What are Mexico's Capabilities? What Further Potential Exists?Fri, 12/01/2017 - 18:15
Mexico is the 14th-biggest aerospace supplier in the world, but the country has high ambitions. According to Pro-Aéreo, it plans to enter the top 10 by 2020. While there are many areas that must be developed to achieve this, such as consolidating the local supply chain, the country also has many strengths that have attracted the top aerospace manufacturers in the world, such as Boeing, Airbus, Safran and Honeywell. Mexico Aviation & Aerospace Review asked industry leaders to share their views on the country’s capabilities.
Mexico has strong capabilities working with sheet metal and performing traditional assembly, especially with aluminum. We are good manufacturers of CPUs and harnesses and we are developing skills to manufacture more composite parts. Moreover, Mexico has capabilities for MRO services, with ventures from Mexicana MRO and TechOps Mexico, making the country a destination for MRO. This trend is leading other states to develop their own workshops. Our expectation for 2017 is to reach 60,000 jobs, to have 330 industrial facilities, to surpass US$8 billion in exports and to reach a 23 percent trade surplus with the US for aerospace products. Globally, Mexico is ranked 14th for competitive manufacturing platforms and our goal is to be in the top 10 by 2020.
The country has tremendous potential for Boeing’s three sectors: commercial aviation, supply chain, and lastly, defense, space and security. Our participation in the supply chain is of great importance to us. It represents about US$1 billion annually both in terms of direct purchases and those of our direct suppliers. Mexico is our largest supply base in Latin America. The growth of this supply base depends mostly on our suppliers’ ability to expand in the country and to develop the workforce to continue meriting support from federal and state governments. Our suppliers mostly manufacture components but we expect to move Mexico up the value chain by requesting more design and engineering-based jobs here.
The country offers many advantages to the sector, so its continued specialization and development will raise Mexico as an emerging aerospace exporter. Thanks to the automotive sector, aerospace companies were able to find potential collaborators that had already installed state-of-the-art manufacturing technology, building a strong platform on which to grow. Both sectors can coexist since they are distinct in volumes, being automotive an industry of high production volumes, while aerospace is an industry of low volumes, highly sophisticated equipment and high costs per unit. Aerospace emerged and expanded swiftly thanks to synergies with the automotive sector, which also led to the faster development of infrastructure and technical capabilities.