x20AC;&#x201C; DIAN

Ecuador Along with the slowdown that the Ecuadorian economy was presenting, with a GDP that reached only 1.4% in 2018 according to ECLAC, the recent wave of violent twelve-day protests by the indigenous people, triggered by the elimination of fuel subsidies, an austerity measure that is part of the agreement between the Ecuadorian government with the IMF for monetary aid to alleviate the fiscal deficit, ending with losses above 200 million dollars a day, in addition to seven dead and hundreds injured.

The consumer price index is also affected by these slow economic dynamics, because, although the deflationary trend of the last three years was reversed, the accumulated inflation in twelve months of 2018 is only 0.3%, says ECLAC. In the commercial area, Ecuador showed a deterioration in its external result in 2018, with an export sector with a small volume of growth (0.9% in 2018), and imports that have lost dynamism in real terms (5.8% in 2018).

This recent crisis will undoubtedly take a toll on the growth forecasts for 2019-20, which the IMF estimates at a discrete 0.7%.

It should be noted that, other than crude oil, the most dynamic imports were raw materials, followed by consumer goods, and much further back are capital goods, with growths of 20.4%, 13.7%, and 11.3%, respectively.

Both organizations agree that economic activity has been mostly affected by the more limited access to international capital markets and a moderate contraction in oil production.

Meanwhile, HVAC/R equipment imports as of December 2018 reached USD 125,486,000 CIF, a decrease of -6.7% compared to 2017. The main origins are China (38.4%), United States (20.9%) and Brazil (8.1%).

ECUADOR: GDP AND INFLATION, 2016-2018

ECUADOR IMPORTS OF HVAC/R EQUIPMENT 8

7 6

5 2

4 3

-1

2 1

-3

0 -1

-5

2016

2017

-2

2018

38.4% CHINA

6.7% SPAIN

20.9% USA

6.2% PANAMA

8% BRAZIL

19.8% OTHERS

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

BY DECEMBER 2018 Source: Descartes Datamyne – National Customs Service TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020

77 77

Peru In spite of the corruption scandals which occurred in 2018 and the impacts of El Niño phenomenon in 2017, Peru’s economy keeps growing, reaching 4% in 2018, although IMF projections were revised downward to 3.7% for 2019, due to the weak results of the first quarter. The agency notes that the risk of further decrease due to lower prices of raw materials, continuing commercial tensions and poor public investment implementation, still continues. However, the greater dynamism of consumption and investment should be highlighted as the main causes of the acceleration of growth.

private investment that would register an expansion of 6.9%, added to a greater dynamism because of the Pan American Games held in Lima in July 2019. Goods exports showed a significant decrease in their value, from a growth of 22.5% in 2017 to only 8.0% in 2018, while imports grew 8.1% this year as a result of the increase in prices.

However, according to the manager of IPE, Diego Macera, the country’s GDP will be driven by

Even so, HVAC/R equipment imports reached USD 86,933,000 FOB during 2018, revealing a decrease of -17.9% compared to the same period of 2017, originating mainly from China with 34.2%, United States (20.2%), and Italy (7.5%), according to data from the National Superintendence of Customs and Tax Administration (Sunat).

PERU: GDP AND INFLATION, 2016-2018

PERU IMPORTS OF HVAC/R EQUIPMENT

8 4 6

4 2 2

0 T1

2016

2017

2018

34.2% CHINA

6.1% SPAIN

20.2% USA

5.9% BRAZIL

7.5% ITALY

26% OTHERS

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

BY DECEMBER 2018 Source: Descartes Datamyne – Sunat

Venezuela “The Bolivarian Republic of Venezuela is going through what could be the most serious inflationary episode in the history of Latin America and the Caribbean”, begins the chapter on Venezuela in ECLAC’s report “Economic Survey of Latin America and the Caribbean 2019”. The collapse of Venezuela’s economy continues and none of the international economic organizations have encouraging expectations. The IMF estimates a fall of -35% of real GDP in Venezuela in 2019, which would add to a contraction of over -60% since 2013, the last year in which this figure recorded any growth. For its part, ECLAC notes that the reduction in GDP in the first three quarters of 2018 was -19.5%, and by 2019 would drop to -23%.The evolution of political events after Juan Guaidó swore himself in an interim president in January this year, add another layer of uncertainty to the country’s outlook. With monetary funding of bulky fiscal deficits projected to continue coupled with collapsing money demand, Venezuela’s inflation rate will

rise even more, reaching 10 million percent, according to the IMF’s estimates. On May 28, The Central Bank of Venezuela acknowledged the devastation of the country’s economy by announcing that inflation had reached 130,060% in 2018 and that GDP had halved since 2013, thus ending three years of statistical silence. Further, while the increase in crude oil prices has allowed exports to grow by 9%, imports have fallen by 26%, affecting all industries, including the air conditioning and refrigeration sector, and in 2018 it only reached USD 16,618,000 FOB, a decrease of -52.3% compared to 2017, originating from China (38.1%), the United States (36%) and the Netherlands (8.4%). The IMF indicates that projecting the economic outlook in Venezuela is complicated by the lack of discussions with the authorities (the last consultation took place in 2004), long intervals in receiving data with information gaps, making it difficult to interpret certain reported economic indicators.

VENEZUELA IMPORTS OF HVAC/R EQUIPMENT

38.1% CHINA

3.7% PANAMA

36% USA

3.4% SPAIN

8.4% NETHERLANDS

10.4% OTHERS

BY DECEMBER 2018 Source: Descartes Datamyne with official information of partner countries. TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020

79 79

Southern Cone Argentina Despite the positive performance of the economy in 2017, with a growth of 2.9%, in the second half of 2018 the activity contracted and the ECLAC estimated that GDP would fall -2.5%, although the IMF is more optimistic, projecting a recovery to -1.3% in 2019 and 1.1% in 2020, thanks to the rebound in agricultural production and the gradual restoration of consumer purchasing power. However, it should be noted that, after the election season in October 2019, the performance of the Argentine economy could be further affected, taking into account the victory of the Peronist party in the primary elections held in August.

ed to the resignation of the Minister of Finance, Nicolás Dujovne, in August 2019, causing instability in the Argentine stock market, as well as in the US dollar price. According to the news portal, BBC News Mundo, “Argentina is currently in recession and registered an inflation of 22% during the first half of the year”. Together with the Colombian peso, the Argentine currency is one of the most devalued in Latin America, losing over 20% of its value, with prices exceeding 60 pesos per dollar.

A variety of circumstances caused this instability in the southern country, including the currency crisis of the second and third quarters of 2018, which entailed a sharp devaluation of the peso, a pronounced interest-rate hike, accelerating inflation and a substantial drop in real family incomes, add-

Inflation acceleration, which reached 31.2% yearon-year, had a negative effect on imports, which fell by -2,4% and, to a lesser extent, on exports (-0,2%). HVAC/R equipment imports during 2018, according to the ITC, were close to USD 38.9 million, a decrease of -72.3% compared to 2017, with origins mainly from China (50.9%), Brazil (20.6%) and the United States (6.1%).

ARGENTINA: GDP AND INFLATION, 2016-2018

ARGENTINA IMPORTS OF HVAC/R EQUIPMENT 48

43 38

33 28

23 18

-1

13 8

-3

3 -5

2016

2017

-2

2018

50.9% CHINA

4.5% THAILAND

20.6% BRAZIL

3.4% ITALY

6.1% USA

14.5% OTHERS

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

BY 2018 Source: International Trade Centre (ITC).

Chile The Chilean economy more than doubled its growth in 2018, reaching 4% due to the dynamism shown by the investment and exports of goods and services. However, the IMF revised its projections in its Global Economic Outlook report –published in October–, determining a growth of only 2.5% for this year and 3% for 2020, partly because of the ongoing massive civil protests throughout Chile that began in October. “This data puts the South American country above the Latin American average, since the agency stipulated a forecast of just 0.2% in 2019 and 1.8% by 2020”, the EFE news agency said.

ECLAC foresees that “both consumption and investment would be the factors sustaining growth, but with less dynamism than that observed in 2018”. Regarding commercial dynamics, in 2018 there was a decrease in the balance in favor of the trade balance due to the increase in imports (9.5% and 13.6% in 2017 and 2018, respectively), which more than offset the growth of exports of goods and services (13% and 10% in 2017 and 2018).

However, downside risks remain, especially due to the recent weakness in economic activity and exports.

Meanwhile, imports of equipment for the HVAC/R industry in 2018 reached USD 213,777,000 million CIF, a slight decrease of -2.7% compared to 2017, with origins mainly from China (25.6%), States United (16.7%) and Italy (8.5%), according to data from the National Customs Service.

CHILE: GDP AND INFLATION, 2016-2018

CHILE IMPORTS OF HVAC/R EQUIPMENT

-1

2016

2017

2018

25.6% CHINA

6.8% SPAIN

16.7% USA

6.4% SINGAPORE

8.5% ITALY

36.1% OTHERS

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

BY DECEMBER 2018 Source: Descartes Datamyne – National Customs Service TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020

81 81

Uruguay Despite the discrete 1.6% growth of Uruguayan GDP in 2018, this record completes 16 years of positive economic growth, “which constitutes a record in the country’s history,” said ECLAC. However, the deterioration of the dynamism would remain in 2019, so a growth of less than one percent is calculated. In turn, the IMF agrees that the worsening outlook for Argentina and Brazil, along with the drought that affected Uruguay and Argentina, and peso depreciation led to a growth of only 2% in 2018. However, the IMF is much more optimistic for 2019, projecting a rise of 3.2%

However, moderate pessimism would accentuate during the second round of national elections in November. Despite this, negotiations with the Finnish company UPM for the assembly of a pulp mill in the center of the country would imply a greater investment that would include a railroad from there to the port of Montevideo, thus recovering a transportation mode paralyzed decades ago.

