Mexican initiative to incorporate small and medium local companies into the aerospace supply chain

By Adina Moloman

Source: MEXICO NOW

The Mexico Manufacturing aerospace sector is expected to sustain its significant revenue and earnings growth in 2014, underlined by extended record-setting production levels both from OEM’s and its supplier base. In 2013, the Mexican aerospace sector revenue was US$5.463 billion. The export revenue for 2015 is expected to be over US$7.5 billion. Another important goal set by the Mexican government, the achievement of at least 30% domestic content.

In order to accomplish this goal according to Rogelio Garza, Deputy Secretary of Industry and Commerce from the Ministry of Economy, the Mexican government is working on a system to develop a supply chain that not only strengthens the sector but also incorporates small and medium companies through government financing.

It is expected that the Mexican aerospace supply chain will continue to transform, and the local suppliers will consolidate further, since most of the smaller companies are not able to 
afford to invest in the aerospace industry.

The contribution from the Government of Mexico is to support development of local manufacturing processes and capabilities. This project will also support implementation of Lean Manufacturing process improvements within existing local aerospace small suppliers in order to achieve competitiveness enhancements in a timeframe that meets both OEM’s and Tier 1 requirements and the demands of the market.

Supporting small local businesses by providing them access to venture capital and help them in finding new aerospace markets overseas.

Most of the government measures will include supplier development programs, supplier surveillance programs, and co-investments for example; something similar that is doing in the Mexican automotive sector. So far the government is working on creating a better business climate by supporting the development of aerospace clusters.