Aerospace Industry in Mexico to Follow Growth Strategy of the Automotive Industry

Mexico continues to consolidate its position as a key player in the global aerospace industry, employing 31,000 skilled employees and exporting in excess of 4 billion dollars in 2010. The industry is projected to export 12.26 billion dollars in 2012.

With worldwide presence at the 2012 Farnborough International Air Show, exhibitors attracted further interest in aerospace and defense manufacturing in Mexico. Mexico’s agency promoting FDI, presented ProMexico’s 2012 Flight Plan, Mexico’s Aerospace Industry Road Map, with input from 6 states with a large industry presence: Baja California, Chihuahua, Jalisco, Nuevo Leon, Queretaro and Sonora.

Operating in Mexico are industry leaders such as B.A.E. Systems, Bombardier, Eaton, GKN, Goodrich, Hawker Beechcraft, Honeywell, Labinal, Meggit, Volare, Zodiac- close to 250 companies. They manufacture a multitude of components, such as avionics and electronics, harnesses and cables, heat exchangers, engines, flight control systems, matching parts and wings, to name a few.

Participating at the show were Economic Development agencies such as Tijuana’s Economic Development Corporation (Tijuana EDC), which expressed that its presence at the show enabled companies to further understand Mexico’s strengths and advantages. Scott Stanley, Senior VP of Sales and Marketing for North American Production Sharing (NAPS), attended the show and agreed it had a positive impact for Mexico.

Upon returning from the show, he shared the following insight: “The volume of upper-level management from multinational aerospace firms visiting Mexico's pavilion at the show this summer, clearly demonstrates the country's continued strength in attracting quality companies from the aerospace industry.” NAPS manages over 40 manufacturing operations from its corporate headquarters in Tijuana, working in a variety of industries, including aerospace.

Manuel Sandoval Rios, Director for Strategy and Innovation at ProMexico told McClatchy Newspapers in an interview that the “challenge now, just as it once was with the automotive sector, is to ramp up the supply chain and, when possible, develop national suppliers.”

The auto industry in Mexico experienced substantial growth due to the expansion plans by large automotive manufacturers such as, Honda, Nissan, Mazda, Volkswagen, and Audi, among others. In effect, this caused suppliers to locate alongside these carmakers in the interior of Mexico, allowing for local sourcing of products and just-in-time delivery. It is only a matter of time for Tier 1 and Tier 2 aerospace suppliers to follow suit.

As a leading expert in the industry, NAPS is very well positioned to analyze the optimal location for your operation. “NAPS is excited to have offices in Tijuana, Mexicali, Juarez and Guanajuato (next door to Queretaro), where it can provide critical start-up and on-going administrative services to aerospace and automotive companies considering manufacturing in Mexico,” Stanley says. NAPS prides itself on delivering a high level of flawless customer service and is pleased to be in a position to assist companies achieve success in Mexico.

Monica Hanono
Industry Liaison & Marketing Analyst
monica.hanono@napsmexico.com
phone: 858-794-7947
toll free: 800-551-8581

NAPS is the premier shelter company in Mexico, providing outsourced administrative support services for companies manufacturing in Mexico.  NAPS assists with the relocation and expansion process, the start-up of operations and offers ongoing administration.  Since 1991, NAPS has played a key role in ensuring the success of 70 Mexico manufacturing operations including:  Esterline, Intuitive Surgical, JAE, Monster Cable, Parker Hannifin, Speck Products, Toyota & Qualcomm. . NAPS can provide expert commentary on trends and changes in the industry as well as various topics.  For more information contact NAPS at 858.794-7947 or visit our website.

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