Its to be highlighted the favorable behavior of the commerce, restaurants and hotels sector, which have been the main drivers of growth during the year.

Regarding trade dynamics, while the exports of goods is slowing, imports of goods and services will increase moderately. Specifically, imports of HVAC/R equipment in 2018 reached USD 46,200,000 CIF, a decrease of -11.2% compared to 2017, mainly from China (67.2%), followed by Italy (8.5%) and Brazil (3.9%), according to data from the General Directorate of Customs.

URUGUAY: GDP AND INFLATION, 2016-2018

URUGUAY IMPORTS OF HVAC/R EQUIPMENT

10 8

6 2

1 0

2016

2017

2018

67.2% CHINA

3.9% USA

8.5% ITALY

3.4% SPAIN

3.9% BRAZIL

13.1% OTHERS

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

BY DECEMBER 2018 Source: Descartes Datamyne – General Directorate of Customs

TOP IOO CONTRACTORS-INSTALLERS â&#x20AC;¢ REPORT 2019-2020

ANNUAL GDP GROWTH %

2019** 2018* 2017

MEXICO, CENTRAL AMERICA AND THE CARIBBEAN

3.2 WORLD 0.5

1.2 1.3

LATIN AMERICA 1

2.2 2.1

MEXICO

2.5 COSTA RICA

3.3

2.3 2.5 2.3

EL SALVADOR

2.9 2.9 2.8

GUATEMALA

3.5 3.7

HONDURAS -5

3.7 3.7

4.8

NICARAGUA

- 4.1

4.9 5.5

DOMINICAN REP.

4.6 4.2

PANAMA

-6

-4

-2

*Estimation **Projection Source: ECLAC

6.3

4.9 5.3 6

ANDEAN REGION

3.2 3.7 3.7

WORLD 0.5 1.2 1.3

LATIN AMERICA

4 4.4 4.2

BOLIVIA

3.1 2.7 1.8

COLOMBIA 0.2 1

ECUADOR

3.2 3.8 2.5

PERU -23

-15

-25

-20

2.4

VENEZUELA

-13

-15

-10

-5

BRAZIL AND SOUTHERN CONE 3.2

WORLD

LATIN AMERICA

0.5

-1.8

1.3 1.1

ARGENTINA

2.9 2.8

CHILE 0.3

1.9

2.7

1.6

PARAGUAY -2

3.9

1.5

URUGUAY

-4

1.2 1.3

0.8

BRAZIL

-2.8

3.7 3.7

4.4 4

4.8 6

TOP IOO CONTRACTORS-INSTALLERS â&#x20AC;¢ REPORT 2019-2020

85 85

Index of references Cited sources: Agencia EFE, “El FMI rebaja la previsión de crecimiento de Chile, pero sigue sobre media regional”, Press publication, October 15, 2019. América Economía, “Economía peruana crecería 4% en 2019 y estaría entre líderes de la región, estima el IPE”, Press publication, March 21, 2019. América Economía, “Brasil recortará pronóstico de crecimiento del PIB en 2019 por debajo del 2%, dice ministro de Economía”, Press publication, May 14, 2019. BBC News Mundo, “Crisis en Argentina: 3 datos que muestran cómo se ha deteriorado la economía del país en las últimas semanas”, Press publication, September 3, 2019. El Colombiano, “Banco Central de Venezuela admite devastador estado de la economía”, Press publication, May 29, 2019. Infobae, “El peso argentino fue la moneda emergente que más valor perdió en el último año”, Press publication, January 1, 2019. Revista Dinero, “El papel del FMI en la crisis de Ecuador”, Press publication, October 13, 2019. Revista Dinero, “Renuncia el ministro de Hacienda de Argentina”, Press publication, August 17, 2019. Inter-American Development Bank (IADB), Estimates of trade trends in Latin America and the Caribbean, Annual report, 2019 edition. Economic Commission for Latin America and the Caribbean (ECLAC), International Trade Perspectives for Latin America and the Caribbean, 2018 (LC/PUB.2018/20-P), Santiago, 2018. Economic Commission for Latin America and the Caribbean (ECLAC), Preliminary Overview of the Economies of Latin America and the Caribbean, 2018 (LC/PUB.2019/1-P), Annual report, Santiago, 2019. Economic Commission for Latin America and the Caribbean (ECLAC), Economic Survey of Latin America and the Caribbean 2019. The new global financial context: effects and transmission mechanisms in the region (LC/PUB.2019/12-P), Annual report, Santiago, July 2019. International Monetary Fund (IMF), Regional Economic Outlook. Western Hemisphere: an uneven recovery, October 2018. International Monetary Fund (IMF), World Economic Outlook (WEO) July 2019 update, July 23, 2019. Central Bank of Costa Rica, “Evolution of the Monthly Index of Economic Activity (IMAE, in Spanish), April 2019”, Press Release, June 14, 2019. Economic Commission for Latin America and the Caribbean (ECLAC), “ECLAC Lowers its Economic Growth Estimates for Latin America and the Caribbean: GDP will Increase 1.3% in 2019”, Press release, April 11, 2019. Central Reserve Bank of El Salvador, CentralAmericaData.com, “Economía salvadoreña crece 2% en el I

trimestre”, Press release, June 28, 2019. Institute of Research in Economic Sciences of the University of Costa Rica, “Análisis del desempeño de la economía y pronóstico para el II trimestre del 2018”, Press release, January 2019. Ministry of Economy and Finance, Republic of Panama, “Panamá entre las economías más dinámicas de AL”, Press release, July 24, 2019. World Trade Organization (WTO), “La OMC rebaja las previsiones comerciales ante las tensiones que desestabilizan la economía mundial”, Press release, October 1, 2019. International Monetary Fund (IMF), “América Latina y el Caribe en 2019: Una expansión moderada”, Diálogo a Fondo blog post, January 25, 2019. International Monetary Fund (IMF), “Perspectivas para América Latina y el Caribe: Una recuperación atascada”, Diálogo a Fondo blog post, July 29, 2019. International Monetary Fund (IMF), “Un nuevo índice traza la incertidumbre en torno al comercio internacional en el mundo entero”, Diálogo a Fondo blog post, September 9, 2019. Databases: International Trade Centre (ITC). With information from UN Comtrade (Database of Trade Statistics of the United Nations) and official sources:

• Argentina: UN Comtrade. • Rep. Dominicana: UN Comtrade. • El Salvador: Central Reserve Bank. • Guatemala: Central Bank of Guatemala.

Descartes Datamyne (www.datamyne.com). With information from official sources:

• 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: official information from partner countries.

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 2018.

TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020

Analyzed Harmonized System Codes (HS-codes)*:

HS-Code

Descripción

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.

8414.30

Compressors; of a kind used in refrigerating equipment.

8414.51

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

8414.59

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.

8415.10

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 “split-system”.

8415.81

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).

8415.82

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

8415.83

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.

8418.69

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

* For the imports charts and graphs by company of Chapter 1, this report only considered the Harmonized System Codes of products related to the HVAC/R industry, for transactions carried out until December 2018.

Technical Sheet “TOP BRANDS IN LATIN AMERICA” survey Dates of data collection: May 27 to September 30, 2019. 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 of HVAC/R equipment. Target group: Exclusively the companies of the Top 100 Latin American Contractors Installers 2019. Survey developed and conducted by Latin Press, Inc

ADDENDUM

LATIN AMERICAN CONTRACTORS INSTALLERS

2020

RANKING BY REGION

Mexico No.

COMPANY

SEGMENT

JOHNSON CONTROLS MÉXICO

Air conditioning

RCR REFRIGERACIÓN

Refrigeration

GRUPO AISLACON

Air conditioning

CALEFACCIÓN Y VENTILACIÓN (CYVSA)

Air conditioning

FLUTEC

Air conditioning

CLIMAS

Air conditioning

ABE REFRIGERACIÓN

Refrigeration

GRUPO IPASA

Air conditioning

IACSA - INGENIERÍA, AIRE Y CONTROL

Air conditioning

HUMICLIMA MÉXICO

Air conditioning

EOLIS AMÉRICA LATINA

Refrigeration

REFRIMART DE MÉXICO

Air conditioning

AIRE ACONDICIONADO ÁRTICO

Air conditioning

MITSUCLIMATIZACIÓN

Air conditioning

REINMEX (REFRIGERACIÓN INDUSTRIAL MÉXICO)

Refrigeration

REPRESENTATIVE

WEB INFO

Daniel Sandoval

daniel.sandoval.gonzalez@jci.com

+52 81 8100 6420

www.johnsoncontrols.com/es_mx

Ana Contreras

anacontreras@rcr.com.mx

+52 66 2251 0692

www.rcr.com.mx

Oscar González

ogonzalez@grupoaislacon.com.mx

+52 81 8625 1100

www.grupoaislacon.com.mx

Carlos Vidal García

agarcia@cyvsa.com

+52 55 5350 5350

www.cyvsa.com

Gabriel Herrera

ggrajeda@flutec.com

+52 656 625 5474

www.flutec.com

Nefris Andrea Rosales

nrosales@climas.com

+52 61 4439 3999

www.climas.com

Adolfo Blásquez

adolfo@abe-ref.com

+52 55 5683 6288

www.abe-ref.com

Martín Benavides

mbenavides@climasipasa.com

+52 81 8989 6797

www.climasipasa.com

José Luis Trillo

josel.trillo@iacsa.net

+52 55 5399 3203

www.iacsaasociados.com

Ignacio Blasco

iblasco@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

Jorge Aguilar

jorgem.aguilar@refrimartmexico.com

+52 99 9290 8220

www.refrimartmexico.com

Miguel Linares Quintero

ventas@articoaire.com

+52 55 5662 7383

www.articoaire.com

Adrián Salcedo

adrian@mitsuclimatizacion.com.mx

+52 55 5640 6552

www.mitsuclimatizacion.com.mx

Germán Velásquez

gvelazquez@reinmex.net

+52 33 3699 2217

www.reinmex.net

POSITION

12,81%

↑

8,19%

↓

7,10%

↑

6,39%

↑

4,14%

↑

4,00%

↑

3,91%

↑

3,87%

↓

3,84%

↑

3,43%

↓

3,32%

↑

3,05%

↓

2,96%

═

2,89%

↑

2,80%

↑

No.

