Advantages of Nearshoring in Mexico, Key Highlights and 2016 Industry Overview.
Why are Aerospace Manufacturers Expanding to Mexico?
Mexico’s aerospace industry has sustained a strong reputation for decades, positioning itself as the leading country for aerospace manufacturing and the sixth largest supplier of aerospace products to the US, China, Singapore, Taiwan and South Korea. Some of the major global aerospace firms have been in the region since the beginning including: Gulfstream (28 years) Rockwell Collins (48 years), Chromalloy (38 years) and Honeywell (31 years).
Major international and US defense contractors such as BAE Systems, Lockheed Martin and Delphi, established operations in Mexico during the late 80’s and early 90’s. It hasn’t stopped there – earlier this year ICON Aircraft joined other major manufacturers expanding into Mexico.
The State of Baja California has the largest concentration of aerospace companies, and therefore a large aerospace supply chain. It is home to over 82 aerospace companies and more than 28,000 employees for design, assembly, manufacture and MRO. Baja California is known for being the Mexican State with the most dynamic binational aerospace economic activity, excellent access to NAFTA and easy access logistically for raw materials, components and machinery. Baja California has also the only Binational Aerospace Cluster in Mexico.
The region boasts a school-to-work pipeline aerospace industry well supported by infrastructure and universities. Honeywell has established a testing lab and wind tunnel in Mexicali and partners directly with the well-regarded universities in the region to funnel talent directly into their workforce. The regional government is working to supplement overall development which includes the industry's design and engineering output. It also focuses on providing well-trained and efficient labor to companies expanding into Mexico by introducing advanced aerospace curriculums in leading training and education institutions. This workforce will be ideal for handling simple to complex aerospace jobs.
For all these reasons and many more, we invite you to visit us so you can see first-hand why Baja California is the Mexican frontier for aerospace and defense manufacturing:
The North American Free Trade Agreement (NAFTA) has allowed various industrial sectors free or low tariffs for the import and export of products since 1994. Additionally, Mexico created the Special Aerospace Tariff Section 9806.00.06 & .05 that allows for free imports into Mexico to assemble or manufacture aircraft or aircraft parts. This special section also allows for goods to be imported with no tariffs for the maintenance and repair of aircraft and aircraft parts.
This means you can bring your aerospace manufacturing operations to Mexico without incurring additional costs on parts and components supply through the import process!
At Co-Production International, Inc. we know the fine requirements for aerospace and defense manufacturing industries. From the accreditations and certifications required by the FAA, ITAC, to Nadcap, we’ve helped companies like ICON Aircraft and BAP Aerospace open successful and profitable operations in Mexico.
“ICON is making a significant investment in its Mexico operations. The economic impact is over $150M over the next 10 years. In addition, ICON will leverage this location to develop Mexican business partners and qualified suppliers for other aircraft components.”
“We plan to replicate the same certification and compliance standards in our Tijuana facility and the infrastructure in Tijuana is world-class and we have had no problem finding highly skilled workers with plating expertise.”