Aerospace Manufacturing in Mexico Today

Summary Overview:

A look at how much aerospace manufacturing has evolved over the past 60 years and how Mexico shelter companies continue to support this growth.

The aerospace manufacturing industry has grown year after year, with the Federación Mexicana de la Industria Aeroespacial reporting growth from 100 manufacturing firms in 2004 to over 350 by mid-2022.

Additionally, nearly half of the foreign direct investment (FDI) in aerospace manufacturing in Mexico is from the U.S., followed by Canada.

What prompted the growth?

Continual FDI and developments in the sector have led to the rise of Mexico shelter manufacturing. This was ignited by the launch of Mexico’s maquiladora program in the mid-1960s, which offered U.S. and other foreign manufacturers cost-saving advantages and efficiencies in order to stimulate local economic development.

Furthermore, the arrival of Bombardier over 20 years ago paved the way for several government programs, including business incentives, training programs, and university opportunities. Since then, other aerospace manufacturers that have also had a long-term presence in Mexico include:

• Collins Aerospace (now part of Raytheon Technologies Corp)
• Safran Group
• Textron Aviation
• Gulfstream
• GKN Aerospace
• Honeywell
• Airbus

There are large aerospace suppliers already in Mexico supporting a very mature industry. Many smaller and medium-sized aerospace manufacturers wanting to gain entry into Mexico shelter manufacturing seek the local resources and expertise that many of the larger companies already have.

Why partner with a Mexico shelter company?

A shelter company takes on the administrative responsibilities required to launch production in Mexico. This includes:

• HR and payroll
• Taxes and accounting
• Site selection
• Labor recruiting and retention
• Trade compliance

Many manufacturers first connect with a Mexico shelter company for a cost analysis. Whether they are seeking to lease a new production space or want to compare locations based on available labor or suppliers, a shelter company can evaluate viable areas and illustrate cost comparisons and savings.

Which companies offer shelter services for aerospace manufacturing in Mexico?

There are several Mexico shelter companies available to assist foreign manufacturers new to  Mexico. While most offer similar services, there are other factors to consider to find the right fit, such as:

• Experience and expertise

Because of the strong presence of the aerospace manufacturing industry in Mexico, it’s valuable to have local support that’s familiar with established areas, suppliers, and labor pools specific to the sector.

• Transparent pricing and services

A clear layout of services and associated prices allows manufacturers to understand exactly what is included when working with a shelter company, rather than face surprise or hidden costs.

• Flexible, tailored solutions

It’s important to work with a Mexico shelter company willing to adapt services and stay agile. Whether it’s scaling production or stopping it altogether, the focus should be on what’s needed by the manufacturer at any given time.

• Reputation and client retention

A high client retention rate and a strong reputation instill confidence in foreign manufacturers unsure of where to get started. Knowing others in their position have worked with a shelter company and have experienced success can be motivation to start a partnership.

Why IVEMSA?

IVEMSA has delivered excellent services and flexible solutions for 40 years and maintains a 15-year average customer retention rate. With a model based on honesty and integrity, manufacturers across all sectors have relied on their shelter services and support to succeed.

If you’re interested in being part of the growth of today’s aerospace manufacturing in Mexico and seek the help of a shelter company, contact us today to start a conversation.

Source:

https://www.trade.gov/country-commercial-guides/mexico-aerospace