COMPANY

SEGMENT

WATCO REFRIGERACIÓN

Refrigeration

ARECHE INGENIEROS

Air conditioning

URIBE INGENIEROS

Air conditioning

ABA DEPOT (ANTES ABA CONFORT)

Air conditioning

GRUPO AIREXS

Air conditioning

TECNOCLIMA

Air conditioning

TERMO TÉCNICA QUIN

Air conditioning

DE BUEN Y ASOCIADOS

Air conditioning

IERI - INGENIERÍA ESPECIALIZADA EN REFRIGERACIÓN INDUSTRIAL

Refrigeration

CAURUS ECO INGENIERÍA

Air conditioning

AC PROYECTOS

Air conditioning

ARSA

Air conditioning

COLD CHAIN & ENGINEERING - CCMX

Air conditioning and Refrigeration

CMI - CABO MANTENIMIENTO INTEGRAL

Air conditioning

INTERCLIMAS DE MÉXICO AIRE ACONDICIONADO

Air conditioning

REPRESENTATIVE

WEB INFO

Francisco Noyola

ventas@watco.com.mx

+52 33 3812 0556

www.watco.com.mx

Carlos Arechederra

carlos.arechederra@areche.com.mx

+52 99 3312 3322

https://arecheingenieros.com

Tania Uribe

t.uribe@uiasa.mx

+52 55 5568 4149

www.uiasa.mx

Adolfo Barba

adolfo.barba@abaconfort.com

+52 33 3647 5858

www.abadepot.com

Estefanía Hermosillo

coordinador.proyectos@airexs.com.mx

+52 33 3612 7815

https://airexs.com.mx

Héctor Terrazas

tecnoclimamx@gmail.com

+52 55 5532 3812

https://tecnoclima.com.mx

Eduardo Quintanilla

equintanilla@ttq.com.mx

+52 81 8359 8660

www.ttq.com.mx

Christian de Jesús

cdejesus@debuenyasociados.com

+52 55 5277 1523

http://debuenyasociados.com

Mario Mendoza

ieri@ieri.com.mx

+52 33 3650 2470

https://ieri.com.mx

Marco Torróntegui

marco.torrontegui@caurus.com.mx

+52 66 7752 2459

www.caurus.com.mx

Aurelio Castillo

info@acproyectos.com

+52 81 8333 3394

www.acproyectos.com

Dulce Karina Martínez

arsaaire@hotmail.com

+52 77 7322 6368

www.arsaaire.com

Edgar Hernández

edgar.hernandez@cce.com.mx

+52 55 4444 2580

www.ccemx.com

Omar Rodríguez

ventas@cmiloscabos.com

+52 624 146 9699

www.cmiloscabos.com

Víctor Beltrán

interclimas.mexico@gmail.com

+52 55 6354 8943

www.climasencuernavaca.com

POSITION

2,78%

↓

2,64%

↑

2,55%

↓

2,43%

↓

2,39%

↓

2,37%

↓

1,91%

↓

1,80%

↑

1,59%

↑

1,57%

↑

1,41%

↓

1,14%

↓

1,14%

↓

0,96%

↓

0,64%

↓

* Percentage of recognition and trajectory of Contractors / Installers companies in Mexico. TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020 • ADDENDUM

Central America and the Caribbean No.

COMPANY

GRUPO CLIMA

Air conditioning

ECOAIRE

Air conditioning

MULTIFRÍO

Air conditioning

COMPAÑÍA CLIMATIZADORA

Air conditioning

INSTALFRÍO

Air conditioning

INELEC

Refrigeration

LUCAS INGENIEROS

Air conditioning

8 9

DICOMA

SEGMENT

REPRESENTATIVE

WEB INFO

Chris Elizondo Salazar

celizondo@grupoclima.com

+506 2299 5353

www.grupoclima.com

Francisco Orlich

forlich@ecoaire.net

+506 8350 0165

https://ecoaire.net

Salo Ponchner

sponchner@multifrio.com

+506 2455 1700

www.multifrio.com

Carlos Rojas

crojas@climatizadora.com.pa

+507 300 9356

www.climatizadora.com

Roberto Malave

instalfriopanama@gmail.com

+507 387 5107

http://instalfrio.net

Javier Dávila

jedavilar@inelechn.net

+504 3176 8161

www.inelechn.net

Luis Prendas

lprendas@lucasingenieros.com

+506 2239 5922

www.lucasingenieros.com

Adrián Sánchez

asanchez@dicomacr.com

+506 4404 0800

www.dicoma.com

Benjamín Membreño

bmembreno@grupoayre.com

+504 2504 2121

www.grupoayre.com

Ramsés Cajar

ramsesc@copanac.net

+507 233 9900

www.copanac.net

Patrick Nogera

pnogera@protecaruba.com

+297 582 0787

www.protecaruba.com

Lisy Pérez

lisy@airesistemas.com

+507 271 7900

www.airesistemas.com

Juan Carlos Madrid

jmadrid@airqualityhn.com

+504 2544 0360

www.airqualityhn.com

Melvin Escobar

melvin.escobar@euroaire.com

+503 2524 5900

https://grupoeuroaire.com

Kenny Iraheta

servicioalcliente@climatecsasadecv.com

+503 2228 0757

http://climatecsasadecv.com

Air conditioning

GRUPO AYRE

Air conditioning

COPANAC

Air conditioning

PROTEC

Air conditioning

AIRE SISTEMAS

Air conditioning

AIR QUALITY

Air conditioning

EUROAIRE

Air conditioning

CLIMATECSA

Air conditioning

* Percentage of recognition and trajectory of Contractors / Installers companies in Central America.

COUNTRY

POSITION

COSTA RICA

16,26%

↑

COSTA RICA

14,20%

↑

COSTA RICA

13,56%

═

PANAMA

7,56%

═

PANAMA

6,98%

↓

HONDURAS

5,32%

↑

COSTA RICA

4,95%

↑

COSTA RICA / NICARAGUA / PANAMA / HONDURAS / GUATEMALA

4,95%

↑

HONDURAS

4,60%

↑

PANAMA

4,34%

↓

ARUBA

4,22%

↑

PANAMA

4,02%

↓

HONDURAS

3,55%

↓

EL SALVADOR

3,23%

↓

EL SALVADOR

2,27%

↓

Andean Region No.

COMPANY

SEGMENT

THERMOANDINA

Air conditioning

JOHNSON CONTROLS COLOMBIA

Air Conditioning and Refrigeration

AIRECARIBE

Air conditioning

CONSULCAD

Air conditioning

DISMEC

Air conditioning

GRIVAN INGENIERÍA

Refrigeration

SERVIPÁRAMO

Air conditioning

INDUSTRIAS REFRIDCOL

Refrigeration

CARVEL

Air conditioning

SECAR INGENIEROS

Air conditioning

SAEG

Air conditioning

LARCO COMERCIAL Y SERVICIOS

Air conditioning

REFRIAMERICA

Air conditioning

COLD IMPORT

Refrigeration

AIRE AMBIENTE

Air conditioning

FRÍO AIRE

Air Conditioning and Refrigeration

ROJAS Y HERMANOS

Refrigeration

REFRINORTE

Air conditioning

REPRESENTATIVE

WEB INFO

Santiago López

santiago.lopez@thermoandina.com

+57 1 415 9809

www.thermoandina.com

Johana Camacho

johana.camacho.gonzalez@jci.com

+57 1 655 3600

www.johnsoncontrols.com/es_latinamerica

Gustavo Ospina

ingenieria@airecaribe.com

+57 1 742 7527

www.airecaribe.com

Miguel Antonio Vargas

consulcadsrl@consulcadsrl.com

+591 3 3446373

https://consulcadsrl.com

Edgar Ernesto Zapata

ezapata@dismecsa.com

+57 1 613 3388

http://dismecsa.com

Fernando Grisales

gerencia@grivaningenieria.com

+57 2 387 7570

www.grivaningenieria.com

Carlos Hoyos

choyos@serviparamo.com.co

+57 5 373 4851

www.serviparamo.com.co

Héctor Torres

hector.torres@refridcol.com

+57 2 690 4440

https://refridcol.com

Álvaro Payán

mercados@carvel.com.co

+57 2 446 4333

www.carvel.com.co

Harold Guzmán

haroldguzman@secarsa.com

+57 2 666 2725

www.secarsa.com

Ingrid Velasco

ivelasco@saeg.com

"+57 1 617 9140 +51 1 641 3800"

