Jerónimo Sánchez
Director of Business Development
HYRSA Aerospace
/
View from the Top

Adding Value Through Talent, Specialized Processes

By MBN Staff | Fri, 09/30/2022 - 10:30

Q: How has the company consolidated as a supplier for OEMs and MROs?

A: We have specialized in supplying OEMs in the aerospace industry, while expanding our portfolio to work with Tier 2 and 3 companies. We add value to our processes through simple mechanical assemblies. We are starting a new project this year and will work on our assembly lines to provide extra value, while delivering better customer service.

Q: How has Queretaro’s booming aerospace sector influenced HYRSA’s operations?

A: The city’s government has consistently maintained a clear path toward the creation of a solid aerospace industry, with great results. The state also has focused on creating the educational institutions needed to train human talent to address the industry’s growing demand.

Hyrsa exports about 85 percent of its products to the US, Canada and countries in the EU. We hope that as more aerospace companies open in Queretaro, the local market will grow to compete with other countries.

Q: How has the supply chain disruption affected the industry and what can the sector expect in the coming years?

A: Production is at 50 percent following the backlog caused by the COVID-19 pandemic, which also caused an almost 80 percent decline in sales. We have been unable to meet existing demand due to global supply chain problems that have also been exacerbated by the conflict between Russia and Ukraine, low microprocessor availability and the shortage of electric power in the EU. Waiting periods for the delivery of raw materials have almost tripled, going from an average of six to eight weeks to 24 or even 48 weeks, depending on the material. All these issues have led to a 250 percent increase in operating costs.

Q: What unique benefits does HYRSA offer its clients?

A: We are specialized in a limited number of materials and projects and have become experts in the handling and manufacturing of those raw materials. This has also made us highly competitive and adaptable to unexpected customer demands, which is a significant benefit for clients. We are also more cautious when making certain decisions because of global uncertainty. Expert forecasts differ greatly from one another. The global market is undergoing a complex period so we need to continue adapting.

Q: As a company that migrated to the aerospace sector, what are the main challenges and opportunities of entering such a quality-driven industry?

A: This industry is vastly different from the automotive or home appliances sector, where the return on investment is much faster. In those sectors, investors see their investment back within three or four years. In the aerospace industry, businesses can take at least 10 years to be profitable and contracts last for longer so there is a risk of missing opportunities. If a company is passed over, it could stop working for 10 years.

Q: What advice would you give to SMEs aiming to enter the aerospace value chain?

A: SMEs must understand the world they are entering and that they will not see a return in investment for at least 10 years. This sector offers many opportunities but it is a complex industry that requires significant adaptation during this period. SMEs also have to comply with several requirements to enter the industry, including certifications and experience. Entering the aerospace industry is not a one-year process.

Q: How does the company find the highly qualified human resources that the industry demands?

A: We have relied heavily on local institutions. The government of the state of Queretaro has created educational centers to train young professionals who desire to work in the aerospace industry. There are a variety of programs that cover the diverse segments within the sector.

The aerospace industry in the US, Canada and the EU is shifting as a significant percentage of its workers will retire in the near future, leaving a gap that will be hard to fill in the short term but that will bring opportunities for young professionals.

Q: What are HYRSA’s plans for the near term?

A: In the next three to four years, we plan to invest more in mechanical assemblies and vertical integration by adding more treatments that we can develop internally to add value to our company, processes and products. At the end of the day, these treatments will benefit customers. We will also work to maintain and improve our flexibility as a company. Since we cannot generate an automated production line because of the low volume of pieces we produce and their different specifications, human talent is critical for us. Employing more well-trained personnel will add greater value to our company.

 

HYRSA Aerospace is a Queretaro-based company focused on the metalworking industry. The company works with OEMs and MROs to substitute imports.

MBN Staff MBN Staff MBN staff