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Mexican Aerospace Technology Development: What Are the Hurdles?

By Antonio Salem - S&A Aeronautical Consulting Group
Founder and CEO

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By Antonio Salem Gómez | Founder & CEO - Wed, 11/30/2022 - 12:00

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During the first part of the 20th century, Mexico invested in aeronautical technology development to the grade of producing innovative airplanes, engines and propellers. These efforts were supported mainly by the Mexican Air Force. Unfortunately, due to disagreements with the US, they all had to be canceled. 

In the second part of the 20th century, some private initiatives to manufacture airplanes showed scarce results. Behind almost all these failures were financial issues, and it was clear that there was no real interest from  government institutions to support those efforts.

In the 21st century, Mexico, through NAFTA and other commercial agreements, made itself an attractive investment destination for the  aerospace industry. New import/export rules to facilitate international trade, dedicated industrial parks, and the development of specialized professionals and clusters were the keys.

There is no doubt that it has been a successful program. The sector has attracted a great deal of  investment, created jobs for a specialized workforce, helped to develop large areas of the country, particularly the central and northern regions, and placed Mexico among the  top aerospace producers worldwide.

Aerospace companies in Mexico manufacture everything from simple O-rings to complex and extended parts, and the sector continues to grow based on good  quality, low cost and logistic advantages, but what about technology development?

In aerospace, it is well known that innovation and certifications are the main drivers for the value of a product. In this industry, market price is not proportional to the cost of manufacturing, but to the design and certification processes required.

Unfortunately, most companies coming to Mexico to produce parts for the aerospace industry keep their research, development and innovation at home, limiting Mexico’s ability to grow in these areas. Other countries that receive these investments apply conditions to force knowledge sharing.

Also, there is almost zero intention to certify products in Mexico to add value here. This situation condems Mexico to be nothing more than a factory for technology developers. As a consequence, our best brains are forced to emigrate to look for opportunities to create and innovate.

Nevertheless, there are a few Mexican companies determined to design and manufacture innovative products with Mexican professionals, aeronautical engineers, technicians and pilots and to develop local providers. Good examples are Horizontec and Oaxaca Aerospace.

Horizontec and Oaxaca Aerospace are small aircraft manufacturers that started with limited private investment but that are committed to technological development in the aeronautical sector in Mexico. They have had to overcome many obstacles but their leaders have  not given up.

From my viewpoint, regulations are the bigger hurdle for these companies looking for certification of their products in Mexico. The country’s regulations were not prepared in a practical way. Mexican rules for aerospace activity did not exist until a few years ago.

Additionally, the Mexican regulator for aviation and aerospace is struggling with a lack of resources, which is one of the reasons why Mexico’s airspace was downgraded  by the US Federal Aviation Administration (FAA) from Category 1 to Category 2. Due to these problems, the Mexican authority (AFAC) can barely help Mexican companies that want to certify products.

It is important for Mexico to attract investment in the aerospace industry and efforts must continue because the sector represents growth r for regions. To this end, the south of the country needs to make itself attractive for such investments and catch up to the most developed areas, but Mexico needs more than that.

A written commitment from  new players investing in Mexico is needed to potentiate R&D and innovation  locally so that Mexico can become not just a manufacturer, but also a developer. India and Brazil are good examples of this successful strategy.

Government institutions like the Mexican Air Force need to believe in Mexican products and commit to supporting civil efforts to prevent those new players like Horizontec or Oaxaca Aerospace from failing due to a lack of resources.

AFAC regulations require a general review to make it easier and practical to develop in Mexico. The role of this authority is key to driving growth, so the agency needs enough human and material resources, more than just what is required to recover Mexico’s  Category 1 standing with the FAA.

As citizens and customers, we all can contribute to a successful Mexican aerospace industry that not only manufactures but also creates. We must stop thinking that all foreign  products are better than those made in Mexico or that we do not have the capabilities to compete worldwide.

Mexico is ready to start competing with the big players in aeronautical technology development. It has demonstrated itself to be capable, has the required professionals, has good experience, has developed excellent research centers and is eager to do so. The sector just needs government commitment and support.

There is nothing in any agreement that prevents Mexico from manufacturing its own products for the aerospace industry; the conditions to join the international developers club are there. Success will place Mexico among those countries that drive technology, not just simple users.

Finally, it is important to look inward as citizens and customers and ask if we are also placing limits on ourselves.  Do we really trust Mexican companies? How committed are we to supporting Mexican companies? Do we tend to criticize i stead of providing encouragement?

We need to reflect and ask these same questions in  relation to all industries in Mexico.

Photo by:   Antonio Salem

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