www.saeg.com

Natalia Arango

narango@cslsa.com

+57 4 360 3600

www.cslsa.com

María Milagros Merino

maria.merino@refriamerica.com

+58 424 622 4711

www.refriamerica.com

Ernesto Sanguinetti

esanguinetti@coldimport.com.pe

+51 1 242 9100

www.coldimport.com.pe

John Jairo Villa

john.villa@aireambiente.com

+57 4 444 7217

www.aireambiente.com

Manuel Gómez

info@frioaire.com.co

+57 4 411 1670

http://frioaire.com.co

Sonia Salcedo

sonia.salcedo@rojas-hermanos.com

+57 1 288 2011

www.rojas-hermanos.com

Nohora Camargo

ncamargo@refrinorte.com

+57 5 385 1080

www.refrinorte.com

COUNTRY

POSITION

COLOMBIA

7,08%

↑

ANDEAN REGION

5,27%

↓

COLOMBIA

4,66%

↑

BOLIVIA

4,45%

↑

COLOMBIA

4,28%

↑

COLOMBIA

4,11%

↑

COLOMBIA

4,11%

↓

COLOMBIA

3,68%

↑

COLOMBIA

3,61%

↓

COLOMBIA

3,25%

↑

COLOMBIA/ PERU

3,13%

↓

COLOMBIA

3,08%

↓

VENEZUELA

3,08%

↓

PERU

2,98%

↓

COLOMBIA

2,96%

↓

COLOMBIA

2,87%

↓

COLOMBIA

2,70%

↑

COLOMBIA

2,57%

↓

TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020 • ADDENDUM

Andean Region No.

COMPANY

SEGMENT

ALFRÍO

Refrigeration

CS AYRE

Air conditioning

OMEGA

Air conditioning

FEIBO

Air conditioning

WESTON

Refrigeration

CORPORACIÓN UEZU

Air conditioning

WME CONTRATA

Air conditioning

ECOAIRE

Air conditioning

AVILAIRE

Air conditioning

ELGA DE VENEZUELA

Air conditioning

SUTRAK

Refrigeration

GRUPO UNICLIMA

Air conditioning

PROYECTOS Y SERVICIOS

Air Conditioning and Refrigeration

ENFRIAR SERVICIOS

Air conditioning

CENTURIOSA

Air conditioning

INTEG

Air conditioning

JE REFRIGERACIÓN

Refrigeration

REPRESENTATIVE

WEB INFO

Raúl Perea

rperea@alfrio.com

+57 1 211 3834

www.alfrio.com

Edgar Bowers

gerencia@csayre.com.co

+57 2 439 6973

www.csayre.com.co

Andrés Felipe Hurtado

andres.hurtado@omegaingenieros.com

+57 2 883 5779

www.omegaingenieros.com

Yennifer Gómez

ygomez@feibo.com.ve

+58 416 636 6970

www.feibo.com.ve

Richard Osma

rosma@weston.com.co

+57 1 290 7700

www.weston.com.co

Manuel Uezu

manueluezu@uezuperu.com

+51 1 500 0400 / 01

www.uezuperu.com

Alberto Cuadros

a.cuadros@wmecontrata.com

+51 1 273 3509

www.wmecontrata.com

Pablo Rosero

gerencia@ecoaire.ec

+593 2 2042138 / 9

www.ecoaire.ec

Ileana Viejo

ileana.viejo@avilaire.com

+58 212 232 8756

www.avilaire.com

Eduardo Ferrer

eferrer@elgadevenezuela.com

+58 261 721 2366

www.elgadevenezuela.com

Juan Carlos Yepes

jyepes@sutraksa.com

+57 4 444 8735

www.sutraksa.com

Isaac Blum

isaacblum@uniclima.net

+58 212 237 9777

www.uniclima.net

Nelson Cruz

gerencia@proyectosyservicios.net

+57 7 634 8821

http://proyectosyservicios.net

María Elisa Zúñiga

gerenciaser@enfriarservicios.com.co

+57 2 666 1814

www.enfriarservicios.com.co

Ernesto Amador

eamador@centuriosa.com

+593 2 370 9590

http://centuriosa.com

Rubén Carrillo

ruben.carrillo@integ-sac.com

+51 1 225 1113

www.integ.com.pe

Raúl Quispe

proyectos@jerefrigeracion.org

+51 941 822 861

www.jerefrigeracion.org

* Percentage of recognition and trajectory of Contractors / Installers companies in the Andean Region.

COUNTRY

POSITION

COLOMBIA

2,40%

↑

COLOMBIA

2,34%

↑

COLOMBIA

2,30%

═

VENEZUELA

2,28%

↓

COLOMBIA

2,28%

↓

PERU

2,13%

↓

PERU

2,08%

↓

ECUADOR

1,96%

↑

VENEZUELA

1,94%

↓

VENEZUELA

1,91%

↓

COLOMBIA

1,87%

↑

VENEZUELA

1,72%

↓

COLOMBIA

1,66%

↑

COLOMBIA

1,62%

↓

ECUADOR

1,57%

↓

PERU

1,57%

↓

PERU

0,49%

═

Southern Cone No.

COMPANY

SEGMENT

TERMOFRÍO

Air conditioning

REFRICENTRO

Refrigeration

ABC REFRIGERACIÓN INDUSTRIAL

Refrigeration

FRIMONT

Refrigeration

VENTILACIÓN TEVA

Air conditioning

INSTAPLAN

Air conditioning

COSTAN (EPTA GROUP)

Refrigeration

FRICON

Air conditioning

INEMA

Refrigeration

CHILE CLIMA

Air conditioning

REPRESENTATIVE

WEB INFO

Augusto Medina

amedina@termofrio.cl

+56 2 2599 0800

www.termofrio.cl

Claudio Concha

cconcha@refricentro.cl

+56 2 2411 2900

www.refricentro.cl

Guillermo Murillo

info@abcrefrigeracion.com.ar

+54 11 5238 3762

http://abcrefrigeracion.com.ar

Omar Escalante

omar.escalante@frimont.com

+54 26 1524 8350

https://frimont.com

Mariano Clement

mclement@ventilacion-teva.com.ar

+54 11 4760 6274

http://ventilacionteva.com.ar

Roberto Gerlach

rgerlach@instaplan.cl

+56 2 2792 7000

www.instaplan.cl

Fernando Galante

fernando.galante@epta-argentina.com

+54 34 1461 5000

www.eptalatam.com

Gabriel Cruz

gcruz@fricon.com.ar

+54 11 4301 0422

www.fricon.com.ar

David Gómez

dgomez@inema.cl

+56 2 2482 9600

www.inema.cl

Stefanía Baini

ventas@chileclimaspa.cl

+56 2 2555 4589

www.chileclimaspa.cl

COUNTRY

POSITION

CHILE

12,72%

═

CHILE

10,23%

═

ARGENTINA

7,37%

↑

ARGENTINA

5,76%

↑

ARGENTINA

5,71%

↓

CHILE

5,48%

↑

ARGENTINA

5,39%

↑

ARGENTINA

5,39%

↑

CHILE

4,33%

↑

CHILE

4,15%

↑

TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020 • ADDENDUM

Southern Cone No.

COMPANY

SEGMENT

CLIMA AIRE

Air conditioning

FUSIÓN TERMOMECÁNICA

Air conditioning

MED

Air conditioning

BENECH INDUSTRIAL Y COMERCIAL (BICSA)

Air Conditioning and Refrigeration

CLIMATIKA

Air conditioning

RL CLIMATIZACIÓN

Air conditioning

INGECLIMA

Air conditioning

ACONDICIONAR

Air conditioning

ECOREF CHILE

Refrigeration

CLIMATIZACIÓN EL AIRE

Air conditioning

REPRESENTATIVE

WEB INFO

Margarita Salamanca

contactoclimaaire@gmail.com

+56 4 1279 0811

www.climaaire.cl

Manuel Correa

administracion@fusiontermomecanica.com.ar

+54 11 4302 1700

www.fusiontermomecanica.com.ar

Mario Zito

mariozito@med.com.uy

+598 2924 1894

www.med.com.uy

Roberto Benech

info@bicsa.com.uy

+598 2 916 2307

www.bicsa.com.uy/html

Claudio Matus

cmatus@climatika.cl

+56 2 2880 6038

http://climatika.cl

Leonardo Paronsini

administracion@rlclimatizacion.com

+54 22 1351 6886

www.rlclimatizacion.com

Marcelo Luit

termomecanica@ingeclima.com.ar

+54 11 4741 5507

https://ingeclima.com.ar

Julián Andrés Dávalos

acondicionardavalos@hotmail.com

+54 34 2474 6300

N/A

Elia Carla Romero

ventas@ecorefchile.cl

+56 5 7233 9813

http://ecorefchile.cl

Leonardo Aguilera

laguilera@climatizacion.cl

+56 2 3224 9417

www.climatizacion.cl

* Percentage of recognition and trajectory of Contractors / Installers companies in the Southern Cone.

