E Book: “Aerospace in Mexico: to the Right...

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E‐Book:

“Aerospace Clusters in Mexico:

How to the Right Location”

Presenter: Miguel HorcasitasHost: American Industries Group


About the Host:American Industries Group

Aerospace Leading Manufacturing Facilitator in Mexico


American Industries Group

has successfully landed

over 100 global

corporations in Mexico for

over 35 years.

Aerospace Manufacturing Industry in Mexico: About American Industries



For many of these companies we have been the “one stop

shop strategic partner” to start

Aerospace Manufacturing

operations in Mexico hassle free in 9 weeks.


About our Presenter:Miguel Horcasitas

Business Developer for the Aerospace Manufacturing Industry

in Mexico


He is an Aerospace Business Developer from a 35+ years of experience world

class Manufacturing Facilitator in Mexico.

Miguel has been a key element in establishing Aerospace Manufacturing

Operations in Mexico, and he has been a strategic business partner for

Aerospace companies such as Cessna, Hawker Beechcraft, CAV Aerospace,

Nordam, Zodiac Aerospace, among many more aerospace companies and

suppliers.

Aerospace Manufacturing Industry in Mexico: About Miguel Horcasitas (Presenter)


Aerospace Clusters in Mexico:

Choosing the Right Location

Presenter: Miguel HorcasitasHost: American Industries Group


• Aerospace Industry Historic Facts

• Government Commitment

• Key Figures

• Aerospace Industry Today

• Geographic Location

• Main Clusters

• Summary

Aerospace Manufacturing Industry in Mexico: Contents:


Historic Facts

Aerospace Manufacturing Industry in Mexico


Aerospace Manufacturing Industry in Mexico: Historic Facts

The first aerospace

company WAS

established in

1969 in Mexicali,

Baja California.

Source: Industrial Development Commission of Mexicali.


Few small and medium

sized companies

followed the trend

during the 80’s, & 90’s.



Most of them established in

the border Mexican state of

Baja California to support

the California (US) based

operations.



The development of

the aerospace industry

has been intensive

during the last 5 years.



The automotive industry

provided the foundations

for the current

development of the

Aerospace industry.



Government Commitment



DURING the last 5 years the aerospace

industry HAS BEEN THE NUMBER ONE

PRIORITY FOR THE MEXICAN

GOVERNMENT.

Aerospace Manufacturing Industry in Mexico: Government Commitment


On September 18th, 2007, the US and the

Mexican Governments signed the BASA

(Bilateral Aviation Safety Agreement).

UNDER THIS AGREEMENT the FAA (Federal

Aviation Agency) recognizes the General

Direction of Civil Aeronautics (MEXICO) as an

agency with full capacity to certify any

product or service of any corporation.



Since 2006 the government

established a 0% import duty

rate for aerospace

components, regardless of the

COUNTRY OF origin.




On March 10, 2009 the

. National Aeronautic

. University had its

. groundbreaking

. event in Queretaro.


Key Figures



Mexican aerospace exports(billions USD)

Aerospace companies in Mexico Aerospace jobs in Mexico(in thousands)

Source: ProMéxico with data from FEMIA

Aerospace Manufacturing Industry in Mexico: Key Figures


Source: DGIPAT with data from DGCE & FEMIA * Figures in millions USD.

.

Aerospace Manufacturing Industry in Mexico: Key Figures: Imports & Exports


The Aerospace

Manufacturing Industry

in Mexico Today


Out of the 11 aerospace

companies with international

operations listed in the “Fortune

500”, 7 have operations in

Mexico.* KPMG’s Guide to International Business Location, 2008 & FEMIA

The Aerospace Industry in Mexico Today


Aerospace Industry Overview:

196 companies in 16 states.

80% performing

Manufacturing operations.

Over 27,000 employees.



Mexico is the 10th LARGEST

supplier of aerospace

components for the US

market.


