The General Aviation Manufacturers Association recently released figures that show the industry may be on the upswing for the first time since 2008, according to an article for Albuquerque Business First. In fact, billing over the first six months in 2013 was $2.2 billion higher than amount from the same period in the previous year. With a growing demand for airplanes, manufacturers will have to partner with suppliers that can help them continue to pump out aircraft, while keeping costs low.
Suppliers in Mexico are a strong option
India and China were once thought of as the best place for aviation manufacturers to produce equipment needed to construct planes. But now companies are beginning to pour funds into Mexico. They are teaming up with shelter companies in Sonora, Baja California or Chihuahua, and setting up their own facilities to supplement manufacturing efforts. Because of this, Mexico is now a hotbed for aerospace manufacturers. According to an article for the Guardian, the country has aspirations to become one of the world's top 10 aviation suppliers, and it is well on its way.
"Our country is attracting the biggest share of aerospace investment worldwide," Carlos Bello Rocha, head of Mexico's Aerospace Industry Federation, told the news source.
Aviation exports are on the rise
A growing number of suppliers are seeing the offshoring benefits of leasing a facility in Mexico to improve production. The Guardian reported about 20 new projects have already been booked in the country during 2013. Aviation exports have double since 2009 and in 2012, the amount of items shipped out of the county reached $5.4 billion. Suppliers that have set up shop across the border are already experiencing high cost savings of between 28 to 34 percent when compared to other countries where suppliers have a large presence.
Being able to produce wire harnesses, fuselages, landing gear, engine parts and turbines, composites, fuel level indicators and interiors, as well as a host of other different aviation items at low costs is key. With the aid of shelter companies in Mexico, suppliers can maximize revenues when distributing their products to aerospace manufacturers. These firms already have a leg up on the competition be being so close to manufacturers in the U.S.
"The country's main asset is that it borders the US, the top market for commercial and military aviation." Alfredo Nolasco, spokesman for Bombardier Mexico, told the Guardian. "Being so close enables us to deliver parts in eight days at the most, compared with more than 20 in Asia."
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