AEROSPACE MARKET OPPORTUNITIES IN MEXICO FARNBOROUGH INTERNATIONAL AIRSHOW 19-25 July, 2010 Farnborough, United Kindom
INDEX The aerospace Industry in Mexico Opportunities in the Aerospace Industry Challenges of the Aerospace Industry
FEMIA AND THE AEROSPACE INDUSTRY IN MEXICO Established in November 2007, FEMIA has over 50 members that have generated over 2.5 billion U.S. dollars of products and services exports in 2009. Industry shows a growth potential of 14% in 2010. FEMIA is a non for profit association recognized by the Federal Government. It covers the whole country with the purpose to gather all national and foreign corporations within this sector. The aerospace industry in Mexico is considered a strategic industry with high impact in the country, predominately in the northwest, northeast and central regions of Mexico. OEMs and large Tier 1 corporations have benefited from clusters facilitating the logistics with their suppliers. The industry and the government of Mexico have increasingly moved toward a clusterization in the country. This has represented a tangible opportunity to the companies establishing production facilities in Mexico.
THE AEROSPACE INDUSTRY IN MEXICO SOME KEY OBJECTIVES OF FEMIA Networking amongst members and facilitate industrial data through FEMIA s commissions, namely, in training, competitiveness, incentives, logistics, national security, and infrastructure. To represent members with all government agencies. To assist the federal government in the passing of aerospace regulation according to industry needs and requirements. To develop with the national educational system the number of highly qualified technicians and professionals to meet industry requirements. To promote the certification of all members with internationally recognized industry certifications, specially NADCAP, AS-9100 or equivalents and governmental authorities certifications.
THE AEROSPACE INDUSTRY IN MEXICO LOCATION AND GEOGRAFIC DISTRIBUTION Northwest Region: Baja California (51) Sonora (32) Chihuahua (27) Nor theast Region: Coahuila (6) Nuevo León (24) Tamaulipas (11) Centr al Region: Distrito Federal (7) Edo. de México (5) Querétaro (16) San Luis Potosí (6) Puebla (3) West Region: Aguascalientes (2) Jalisco ( 6 ) Zacatecas (1) Southeast Region: Source: Dirección General de Industrias Pesadas y de Alta Tecnología, SCT, ProMéxico y FEMIA Cor por ations: 199 States: 16 Employees: over 27,000 Yucatan (3) Guerrero (1)
The Aerospace Industry in Mexico The development of the aerospace industry in Mexico is recent and its growth has been outstanding Corporations: approximately 199: 79% in manufacturing, 11% in MRO and 10% in a engineering and design. Employment: Over 27,000 employees in 16 states of Mexico. Exports: 2,728 million USD. in 2007 and 3,127 million USD in 2008. Expecting to reach at least 2,700 million USD. of exports in 2009, given the recession. In 2010 we are Expecting to reach a growth of 14% in exports.
Aerospace Industry in Mexico Structure by number of Employees Micro 7% Small 22% Large 28% Medium 43% Source: S.E. Size No. de Employers Micro 1-10 Small 11-50 Medium 51-250 Large More than 251 15 corporations have over 500 employees, 8 in Baja California, 2 in Chihuahua, 3 in Querétaro and 1 in Choahuila and Tamaulipas. Dirección General de Industrias Pesadas y de Alta Tecnología
The Aerospace Industry in Mexico Main Manufacturing and Assemble Activities Engine Components Harnesses and Cables Structural & Electronic Assemblies Components of Landing Systems Plastic Injection and Molding Heat Exchangers Precision Machining Audio & Video Systems Fuselage Insulation Production Control Software Over 78 specific processes
The Aerospace Industry in Mexico Main MRO Activities Turbines and Engines APU (Auxiliary Power Units) Fuselage Electric Electronic Systems Landing Gears Dynamic Components Propellers and Blades Coating, Corrosion and Protection Interior Refurnish NDT Techniques
The Aerospace Industry in Mexico Main Design and Engineering Activities Aerodynamics Control Systems CFD CAD/CAM Quality Systems Instrumentation Flight Simulation NDT Techniques Virtual Instrumentation Signal-Image Logging and Processing Business Information Systems Hardware Design Embedded Systems
Trade of the Aerospace Industry in Mexico 4000. 3000 2000 1000 0 1266 1342 1299 1058 961 1055 2728 2029 1674 1924 1271 923 2466 3127 2700 2100 3100 2400 IMPORTS EXPORTS 2002 2003 2004 2005 2006 2007 2008 2009e 2010e Source: DGIPAT with data from DGCE, * Figures in millions USD.