* Source: US Department of Commerce, Bureau of the Census


The FEMIA (Aerospace

Industry Mexican Federation)

was established in November

2007 and it actually has 38


members or associates.


Geographic Location



Corporations: 196States: 16Employees: over 27,000

Northeast Region:

Coahuila (6)Nuevo León (24)Tamaulipas (11)

Southeast Region:Yucatan (3)Guerrero (1)

Central Region:

Distrito Federal (7) Edo. de México (5) Querétaro (14)San Luis Potosí (6)Puebla (3)

West Region:

Aguascalientes (2) Jalisco ( 5 )

Zacatecas (1)

Northwest Region: Baja California (51) Sonora (32)Chihuahua (25)

Source: Dirección General de Industrias Pesadas y de Alta Tecnología, SCT, ProMéxico & FEMIA

Aerospace Manufacturing Industry in Mexico: Geographic Location


Size No. de Employers

Micro 1 ‐ 10

Small 11 ‐ 50

Medium 51 ‐ 250

Large More than 251

15 corporations have over 500 employees:

• 8 in Baja California• 2 in Chihuahua• 3 in Querétaro• 1 in Coahuila • 1 in Tamaulipas.

Source: S.E. & FEMIA

Aerospace Manufacturing Industry in Mexico: Size of companies


Main Clusters



Aerospace Manufacturing Industry in Mexico: Main Clusters

Chihuahua

Mexicali

Guaymas

Monterrey

Querétaro

Main Industrial Corridors

Chihuahua


Main Clusters: Monterrey



• Mexico’s top industrial city.

• 3 Sourcing Offices, 8 manufacturing

companies, 1 special processes company.

• Rolled rings for turbines, fuselage for light

helicopters, precision machined parts,

sheet metal, electric wire and cable.

• Still pursuing a key project to detonate

the cluster.

Source: Monterrey Aero Cluster & American Industries

Aerospace Manufacturing Industry in Mexico: Main Clusters: Monterrey


Created on August 2009, the

Monterrey Aero Cluster

intends to transform

Monterrey into one of the

largest locations for turbine &

aerospace components by

2020.



Local universities are

developing programs

related to the

aeronautical industry.



MD HelicoptersFrisaEZI MetalsTECMAQViakonExovaHamilton SundstrandHoneywellGE



Main Clusters: Guaymas



Good proximity to the US,

especially to the Phoenix

and California aerospace

markets.

Source: Sonora Economic Promotion Council & American Industries

Aerospace Manufacturing Industry in Mexico: Main Clusters: Guaymas


• Establishment of Aerospace

companies started over 10 years ago.

• 12 Aerospace related companies.

• Small to medium size operations.



Precision Machining,

Electronics

manufacturing &

Assembly, Investment

Casting.



Local Universities

with aerospace

related programs.



Smith West, Sargent Aerospace,

ESCO Turbine Technologies,

Goodrich, Tolerance Masters,

Precision Aerospace Products,

Harco, ChemResearch, Parker

Hannifin, Horst Engineering, GS Precision, Ducommun

Aerostructures.



Main Clusters: Mexicali



Mature aerospace

environment with

companies established

in the city over 40 years

ago.

Source: Industrial Development Commission of Mexicali & American Industries.

Aerospace Manufacturing Industry in Mexico: Main Clusters: Mexicali


Supports primarily

the US State of

California due to the

proximity. (Union

Free Border City)



•17 Aerospace related

companies.

• Workforce: close to

5000.



Manufacturing,

assembly, design,

special processes

& MRO

operations.



Good aerospace educational

programs provided by local

universities linked to the industry.



Rockwell Collins, Gulfstream,

Mexmil, Chromalloy,

Honeywell MRTC, Goodrich,

GKN Aerospace, LMI

Aerospace, Volare Engineering.



Main Clusters: Queretaro



Industrial

experience from

metal mechanic

& auto parts.

