The aerospace industry has grown substantially over the years, making Mexico a global hub for manufacturing activity. The growing demand for modernized global airline fleets, as well as the rise of commercial aviation, continues to boost expansion.
Source: trade.gov
According to the International Trade Administration, by mid-2023, Mexico’s aerospace sector expanded from 100 manufacturing firms in 2004 to 368.
Projected growth for the industry is $22 billion within the next three years. When segmented by geography, aerospace clusters within Mexico include:
Mexico’s largest aerospace cluster focuses on precision machining, composites, and assembly.
Key players: Honeywell, Gulfstream, Collins Aerospace and GKN Aerospace
Global manufacturers have a strong presence specializing in engine components, wiring harness, avionics, and landing gear.
Key players: GE Aerospace and Collins Aerospace
Its proximity to the U.S. creates a binational stronghold for the aerospace industry for the production of aerospace machining and subassembly manufacturing.
Key players: GKN Aerospace, Honeywell Aerospace, Safran, Karman Aerospace, and Textron
Clusters in the region capitalize on engineering services, MRO, design, aerostructures, and aircraft interiors.
Key players: Bombardier and Airbus
A growing cluster with Monterrey at its center, focusing on machining and composite manufacturing.
Key players: PCC Aerostructures, Parker, and Frisa
For over 30 years, Mexico has been a manufacturing center for aerospace manufacturers and suppliers from around the world. The reasons for this are wide-ranging and include:
Additionally, when compared to overall lower operational costs, the labor rate is an even better value. And, thanks to the lower cost of living in Mexico, the labor rate is a win-win for all.
| Position | Hourly Salary USD | Weekly Salary USD | Monthly Salary USD | Annual Salary USD |
| Non-Skilled Operator | $6.44 | $309.33 | $1,340.45 | $16,085.40 |
| Semi-Skilled Operator | $6.98 | $334.96 | $1,451.51 | $17,418.12 |
| Skilled Operator | $7.70 | $369.66 | $1,601.85 | $19,222.15 |
| Forklift Driver | $7.98 | $382.88 | $1,659.15 | $19,909.74 |
| Shipping Receiving Clerk | $8.77 | $421.08 | $1,824.69 | $21,896.27 |
| Line Leader | $9.39 | $450.67 | $1,952.90 | $23,434.85 |
| QA Inspector | $7.88 | $378.12 | $1,638.52 | $19,662.25 |
| Maintenance Tech | $12.21 | $586.30 | $2,540.63 | $30,487.59 |
| Receptionist | $10.77 | $516.81 | $2,239.52 | $26,874.29 |
| Production Supervisor | $21.33 | $1,023.86 | $4,436.73 | $53,240.73 |
| Manufacturing Engineer | $32.65 | $1,567.00 | $6,790.33 | $81,483.98 |
| Quality Supervisor | $22.72 | $1,090.32 | $4,724.73 | $56,696.71 |
| Buyer | $24.57 | $1,179.30 | $5,110.30 | $61,323.63 |
| Production Manager | $54.15 | $2,599.06 | $11,262.58 | $135,151.02 |
IVEMSA will create labor and benefit packages customized to keep you competitive and make you an attractive employer, regardless of where in Mexico you choose to set up your business.
For decades, Mexico has served as a key manufacturing hub for companies worldwide with established sectors and supply chains. The country boasts:
In addition to this advantageous connectivity, manufacturers benefit from state-of-the-art industrial facilities equipped with the infrastructure and technology necessary to meet rising market demand.
The majority of the new available buildings are Class A facilities located in either gated industrial parks or secured and standalone buildings. Existing industrial sites are available in A / new buildings, B / buildings that are 5 to 10 years old, and C / buildings that are 10+ years old. Lease terms are available from 3 to 10 years, with leasing rates ranging from:
| Class A | Class B | Class C |
| $0.65 – $0.75/sq. ft. | $0.59 – $0.64/sq. ft. | $0.55 – $0.60/sq. ft. |
In line with the class of building, sites have systems and capacities that meet both current tenant needs and future growth or upgrade needs. IVEMSA’s site selection and negotiation team has over 45+ years of experience in assisting companies to make the right choices and get what they need to meet their manufacturing specifications.
U.S. manufacturers benefit from the rules of origin as laid out in the United States-Mexico-Canada Agreement (USMCA), as well as competitive advantages available when manufacturing in Mexico.