Stages of the Aerospace Industry in Mexico 1st Stage Simple assembles Aero-parts manufacture Consolidation of the industry and its special education and training programs 2nd Stage 2nd Stage Fusselage manufacturing Special ts parts and products 3rd Stage Airplane assemblies Design Innovation 1 2 3
The Aerospace Industry in Mexico Supply Chains Number of suppliers of the main OEM by aircraft model and suppliers in Mexico Corporation Model # 0f suppliers # of suppliers in Mexico* Percentage Airbus 330-300 355 16 4.5 Airbus A380 399 20 Boeing 787 299 14 5.0 4.7 Boeing Bombardier 747-400 CRJ200 354 12 3.4 299 13 4.3 Embraer 279 17 6.1 ERJ 135 * Identified suppliers not necessarily supply parts for the mentioned models Source: S.E.and AROSPACE DATABASE, PROGRAM TRACKER
OPPORTUNITIES IN THE AEROSPACE INDUSTRY Raw materials, parts and supply systems. MRO. Design and Innovation of parts and processes of the aerospace industry. Development of local suppliers. Well defined market and at our reach. To sign international covenants necessary to open markets Mexico is the 8 supplier of aerospace components in the US market.
The Aerospace Industry in Mexico Aspects to be considered for the development of suppliers Source: Aerospace and Defense Industry Survey, Aviation Week and Space Technology, Aerospace Industries Association, y CSC, Dirección General de Industrias Pesadas y de Alta Tecnología
To promote our members in events and missions inside and outside the country to increase their international markets. OPPORTUNITIES IN THE AEROSPACE INDUSTRY Competitiveness Commission Provides the supply at all levels of raw materials, products, processes and services for our associates and affiliates, to increase their manufacturing capabilities and production to compete with similar corporations worldwide in the international markets of the aerospace industry. Provides the technology, certifications and other characteristics demanded by their clients and buyers. Will continue negotiationg with the authorities the support programs offered to companies that supply the needs required for the aerospace industry, such as Fondo Pyme and others. To obtain all years economic support needed for certification programs from the industrial authorities of the country.
OPPORTUNITIES IN THE AEROSPACE INDUSTRY Aerospace Grade Materials Aluminum, Titanium, Steel and other Alloyds Machining Complex CNC, Turning and Milling Special Processing HT, Chemicals, NDT s Engineering Plastics and Thermosets Castings and Forgings Manufacturing Services Sheet metal, Seamless Tubing & Pipes Hoses Electronics PCBA s and Harnesses Composites Structural & Fibers Sealings Engineering Services.
OPPORTUNITIES IN THE AEROSPACE INDUSTRY 1. Foundational Elements 2010 Supplier Base Integration Strategy FEMIA S Competitiveness Commission Plan Alignment Organizations, Academics and Government Synergies Continuous Market Intelligence. 2. Refinement and Consolidation 2011 Project/Program Management Country Full Trade Management Compliance. 3. Culture 2012 One FEMIA s Commodity Management Support Mexico s Strategic Growth Plan.
Opportunities in the Aerospace Industry in Mexico The establishment of OEMs and 1st and 2nd tier corporations in Mexico Manufacturing and assembly of aircraft parts and components. MRO corporations in various regions of Mexico. Development of local supply chains. Design, innovation, and engineering services of the aerospace industries programs to attract aerospace companies and support programs to. Development of authorities and aerospace corparations efforts to attract aerospace companies and support programs to increase their markets and competitivity worldwide.
Challenges in the Aerospace Industry in Mexico To certify national and internationaly all corporations. To generate the human resources specialties and capabilities to satisfy the actual and future needs of the aerospace industry. To strengthen the R&D activities and to implement them in the industrial development of this sector. To attract more FDI and increase their participation in the world markets of this sector. To establish the necessary conditions to reach the high levels of competitiveness in the aerospace industry.
CHALLENGES TO ATTRACT ACTIVITIES TO DEVELOP PRODUCTS FOR THE AEROSPACE INDUSTRY Source: Aerospace and Defense Industry Survey, Aviation Week and Space Technology, Aerospace Industries Association, y CSC, Dirección General de Industrias Pesadas y de Alta Tecnología
STRATEGIC PLAN OF THE AEROSPACE INDUSTRY Government Industrial Sector Aerospace cor por ations Suppliers: automotive and electro-electronic sector State Governments Higher education, R&D, and technical training COMEA Source: S.E. -DGIPAT
MUCHAS GRACIAS Flavio Diaz Miron A. President and CEO of the Mexican Federation of the Aerospace Industry Ph. +52 (442) 296 39 11 fdiaz_miron@femia.com.mx Carlos J. Bello Roch General Director of the Mexican Federation of the Aerospace Industry Ph. +52 (55) 9000 7379 cbello@femia.com.mx www.femia.com.mx