Source: Secretaria de Desarrollo Sustentable, Mexico Now & American Industries.

Aerospace Manufacturing Industry in Mexico: Main Clusters: Queretaro


Has close proximity to Mexico City

. and central Mexico

. . and counts with


the longest runway in Mexico.


Aerospace industry

development started in

2006 with Bombardier. It is

CURRENTLY the only city

with an industrial park

inside of the airport.



Aerospace Industry Overview:

14 Aerospace Companies:

From which we can find 1 OEM

and 3 Tier one companies.



The National Aerospace

University is located in

Queretaro and operates

since 2007. It was formally

inaugurated on March, 2009.



Supplier base is being

developed, mostly

related to Bombardier.



Bombardier, Snecma,

Messier Dowty, Aernnova,

Elimco‐ Prettl, Meggit, ITR‐

GE, A.E. Petsche,

Southwest‐Galnik, Navair,

Dishon.



Main Clusters: Chihuahua



30 years of aerospace

experience, with

Honeywell being the

first company to

locate operations.

Source: Secretariat de industrial Development& American Industries.

Aerospace Manufacturing Industry in Mexico: Main Clusters: Chihuahua


Union free environment,

proximity to the border

and manufacturing

experience are the city

key factors for FDI

attraction.



17 Aerospace related

companies with multiple

divisions or operations,

4 OEMs and 2 Tier ones

among them.

Workforce: close to 6000.



Manufacturing,

machining,

assembly, sheet

metal, composites

& design

operations.



Supplier base

growing based on

the market

demand.



The CIMAV (Advance Materials

Research Center) operates since 1994

focusing on technology research and

industry implementation.



CENALTEC’S (High

Technology Training

Center) MAIN FOCUS IS

ON Aerospace training.

It operates since 2004 with industry‐ oriented programs.



Cessna, Hawker Beechcraft,

Textron International,

Honeywell, Labinal, Zodiac,

Nordam, A.E. Petsche,

TigHitco, Manoir Aerospace,

CAV Aerospace, Kaman,

Arnprior Aerospace.



Summary



Proven capabilities for wire

harnesses & sheet metal

operations, machining,

electronics, assembly and

DESIGN ENGINEERING.

Aerospace Manufacturing Industry in Mexico: Summary


Huge opportunities for

composites & special

processes operations.



Current client’s location has a

huge impact on selecting

where to establish an

operation due to Mexico’s

vertical logistic infrastructure.



Supplier base is

growing, but it is still

an area of

opportunity

throughout Mexico.



Educational programs are

developing in some areas,

but investment in training is

still required by the

companies.



Cost advantages are strongly related

to labor force.



operations than at the

original companies’

locations.

Efficiency and productivity has proven to be higher in MEXICAN



Every city has pros & cons.

IT IS VERY IMPORTANT TO UNDERSTAND THOSE

DIFFERENCES DURING THE SITE SELECTION

PROCESS.



Should you need to get your

business case made up FAST,

send us an e‐mail at:

[email protected]

or call us at our

Toll Free 1‐877‐ 698‐3905



With over 30 years successfully

assisting aerospace

Companies to land in Mexico,

American Industries

has the expertise and

experience to assist your

Operation start‐up.

SummaryAerospace Manufacturing Industry in Mexico: About American Industries


Shelter Program

Our shelter expertise

allows you to start

and maintain a

successful operation

by avoiding

unnecessary

problems and costly

mistakes.

Aerospace Manufacturing Industry in Mexico: American Industries Shelter


Real Estate

From the site selection

process to finding the

right building for your

operation, our Real

Estate program will

make sure that you

have a world class

operation in Mexico.

Aerospace Manufacturing Industry in Mexico: American Industries Real Estate


Thank youSend us your comments and questions to [email protected]

Or contact us at our Toll Free:

1‐877‐ 698‐3905

Follow us:

Twitter: @aeromfg

www.AerospaceInMexico.com

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