Farfan & Mendes Limited (F&M) has partnered with FT Farfan Limited of Trinidad and Tobago to launch Ibis Construction Equipment Sales and Rentals (ICON).
As part of the $800 million investment, the company opened its showroom yesterday at La Bonne Intention, on the East Coast of Demerara, for its extensive range of heavy duty equipment and tools.
At the launch, F&M Managing Director Andrew Mendes said local companies should use the developments in the oil and gas to build capacity in other sectors to global standards and ensure that should there be a downturn, they can perform with any competitor in any needed area.
Mendes also said foreign companies setting up in Guyana independently or in partnerships should give commitments for the long haul and to help build communities, not bailing as soon as there are hiccups or shunning locals.
“What we do at the bigger Farfan and Mendes is bring in expertise to build the capacity of our people. It is in our interest to bring them in and transfer the knowledge so that our people can do the job at a world-class standard,” Mendes told the Stabroek News following the launch.
“Companies coming in: you need [to] understand that Guyanese are welcoming people but [you can’t take that for granted]…When you come in you need to be a part of, rather than a part from the local communities,” he added.
Opened last year September, ICON offers an extensive range of equipment and tools, including heavy duty machinery, such as excavators, backhoes, scissor lifts, power systems, welding equipment and power tools, among other things. ICON represents internationally established industry brands, including JBC, Belle, Multiquip Thompson Pumps, DeWalt, Milwaukee, and Linde.
“We are excited to be operating in Guyana and bring with us industry leading brands to be part of the continued development and growth of such a dynamic market. Our years of experience and partnerships with our suppliers and customers combine to make this venture a unique opportunity to serve our valued customers,” Mendes said.
With over 100 combined years in the industry, Mendes pointed to the partnership between F&M and the FT Farfan Limited, saying that were it not for the support of the Trinidadian company, the local company would not be still in existence.
He related that in the 70s the two companies had a partnership but FT Farfan was later sold to the Bryden Group.
But the two sides always kept in communication and when this country took an economic downturn in the 1980s, at a time when United States currency was difficult to get here, more so to pay for foreign purchases, FT Farfan would purchase the equipment, take it to Trinidad and F&M would then pay them in Trinidad and Tobago dollars.
“Partnerships need to be mutually beneficial and to be there during the good and bad times. When Guyana was going through a difficult period, during the 80s and we couldn’t get US dollars and so on, FT Farfan supported us from Trinidad to keep our business afloat. At that time Guyana had a bilateral trade agreement with Trinidad and Tobago. We couldn’t get US dollars to pay our suppliers in the US and Germany or wherever. So what they would do, is bring the product into Trinidad and then they would sell it to us in Trinidad dollars so that we would have something to keep our business afloat,” he related.
And when in the 1990s a large-scale gold mining company came into Guyana to begin operations, F&M saw the opportunity to reach out to the people who became friends through the one time partnership for help.
“In the 1990s when Omai came to Guyana and the economy started to grow, they then came in and helped us to manage that growth and adapt to a higher level of business – that is in dealing with a large mining sector. I would like to say that them supporting us in the 70s and 80s, allowed my parents, although their business was sinking, to never lay anyone off or cut salaries. The point about having a strong partnership is people are there in good and bad times and that is what this company was. They stuck with us. They helped support us in ensuring I could continue my parents’ legacy the same way they did with my parents in the 70s and 80s.” he said.
When Guyana found oil, Mendes said that FT Farfan was looking to come back into Guyana and “it was easy” because a relationship was already forged.
“We always kept in communication with them. When they were looking to come back into Guyana it was easy,” he said.
Mendes called the joint venture partnership “a mutually beneficial agreement.” “We always wanted to look at large equipment but that is not a business we know mostly about. We helped them set up here easily; getting the land, the contractor… all of this through a pandemic… bought, built and set up and that is why we are here. Farfan & Mendes was able to give that support,” he said.
“It bodes well for the future because strong companies help build strong communities. FT Farfan and Farfan & Mendes in Guyana, with a good reputation, can only bode well with the community. We have an all-Guyanese staff, including management.
Another example of a partnership where the Guyanese company benefitted tremendously was the one between F&M and the Canadian company Crosbie.
“Last year, during COVID, we merged with the Crosbie Group out of Canada and even though the merger wasn’t completed they helped us. So much so that our company actually performed better last year and we didn’t even have to think about cutting salaries or laying anyone off”,” Mendes disclosed.
And as the company expanded into oil and gas and was one of the first local companies to form a partnership with an oil and gas service provider when it entered into an agreement with Panthera Solutions, Mendes said that partnership strengthened his business overall.
“We brought in experts and trained locals for Panthera to work offshore. But you can’t work a business with two levels so. So we looked at improving our management structure for the growth that was going to come because growth that is going to come here will be huge. Growth can also destroy a company because if you don’t plan and manage then you get dragged overboard. This year in our business we are looking at building strong systems in-house. Oil and gas we are preparing for but businesses in the forestry, agriculture, and other sectors will perform better because we are managing it better. That is the bigger benefit. So as you build internally and in other sectors, if you should have a sudden demand on the oil and gas side, you can pull from the others to fill there.
For his part, Chief Executive Officer of FT Farfan and Managing Director of ICON, Alan Fitzwilliam, said that ICON will take a simple approach to its operations here and do all it can to effectively manage the company as Guyana’s economy grows from oil and gas.
“Managing growth is what I like to call a nice problem because growth is sought by many but well managed by few,” he opined.
