Tuesday, January 21, 2020

The Aerospace Manufacturing Mexico and the take-off of productivity.






The aerospace manufacturing Mexico has also discovered the advantages that Mexico has in today's global manufacturing landscape: a convenient geographical position, numerous free trade agreements, a promising demographic bonus and a highly skilled workforce. In this text the opportunities and challenges that this sector has in our country are broken down.

Mexico has managed to consolidate itself as one of the main manufacturing centers in the Western Hemisphere thanks to a series of comparative advantages with which it has as its privileged geographical position, an open economy with an important network of trade agreements, a large population composed mostly of young people of working age, a competitive and skilled workforce, abundant energy and natural resources, as well as a worldwide recognized macroeconomic stability.

Thanks to this, in 2014 our manufacturing exports reached 337 thousand 289 million dollars and represented 85% of the total exports of that year. In this sense, our country exports 65% more manufactures than all of Latin America together and participates in several sophisticated sectors such as automotive and electronics. In addition, Mexico is a growing player worldwide in the aerospace sector.

Currently, the global aerospace industry is going through one of its best moments, which constitutes one of the most relevant opportunities for Mexico in order to increase the national content of its exports and thereby generate the quality jobs that thousands of Mexicans require .


Global overview of the aerospace sector

Globally, one of the most dynamic and fastest growing industries is aerospace. According to the International Air Transport Association, in 2016 there will be around 3,600 million plane trips in the world, about 800 million more than those registered in 2011. According to this Association, between 2012 and 2016, the Passenger traffic on flights will grow on average 5.3% per year. On the other hand, the international cargo service will grow on average 3% per year to reach 34.5 million tons in 2016, 4.8 million tons more than in 2011.

By 2032 it is predicted that the fleet of aircraft, both passenger and cargo with a capacity of ten tons, will be 36,556 aircraft, which implies a significant increase if it is considered that there are currently about 18 thousand ships in commercial service.

Single-aisle passenger aircraft, commonly used by low-cost airlines, represent the largest segment of new orders and in the next 20 years are expected
20,240 deliveries of this type of aircraft. For the same period, it is projected that the demand for double-aisle aircraft will amount to 6,780 new orders, while those for cargo will increase to 500.

Mexico exports 65% more manufactures than all of Latin America together and participates in several sophisticated sectors such as automotive and electronics



Also, the companies producing the sector seek to reduce fuel consumption in new aircraft, in order to meet the demands of operators, which must lower their costs in the face of growing competition between airlines.

Within this context, Mexico is positioning itself globally as an important player for the main aerospace companies that must increase their competitiveness. This sector represents one of the main opportunities that our country has to take advantage of its comparative advantages and its important industrial development in order to increase the national content of our exports, generate more and better jobs, and increase the country's level of productivity.


Aerospace sector in Mexico

Currently, in Mexico there are more than 300 companies in the aerospace sector. Of these 80% are manufacturing, while 20% offer design and engineering services, as well as maintenance, repair and operations (MRO).


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