There are few better indicators of how borderless aerospace has become than Mexico's ascendancy as a manufacturing powerhouse. With no aerospace heritage and a modest defence budget, the nation has played to its strengths: workers happy to labour for less than counterparts in Europe, Canada and the USA, a stable-ish economy and political institutions, and the industry's biggest market next door.
Although it has managed to tempt fellow North American manufacturers over the border, Mexico has been most successful in luring European suppliers that have had little success stateside, but see a Mexican operation as a launch pad into that market.
The country's growth proves lowest cost does not always win the day. Although labour rates are attractive, Asia pays less. But Mexico presents few risks in terms of intellectual property and bureaucratic obstacles. For the Spanish, the common language is a boon. For others, finding bilingual managers is rarely a problem.
Mexico has also gone about things the right way. Instead of creating an unwieldy national champion, feeding on soft government contracts, it has begun with basics - assembly plants on the US border - and moved up the supply chain as it becomes better at engineering and complex manufacturing. Mexico may have geography on its side, but aspiring aerospace nations would do well learn from its quiet achievement.
Source: Flight International
