A Strong Team with a Passion for Automation … and Soccer

Why was the motto “Somos Uno”, i.e. “We Are One”, chosen for the South American Sales Convention?
Dênis Leonardo: Historically, our Brazilian sales team and the Brazilian market were not part of the Spanish-speaking Central and South American sales regions that we serve. In 2021, Pepperl+Fuchs decided to merge the entire South American sales region into one—now with Brazil as a key player to combine strengths and regional market experience. The aim was to create a spirit of unity and togetherness. We wanted to express that we can always support each other, learn from each other, and grow.
Fabio Fabri: That’s why we chose the motto “We Are One”, which means that despite different backgrounds, new team members, different cultures and even languages, there are also many similarities, but our differences make us stronger. We also wanted to celebrate the good results achieved in recent years and welcome the new distributors who are joining our sales and distribution channel.

What are the differences and similarities of the South American markets?
Dênis Leonardo: I would say that the main difference is the language. However, it is very common to find a Spanish speaker in Brazil and/or Portuguese speaker across the Spanish-speaking countries in the region. There is a big “difference” in soccer opinion, whether it’s Pele or Maradona, Neymar or Messi (laughs). In the business environment, there are a large number of market similarities, e.g., in the mining, sugar/ethanol/biodiesel, automotive, renewable energy, food processing, or mobile and agriculture equipment sectors. The daily business practices are also very similar, e.g., the way we communicate, the methods, tools, and social media channels we use, but also in terms of technologies.
Fabio Fabri: There are actually a lot of similarities in the region in terms of connecting with people on a personal level. It is not uncommon for us to know the name of the customer’s children, the birthday, or the favorite soccer team. The warm way in which we treat the customer´s technical pain as our own, being able to tackle and address the problems, makes us feel comfortable to work together without losing sight of the professional aspects. With regard to the language, Portuguese and Spanish have more similarities than differences. The differences are what make us unique, but together we are stronger, we are one region, and one team with the same goal.

How important are strong partnerships and distributor agreements for Pepperl+Fuchs in South America?
Dênis Leonardo: Distributors as a sales channel are very important for the region and the success of Pepperl+Fuchs, as they account for 35% of total sales in South America. Distributors are also a way for us to support customers where we are not able to be on site with our own team when it comes to services and technical support. We are strengthening our competitiveness by shortening our time to market and intensifying our international sales activities. We are committed to working together to deliver excellence to our customers. Our close cooperation in the continuous market support of our proven products and the successful introduction of innovations are the key drivers of our business growth. Together we will adapt and shape the sales strategy. Results-oriented, cross-functional, and empowered teams will allow us to quickly develop the best possible solution to our challenges.

Why were new distributor agreements necessary?
Fabio Fabri: New agreements are important for Pepperl+Fuchs in order to reach an area where we are not represented by our own branches; here the distributor can represent our brand in this specific region. In addition, with a long-term committed partner, it is possible to plan, request, and coordinate sales and delivery dates regularly and sustainably, and to defend ourselves against local competition.
Dênis Leonardo: Distributors are also the best way to serve end users. Since our team is heavily focused on the OEM business, there are thousands of customers we can reach through distributor partnerships. The most important thing in an agreement is to develop appropriate terms and conditions for each location and improve the commitment of both parties to be successful.

Do trainings also play a role?
Dênis Leonardo: Training and skills are an additional and ongoing part of the partnership because we understand that it is crucial to train the technical team in new technologies and products so that they are always up to date when it comes to new trends, such as smart sensors and cloud connectivity. As Pepperl+Fuchs, we not only offer on-site trainings, but also a whole package of online content such as videos, training courses, and presentations. Constant evaluation also helps us to continuously improve the quality of our training courses. During the sales convention, we spent a whole day training the distributor’s product managers and informing their commercial managers about our sales team’s new guidelines and strategies.

What are the most important industries that Pepperl+Fuchs serves in South America today?
Fabio Fabri: We are focusing our efforts on the target industries of mining, automotive, agriculture, process equipment, material handling, and clean energy. We also have a significant share of OEMs and system integrators as key customers in the region, with a growing presence among end users.

Where do you see the greatest potential for the coming years?
Dênis Leonardo: Mining is a large market in the region, with a revenue of 61 billion euros in 2021, with 229 mining areas processing 10 thousand tons per year. Total mining exports from South America to the US, Canada, and China amount to USD 48 billion in 2021, representing a growth of 21.5% compared to 2020 (Source: IBRAM, Brazilian Mining Association). We can definitely multiply our success in Brazilian mining with the big mining countries like Chile and Peru. In addition, lithium projects are booming due the increasing number of electric vehicles and battery manufactures. About one third of worldwide production is located in South America, mainly in Chile and Argentina. Other important markets are mobile equipment, intralogistics, meat processing, and renewable energies. There are several OEMs and projects in the region that could have an exponential impact on our business.

What is the biggest challenge that you see?
Dênis Leonardo: As sales team, our main challenge is to keep the focus on what we can achieve and to have the ability to adapt to changing conditions in time to gain market share. With the help of distributors and also investment in new business and sales staff, we can become stronger and overcome our challenges. We will continue to build trust with our distributors and grow the Pepperl+Fuchs business across the entire region.

Are South American customers demanding Industry 4.0 technologies, smart sensors, and cloud connection, or are these still just buzzwords?
Fabio Fabri: They are no longer buzzwords. Customers in the region are actually investing in Industry 4.0 technologies to become more competitive in their industry by upgrading their machines and processes with technological solutions such as smart sensors, IoT-enabled gateways, and data visualization capabilities. Automation is also a way to reduce human risk in their operations. During the sales convention, we also presented Manufacturing-X and Industry 4.0 trends. The aim is to inspire and motivate customers to take advantage of smart sensors and industrial communication in production plants by showing that Pepperl+Fuchs is one of the key players in this field. However, according to a KPMG study, there are some challenges to overcome for large customers with high investment sums, such as updating major operational requirements and security risks when linking old devices with new ones, which may not be retrofittable. On the positive side, we are seeing more and more people being trained in the market and educational institutions are incorporating Industry 4.0 disciplines into their programs that enable positive cultural change combined with ESG goals—a hot topic on every executive board’s agenda.

How have Pepperl+Fuchs South America’s sales figures developed in recent years? And what do you expect for the coming years?
Dênis Leonardo: With the great support of our headquarters in Germany and the US, we have tripled our sales in the last nine years. And there is more to come! Our goal for the next five years is to play an important role in the company’s global sales strategy and to double our sales. We have a great team and fantastic legacy and new products that will definitely take us to a higher level in the near future.

What was your highlight of the sales convention?
Dênis Leonardo: The highlight was definitely the positive feedback we received from our distributors and employees during and after the convention. It showed us that the event was a great success and strengthened our partnerships, team spirit, and our shared passion for automation technology. We were also able to spread our intention that Pepperl+Fuchs products, systems, and solutions make value creation more efficient, safer, cleaner, quieter, more convenient, more transparent, more scalable, higher quality and therefore more competitive, in addition to being an undeniable lever for achieving global climate goals by helping our customers to increase energy efficiency.
Fabio Fabri: One of the best moments for me was the visit to the Christ the Redeemer monument on the Corcovado. The visit brought a great sense of togetherness and a relaxing moment to see the city of Rio de Janeiro from a privileged vantage point at sunset. We chose Rio de Janeiro as the venue because it is an international and diverse city where people with different cultural backgrounds come together—exactly the spirit we wanted to convey to the convention participants.