28 Negocios

Photo courtesy of safran

rising To mAximum HeigHT

The aerospace industry in Mexico seems to have reached supersonic speed. In less than a decade it evolved from manufacturing simple parts and assemblies to bigger items such as aircraft tails and fuselages. Today, Mexican aerospace industry is moving towards more advanced engineering and design activities.

Jean-franois damois / creative center / safran

cOver feaTure mexican aerospace indUstry

exico has become a major innovation and manufacturing center in the aerospace industry. In the last decade, the worlds leading aerospace companies have found in Mexico the ideal destination for the development of their manufacturing strategies, given available capabilities and talent. Many facts have favored the development of the aerospace industry in Mexico. Aerospace companies emphasize the availability of human capital and competitive costs as the main strengths of Mexicos aerospace industry. The global industrys opinions match various studies that have underlined Mexicos comparative advantage in terms of costs. According to KPMG, our country is ranked first in terms of operation costs compared to the industrys leading countries. This advantage results largely from the country being part of the dollar zone, its free trade agreements and macroeconomic stability, among other factors. In addition, there are 745,000 engineering and technology students in Mexico, that is, 30% of the countrys total university population. Moreover, according to the National Association of Universities and Higher Education Institutes (ANUIES, for its acronym in Spanish), close to 114,000 engineering and technology students graduate each year and there are more than 900 postgraduate engineering and technology programs in highlevel Mexican universities. Also, the experience and success of the automotive and electric-electronic sectors in Mexico, have served as a platform for the aerospace industrys development, and have begun the creation of a solid provision/supplying chain. Today, Mexico is the country with the largest investment in aerospace manufacturing and holds the sixth place in aerospace research and development investment. During the last five years, Mexicos aerospace-related exports have more than tripled and the number of companies established in the country keeps growing. Mexico is the country with the highest investment attraction of aerospace manufacturing for the 1990-2009 period. According to the Mexican Aerospace Industry Association, the country is ranked 12 in the global tables of aerospace equipment

exporters. In 2010, the aerospace sectors exports reached 3.27 billion usd. In 2011, Mexican aerospace exports are expected to surpass 3.5 billion usd. Most of the Mexican aerospace sector exports are directed to the US market (81%); followed by France and Germany, each with 2.8%. Canada and the UK come in third place with a participation rate of 2.6% each. Currently, Mexico is the ninth largest provider to the US aerospace market and the sixth supplier to its European counterpart. Exports are accelerating quickly as manufacturers move into bigticket items like tails and fuselages.

today, mexico is the coUntry with the largest investment in aerospace manUfactUring and holds the sixth place in aerospace research and development investment.

grOwTH & evOluTiOn

Mexicos aerospace sector is sustained by five main axes: Manufacturing; Engineering; Design; Education (training, coaching and education) and Maintenance, Repair and Overhaul (MRO). Currently, over 70% of aerospace companies in Mexico focus, partially or totally, on component manufacturing. For their part MRO companies account for close to 23% of total companies and their main capacities focus on providing maintenance for turbines and engines, auxiliary power units, fuselages, electricelectronic systems and landing systems, among others. Finally, services and engineering companies account for close to 13% of the industry. In terms of components developed in Mexico, around 23% of companies have engine man-

Jean-christophe moreau / creative center / safran

30 Negocios

Photo courtesy of safran / inFogRaPhic oldemar

Jean-franois damois / creative center / safran

some 40 years ago, Jalisco had already developed high-tech manUfactUring capaBilities in the electronics and aUtomotive sectors, so the Upgrade to aerospace prodUction was a natUral progression.

ufacturing and maintenance capabilities. The industry also has capacities in the manufacture of fuselages and, in particular, their parts (15%). In addition, 7% of companies manufacture electrical systems and another 4% manufacture and maintain undercarriages. In an initial stage, Mexico manufactured simple parts, autoparts and assemblies. In just a few years, the country entered into a second stage, which includes manufacturing of turbines, fuselage, harnesses and landing gears, among other products. Today, Mexico envisions entering a third stage in which complete airplanes will be designed and assembled, consolidating the country as a first class innovation center. That evolution process is supported by several favorable conditions. For example, Mexico is one of the few countries in the world that relies on a bilateral agreement of mutual recognition of certifying systems: AeronauticalBASA (Bilateral Aviation Safety Agreement) together with the FAA (Federal Aviation Administration) of the US. Therefore, it is relevant that Mexico has the procedures needed to implement the BASA in design and manufacturing processes (IPA).

regiOnal develOPmenT
Although aerospace companies are established in almost all of Mexican states, some regions register faster growth rates and have become attractive poles for aerospace development. That is the case of Baja California, Jalisco and Quertaro. Baja Californias aerospace industry is integrated mainly by foreign companies. Nevertheless, a growing number of national companies

take part not only in manufacturing but also in complex tasks such as design, R&D and innovation projects. Rockwell Collins was the first aerospace company to establish in the state in 1966. Since then, other large multinationals began opening facilities in the state, such as Zodiac, GKN, Chromalloy, Honeywell and Gulfstream, among others. Currently 52 out of the 232 aerospace companies established in Mexico, are located in Baja California employing more than 13,000 people that is more than 40% of the industrys workforce in the country. Furthermore, 65% of the aerospace companies established in Baja California are certified in AS9100 and NADCAP, a key element that guarantees the quality of the state production. Some 40 years ago, Jalisco had already developed high-tech manufacturing capabilities in the electronics and automotive sectors, so the upgrade to aerospace production was a natural progression. As a result, the state is planning to increase the number of companies that provide parts and engineering services over the next 10 years. Companies in the region are driving this transition by obtaining certification in aerospace quality standards, such as AS9100 for manufacturing, supply chain management and logistics. In addition to this, embedded-design companies that service global original equipment manufacturers (OEM) are performing research and development (R&D) activities. Because of its broad base of young engineers, Jalisco is the ideal place to develop aerospace design and engineering activities. In fact, in Guadalajara, the state-capital, existing projects

are in place for producing engine components, wire harnesses, cables, landing-system components and heat exchangers, and for providing plastic injection, precision machining, fuselage insulation, and maintenance, repair and overhaul, among others. Some of the sophisticated engineering projects that are currently handled in Guadalajaras metropolitan area include engineering instrumentation for flow diagnostics, computer vision, mathematical pattern recognition with metrology facilities, rapid prototyping and virtual instrumentation. In Quertaro, Montreal-based Bombardier, the first major company to arrive in that state in 2006, opened shop hoping that a big-name companys presence in Mexico would attract others in the supply chain. Things went according to plan, and now Bombardier and other major aerospace companies established in Quertaro contracts with a network of regional suppliers. What started as a challenging idea, is nowadays recognized as the strongest Mexican aerospace cluster. Following successful international models such as Toulouse, France, Wichita and Seattle in the US and Montreal, Canada, Quertaro has consolidated itself as a strong aerospace cluster. Quertaro Aerospace Valley is formed by more than 50 local and foreign companies employing 4,800 workers. The Quertaro Aerospace Park is the premier location in Mexico exclusively for aerospace suppliers. Located in Quertaros international airport, it offers a combination of infrastructure, competitive lease rates, and the first Aeronautic University in the area. n