Diversity and Benefits of this National Industry
Founded in 2015 and held biannually, Mexico’s Aerospace Fair (FAMEX), is an event organized by the National Secretary of Defense through Mexico’s Air Force aimed at promoting economic development in the national aeronautics sector. American Industries has actively participated in this event over the years, time during which it has expanded from the participation of 240 companies in 16 counties in 2015 to 635 from 39 countries in 2019.
Today it is the most important aerospace fair in Latin America, bringing together key players in the international aeronautics industry. Highlights from this year’s event included a variety of seminars, such as the Foreign Investment Seminar: Land in Mexico and Take Off to the World, which this year included two panels. American Industries has participated in this seminar consistently over the years to highlight the benefits of doing business in Mexico and why and how companies should set up here.
Luis Lizcano, Executive President of the Mexican Federation of Aerospace Industry (FEMIA) moderated the first panel entitled Soft Landing Services: Site Selection, in which American Industries’ Business Development Director, Adán Gómez, was a panelist. He talked about how starting up operations in Mexico can help to mitigate the constant changes in today’s global business climate due to shifts in trade policies, commercial and supply chain disruptions, climate events, and rising manufacturing costs in China.
In addition, Mr. Gómez shared that the best way to do establish operations here is by working with a shelter company in Mexico. American Industries, specifically, has well-established relationships with the Mexican government on all levels, as well as educational institutions, and chambers of commerce and industry. This not only allows international companies in Mexico operate without forming their own legal entity in the country, thereby minimizing legal, tax, customs and other liabilities, but also ensures compliance with all Mexican laws and regulations, among other benefits.
The other panel, which was moderated by Monica Duhem, Head of the Global Economic Intelligence Unit of the Ministry of Economy, was entitled Business Opportunities and Success Stories of the Mexican Aeronautical Industry. The panelists for this event were representatives from four of the world’s largest aerospace manufacturers (Airbus, GE IQ, Honeywell, and Safran) who shared their success stories in Mexico and the variety of benefits of operating here.
Airbus’ representative shared how the company currently has three divisions operating in Mexico and that today their plant in Queretaro is four times larger than they had expected. He mentioned that since the company mainly exports to Europe, it is not just Mexico’s strategic location close to the US that is an advantage, but more importantly, the mindset and attitude of the people, highlighting that its human talent is the main factor that has helped them to achieve high levels of quality and increase their competitiveness.
GE IQ’s representative echoed this, mentioning that it is the high-quality, educated, and productive personnel in Mexico that has made the difference in their company. He affirmed that value of GE’s engineering center in Mexico (established 22 years ago in 1999) is the ability of its people to solve problems. Currently, 25% of the 1,500 employees working there have advanced degrees in mechanical, aeronautical and control engineering, feat which has been made possible through successful collaborations with the country’s most important universities.
GE’s representative also shared news about a revolutionary turbo fan it is it is currently co-developing with Safran that expected to be released in the 2030s. This project is a perfect example of how the entire life cycle of a product—from concept to engineering and manufacturing—has been consolidated in Mexico to create a better understanding of the industry and more opportunities for companies operating here.
Next, Safran, the 3rd largest aerospace company in the world and the number one employer in the aeronautics industry in Mexico, shared how is considered Mexico as key country for the company’s production and development. He also mentioned the productivity and reliability of its workforce, which is made up of almost 70% women in Chihuahua plant, and that they will be opening a new plant in Chihuahua this year.
Honeywell also shared that a big part of its success here is the high technical capacity of its engineers. This, in addition to the high quality products produced here at lower costs, and the ability to develop creative solutions. He mentioned that this creativity was key in adapting to the pandemic last year with supply chain problems. The company was able to quickly add new special processes here in Mexico, integrating the full process development, including hiring new employees (technicians and engineers), and adding additional infrastructure.
On the other hand, Claudia Ávila, Director of the Mexican Association of Private Industrial Parks, organization of which American Industries is a proud member, discussed the advantages of setting up operations in industrial parks and why they are the backbone of industry in Mexico.
FAMEX is a not-to-be-missed event exemplifying the caliber of international companies in Mexico and why it is a strategic destination for companies in all sectors. If you would like to learn more about aerospace manufacturing in Mexico and the benefits of doing business here, don’t hesitate to contact us.
By Jorge Baca S. | Queretaro Regional Director | American Industries Group®
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