Ready for takeoff: Mexico Aerospace Sector Overview
Mexico has become a manufacturing center of excellence in the aerospace field for North America and Latin America, producing sophisticated components such as jet engine components, landing systems, drones, etc.
Before 2020, the aerospace sector in Mexico was growing at a 14% annual rate on average. And although the pandemic brought a tremendous pressure on the global economy, especially civil aviation, Mexico remained in a prime position to benefit from an economic bounce back. Current estimates indicate that aerospace exports reached US$8 billion in 2022, a 16% increase from 2021 figures.
And although location, skilled labor and trade agreements have propelled Mexico as a net exporter, the effort by the private and public sector in Mexico to meet certain industry standards and international agreements such as, Bilateral Aviation Safety Agreement (BASA), NADCAP and AS9100 have solidified Mexico’s position as a net exporter of aerospace components.
According to the Mexican Aerospace Federation (FEMIA) there are over 360 aerospace companies operating in Mexico (OEM, Tier1 and Tier2 companies). And the Secretariat of Economy projects that by 2025 the sector will generate 100,000 jobs.
What does Mexico manufacture?
Aerospace parts that are produced in Mexico include components for commercial and military aircraft, such as airframe structures, landing gear, and electrical systems. Mexico also produces parts for spacecraft and satellites, including power systems, thermal control systems, and propulsion systems. The largest machining center for components and turbines in Latin America is located in Mexico.
Where are these products going?
According to FEMIA, over 80% of Mexican aerospace exports go to the U.S., 4.7% to Canada, 3.5% to France, 3.2% to Germany and 7.9% to other markets.
Overall, Mexico's aerospace industry is a significant contributor to the country's economy and is poised for continued growth in the future.
If you are interested in exploring opportunities in the Mexican Aerospace Sector, contact Capstone for a free initial 1hr consultation to assess the potential of your product or service.
#aerospace #manufacturing #supplychain #usmca #mexico