Mexico‘s aerospace sector grew from 100 companies and manufacturing organizations in 2004 to 368 by mid-2022, according to data from the Mexican Federation of the Aerospace Industry (Femia).

Currently, these companies mainly include manufacturers, maintenance-repair-revision (MRO) facilities, technical schools, research centers, universities and related service providers.

Overall, 76% of all companies are manufacturers, 11% are focused on design and engineering, and 12% are in MRO services.

Femia estimated that in 2019 foreign direct investment by country of origin was 48% from the United States and 36% from Canada.

For Canadians, having key clusters in Mexico is important, refers Global Affairs Canada.

While the Mexican market is very price sensitive, investment in Mexico for Canadian companies requires being able to supply OEMs or Tier 1s.

Aerospace sector

The goals set by the Ministry of Economy and the aerospace sector for 2025 include:

• Place the country among the first 10 countries in terms of exports.
• Export more than $12 billion USD of aerospace goods.
• Have a strong index of the industry job base and foster its growth.
• Maintain a value-added higher than 20% in the sector .

One of Mexico’s challenges is attracting cutting-edge projects and those with higher technological content, as well as expanding the local supplier base. Global Affairs Canada believes that Canadian companies could contribute advanced technology to aerospace companies in Mexico.

According to the U.S. Department of Commerce, Mexico’s aerospace industry is concentrated in five main regions: Baja California (Tijuana-Mexicali), Sonora, Chihuahua, Querétaro, and Nuevo León. Baja California is the largest hub, home to more than 125 aerospace companies that supported over 37,000 direct jobs prior to the pandemic.

Meanwhile, other states in Mexico are making strides to carve out a market niche in the aerospace sector. Notable examples include the Bajío Aero cluster in León, Guanajuato, and the Sinaloa Aerospace Cluster in Mazatlán. Currently, the aerospace industry has a presence in 20 of Mexico’s 32 states.