Queretaro aerospace companies seek to gain 10% of the supply market in Mexico

The Tier 1 and OEM companies attached to the Aeroclúster de Querétaro seek to obtain 10% of their supply in the region in five years, anticipated Juan Carlos Corral Martín , president of this organization.

The challenge is great, warned the industrial leader, since currently the local supplier does not represent even 5% of the total required by these manufacturers of air transport equipment.

“In particular, in Querétaro , we have a very small percentage of national suppliers, I would say not higher than 5 percent. It is very low, mainly because there is a lack of raw material companies, especially forges, foundries, all this type of raw material […] That is the challenge of the Aeroclúster , trying to achieve that we reach at least 10% of local purchases in the coming years, no more than five years”, explained the also general director of ITP Aero in Mexico.

Although it seems like a marginal percentage compared to the total that the value chain of this industry represents, it is significant for the region, because “if 1,250 million dollars are billed in the aerospace sector in Querétaro , that 125 million dollars are at least of local suppliers”, added the interviewee.

The objective of relocating supply chains is to counteract the risks that exist when having supply sources far from local production centers.

The current logistics crisis, armed conflicts, the lack of raw materials and future health contingencies, similar to the one that occurred by Covid-19, make it urgent to diversify these supply sources.

“We have inventory, but inventory is not infinite. If the war [between Russia and Ukraine ] ends in a couple of months, we could say: well, it's hit us, [but we're moving on]; however, if it is a war that drags on, like in Iraq or Pakistan , then the result can be truly catastrophic.

“ Russia has very important titanium and nickel companies in the world. Raw material prices are growing, the large number of alloys we use for engines are nickel and cobalt alloys, yes they are affecting us. The costs of raw materials, energy, salary costs are growing”, warned the president of the Aeroclúster de Querétaro.

For this reason, this organization has programs to help small and medium-sized companies to integrate into the aerospace supply chain, who must be certified and prepare their collaborators to achieve the high production and quality standards that this industry demands, concluded Corral Martín.

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Source: Mexico Industry