Latin America, the next big thing in aerospace industry
By Adina Moloman
Sources: Economy watch; Aerospace-technology.com; Promexico.gob.mx/ National Flight Plan (Mexico); www.trade.gov/Flight Plan 2011(US)
It has been proved that there are a few strategic countries for the development of aero-space industries, such as: China, India, Russia, Brazil and Mexico, where most of US, Europe and Canadian air craft companies are willing to invest.
China and Brazil are a clear example of countries, which have been acquiring general aviation capabilities through foreign direct investment and now Mexico is following their steps.
Most US air and military companies strategically are orienting their investments in Latin America, considering mainly Brazil and Mexico for their high engineering and manufacturing capabilities proved by organizing themselves in important aerospace clusters.
For instance in Brazil there is an important foreign direct investment in maintenance, repair, and overhaul industry, manufacturers operating MRO facilities such as GE, Rolls-Royce, Pratt & Whitney Canada, and Goodrich, etc. Brazil also manufactures turboprops, military aircraft, agricultural aircraft, business aircraft, helicopters, and other general aviation aircraft.
But the success Brazilian story is the production of regional jets, by its Brazilian manufacturer Embraer the main competitor of Canada‘s Bombardier.
The Brazilian aerospace industry started in the 70’s with an accelerating growth in the 90’s and has become a major player after 2006, where many of local Brazilian aerospace companies are integrated into the global aerospace supply chain, comparing to Mexico local suppliers, which are just starting to integrate, but nevertheless during the past ten years, the Mexican aerospace industry has acknowledged a rapid and constant growth.
As a result of a strong cooperation between governments, universities and private sectors, which are working together to promote and rise the capabilities of aerospace sector in Mexico, foreign manufacturers who were already installed in Mexico are now planning to increase their operations not only manufacturing but also established an engineering base.
For instance in Mexico, Baja CA, Chihuahua, Nuevo Leon, Sonora and Queretaro have larger aerospace clusters where most of the manufacturers are working under the Mexico Maquiladora Program.
For 2012, there are almost 300 aerospace companies registered in Mexico.
The strategic clusters mentioned above are having different vocation: Baja California is manufacturing interiors and electric power systems manly for US aerospace companies; Sonora cluster is manufacturing highly complex engine parts; Chihuahua cluster is manufacturing for the military and defense industries; Queretaro cluster is manufacturing and assembles complex fuselage parts (engine components and subassemblies and thermal and surface treatments), etc.
Mexico has developed significant Engineering & Design capabilities for military and civil applications that supply mainly markets in the United States, Canada, Germany and France.
