Supply Chain is Biggest Hurdle

Q: Why did TE Connectivity bring its aerospace division to Hermosillo?

A: As a corporation present in the main global economic centers, namely Asia, Europe and the Americas, we have undergone many changes. Several restructuring processes grouped our manufacturing in distinct plants. Our aerospace segment has been independent for the past 10 years and while we started small, we have doubled those operations every five years. The aerospace sector is growing globally and TE Connectivity chose to expand this division in Hermosillo taking our experience and capabilities in many other sectors into account. TE Connectivity has been present in Hermosillo for over 30 years where, as technology evolved, the city gained a more significant role as a technology center. Other advantages included proximity to the US, Sonora’s stability, security and local human capital. The city has grown considerably in the past few years but it remains small enough to permit simple logistics.

Q: How has growth in the Mexican aerospace segment impacted TE Connectivity’s operations?

A: Hermosillo is home to four divisions of TE Connectivity: automotive, communications, industrial and aerospace. We have three other divisions in Empalme, Sonora, two in Ciudad Juarez in Chihuahua and two in Tijuana, Baja California. Our 11 plants in Sonora individually report to headquarters but our processes are often linked as we share suppliers. TE Connectivity manages an entire industrial park in Hermosillo for several divisions and as we continue growing, we may need to acquire one or two more parks.

When our aerospace plant was created, it covered only 25,000ft2 and employed eight operators and four administrative personnel. Once the aerospace industry really took hold in the state investment grew. TE Connectivity invested US$30 million to install state of the art equipment. This plant represents the largest capital spending our main offices have made in Mexico for highly sophisticated processes. We often measure our employee’s engagement in the company because their commitment is the basis for our growth.

TE Connectivity also employs innovative measures, spearheading new connectivity solutions. Accordingly, our investment in R&D is significant. We have grown both organically and through mergers and acquisitions 169 and our goal is to become global leaders. Creating close relationships with our suppliers allows us to handle drastic peaks in demand. Representatives who visit our offices in Mexico have been pleasantly surprised by our excellent operational conditions.

Q: In what ways have you adapted your operations to clients' requests and the characteristics of Sonora?

A: As our name suggests we mostly focus on connectors but we also manufacture switches, optic fiber and cables. Our core processes to create these components are CNC machining, molding and assembly. We had to develop the latter production line ourselves, having struggled to locate nearby suppliers that could sufficiently specialized in our needs.

Boeing is one of our main clients and many of our processes are being adapted to their requirements. Boeing representatives visit us at least once a year. Another client is Labinal, to whom we sell products that are ultimately distributed to Boeing. Other destinations for our products include the offices of Honeywell, GE, Lockheed Martin, Carlisle and Nordstrom Grumman. Our production is diverse as we manufacture for a variety of aircraft models. TE Connectivity’s manufacturing is used both in civil aviation and in the defense sector and even in satellites.

Q: What measures is TE Connectivity implementing to increase competitiveness?

A: As we grow, it is necessary to create a strong network to address our clients’ needs. We have implemented the Extraordinary Customer Experience initiative, designed to tackle fluctuating timelines and shifting requirements. For instance, one of our clients miscalculated the time for which they would need a piece by two months, forcing us to speed up production to deliver the piece in only two weeks. This gave us significant recognition and helped us consolidate that company as a permanent client.