Mexico | 5 Nov 2013
The aerospace sector in Mexico has grown at an annual rate of about 20% for almost a decade and shows no signs of slowing. Aerospace heavyweights continue to invest in established manufacturing centres and are rapidly expanding their presence in the state of Querétaro, which has aggressively courted the industry.
According to the Mexican Aerospace Industry Federation (Federación Mexicana de la Industria Aerospacial), Mexico received more foreign direct investment (FDI) in the aerospace industry than any other country between 2009 and 2012, a period during which the sector’s exports more than doubled, from $2.5bn to $5.4bn.
Baja California is the giant of the Mexican aerospace sector, home to manufacturing and research facilities of 59 international aerospace companies. Lockheed Martin, Gulfstream, Zodiac and Eaton are among the firms that employ 16,000 people in the state, most working in manufacturing. Honeywell has a staff of 350 at its aerospace research and technology centre in Mexicali, the state’s capital. In addition to dedicated R&D facilities and testing centres, like Honeywell’s, some factories in the northern states are expanding into design to complement their manufacturing operations. However, according to David Cote, chairman and CEO of Honeywell, Mexico still lags other regions, such as Eastern Europe, in the quality and quantity of its aerospace engineers.
Bombardier invested $200m in a new production facility in 2005, which was followed by the 2006 opening of the Aerospace University of Querétaro (UAQ, Universidad Aeronáutica en Querétaro). Today, Bombardier, which has helped to shape the university’s curriculum, produces parts for its Learjet 85 in Querétaro, where it has 1800 employees, nearly two-thirds of whom graduated from UAQ.
The university, along with tax deals and Querétaro’s proximity to the “NAFTA highway”, has contributed to a sharp increase in FDI and the development of a growing aerospace cluster in the state. In February of 2013, Eurocopter, a helicopter manufacturer and subsidiary of the European Aeronautic Defence and Space Company, opened a plant in Querétaro that will produce helicopter tail booms and doors for Airbus A320 and A330 planes. Eurocopter has invested more than $100m in the facility, which will employ 200 workers by 2014, and plans to invest another $500m over the next 15 years.
Other European firms, including Spain’s Industria de Turbo Propulsores and Aernnova, have established manufacturing operations in Querétaro, as well as Duqueine, a French composites specialist, which plans to launch a new production facility before the end of 2013. Safran, a French aerospace firm with more than 4000 employees in Mexico, opened a new engine factory in the state in 2012. General Electric has announced a plan to invest $20m to expand its Querétaro R&D facility, already the company’s largest, to have 1800 engineers on staff.
Baja California has followed Querétaro’s lead in upping its human capital resources. In April 2013, the Centre for Specialised Aerospace Technical Development (CADTE, Centro Aeroespacial de Desarrollo Técnico Especializado), a training school for technicians, opened in Tijuana. It joins the Tijuana Technical University’s engineering centre and Baja California’s state university graduate school on the list of the region’s educational institutions focused on the aerospace industry.
One factor that may challenge further growth in the industry is the limited supply chain, with 9% of primary materials sourced from within the country. However, the sector’s development to date has been impressive, and by mid-2012, Mexico had become the ninth-largest supplier of aerospace components to the US, surpassing China, Singapore, Taiwan and South Korea and, by 2013, it had become the 14th-largest supplier in the world. As Mexican industry tries to find its place in the 21st century economy, the aerospace sector may lead the way.
According to the Mexican Aerospace Industry Federation (Federación Mexicana de la Industria Aerospacial), Mexico received more foreign direct investment (FDI) in the aerospace industry than any other country between 2009 and 2012, a period during which the sector’s exports more than doubled, from $2.5bn to $5.4bn.
Broad-based development
The sector employs 34,000 people in 18 Mexican states, with most activity concentrated in the northern states of Baja California, Nuevo León, Sonora and Chihuahua. Safran, a French engine manufacturer, opened its fourth factory in Chihuahua in May. Embraer, the Brazilian aerospace giant, and Zodiac, a French equipment supplier, have agreed to open a joint production facility in Chihuahua. In 2012, the French supplier Latécoère transferred part of its Tunisian production to the state of Sonora.Baja California is the giant of the Mexican aerospace sector, home to manufacturing and research facilities of 59 international aerospace companies. Lockheed Martin, Gulfstream, Zodiac and Eaton are among the firms that employ 16,000 people in the state, most working in manufacturing. Honeywell has a staff of 350 at its aerospace research and technology centre in Mexicali, the state’s capital. In addition to dedicated R&D facilities and testing centres, like Honeywell’s, some factories in the northern states are expanding into design to complement their manufacturing operations. However, according to David Cote, chairman and CEO of Honeywell, Mexico still lags other regions, such as Eastern Europe, in the quality and quantity of its aerospace engineers.
Investing in human capital to support growth
The central Mexican state of Querétaro, the newest regional player in the aerospace sector, has attempted to address this shortcoming. When Bombardier, a Canadian aerospace and transportation company, was evaluating various Mexican states as sites for a new manufacturing facility, Querétaro and the Mexican federal government won the firm over with the promise to build a local aviation university.Bombardier invested $200m in a new production facility in 2005, which was followed by the 2006 opening of the Aerospace University of Querétaro (UAQ, Universidad Aeronáutica en Querétaro). Today, Bombardier, which has helped to shape the university’s curriculum, produces parts for its Learjet 85 in Querétaro, where it has 1800 employees, nearly two-thirds of whom graduated from UAQ.
The university, along with tax deals and Querétaro’s proximity to the “NAFTA highway”, has contributed to a sharp increase in FDI and the development of a growing aerospace cluster in the state. In February of 2013, Eurocopter, a helicopter manufacturer and subsidiary of the European Aeronautic Defence and Space Company, opened a plant in Querétaro that will produce helicopter tail booms and doors for Airbus A320 and A330 planes. Eurocopter has invested more than $100m in the facility, which will employ 200 workers by 2014, and plans to invest another $500m over the next 15 years.
Other European firms, including Spain’s Industria de Turbo Propulsores and Aernnova, have established manufacturing operations in Querétaro, as well as Duqueine, a French composites specialist, which plans to launch a new production facility before the end of 2013. Safran, a French aerospace firm with more than 4000 employees in Mexico, opened a new engine factory in the state in 2012. General Electric has announced a plan to invest $20m to expand its Querétaro R&D facility, already the company’s largest, to have 1800 engineers on staff.
Baja California has followed Querétaro’s lead in upping its human capital resources. In April 2013, the Centre for Specialised Aerospace Technical Development (CADTE, Centro Aeroespacial de Desarrollo Técnico Especializado), a training school for technicians, opened in Tijuana. It joins the Tijuana Technical University’s engineering centre and Baja California’s state university graduate school on the list of the region’s educational institutions focused on the aerospace industry.
One factor that may challenge further growth in the industry is the limited supply chain, with 9% of primary materials sourced from within the country. However, the sector’s development to date has been impressive, and by mid-2012, Mexico had become the ninth-largest supplier of aerospace components to the US, surpassing China, Singapore, Taiwan and South Korea and, by 2013, it had become the 14th-largest supplier in the world. As Mexican industry tries to find its place in the 21st century economy, the aerospace sector may lead the way.
No comments:
Post a Comment