top 10 opportunities in the aerospace industry in …mexico reported 232 aerospace companies that...
TRANSCRIPT
Opportunities in the Aerospace industry
in Mexico
…AND HOW TO START SERVING THOSE CLIENTS FROM A COST COMPETITIVE LOCATION
About American Industries Group
American Industries Group has helped over 200 global companies to successfully start up and grow distribution and
manufacturing operations throughout Mexico since 1976 through Site Selection, Incubator Programs, Administrative “Shelter”
services and Industrial Real Estate.
ReynosaMonterreyGómez Palacio & Torreon
Camargo
El Paso
Gómez FariasChihuahua
San Luis Potosi
México D.F.
Juárez
Querétaro
Delicias
León
Monclova
Guadalajara
Saltillo
Regional Offices, Incubator LocationsShelter and/or Real Estate Customers
SilaoLocations where we serve our clients in Mexico
Real EstateWe have built over 12 M Sq. Ft. Portfolio in
the most important industrial regions throughout Mexico
Shelter & Start-up Services• 52 Customers currently served• Over 10,600 Customer’s headcount• Over 30,000 trouble-free import and export
transactions per year
How we help aerospace companies to succeed in Mexico!
We are present at all stages of your industrial business needs in Mexico:
We help you find the right location for
your operations in Mexico including the
coordination of business agendas in
different regions.
Site Selection
Start up under an Incubator
Shelter Program
Expansion in other regions in Mexico
Supply Chain / Divisions Relocation
We take care of all start up, legal, operational and environmental permits,
human resources, customs, logistics, fiscal,
accounting and all the administrative part of the
business.
We help you grow your business by working
together with industrial clusters and
associations to promote your business in
different regions in Mexico. We help you to educate
and relocate your foreign suppliers or other
divisions near your operations in Mexico.
Contents
Aerospace international opportunity
Top 2 reasons why Aerospace Companies go to Mexico
Mexican Government efforts to support the aerospace industry
Industrial purchasing pool to grow business potential for your project in Mexico
Mexico’s Industrial Incubator Program
Aerospace International Opportunity: OEMs orders and forecast
BOEING and AIRBUS: orders for more than 7,000 units to bedelivered over the next 7 years.
BOMBARDIER (CAN), EMBRAER (BRA), MITSUBISHI (JAP),SUKHOI and IRKUT (RUS), COMPAC AND AVIC (CHINA), allhave orders for the next 5 years.
Private jets and helicopters (CESSNA, BEECHCRAFT,DASSAULT, GULFSTREAM, GRUMMAN, BELL, SICORSKY,AUGUSTA and EUROCOPTER) have orders for the next 3years.
The commercial aircraft fleet in the world will have to send morethan 20,000 aircraft to be replaced or refurbished in the next 7years.
The defense market is at least 4 times larger that thecommercial market.
Are you a supplier of any of these OEMs?
Are you ready to support that demand at a competitive cost?
Source: FEMIA
Top 2 Reasons why Global Aerospace Manufacturers go to Mexico
1. Their Current Manufacturing Clients are in Mexico:
More than 300 companies already established in Mexico
require their suppliers to be within a certain distance from
their plants.
Mexico reported 232 aerospace companies
that employed more than 30,000 workers in
2010, and primarily serve the US, Canadian,
German and French markets.
Source: Aerostrategy
Mexico – Global Leader in Aerospace Manufacturing Investment Attraction
In 2014, there were already more than 300
aerospace companies in Mexico and it is
expected to triple its labor force by 2020.
Largest Aerospace Players in the World: Mexico’s Shift
Source: FEMIA
Aerospace Exports Growth
Top Aerospace Manufacturing Countries
Aerospace Industry in Mexico
Number of Aerospace Companies
Aerospace OEMs Suppliers footprint in Mexico
If you are an aerospace supplier
not in Mexico, what is holding you back?
Let’s see what Mexico is offering Now…
2. Skilled Labor Cost Savings:
Up to 80% savings in labor positions that go from
assembly operations to more qualified processes like
CNC machining, welding, metal stamping, plastic
injection molding, extrusion, metal finishing, etc.
Top 2 Reasons why Global Aerospace Manufacturers go to Mexico
Mexico has become the most cost effective location for US companies
as far as labor and freight.
DURING the last 10 years the aerospace industry HASBEEN THE NUMBER ONE PRIORITY FOR THEMEXICAN GOVERNMENT.
Mexican Government efforts to support the aerospace industry
Since 2006 the government established a 0%
import duty rate for aerospace components,
regardless of the COUNTRY OF origin.
On September 18th, 2007, the Mexican and the US Governments signed the BASA
(Bilateral Aviation Safety Agreement).
UNDER THIS AGREEMENT the FAA (Federal Aviation Agency) recognizes the General
Direction of Civil Aeronautics (MEXICO) as an agency with full capacity to certify any
product or service of any corporation.
Mexican Government efforts to support the aerospace industry
Mexico’s Aerospace Industry: certifications and reach
The aerospace parts and components manufactured and assembled in Mexico currently reach more than 60 commercial airlines worldwide!
Capabilities and Products: What Mexico has and what Mexico needs!
US companies that have being working with Mexico have found opportunities in the following components:
Turbines:–Rings machining, valves, electronics, filters, buckets, gears, shafts, air and fuel cooling lines and turbine maintenance.
Components of aircraft dashboards:–Harnesses, printed circuit boards and cabinets.