Additional savings are possible through Chapter 98 of Mexico’s tariff schedule, specifically codes 9806.00.05 and 9806.00.06. These provisions allow for duty exemptions on goods used for aircraft maintenance, subassembly, or production—with prior authorization. For aerospace companies facing steep tariff hikes, these tools offer a critical cost-avoidance strategy.
The IMMEX Program (Manufacturing, Maquiladora, and Export Services Industry) is essential to manufacturing in Mexico. Manufacturers can temporarily import equipment, raw materials, and components as long as they’re used to produce goods for export.
As a companion to the IMMEX program approval, VAT Certification grants 16% VAT exemption on temporary imports of machinery, equipment, and raw materials used in the production, which accelerates cost savings for the aerospace industry and has been a significant factor in its growth and continued foreign direct investment into Mexico.
Mexico’s shelter program is a unique way to do business in a foreign country and many international companies choose to operate their manufacturing facilities under this program. The shelter option is one of three choices to operate legally in Mexico. It is proven to be the safest, fastest and the most cost competitive way to start and run manufacturing in Mexico. If you operate under a shelter you will enjoy numerous benefits including:
| Working with IVEMSA | Working Alone | |
| Management Team | No need to hire personnel for administrative functions | Hire full administrative team |
| IT Administrative Platform | Included under IVEMSA Shelter Service | Licenses must be purchased and adapted to your MX operation |
| Consulting Advising | All Administrative consulting support included | Need to hire external advisors with different specialties |
| Supervision | Less training & supervision from HQ | Will significantly increase the need for supervision from HQ |
| Risk & Liability | 45+ Years of experience in setting up new operations in Mexico | Longer learning curve higher risk |
| Focus | Your team focus on manufacturing, quality and production | Managers will be distracted with daily administrative issues |
| Timing | Established team expert in manufacturing start-ups, typically 3 months after lease is executed | New team with limited experience on start-ups typically 6 to 7 months |
| Cost | Shelter cost is estimated to cost you 20% to 30% less vs operating alone | Higher overhead cost with less experience |
An additional benefit of operating under the shelter umbrella in Mexico is that it allows for a rapid start up to operations. In as little as three months you can be up and running. IVEMSA can provide the following services when you operate under our shelter:
Site selectionEnvironmental and health complianceState and federal incentive programs negotiationsHuman resources recruitment, hiring, retention and complianceImport / export complianceStart-up project managementLegal advicePayroll processingGovernment and legal complianceTax and fiscal complianceMexican accountingImport/export services including forms, costs and interface with warehousing and brokersOther companies that are incorporated independently in Mexico can still select individually from the above services to take advantage of the economies of scale offered by a shelter’s administrative services team. Either way, small and large operations receive the benefit of local experts and the cost savings created by a shelter.
Having a knowledgeable expert in Mexico allows your company to tap into networks and resources that assure you are getting the best value for your investment, as well as meeting all local, state and federal regulations. Many companies start out with the shelter program then transition to a standalone entity. Whatever your choice, IVEMSA will fully support you with compliance and expertise every step of the way.
Is setting up an aerospace manufacturing operation in Mexico the right step for your company? Only you can make that decision. But if cutting costs or moving operations from Asia or the U.S. to a more strategic location is a factor in your growth, Mexico is an option that deserves to be considered. For a more detailed analysis of cost savings for your operation, or to see for yourself how Mexico can fit into your cost reduction plans, we can help plan a visit tailored to your specific requirements. Contact us to schedule a consultation.
IVEMSA is a comprehensive administrative services provider with nearly 35 years of supporting foreign companies’ manufacturing operations in Mexico. We offer both shelter and stand-alone support services with a dedicated team of professionals in six functional areas. Many of the IVEMSA team members have been with the company for many years, building and mining the resources and network necessary to provide the smoothest manufacturing operations and shipping possible for companies from around the world. And no matter how the company has grown, the core values of honesty, integrity, hard work and customer satisfaction, remain at the heart of everything IVEMSA does.
Calzada Abelardo L. Rodríguez 885
Colonia Calles, Mexicali,
Baja California, México 21226
Torre Vinta, Piso 17 Oficina 1701
Blvd. Diaz Ordaz # 3065, Colonia
Santa Maria
Monterey, Nl Cp 64650
Via Corporativo Building
Misión de San Javier 10643, Zona Rio
Suite 421. 4to Piso
Tijuana, BC, Mexico 22010
Contact us today and see how we can help you take advantage of all the benefits of manufacturing in Mexico - without the hassle.
