Growth of 11% is expected in Mexico’s aerospace industry this year to bring the total value of annual exports to US $8 billion, the sector’s trade association says.
Luis Lizcano, president of the Mexican Aerospace Industry Federation (Femia), told the newspaper Milenio that he anticipates demand for airplane parts to continue to grow because manufacturers including Boeing and Airbus have forecast greater demand for both passenger and cargo airplanes.
Boeing has said that there will be a demand for an additional 3,500 airplanes in Latin America by the year 2034, representing sales of US $350 billion, while Airbus places the demand at a more modest 2,540 planes.
In any case, millions of new parts will be needed and that will translate into higher demand in Mexico, Lizcano explained, adding that while cars generally have around 4,500 parts, airplanes have more than 6.5 million.
He also said that 13 years ago there were just 100 United States and European companies operating in the sector in Mexico but that number has since grown to 330.
Some of the Mexican companies expected to benefit from increased demand include Hemaq, Mexicana MRO and Oaxaca Aerospace. French company Safran — Mexico’s largest employer in the aerospace sector — has announced new investment in Mexico, where it already operates several plants, in response to the expected growth in demand.
The states with the largest presence of aerospace manufacturing companies are Baja California, Chihuahua, Nuevo León. Querétaro and Sonora.
On August 30 and 31 the industry will hold its sevent Aerospace Summit in Querétaro where industry representatives will discuss opportunities and challenges in the sector.
Growth in the industry is expected to offset potential losses in other industries from an expected renegotiation of the North American Free Trade Agreement (NAFTA) with talks scheduled to begin this month.
However, the aerospace industry is not the only sector to announce growth recently. Increases in both production and exports in the automotive industry were also reported last month.
Source: Milenio (sp)