COUNTRY

POSITION

CHILE

4,15%

↓

ARGENTINA

3,87%

↑

URUGUAY

3,73%

↑

URUGUAY

3,64%

↑

CHILE

3,50%

↑

ARGENTINA

3,41%

↓

ARGENTINA

3,09%

↓

ARGENTINA

3,00%

↑

CHILE

2,86%

↑

CHILE

2,21%

↓

TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020 • ADDENDUM

ADDENDUM TO CHAPTER 6

OUTLOOK OF THE LATIN AMERICAN ECONOMIES IN THE FACE OF CORONAVIRUS

In light of the COVID-19 pandemic, financial organizations such as the International Monetary Fund (IMF) and the UN’s Economic Commission for Latin America and the Caribbean (ECLAC), recognized that the world is in the midst of a recession, which would be even worse than 2009, according to Kristalina Georgieva, managing director of the IMF, who foresees a -9.4% contraction in world growth by 2020, recognizing that the pandemic has had “a more negative impact than expected” at beginning of this year. The crisis impacted Latin America at a time of weakness in its economy and of macroeconomic vulnerability, after accumulating almost seven years of low growth, with an average of 0.4% between 2014 and 2019. Thus, ECLAC estimates that the Latin American GDP will have the worst fall in history, with -9.1%. In comparison, the contractions recorded during the Great Depression of 1930 (-5%) or even further back, in 1914 (-4.9%) clearly

-9.1 %

fall short of the magnitude of the current crisis. However, the IMF mentioned in June that there are “somewhat encouraging news”, as economic activity, after the slump earlier this year, “has gradually started to strengthen. Partial recovery is expected to continue in 2021”. This statement comes with the announcement made in April by this same agency, that they provided up to USD 50 billion in emergency funding as an initial response for emerging and developing countries, with the lowest-income countries receiving approximately USD 10 billion to face the pandemic. Despite these efforts, it’s clear that this crisis will leave deep economic scars, with the greatest concern regarding the labor market, since in some countries more jobs were lost in March and April alone than those created since the financial crisis of 2009.

THE WORLD TRADE ORGANIZATION ESTIMATES THAT WORLD TRADE WILL FALL BETWEEN -13% AND -32% IN 2020. IN LATIN AMERICA, THE

WILL DECREASE LATIN AMERICAN

VALUE OF IMPORTS OF GOODS

GDP IN 2020, ACCORDING TO

FROM THE REGION FELL -17.1%

ECLAC.

BETWEEN JANUARY AND MAY 2020.

TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020 • ADDENDUM

Before the emergence of COVID-19, the IMF had estimated that Latin America would grow 1.6% in 2020. Alicia Bárcena, executive secretary of ECLAC, specified that the coronavirus will affect the region through five channels: the first is the decrease in Latin American exports due to the stagnation of economic activity; the second comes from the fall in the demand for tourism services, which would impact the Caribbean countries more severely; the third would be the interruption of value chains, mainly affecting Mexico and Brazil, who import parts and intermediate goods from China for the manufacturing of many products, including household appliances and electronics; and finally the fourth and fifth channel would be the affectations to the prices of basic products and the risk aversion of investors, affecting the stock market indexes. For their part, the IMF indicated in their June 2020 “World Economic Outlook Update”, that “the impact on low-income households is particularly sharp, and would jeopardize the significant progress in the fight against extreme poverty achieved worldwide since the 1990s”. The agency also estimates that, while most Latin American countries are still struggling to contain infections, the two largest economies, Brazil and Mexico, will suffer contractions of -9.1% and -10.5%, respectively. All things considered, Alicia Bárcena emphasized

that “this pandemic has the potential to reorganize geopolitical globalization. We need to rethink everything, the entire economy. We need a new vision to focus on how to cope with this difficult scenario that lies ahead”, she concluded. This statement is particularly true for the HVAC industry, considering the need to adapt all existing regulations to minimize the risks of COVID-19 contagion. The American consultant Jim Newman indicated that in the United States, poor indoor air quality (IAQ) can have a cost up to USD 200,000 million. Other points of view highlight the need to create a “Stand-By mode” for buildings, since social distancing will have to be maintained until a viable vaccine is developed around the summer of 2021, according to the specialized news website Memoori, where it’s emphasized the importance of having the ability to “reduce energy consumption down to a minimum”, a feature that would come into operation when there are no people inside a building. “Nothing about owning or managing a building will be normal, maybe for quite some time. In addition to the CDC, OSHA and WHO guidelines, industry experts from ASHRAE, BOMA and others have published their own statements and guidelines”, said Newman. To learn more about the current state of the Latin American economies, in this addendum we will address each subregion individually, analyzing the circumstances and economic outlook of each country.

WORLD GROWTH OUTLOOK UP TO 2025, IN THE BEST- AND WORST-CASE SCENARIOS, AS OF MARCH 2020 Percentage 5.0 4.0 3.0 2.0 1.0 0.0 -1.0

Source: United Nations Department of Economic and Social Affairs.

2025

2024

2023

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

Worst-case Best-case 2005

-2.0

EXPORT GROWTH AND TRADE BALANCE IN MEXICO AND CENTRAL AMERICA 2019 % EXPORT GROWTH 2019

2.4% -0.7%

3.2% 0%

3.5%

-4.5%

Nicaragua 4.5%

Source: ECLAC

TRADE BALANCE 2019* Mexico -7,790

Costa Rica Guatemala Honduras 1,845 -8,234 -4,388

Nicaragua -964

Panama -3,256

Dominican Republic -3,400

In thousands of US Dollars. *ECLAC estimation TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020 • ADDENDUM

Mexico, Central America & The Caribbean Mexico The collapse of the Mexican economy in 2020 will be -10.2%, according to the results of the survey applied in August by the Bank of Mexico among 36 specialists from the private and foreign sector, coinciding with the projections of ECLAC, of a -9% decrease. The considerable tourism reduction in Mexico, an industry that represents approximately 16% of the country’s GDP, is another vulnerability factor. ECLAC estimates that inflation for 2019 was around

MEXICO GDP, INFLATION AND UNEMPLOYMENT, 2017-2019 4

3%, while the National Institute of Statistics and Geography (INEGI, in Spanish) reported in June 2020 that unemployment reached 4.7%, for a total of 2.1 million unemployed Mexicans. Regarding commercial dynamics, total exports increased 3.3% in 2019, while imports of equipment for the HVAC/R industry reached USD 1,434 million FOB (Free on Board) as of July 2020, with origin mainly from China (43%), the United States (28.4%) and South Korea (6.6%), according to data from the National Institute of Statistics and Geography (INEGI).

IMPORTS OF HVAC/R EQUIPMENT

7 6

5 2

4 3

2 0 -1

1 T1

2017

2018

2019

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

42.9% CHINA

5.0% MEXICO

28.4% USA

2.3% THAILAND

6.6% SOUTH KOREA BY JULY 2020

Source: Descartes Datamyne – Inegi.

14.8% OTHERS

Costa Rica Costa Rica’s economic activity registered a significant slowdown in 2019, with a growth rate estimated by ECLAC of 1.8% (compared to 2.6% in 2018), negatively affected by a set of external and internal factors. By 2020, the Costa Rican economy would have a contraction of -5.5% of GDP as a result of the pandemic, according to this agency’s projections published in July this year. The FTA with South Korea entered into force on Nov-

ember 1, 2019 and is expected to facilitate mainly agricultural exports, investment and cooperation. The Costa Rican economy continues its growth line with a surplus of USD 1,845 million in 2019. Specifically, imports of equipment for the HVAC/R industry between January and October 2019 reached USD 67,365,800 CIF (Cost, Insurance and Freight), according to information from the National Customs Service, the main origins being China (37.6%), the United States (31.3%) and Mexico (8%).

COSTA RICA GDP, INFLATION AND IMPORTS OF HVAC/R UNEMPLOYMENT, 2017-2019 EQUIPMENT 5 4 3 2 1 0

2017

2018

13 12 11 10 9 8 7 6 5 4 3 2 1 0 -1 -2

2019

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

37.6% CHINA

6.2% GUATEMALA

31.3% USA

2.3% PANAMA

8.0% MEXICO

14.5% OTHERS

BY OCTOBER DE 2019

Source: Descartes Datamyne - National Customs Service. TOPTOP 50 EMPRESAS IOO CONTRACTORS-INSTALLERS DE LIMPIEZA LATINOAMERICANAS • REPORT 2019-2020 • INFORME • ADDENDUM 2020-2021

El Salvador ECLAC estimates that in 2019, the Salvadoran economy will have grown by 2.2% due to a moderate increase in remittances, exports and investment from the public sector. However, the agency calculated one of the strongest falls in the entire Central American subregion, with a -8.6% decrease in GDP in 2020, caused by the coronavirus pandemic. In August, it was revealed that El Salvador requested over USD 900 million in loans from international organizations such as the IMF, the Inter-American Development Bank and the World Bank to face the crisis, worsening the public debt index of the already impoverished Central American country. Ricardo Castañeda, coordinator for El Salvador of the Central American Institute for Fiscal Studies (ICEFI, in Spanish) told the press agency EFE that “El Salvador may have the worst impact on its economic growth in Central America due to the pandemic, with a loss of at least 10% of their GDP”.

