One of the key industries Mexican manufacturing serves is undoubtedly the aerospace and allied industries. Serving not only the defense industry, private aircraft demand, and the commercial airliner market, Mexico’s aerospace industry is diverse, robust, and growing.
In spite of facing legitimate challenges and a severe setback in 2020, ultimately, the market is rebounding and demonstrating profound resiliency. With a diversified supplier network and deep pool of skilled labor, aerospace manufacturing in Mexico presents a unique opportunity.
Mexico’s aerospace industry has played a major role in the country’s economic development. This is true both as an industrial sector and in terms of its connection with commercial, private, and defense aviation growth. Mexico is host to a wide array of aerospace manufacturers in all three of these subsectors.
According to the Mexican Aerospace Industry Federation (FEMIA) and US trade data, the industry experienced 15% average annual export growth in the decade, 2010-2020. Additionally, it created upwards of 60,000 jobs among the country’s skilled workforce. Most of these laborers were trained to order by an alliance between industry and academia built on the German model.
Mexico has continued to attract extensive foreign direct investment (FDI) in the aerospace manufacturing field. This one industry alone accounted for around $5.5 billion USD in total foreign investment in 2020-2021.
Aerospace manufacturing is actually relatively young in Mexico, though its dominance in this industry doesn’t show it. The Latin American country has been on the cutting edge of aerospace innovation and assembly for decades. The manufacturing-dense state of Baja California provides one example of an industry hub, where one company has been turning out products for this market for over 60 years. With key infrastructure supporting the manufacture of large and small craft, the region boasts numerous companies in aerospace.
In Mexico, aerospace is one of leading business sectors, supporting continued economic growth, ever increasing levels of foreign investment, and creating new jobs as the demands and technology for this market evolve. Despite the 2020 crisis, the industry has continued to grow over the past few years and is expected to continue to do so. This is in large part thanks to global demand for new services and aircraft.
Mexico’s aerospace and aviation industry continues to face several notable challenges – one of which is the downturn in passenger travel the world saw after 2020 and the fear of contagion. Some reports suggest the industry should focus on redevelopment and renewal to support long-term needs and on identifying opportunities for improvement. Supply chains must be analyzed and optimized.
While the industry experienced a severe blow with the global downturn from 2020, the recovery phase is well underway. The turbulent times experienced in 2020-2022 seem to be behind us, and the industry has experienced more vigorous growth recently.
Mexico is also seeking to accelerate this growth and enhance its standing as an aerospace manufacturing destination of choice by acquiring reclassification from the US Federal Aviation Administration (FAA) as a Category 1 air space. This reclassification combined with the inauguration of Felipe Angeles International Airport (AIFA) in early 2022 are bolstering aviation in Mexico.
Mexico is a vibrant hub for the aerospace industry. With numerous world leaders in this industry investing heavily in Mexico, there are a growing number of aerospace factories supplying these OEMs with parts and materials. Some of these leaders investing in Mexico’s aerospace industry include:
Why are so many aerospace companies manufacturing in Mexico? There are many factors contributing to Mexico’s emerging status as one of the world’s leading manufacturers for aerospace. Some of the main advantages that make this Latin American country such an attractive destination for aerospace manufacturers include the following:
The state of Mexico’s aerospace industry is both emerging and well established. Its roots run deep, yet there is ample room for future potential. While it continues to face certain headwinds, there are concurrently significant advantages propelling its growth. Numerous leaders have already established supply chains in about half of Mexico’s states, yet there is still untapped potential. There is reason to believe Mexico’s growing status as an aviation and aerospace manufacturing powerhouse is just getting started.
