Mexico's Welcome Mat Attracts Major Aerospace Manufacturers South of the Border
Michael Mecham - Aviation Week
go to original
March 29, 2013
EnglishFrenchSpanish

The boom times are a testament to Mexico's geography, its embrace of free trade and adoption of legal mechanisms that provide a “soft landing” for foreign-owned factories. (Nordam)

QUERETARO and CHIHUAHUA, Mexico - In the past decade, Mexico's welcome mat for the aerospace establishment has found an industry eager to manufacture “south of the border.”

The obvious attraction is Mexico's lower wage-structure: some say that in Mexico manufacturers pay a tenth of what equivalent assembly jobs cost in the U.S.; others cite a differential of about a third from what is paid in Europe. This discrepancy is best explained by the costs of different skill levels, and by a hesitancy to be too specific on a subject that raises political hackles back home.

But lower wages tell only part of the story for why Mexico, a nation of 115 million, now counts 270 aerospace factories within its borders. On national and state levels, the country is aggressively pursuing “high-tech” aerospace jobs as part of a broadening of its industrial base beyond automobiles and electronics, for which it is already a major producer. U.S. shoppers may think of Mexico mainly in terms of summer vegetables in the winter, but the World Bank reports that industrial products account for 90% of its export earnings. The bank ranks Mexico as the world's 13th largest economy in nominal terms and No. 11 in purchasing power. “Hecho en Mexico” - Made in Mexico - is more common everywhere, including in aerospace.

Read the rest at Aviation Week

We invite you to add your charity or supporting organizations' news stories and coming events to PVAngels so we can share them with the world. Do it now!

Celebrate a Healthy Lifestyle

Health and WellnessFrom activities like hiking, swimming, bike riding and yoga, to restaurants offering healthy menus, Vallarta-Nayarit is the ideal place to continue - or start - your healthy lifestyle routine.

News & Views to Staying Healthy

From the Bay & Beyond

Discover Vallarta-Nayarit

Banderas Bay offers 34 miles of incomparable coastline in the states of Jalisco and Nayarit, and home to Puerto Vallarta and Riviera Nayarit's many great destinations.