Aerospace Future Looks Bright For Mexico Manufacturing Industry
Femia, the local Mexico Manufacturing Industry representing aerospace production, estimates that aircraft manufacturing has become one of Mexico’s largest and fastest economic growth areas. Indeed, from 2010 to 2011, Femia charts a 25% increase in aerospace production, up to $4.5 billion, and Southwest United’s (SU) entry into the Queretaro area serves as a case in point. The $40 million dollar metal processing company has established a joint venture with Mexico-based, Galnik, in an effort to follow the lead already established by larger original equipment manufacturers (OEM’s). The Mexico manufacturing industry devoted to aerospace production is supported in large part, by a competitive infrastructure “every bit as good as in Oklahoma”, contends Bill Emery, CEO of SU.
This is due in large part to the proximity Mexico enjoys to the United States and Canada, countries currently dominating the commercial aircraft market’s global production at 60%. Mexico continues to do its part by combining national and FDI totaling $13.5 billion spread across 240 companies in the industry. The Mexico manufacturing industry aerospace representatives include Aemnova, Bombardier, Hawker Beechcraft, Messier Dowty and Cessna. What’s more, with much of the commercial aircraft fleet being 18 years or older, the industry projects close to 20,000 planes will need replacing within the next decade so the Mexican manufacturing projections look very bright. Even with these prospects, however, companies need to ensure reliable order flow before investing big.