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Mexico's growing aerospace industry

There is an employee working on manufacturing a new product in a factory.
30 Aug 2013

According to an official from the Mexican Aerospace Industry Federation (FEMIA), exports in the industry grew 24.2 percent year-over-year in 2012. These exports totaled $5.4 billion. For the fourth consecutive year, Mexico was the country to attract the most direct foreign investment in the global aerospace industry.

Many companies choose manufacturing in Mexico for several reasons. The aerospace industry in particular enjoys its choice of several major manufacturing hubs in the country, and manufacturers in Mexico in all industries enjoy low costs, proximity to the U.S. and a generally educated and competent workforce.

Companies that choose offshore manufacturing are not engaging in outsourcing, which is quite a different practice. In outsourcing, a business contracts with another firm to complete certain tasks, in this case manufacturing. In offshoring, however, a company opens a plant in another country over which it maintains control. This can be simplified greatly by working with shelter companies, which can help acquire ideal sites for factories, skilled workers and more. Because the company itself is operating overseas, it's important to have a partner that understands local business culture and can navigate it to the best possible effect.

Those businesses in the aerospace industry that choose to manufacture in Mexico are in plentiful company for these reasons. A cost-effective alternative to domestic manufacturing that is also an outsourcing alternative is very appealing to many firms. Indeed, there are enough companies working in the industry in Mexico to support a yearly conference on the topic. This year, the Mexico Aerospace Summit's third, it will be held in Queretaro. The conference aims to showcase the products of the aerospace industry, many of which are manufacturing from beginning to end in Mexico.

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