Luis G. Lizcano is Director General of the Mexican Federation of the Aerospace Industry, FEMIA.
Mexico represents, especially for European investors, the possibility of establishing a highly competitive business platform for North America.
The Mexican Federation of the Aerospace Industry, FEMIA, emerged at the end of 2007 with the aim of promoting the country's aerospace industry. How has the sector evolved from then until now?
Although there have been Aerospace Industry operations in Mexico for more than 30 years, it can be considered that as an industrial trend, the Mexican Aerospace Industry started in the 2000s when different OEMs and Tier 1 companies began to consider Mexico as an option to establish operations mainly in manufacturing (Bombardier, Cessna, Beechcraft, etc.).) At that time, annual exports amounted to 1,306 million dollars; later, in 2007, with 21 founding members, the Mexican Federation of the Aerospace Industry was created, motivating important companies in the aerospace sector to find in Mexico the necessary conditions to develop and promote various projects. In 2014, exports closed at 6,366 million $, which represents an average annual growth of 17%, generating more than 42,000 jobs in around 300 companies located mainly in states such as Querétaro, Baja California, Chihuahua, Nuevo León and Sonora.
The Mexican aerospace industry is growing steadily, as evidenced by job creation and export figures. What are your economic forecasts for the short and medium term?
Thanks to the signing of agreements such as BASA and Wassenar, the aerospace outlook in Mexico in the short term is very promising. It is estimated that by 2020 Mexico will be among the top 10 international exporters, generating 12 billion in aerospace goods. In terms of employment, 110,000 direct jobs are expected, of which from 30% to 35% will be engineering positions. A national integration of 50% in manufacturing for the industry and second place in the manufacturing sector in the value added / sales chapter.
In the medium term, it is estimated that around 32,000 new commercial passenger aircraft will be required by 2035. To put this figure into perspective, it is worth mentioning that the current world fleet is just over 20,000. This need will undoubtedly have an impact on a general increase in the business of the Mexican Aerospace Industry.
What are the states or clusters with the most potential and areas of specialisation in Mexico's aerospace sector? What business opportunities does Mexico offer to investors, especially European investors who represent the lowest percentage of investment capital?
The aerospace industry is present in 18 of Mexico's 32 states, although there is currently a significant concentration in five of them (Baja California, Chihuahua, Nuevo León, Querétaro and Sonora). These states have design and engineering centres specialising in aeroparts consisting of parts for engines (propulsion), wiring, harnesses, interiors, flight control systems, fuselage, avionics, among others. As for Mexico's specialisation in the sector, the distribution by number of companies in the sector is approximately 80% of the companies are concentrated in manufacturing, 11% in MRO (Maintenance, Repair and Overhaul) and 9% in engineering and design.
Mexico represents, especially for European investors, the possibility of establishing a highly competitive business platform for North America (United States, Canada and Mexico). According to a KPMG study, Mexico is the most competitive country in the hemisphere due to its low manufacturing costs. In addition, Mexico offers an attractive scheme for the establishment of investment companies, as its legal framework facilitates this process, in addition to the presence of the so-called "greenfield" companies. Shelters that provide human capital and multiple facilities to accelerate the installation process in the country. Mexico has experienced construction companies and industrial parks. For European investors, setting up in Mexico is easier than it seems, as the country offers multiple investment schemes.
Some forecasts estimate that by 2035 there could be 900 aerospace industry suppliers in Mexico. What are FEMIA's challenges for the coming decades?
Analysing the current situation and the projections set for 2020, the challenge is not so much the number of suppliers, but rather the proper integration of the supply chain and keep pace in the generation of human capital at the technical level to meet the rapidly growing demand. However, the country's industry, authorities and education sector are working to meet these challenges.
The training of future professionals in the aerospace sector is also a fundamental aspect to which Mexico contributes, for example, more than 50,000 engineers per year. What do you think will be the major challenges for the aeronautical training of future Mexican professionals?
Mexico has demonstrated its capacity to host the best companies in the aerospace sector, providing them with highly qualified professionals to produce, design, manufacture and market aeronautical components, as well as their maintenance and repair. The growth in demand has been so great that universities and careers specialising in the sector have been built, mainly in states such as Querétaro, Chihuahua, Nuevo León, Baja California and Sonora, to mention a few. The main challenges that future engineers would face would be to be at the forefront in the implementation of new processes and technologies in the manufacture and maintenance of aeroparts and aircraft, constant updating in the knowledge of the aerospace sector, as well as its needs and the development of national certification centres operated at 100% by Mexican personnel.
Is the "triple helix" strategy, based on joint work between business, universities and government, the formula for success in consolidating the sector?
Undoubtedly, the joint work of companies, government and academia has proved to be a fundamental factor in the development that the industry has shown in the country, and we are sure that this strategy will continue to give good results in the future to face the promising growth of this strategic industry for the country.
What is the roadmap for the National Strategic Aerospace Programme?
The National Strategic Aerospace Industry Programme (ProAereo), through the coordination of a committee made up of government, private sector and academia, designed strategies to position Mexico as one of the most competitive nations in the global aerospace sector. With the ''triple helix'' strategy, Mexico has achieved the results of growth in exports and investment to position itself as a key player in the North American aerospace platform.