EL SALVADOR GDP AND INFLATION, 2017-2019

Regarding international trade, imports totaled USD 9,014 million in the first three quarters of 2019, representing an increase of 2.2%. The increase in the purchase of consumer goods (7.1%) and non-durable goods (7.3%) stands out. Specifically, imports of products for the Cleaning sector in 2019, according to data from the Central Reserve Bank, reached USD 2,031,000, coming from the United States (26.2%), China (17.3%) and Brazil (12.8%). Regarding international trade, imports exceeded USD 9 billion in the first three quarters of 2019, representing a rise of 2.2%. The increase in the purchase of consumer goods (7.1%) and non-durable goods (7.3%) stands out. Specifically, imports of products from the HVAC/R sector in 2019, according to data from the Central Reserve Bank, were close to USD 5,900,000, coming from the United States (35%), China (26.4%) and Guatemala (9.3%).

IMPORTS OF HVAC/R EQUIPMENT

2 1

0 2 -3 1 0

-2

2017

2018

-1

2019

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

35.0% USA

6.8% PANAMA

26.4% CHINA

6.3% MEXICO

9.3% GUATEMALA BY 2019

Source: ITC - Central Reserve Bank.

16.1% OTHERS

Honduras The Honduran economy, which in 2019 was affected by the global economic slowdown, the fall in the coffee prices, the country’s main export product, and other internal factors, including political and social, would be affected even more seriously as a result of of the COVID-19 pandemic, with a contraction of -6.1% in its GDP in 2020, according to ECLAC. However, the president of the Central Bank of Honduras (BCH, in Spanish), Wilfredo Cerrato, pointed out in early August that the country would have a contraction ranging between -7 and -8 percent, “after several revisions within the Central Bank, which we have discussed with other external players, academics and the IMF mission”.

HONDURAS GDP AND INFLATION, 2017-2019 6

2017

2018

2019

55.8% CHINA

6.2% TAIWAN

14.4% USA

2.1% MALAYSIA

11.1% GUATEMALA

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

Regarding commercial dynamics, total exports decreased in 2019 by 0.7% compared to 2018. It should be noted that imports of HVAC/R equipment as of March 2020 reached USD 17,562,600 CIF, with origins from China (55.8%), the United States (14.4%) and Guatemala (11.1%), according to data from the General Directorate of Control of Customs Franchises.

IMPORTS OF HVAC/R EQUIPMENT

In turn, ECLAC estimates that Honduras’ economic growth in 2019 will have been 2.9%, a figure lower than the 3.7% reached in 2018, indicating a weakening that was exacerbated by the impact of the pandemic.

10.4% OTHERS

BY MARCH 2020

Source: Descartes Datamyne - General Directorate of Customs Franchise Control. TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020 • ADDENDUM

Nicaragua The drop in remittances from the United States, added to the radical tax reform applied in February 2019 after the 2018 socioeconomic crisis, led ECLAC to calculate a contraction of Nicaraguan GDP of -5.3% for 2019. In 2020, this fall will become even more acute, reaching one of the strongest drops in growth in Central America, with a -8.3% contraction, according to the agency’s estimates. This is largely due to the economic consequences of the coronavirus pandemic and the lack of flexibility in reforms by President Daniel Ortega, in contrast to other governments in the region. In September 2020, the rating agency Moody’s indicated that the pandemic would cause a fall of the economy of -3.5%, being one of the most optimistic forecasts. However, they stressed that, although other Central American countries will probably see their

economies rebound in 2021, this would not happen in Nicaragua because of “fiscal deficits, higher health spending, less public income and a strong increase in interest payments” for loans from organizations such as the Inter-American Development Bank, which provided USD 43 million to “contain and control” the coronavirus, although it is worth noting the distrust by this entity in the Ortega government, by not allowing it to control the funds, and on the contrary, delegating the responsibility to international agencies. Regarding international trade, ECLAC noted the decrease in imports of capital goods, followed by intermediate goods until August 2019. As for imports of equipment for the HVAC/R industry, they reached USD 1,530,100 in 2019, originating mainly from China (41.9%), the United States (20.5%) and Mexico (10.3%), according to data from the General Directorate of Customs Services.

NICARAGUA GDP, INFLATION AND IMPORTS OF HVAC/R UNEMPLOYMENT, 2017-2019 EQUIPMENT 8 7 6 5 4 3 2 1 0 -1 -2 -3 -4 -5 -6 -7 -8

10 9 8 7 6 5 4 3 2 1 T1

0 41.9% CHINA

6.8% GUATEMALA

GDP, VARIATION RATE OVER 4 QUARTERS.

20.5% USA

5.9% SPAIN

INFLATION, VARIATION RATE OVER 12 MONTHS.

10.3% MEXICO

2017

2018

2019

UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

14.6% OTHERS

BY 2019

Source: ITC - General Directorate of Customs Services.

Panama Although the World Bank highlighted in 2019 that “Panama has been one of the fastest growing economies in the world”, with an average of 5% over the past five years, the pandemic collapsed the positive outlook and ECLAC predicted a decrease of -6.5% for 2020. This result represents a ten year setback of the Panamanian economy and the negative external impacts on the region are through trade, tourism and remittances, added to unemployment of around

PANAMA GDP AND INFLATION, 2017-2019

13.5% at the end of 2020, which means 44,1 million unemployed people. Specifically, imports of products for the HVAC/R industry as of June 2020 reached USD 29,662,800 FOB, merchandise that entered the country mainly from the United States (28.6%), China (20.6%), and Taiwan (6.5%), while 20.5% entered the country from the Colon Free Trade Zone, according to data from the National Customs Authority.

IMPORTS OF HVAC/R EQUIPMENT

6 2

5 4

3 2

1 0

2017

2018

-1

2019

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

28.6% USA

6.5%TAIWAN

20.6% CHINA

5.9%ITALY

20.5% COLON FTZ * *FREE TRADE ZONE

17.9% OTHERS

BY JUNE 2020

Source: Descartes Datamyne - National Customs Authority. TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020 • ADDENDUM

EXPORTS AND TRADE BALANCE IN THE ANDEAN REGION AND THE SOUTHERN CONE 2019 % EXPORT GROWTH 2019

-33.3%

-3.3%

TRADE BALANCE 2019*

Venezuela

Bolivia -2,461

2.1%

Colombia -12,983

Brazil -4.8%

Ecuador -2,586

-7%

Brazil 3,128

-2.7%

-0.8%

-6.6%

Peru 2,493

4.1%

Argentina 10,057 Chile -1,767 Paraguay 272 Uruguay 3,870 In thousands of US Dollars *ECLAC estimation

Source: ECLAC

Andean Region Colombia Despite the fact that in 2019, the Colombian economic activity strengthened, consolidating a growth rate of 3.2% according to ECLAC, the agency’s projections for 2020 reveal a decrease of -5.6%, although the IMF expects a rebound to 3.7% by 2021. Colombia is included among the “most indebted” countries, reaching 49.1% of GDP, a historical maximum, which according to the Ministry of Finance, would even reach 65.7% of GDP, in order to meet the needs of the coronavirus emergency. However, the National Administrative Department

COLOMBIA GDP, INFLATION AND UNEMPLOYMENT, 2017-2019 4

of Statistics (DANE, in Spanish) pointed out that although unemployment reached 19.8% in June 2020, there has been a slight recovery compared to the figures reported in May, of 21.4%. Even so, it’s important to consider that, while in June 2019 there were 2.3 million unemployed, a year later the figure stood at 4.5 million (a 92.3% increase). As for imports of HVAC/R equipment, by August 2020 they reached USD 131,106,000 FOB, originating from China (54.6%), the United States (9.6%) and Mexico (7.8% ), according to the records of the National Tax and Customs Directorate (DIAN).

IMPORTS OF HVAC/R EQUIPMENT

12 10

8 2

6 4

1 2 0

2017

2018

0 54.6% CHINA

2019

GDP, VARIATION RATE OVER 4 QUARTERS.

9.6% USA

INFLATION, VARIATION RATE OVER 12 MONTHS.

7.8% MEXICO

UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

4.5% BRAZIL 2.9% ITALY 20.6% OTHERS

BY AUGUST 2020

Source: Descartes Datamyne - DIAN. TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020 • ADDENDUM

Ecuador For 2020, the IMF estimates a sharp contraction of GDP of -10.9%, due to how some Ecuadorian cities have been affected by the COVID-19 pandemic, added to the consequences of the crisis due to civil protests by the end of 2019. ECLAC, in turn, estimates a drop of -9.0% for 2020.

Another impact is a 4.1% increase in unemployment due to the pandemic in Q2, according to reports from the Central Bank, which estimates a loss of 335,413 jobs, especially affecting the commercial sector, with 105,500 lost jobs, which represents a 31% of labor force.

The Ecuadorian governmentâ&#x20AC;&#x2122;s agreement with the IMF, together with the possible legal reforms, brought with them the social uprising of October 2019 that left losses of USD 2,800 million, according to the unions, although the Central Bank of Ecuador indicated that the losses would be around USD 821 million.

International trade was significantly affected in 2019: exports and imports grew by 3% and 0.7%, respectively, compared to 15.8% and 18% in 2018. For their part, those of HVAC/R by June 2020 reached USD 66,958,000 FOB. The main origins were China (46.9%), the United States (8.4%) and Colombia (8%).

ECUADOR GDP, INFLATION AND UNEMPLOYMENT, 2017-2019

IMPORTS OF HVAC/R EQUIPMENT

7 6

5 2

4 3

-1

2 1 0

-3

-1 -5

2017

2018

-2

2019

46.9% CHINA

GDP, VARIATION RATE OVER 4 QUARTERS.

8.4% USA

INFLATION, VARIATION RATE OVER 12 MONTHS.

