Asian Troubles Offer Opportunity to Local Aerospace Industry

Q: How has investment and development of new projects evolved in Queretaro over the past few months, following FAMEX’s change of location and the organic growth of the aerospace industry?

A: There are new product and service suppliers in the production chain. The industry is seeing new projects and at industry events there are new participants coming from different parts of the world that want to enter the country’s supply chain. Unlike the automotive industry, which has come to a halt, we are not seeing any type of impact in the industry. In fact, because of the arrival of FAMEX, we are seeing a great deal of movement in the tourism arena and development of connectivity infrastructure, such as highways.

Q: What new opportunities has the company identified to position itself in the aerospace industry?

A: Given the problems that Asia is experiencing, we believe that the Mexican market offers significant opportunities. We are analyzing the possibility of transferring parts of our business to Mexico, especially those that focus on the US and Canada. This would allow the company to maintain operations without any impact. We have the capabilities to move our processes from one place to another.

We are aware that there are new companies entering the Mexican market, so we are working and consulting with FEMIA, Queretaro’s Ministry of Sustainable Development and the Queretaro Aerocluster to showcase our capabilities to these new companies.

Q: What new products or services will Axon’ Interconex launch in the coming years?

A: We invest significantly in R&D. We are part of an alliance with the European Space Agency and NASA on the newly-launched Solar Orbiter project. We manufactured the cables that go inside the 40 scientific tools that will observe the sun. While we do not yet have any new launches scheduled for Mexico, we hope to soon introduce new solutions and developments to the local market. In Mexico, we will continue to focus on organizing and providing technical seminars to discuss all the interconnection challenges that the industry experiences and look for ways to solve them.

Q: What type of alliances does Axon’ Interconex find necessary to continue expanding its business in the region?

A: Academia is vital. UNAQ and UNAM’s Engineering School are important partners for us. We are constantly working with UNAM’s High Technology Center in Juriquilla, using their machines to test our products in terms of electric quality. The lack of research in the country is a significant challenge. Working closely with academic institutions has helped us to understand the impact that budgetary cuts have had on research activities.

Q: What is needed to strengthen the local aerospace industry?

A: Knowledge of the supply chain and support for local companies in the electronics segment that want to participate in the industry would go a long way. Certifications also are an important factor. However, the certifications needed are expensive and often cannot be obtained in Mexico.

Support for local companies that want to participate in the US military aviation segment would also boost the industry. Though this segment offers interesting possibilities for the private sector, companies need to be aware of the needs in the supply chain to detect opportunities and participate. The government could play a role in supporting these companies.

Q: How will the implementation of USMCA impact the aerospace industry and Axon’ Interconex’s operations?

A: The automotive industry will see the greater impact from these changes. Fortunately, there were few changes in the treaty related to the aerospace industry, including local content percentages. Moreover, with acquisitions like Safran acquiring Zodiac or Bombardier’s case, the industry is becoming increasingly integrated and consolidated. At the end of the day, the industry responds to the demands of OEM, which set the tone for how we all work.

Q: As a multinational, what recommendations would you give to local suppliers so they can quickly enter global aerospace supply chains?

A: What we suggest is to prioritize certifications because the sector requires high technical knowledge and quality. Areas like service, design, research, materials and also metal-mechanics offer many opportunities for participation. It is important to analyze what Tier 1 companies in the sector are importing and develop appropriate solutions locally.

Axon Interconex is a French-based manufacturer of specialty interconnection solutions, including cables, connectors and other components. In Mexico, it supports aerospace and automotive companies with high-tech wiring applications