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Mexico Real Estate News: Mexico Profits from Growing Aerospace Industry

13 September, 2012

According to a recent report by the Wall
Street Journal's online Market Watch division,Mexico's economy has received a
major boost from a growing demand for commercial aircraft parts and other
services. Despite the recent worldwide economic downturn,Mexico's aerospace
exports have more than doubled since 2002.

According to the Mexican government,exports
of jet engine components rose to $3.26 billion in 2010,up from only $1.26
billion in 2002. Also of note,the country's number of aerospace firms has
almost quadrupled,employing nearly 30,000 people at more than 230 locations. Although
the aircraft manufacturing industry is still a small part of Mexico's overall
economy,the government expects it to continue growing rapidly over the next
ten years or so,as manufacturers work hard to meet an increase in worldwide
demand for air transport.

“Mexico is as good as it
gets for manufacturers once you look past the obvious,broader social concerns,” said Teal Group industry
analyst Richard Aboulafia. “There
is a great combination of low-cost labor,a skilled labor force and fantastic
infrastructure: Airports,shipping ports and its proximity to the US and
Canada.”

Mexico currently exports components that are
used in US business jets,helicopters and commercial aircraft,including Bell,
Cessna,General Dynamic Corp,Gulfstream,Sikorsky and United Technologies
Corp. In addition,Boeing's purchases from Mexican suppliers has risen from
around $20 million in 2008 to more than $100 million in 2011. These numbers are
expected to increase again over the coming months after the company increases
production for its new 787 Dreamliner and its 737 aircraft.

Mexico is now the world's 12th
largest exporter of aerospace components and this number is expected to rise,
thanks in part to the fact that nearly 30% of students study engineering and
technology while at university,leading to a highly skilled and affordable
labor force.

“Aerospace jobs require machinists,and those are
good paying jobs that require some very specific skills,such as mathematics
and metallurgy,” said The Offshore Group's
Steven Colantuoni. “In Mexico,you see the
government training and gearing education toward these kind of jobs.”

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Topics: Industry

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