Turbulent times are over and the industry is ready to move on.
Day by day, the effects of the pandemic seem to be wearing off. As months go by, we have seen what it has done to the world, the economy, and society. But, as Robert Orben once said: “Time flies by. It’s up to you to be the navigator” and there’s no doubt that the aerospace industry in Mexico has taken control of its vessel. Here’s a recap.
According to the Mexican Aerospace Industry Federation (FEMIA), at first the aerospace industry in Mexico was badly affected by the pandemic. It saw a 40% reduction in production due to shutdowns.
“The first effect was the supply chain disruption from China to Mexico. […] It was especially hard in Northeast Mexico, as some suppliers were working at 5% their production compared to 2019” stated FEMIA Supply Chain Director, Xavier Hurtado, in an interview with El Economista.
His statement ended with high hopes that the regionalization of the supply chains would bring stability to the Mexican aerospace industry.
Fast forward a couple of months and the panorama of the aerospace industry in Mexico got brighter, as the industry projected a 7% growth. This was due, as observed by FEMIA President, Felipe Sandoval, to companies actually continuing to order aircraft even when flights were scarce.
Sandoval saw that, while the global aerospace supply chain might drop, the Mexican supply chain was not going to be as affected. He actually saw it under a positive light with a great production expansion opportunity. “The aerospace industry keeps being a great opportunity to the Mexican supply chain” he stated.
And so, as stated by FEMIA director, Luis Lizcano, a change was due. “We are restructuring this sector (aerospace industry) […] and seek to get rid of what is known as the sole provider, or only having one supplier, in order to diversify (the supply chain)” stated Lizcano in an interview.
Furthermore, talks of joint forces with the American Aerospace Industry Association (AIA) and the Aerospace Industry Association of Canada (AIAC) to get the most out of the USMCA and aid this industry.
“Mexico, the United States, and Canada should work together to have the aerospace industry of the (North American) region going in a similar direction” stated Felipe Sandoval. This alliance could elevate the industry to a new high, even when times are low.
Bringing your company in a country that has such a resilient aerospace industry would be extremely beneficial for its growth and prosperity. Having the certainty that the industry is doing everything to become better is a great sign. Thus, here at VYNMSA we would like to assist you in settling in Mexico.
With over 25 years of experience, we are one of the leading industrial real estate developers in Mexico and have delivered over 350 projects to fully satisfied customers. We are fully equipped to assist you in developing your BTS projects, with lease and sale solutions that always have a win-win approach. We also have around 20 inventory buildings ready for immediate occupancy, which means a total space of 1.5 million Sq.Ft. across Northeast and Central Mexico.
Contact us and set shop in Mexico with VYNMSA and be part of its growing aerospace industry.