Mexico Pushes Aerospace Supplier Development, With SME Focus

Project to integrate small local suppliers into Mexico started three years ago.

Mexico’s aviation industry is focusing on expanding the country’s aerospace supplier base, with particular attention to small to medium enterprises (SMEs).

A formal initiative to integrate small local suppliers into Mexico began in 2016, under the National Supplier Development Program (NSDP), directed by the Mexican Aerospace Federation (FEMIA). The Mexico City-based nonprofit, member-funded organization promotes the industry’s growth. Under the NSDP, an SME is defined as a Tier-3 or Tier-4 current or potential supplier.

“Spirit AeroSystems, which assembles wings or fuselages and draws from numerous supply sources, is an example of a Tier-1 company, whereas a Tier 4 supplier provides a specialized local service, such as metal finishing, directly to a Tier-1, Tier-2 or –Tier 3 company,” explains Rene Espinosa, president of the Chihuahua Aerospace Cluster, which currently hosts 45 certified aerospace manufacturing and service operations, and has participated in the NSDP since November 2016.

To put this in perspective, Espinosa likens the traditional OEM/supply chain relationship to a pyramid, with OEM and Tier-1 companies at the top, supplied by an increasing number of smaller Tier-2, -3 and 4 companies toward its base.

“In Mexico, the pyramid in the aerospace supply chain is inverted,” he says. “What we are lacking locally, are the Tier -3 and-4 suppliers, forcing purchasing executives to source materials and semi-finished products from Eastern Europe and Asia. The NSDP has identified over $600 million (US) in annual procurement needs from 45 buyer companies in Mexico.”

Over the past two years, Espinosa reports, some progress has been made. To date, he says, nearly 400 companies in 17 supplier categories have been identified as Tier 2, 3 and 4. “We are working with them to pre-evaluate their readiness and maturity levels and facilitate the integration to aerospace supply chains,” says Espinosa, adding that of the targeted group, six SMEs have established operations in the Chihuahua Aerospace Cluster. “They are now part of the supply chain to Tier 1s and other companies involved with the aerospace industry in Mexico. “It’s only six, but we consider that to be a very good start,” he says.

Espinosa adds that particular interest has been shown by aerospace SMEs in France, Austria and Canada looking to expand their markets.

“Foreign SMEs are starting to look to Mexico as a region that is going to grow,” he says. More than 50% of the labor force of North America and Europe will retire in the following 5 years, forcing key players in the aerospace industry to expand or develop suppliers in countries like Mexico, especially since there has to be a learning curve transferred to younger generations. In that regard, Mexico graduates thousands of technicians and engineers per year.

Source: Paul Seidenman https://www.mro-network.com

If you would like to find out more about this topic or are interested in receiving a complimentary business case analysis for your operation in Mexico, please fill out this form or contact us at:

US toll-free: +1 (877) 698 3905

CAN toll-free: +1 (844) 422 4922

start@americanindustriesgroup.com
Please note that we do not accept job applications here. If you are interested in applying for a position, please visit the following link: https://www.americanindustriesgroup.com/jobs/



Related posts

July 27, 2021
Nissan Mexicana has already produced 15 million engines
Nissan Mexicana celebrates the production of 15 million engines at its Aguascalientes plant. This part will be installed in a Sentra that will be exported to […]
July 27, 2021
Phillips Industries invests US$20 million in Coahuila
The automotive supplier Phillips Industries announced a new expansion project at its plant located in Arteaga, Coahuila, with an investment of US$20 million for the manufacture […]
June 30, 2021
These Are the Places Ranked Best for Expats in 2021
Taiwan, Mexico and Costa Rica have been ranked as the top spots to live and work abroad in 2021, based on their cost of living, ease of settling […]
June 23, 2021
Mexico exports of commercial trucks jump 277%
Truck makers in Mexico exported 12,892 units during May, an increase of 277% compared to the same period in 2020, according to Mexico’s National Association of Bus, […]
June 23, 2021
Mexican economy grows nearly 25% in May as recovery gathers steam
MEXICO CITY, June 17 (Reuters) – Mexico’s economy grew 24.8% in May compared with the same month last year, as a recovery from a slump induced […]
May 27, 2021
General Motors announced investing more than $1 billion in Coahuila
Ramos Arizpe, Coahuila, April 29, 2021 – General Motors announced that it is investing more than one billion dollars in the Ramos Arizpe Manufacturing Complex to […]