8.0% COLOMBIA

UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

5.7% SPAIN 4.5% BRAZIL 26.6% OTHERS

BY JUNE 2020

Source: Descartes Datamyne - National Customs Service.

Peru The Peruvian economy will suffer the greatest decline of the Andean region in 2020, with the exception of Venezuela, with a -13% decrease, due to the COVID-19 pandemic, despite having a stable growth in recent years. The reason for this severe drop is “the abrupt economic slowdown in the United States and China, which has altered the supply chains of Mexico and Brazil, leading to a sharp drop in exports from commodity-producing economies such as Chile and Peru”, the World Bank emphasized in a statement to the media.

PERU GDP, INFLATION AND UNEMPLOYMENT, 2017-2019 6

Thus, Peru would be one of the South American countries that would come “worse off” after the pandemic, suffering from a strong increase in poverty (9.3%), along with Argentina, Ecuador and Mexico. On the other hand, imports and exports had already been falling since 2019, in line with the slowdown in activity that occurred during that year. This can also be observed in the imports of HVAC/R which reached USD 70,267,400 FOB in July 2020, originating mainly from China (40.6%), the United States (23.3%) and Spain (5.5%), according to data from the National Superintendency of Customs and Tax Administration (SUNAT).

IMPORTS OF HVAC/R EQUIPMENT 10 8

4 6 4 2 2 0

2017

2018

2019

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

40.6% CHINA

4.2% GERMANY

23.3% USA

3.6% ITALY

5.5% SPAIN

22.8% OTHERS

BY JULY 2020

Source: Descartes Datamyne - SUNAT. TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020 • ADDENDUM

Venezuela The well-known Venezuelan political and economic situation has been even more affected by the coronavirus pandemic, causing the wages purchasing power to be “pulverized”, according to Jesús Casique, economist and director of the firm Capital Market Finance, in interview with the Venezuelan news website Voz de América. In 2019 alone, GDP fell again by -25.5%, an accumulated contraction of -62.2% compared to 2013, according to ECLAC, who also foresees a new contraction of -26% for 2020 as a result of the pandemic. As of September 2019, the annualized inflation rate was 39,113%; according to the National Assembly, this exceeded 4,000% in the last year, with an in-

VENEZUELA GDP AND INFLATION, 2017-2019

crease of 55.05% only in July 2020. For its part, the IMF estimates inflation in at least 15,000%, the highest in the world. This is in addition to the depreciation of the bolivar against the US dollar in the first days of 2020, by more than 23% in the parallel market, as revealed by the EFE agency, thus reaching a depreciation of over 4,900%. Imports experienced an annualized reduction of 13% in the first quarter of 2019, with falls in both private and public imports, affecting all industries, including HVAC/R, and in 2019 only USD 16,052,000 FOB were reached, originating from Italy (36.2%), the United States (27%) and China (19.9%).

IMPORTS OF HVAC/R EQUIPMENT

-3

300000

-8 200000

-13 -18

100000

-23 -28

0 36.2% ITALY

5.0% PANAMA

GDP, VARIATION RATE OVER 4 QUARTERS.

27.0% USA

3.3% COLOMBIA

INFLATION, VARIATION RATE OVER 12 MONTHS.

19.9% CHINA

8.6% OTHERS

2017

2018

2019

BY DECEMBER 2019

Source: ECLAC, based on official data

Source: Descartes Datamyne with information from partner countries.

Southern Cone Argentina

In 2019, the contraction of the Argentine economy worsened, with a fall of -3% in GDP, and the emergence of the coronavirus would further deepen the recession in the southern country, as ECLAC estimates a decrease of -10.5% for 2020.

However, the drastic measures taken by the Government at the beginning of this year to control the spread of the coronavirus, allow the country to have the lowest number of deaths from COVID-19 in the entire region.

Added to this, inflation increased to 49.7% year-onyear (as of October 2019) compared to the 34.7% average in 2018, added to the depreciation of the Argentine peso, which in 2019 lost over 20% of its value, with prices that exceed 60 pesos per dollar.

Exports in 2019 had a growth of 4.1% compared to 2018, however imports were lower than those made in 2018. In turn, imports of HVAC/R equipment as of August 2020 reached USD 183,854,400 million FOB, with origin from China (28.5%), Brazil (10.4%) and Thailand (5.7%), while 32.6% of imports entered the country from the Tierra del Fuego FTZ, according to the General Directorate of Customs data.

The above is worsened, considering that, in order to meet the extraordinary expenses due to the pandemic, the Central Bank issued 1.3 trillion pesos (USD 18,220 million) during the first five months of 2020.

ARGENTINA GDP, INFLATION AND IMPORTS OF HVAC/R UNEMPLOYMENT, 2017-2019 EQUIPMENT 6

2 38

-2

-4

-6 -8

-2 32.6% TIERRA DE FUEGO *

5.7%THAILAND

GDP, VARIATION RATE OVER 4 QUARTERS.

28.5% CHINA

3.2%USA

INFLATION, VARIATION RATE OVER 12 MONTHS.

10.4% BRAZIL

19.6% OTHERS

2017

2018

2019

UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

* SPECIAL CUSTOMS AREA BY JUNE 2020

Source: Descartes Datamyne - General Directorate of Customs. TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020 • ADDENDUM

Chile In 2019, the growth rate of the Chilean economy fell from 4% in 2018 to 0.8%, due to the lower dynamism of internal and external demand. Although a rebound in activity was expected from the second half of the year, the social turmoil that began in October and continued in 2020 deepened the slowdown in consumption and investment. The appearance of the coronavirus continued to worsen forecasts and finally ECLAC projects a decrease in Chilean GDP by -7.9% for 2020. Despite the pessimism, the IMF estimates a GDP recovery of 5% next year.

CHILE GDP, INFLATION AND UNEMPLOYMENT, 2017-2019 8

1 T1

Imports of equipment for the HVAC/R industry by July 2020 reached USD 318,775,500 million CIF, originating mainly from Sweden (39.7%), Finland (19.1%) and China (8.4 %), according to data from the National Customs Service.

IMPORTS OF HVAC/R EQUIPMENT

-1

In an interview for the Chilean newspaper La Tercera, the BCI Bank chief economist, Sergio Lehmann, indicated that the IMF’s vision “is among the most pessimistic, biased on the most negative side that the Central Bank (of Chile) delivers. Our view is somewhat more moderate, with a contraction of 6% as the base scenario, although we acknowledge high uncertainty”.

2019

39.7% SWEDEN

7.5% SPAIN

GDP, VARIATION RATE OVER 4 QUARTERS.

19.1% FINLAND

5.2% USA

2017

2018

INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

8.4% CHINA

20.1% OTHERS

BY JULY 2020

Source: Descartes Datamyne - National Customs Service.

Uruguay ECLAC forecast a decrease in Uruguayan GDP of -5.0% for 2020, due to the coronavirus pandemic, added to the pessimistic expectations caused by the decreased activity in China, one of the largest export markets of the Uruguay, where about 20% of exports are destined. Despite this outlook, effective control on the COVID-19 contagion curve allowed the reopening of shopping centers in June and the gradual return of students to schools, thus facilitating economic recovery. According to the Monetary Policy Report of the Central Bank of Uruguay (BCU, in Spanish) in relation to the “available economic indicators, the floor for

URUGUAY GDP, INFLATION AND UNEMPLOYMENT, 2017-2019 5

-1

2017

2018

Regarding commercial dynamics, the newspaper El País de Uruguay pointed out that “exports of goods showed signs of recovery in June, although they are still lower than those of the same month in 2019. In June, the reduction in international sales was of 6.8% compared to the same month of last year, which shows a moderation in the fall”. In turn, imports of HVAC/R equipment as of August 2020 only reached USD 25,419,400 CIF, originating from China (58.2%), followed by Italy (10.6%) and Brazil (5.8%), according to data from the General Directorate of Customs.

IMPORTS OF HVAC/R EQUIPMENT

2019

GDP, VARIATION RATE OVER 4 QUARTERS. INFLATION, VARIATION RATE OVER 12 MONTHS. UNEMPLOYMENT, VARIATION RATE OVER 12 MONTHS. Source: ECLAC, based on official data

the decline in the level of activity would have been reached in April” and “the economy began to show signs of gradual reactivation starting in May”.

