US Election Chills Aerospace Business Moving to MEX Jeff Daniels - CNBC
go to original October 18, 2016

ICON A5, a light-sport aircraft, will have components produced later this year in Mexico (ICON Aircraft)

Talk of trade protectionism this presidential season is having a chilling effect on U.S. aerospace companies looking to locate production south of the border.

For more than a decade, Mexico has aggressively pitched itself as a pro-business and lower-cost alternative for U.S. industrial companies seeking to relocate or expand. Canaccord Genuity estimates Mexican facilities allow some U.S. companies to achieve a labor savings of as much as 80 percent.

"Many U.S. suppliers have recently been moving aircraft parts production and assembly to Mexico as a way of lowering their cost base," Canaccord Genuity aerospace analyst Ken Herbert said in a recent research note. "The potential impact on U.S.-Mexico relations under a [Donald] Trump presidency are a material concern."

U.S. companies or their contractors with an industrial presence in Mexico include Fortune 500 names General Electric, Honeywell, Eaton, Textron, L-3 Communications and Rockwell Collins. Even major suppliers to aerospace giants Boeing and Europe's Airbus have operations in Mexico.

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