Other components:–Jigs and fixtures, and special heat treatments.
Fuselage - Special paints, seats, carpets and other parts.
Manufacturing processes:- Forging, die cast, machining with 4 and 5 axels, stamping and
plastic injection.
CompanyA
StampingMachining
CompanyB
CompanyC
SupplierCompany B
Stamping
Stamping
SupplierCompany A
SupplierCompany C
Plastic Injection
MachiningMachining
Plastic Injection
Plastic Injection
We have identified similar needs in the supply chain of various companies. We integrated their needs into a common purchasing pool and organized B2B events bringing a more profitable business case for aerospace suppliers interested in starting operations in Mexico and working with other industries.
Industrial purchasing pool to grow business potential for your project in Mexico
v
v
Aerospace Automotive Metal Mechanic Electronic
Plastics Energy GenerationMedical
Various
Companies participating in the purchasing pools!
Mexico’s Industrial Shelter ProgramDESIGNED TO MAKE IT EASY FOR YOUR COMPANY TO START BUSINESSOPERATIONS TO SERVE THE AEROSPACE INDUSTRY IN MEXICO.
Mexico’s Industrial Shelter Program: what it is
This program is designed specifically for companies that have no previous experience in doing business in Mexico.
When you sign up for this program, you will get all theprivileges, benefits and incentives as if you were alreadyan expert in doing business in Mexico with a large andmature operation.
Take this opportunity as a new competitive edge for yourcompany where you will be conquering new markets witha very unique advantage: being able to focus on yourclients and production!
What are the benefits for your business?
Mexico’s Industrial Shelter Program: Benefits
You will get assistance with:
B2B meetings and business agenda coordination with aerospace,automotive and metal mechanic clusters to help you promote yourproducts and services.
Real estate space: starting from 5,000 Sq Ft Freedom to start doing business in Mexico without a Legal Entity! Legal and operational permits: fast start up in 9 weeksHuman resources: we will help you find and recruit your sales, distributionand operations staff (starting from 5 employees).
Government incentives negotiation on technical training.Customs: we will help you get the maximum tariffs savings from the freetrade agreements with 45 countries for your imports and exports.
Fiscal and accounting management + NO INCOME TAX for the first 4 years NO VAT effect on cash flow
NO Start up or Exit FEEsNO risks: no legal or administrative liabilities
Starting at an estimated fully loaded cost per hour of $18 USD peremployee including labor, logistics, real estate and utilities.
Mexico’s Industrial Shelter Program: Stages
The Shelter program will help you to take your first steps in Mexico entirely focused on sales, customer service andproduction and you will not face any legal or administrative risks or liabilities on your start up stage.
Request your Shelter
Application
You will get a tailored evaluation and roadmap to start operations in the regions that there might be potential for yourbusiness to grow in Mexico (like Chihuahua or Queretaro)
You will get a tailored cost model where you will be able to compare the total cost of production per hour in each region.
Get a Business Agenda in
Mexico
Start up (9 weeks)
At this point we will coordinate business agendas in the selected regions for your operations in Mexico with industrialassociations and clusters.
As part of the agenda, you will be able to visit the Shelter’s real estate facilities where you will be able to operate. Additionally, you will get a presentation of the different enabling services that you will get as part of the Incubator and
you will be able to meet with government officials.
At this stage you will get all permits for your operations. You will get your human resources hired and organized (including payroll management). You will get your machinery and equipment installed. You will get all your customs & logistics set up. You will get all paperwork and administrative tasks done so that you can start serving your clients from your new location.
Sharing Responsibilities under the Shelter Program
•Management to direct operations.•Machinery & equipment.• Raw materials.• Full control over distribution, production and quality.
Manufacturing
Maintenance
Your Company American Industries
Engineering
Design
Quality
Scheduling
Raw Materials
InventoryManagement
PurchasingDirect Mat
PurchasingIndirect Mat
Import & Export
Customs
Duties Optimization
Logistics
Operational Permits
Accounting
Fiscal
Accounts Payables& Receivable
HumanResources
Recruitment& Selection
Training compliance
Salary & BenefitsAdministration
Payroll
Labor Management
Union Relation
General Manager
General Administration
Environmentalcompliance
Expat Support
Sorting & Kitting Labeling Just-In-Time delivery to clients
This diagram shows the functions that you will need to perform in your new business operations in Mexico to serve your clients. TheShelter program takes full responsibility of the blue side of the business.
Mexico’s Industrial Shelter Program: How to qualify
You can qualify for this program if you want to start any of the following operations
Just-In-Time or distribution operation Assembly operation Kitting & labeling operation Manufacturing operation
Or if you fit into any of these categories
You have little or no experience in doing business in Mexico You don’t have a legal presence in Mexico You don’t require a large facility You want to experience doing business in Mexico for the first time with a low risk framework You want to share costs with other small operations.
Are you pre-qualified for the Incubator Program?
What are the Next Steps?
Request your free Application Form to apply for the Shelter
Program today at:
www.AmericanIndustriesGroup
So, what else do you need to jump on board?
The opportunity is there: OEMs growing their demand! Mexico’s Government is offering great incentives! The industry is creating purchasing pools to grow your potential business case! Mexico’s Shelter program offers you a fast track entry at a very competitive cost, including
labor, logistics, real estate, customs with free trade agreements!
What are you waiting for?
Thank Youwww.AmericanIndustriesGroup.com
For more information contact:
US Toll Free +1 877 698 3905 | Mexico +52 614 439‐3631