58.2% CHINA

4.6% SPAIN

10.6% ITALY

3.6% ARGENTINA

5.8% BRAZIL

17.2% OTHERS

BY AUGUST 2020

Source: Descartes Datamyne - General Directorate of Customs. TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020 • ADDENDUM

AVERAGE GDP IN LATIN AMERICA ESTIMATION 2019 PROJECTION 2020

2.9

2.1

1.9

0.7

0.1

-4.9 -6.1

-6.7 -8.2

-9.1 WORLD

LATIN AMERICA

MEXICO, CENTRAL AMERICA

ANDEAN REGION

BRAZIL AND SOUTHERN CONE

Nota: The averages for Latin America, Andean Region and Southern Cone donâ&#x20AC;&#x2122;t include Venezuela and Argentina because of their exceptional circumstances. If these countries are considered, the average variation of GDP in the Andean Region would be -5.3% in 2019 and a -11.8% projected in 2020; while in the Southern Cone it would be 0.1% for 2019 and -7% projected for 2020. Source: ECLAC and IMF

PERCENTAGE VARIATION OF THE CONSUMER PRICE INDEX (CPI) IN 12 MONTHS, BETWEEN SEPTEMBER 2017 TO OCTOBER 2019 9 8 7 6 5 4

2017

2018

SEP

JUL

MAY

MAR

JAN

NOV

JUL

Mexico and Central America SEP

0 MAY

The Caribbean

JAN

MAR

South America, except Argentina and Venezuela

NOV

SEP

Latin America, except Argentina and Venezuela

2019

Source: ECLAC

TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020 • ADDENDUM

ANNUAL GDP GROWTH %

2018 2019* 2020**

MEXICO AND CENTRAL AMERICA

2.9

WORLD

-4.9

9.1

-9

LATIN AMERICA

0.1

MEXICO

0.1

1.1

2.1

COSTA RICA

-5.5

2.7

2.5 2.3

EL SALVADOR

-8.6

3.6

3.1 -4.1

-4 -3.9

-6.5

3.7

NICARAGUA

-6

-4

-2

5.1

PANAMA

-6.5 -8

2.7

HONDURAS

- 6.1

-10

3.6

GUATEMALA

*Estimated **Projection Source: ECLAC and IMF

TOP 50 EMPRESAS DE LIMPIEZA LATINOAMERICANAS â&#x20AC;¢ INFORME 2020-2021

ANDEAN REGION 3.6 2.9

WORLD -4.9 1.1 0.1

LATIN AMERICA -9.1

4.2 2.8

BOLIVIA -5.2

2.5 3.3

COLOMBIA -5.6

1.3 -9

0.1

ECUADOR

4 2.2

PERU

-13 -19.6

VENEZUELA

-35 -26 -40

-30

-20

-10

BRAZIL Y SOUTHERN CONE WORLD

3.6 2.9

-4.9 1.1 0.1

LATIN AMERICA

-9.1

1.3 1.1

BRAZIL -9.2 -2.5 -2.2 ARGENTINA -10.5

3.9 CHILE

-7.9

-5 -15

-10

-5

1.1

PARAGUAY -2.3

0.2

URUGUAY

0.2

4.2

1.6

TOP IOO TOP CONTRATISTAS-INSTALADORES IOO CONTRACTORS-INSTALLERS• •INFORME REPORT 2020-2021 2019-2020 • ADDENDUM

Index of references Cited sources: Gestión Digital, “¿Qué le espera a la economía ecuatoriana en el 2020?”, Press publication, January 19, 2020. El Colombiano, “Por coronavirus, las bolsas del mundo viven la peor caída desde la crisis financiera del 2008”, Press publication, February 28, 2020. Infobae, “Según la OCDE el coronavirus hará más profunda a la recesión de la Argentina”, Press publication, March 2, 2020. Revista Semana, “La Cepal ve una recesión global solo comparable con la depresión de 1929”, Press publication, March 25, 2020. Revista Semana, “Economía mundial entró en recesión, advierte el FMI”, Press publication, March 27, 2020. France 24, “FMI: ‘Ya está claro que estamos en una recesión igual o peor que la de 2009’”, Press publication, March 28, 2020. Infobae, “El desempleo en México alcanzó el 4.7% en abril: 2.1 millones de personas no tienen trabajo”, Press publication, June 1, 2020. Diario Gestión, “Perú será el país con mayor caída de PBI en Sudamérica este año, según BM”, Press publication, June 8, 2020. France24, “¿Cómo hará una Argentina que ya estaba en crisis para pagar los gastos de la pandemia?”, Press publication, July 17, 2020. La Tercera, “FMI baja proyección de PIB de Chile a -7,5% en 2020, pero sería el que menos caerá en la región”, Press publication, July 26, 2020. El Espectador, “Leve mejora: tasa de desempleo en Colombia se ubicó en 19,8 % en junio de 2020”, Press publication, July 30, 2020. Forbes Centroamérica, “Economía de Honduras se contraerá entre 7 y 8 % de su PIB por Covid-19”, Press publication, August 1, 2020. El País Uruguay, “Los 11 indicadores que muestran el inicio de la recuperación de la economía uruguaya”, Press publication, August 2, 2020. El Economista, “Especialistas prevén caída de 10.02% en el PIB de México para el 2020”, Press publication, August 3, 2020. El Universo, “$5249 millones y 335 413 empleos perdidos es impacto del COVID-19 en economía de Ecuador, reporta Banco Central”, Press publication, August 7, 2020. Revista Dinero, “Deuda externa de Colombia se acerca al 50% del PIB”, Press publication, August 11, 2020.

Infobae, “El Salvador solicita más de 900 millones en préstamos para la pandemia de la COVID-19”, Press publication, August 12, 2020. Deutsche Welle, “Bolivia en crisis: la única solución es ir a elecciones cuanto antes”, Press publication, August 12, 2020. Memoori, “Developing a ‘Stand-By Mode’ for Buildings in the COVID-Era”, Press publication, August 13, 2020. VOA Noticias, “Analistas: el salario en Venezuela está ‘pulverizado’ por inflación y COVID-19”, Press publication, August 18, 2020. ACR Latinoamérica, “Recomendaciones frente al impacto del aire acondicionado en la calidad de aire interior”, Press publication, August 25, 2020. La Prensa Nicaragua, “El inusual mecanismo de entrega de préstamo que Ortega aceptó con el BID y con el que perdió el control de US$43 millones”, Press publication, August 26, 2020. La Prensa Nicaragua, “Moody’s: solo Nicaragua no crecerá en el 2021, aunque tenga su déficit fiscal controlado en el 2020”, Press publication, August 27, 2020. Economic Commission for Latin America and the Caribbean (ECLAC), Preliminary Overview of the Economies of Latin America and the Caribbean, 2019 (LC/PUB.2019/25-P), Santiago, 2019. Economic Commission for Latin America and the Caribbean (ECLAC), Report on the economic impact of coronavirus disease (COVID-19) on Latin America and the Caribbean: study prepared by the Economic Commission for Latin America and the Caribbean (ECLAC), at the request of the Government of Mexico in its capacity as Pro Tempore Chair of the Community of Latin American and Caribbean States (CELAC), at the virtual ministerial meeting on health matters for response and follow-up to the COVID-19 pandemic in Latin America and the Caribbean, held on 26 March 2020, held on 26 March 2020 (LC/TS.2020/45), Santiago, 2020. Organization for Economic Cooperation and Development (OECD), “Coronavirus: la economía mundial en riesgo”, Economic Outlook, Interim Report, March 2020. International Monetary Fund (IMF), “Una crisis como ninguna otra, una recuperación incierta” World Economic Outlook (WEO) Update, June 2020. Economic Commission for Latin America and the Caribbean (ECLAC), “Enfrentar los efectos cada vez mayores del COVID-19 para una reactivación con igualdad: nuevas proyecciones”, COVID-19 Special Report No. 5, July 15, 2020. Economic Commission for Latin America and the Caribbean (ECLAC), “Los efectos del COVID-19 en el comercio internacional y la logística”, COVID-19 Special Report No. 6, August 6, 2020. World Bank, “La respuesta del Grupo Banco Mundial a la COVID-19 aumenta a USD 14 000 millones para ayudar a sostener las economías y proteger el empleo”, Press release, March 17, 2020.

TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020 • ADDENDUM

Economic Commission for Latin America and the Caribbean (ECLAC) “COVID-19 Will Have Grave Effects on the Global Economy and Will Impact the Countries of Latin America and the Caribbean”, Press release, March 19, 2020. International Monetary Fund (IMF), “Remarks by IMF Managing Director Kristalina Georgieva During an Extraordinary G20 Leaders’ Summit”, Press release, March 26, 2020. World Trade Organization (WTO), “Trade set to plunge as COVID-19 pandemic upends global economy”, Press release, April 8, 2020. International Monetary Fund (IMF), “Confronting the Crisis: Priorities for the Global Economy”, Address by Kristalina Georgieva, IMF Managing Director, April 9, 2020. International Monetary Fund (IMF), “Coronavirus Economic Planning: Hoping for the Best, Prepared for the Worst”, IMFBlog post, March 12, 2020. International Monetary Fund (IMF), “La pandemia del coronavirus y América Latina: Es el momento de tomar medidas decisivas”, Diálogo a Fondo Blog post, March 19, 2020. International Monetary Fund (IMF), “El trabajo a distancia no es una opción para los pobres, los jóvenes y las mujeres”, Diálogo a Fondo Blog post, July 8, 2020. International Monetary Fund (IMF), “La próxima fase de la crisis: Se necesitan nuevas medidas para una recuperación resiliente”, Diálogo a Fondo Blog post, July 16, 2020. Databases: International Trade Centre (ITC). With information from UN Comtrade (Database of Trade Statistics of the United Nations) and official sources: • El Salvador: Central Bank of Reserve. • Nicaragua: General Directorate of Customs Services.

Descartes Datamyne (www.datamyne.com). 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. • Honduras: General Directorate of Control of Customs Franchises. • Ecuador: National Customs Service. • 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: Partner countries.

Latin American Federation of Banks (FELABAN), Indicators Exchange rate (as compared to the US dollar), official website (http://indicadores.felaban.net), data as of June 2019. 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.

8414.30

Compressors; of a kind used in refrigerating equipment.

8414.51

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

8414.59

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.

8415.10

8415.81

8415.82

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

8415.83

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.

8418.69

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

* For the imports charts and graphs, this report only considered the Harmonized System Codes of products related to the Cleaning industry (vacuum cleaners, sweepers and others) for transactions carried out until August 2020.

TOP IOO CONTRACTORS-INSTALLERS • REPORT 2019-2020 • ADDENDUM