Aerospace
The Mexican Aerospace Industry and Market
Mexico is the largest military and commercial aircraft market in Latin America. The sector is expanding fast and there are more than 186 companies, mostly foreign, employing more than 20,000 skilled workers in Mexico.
Mexico now ranks as one of the few emerging markets that has the advanced engineering capability to do final assemblies of sophisticated planes. A number of international companies (General Electric, Honeywell, Safran Group and Bombardier for example) have invested in Mexico’s aerospace sector over the last few years, bringing the total to over 150 investments.
In 2007, exports of aeronautical components and engineering designs from Mexico totalled over US$700 million (see graph 1). These figures are expected to increase with exports forecast to be in the region of US$900 million per annum by 2010.
Mexico’s market is expanding rapidly
- Mexico counts with a fleet of 7,200 aircraft: 1,400 commercial; 5,300 private and 435 official (Airbus forecasts for 2006-2025 that Mexico will acquire around 600 new units)
- Expanding market in helicopters and executive jets.
- 84 airports (55 international and 29 national).
- Passengers in Mexican Airports in 2007 were 70 million with a yearly growth of 6%.
- Air cargo is growing at 9%
Advantages for Investors in Mexico
- Proximity to US
* Lower transportation costs
* Quicker response time
* Easier communication and oversight
* Just-in-time delivery
- Low cost of Labour
- Experienced and skilled workforce (over 65 thousand new engineers a year)
- A better-developed highway and air transport infrastructure
- Free trade agreements with 44 nations
* Bilateral agreement for aerospace safety with FAA (BASA)
* Agreement with ESA for export produccion to Europe
- Political and economic stability (Inflation rate 3.8% in 2007 and 3.4% in 2006)
Take a look at the cost for Aerospace manufacturing.