Where is Aerospace Manufacturing Located?

The Aerospace Industry Cluster provides employment in a variety of operations from aircraft manufacturing, commercial airline travel, air cargo, and private and charter flights, to maintenance, repair, and overhaul (MRO) facilities.

With nearly 490,000 people in the U.S. engaged in the Aerospace Product and Parts Manufacturing process, this is the largest employment sector of the cluster representing 42% of the total 1.16 million U.S. aerospace workforce. 

Commercial Aerospace in Mexico

aerospace manufacturing

The aircraft industry and commercial aerospace industry in Mexico are some of the three largest industries manufacturing in Mexico today. The Mexico aerospace suppliers and aviation industry has proven to be a lucrative investment for economic development in Mexico and its manufacturing base, exceeding $3 billion annually within the last few years.

Over the next 5 years, that number will continue to grow, while simultaneously creating 35,000 jobs in Mexico, further aiding in economic development. 200 aerospace companies in Mexico currently manufacture aircraft components for commercial aviation, small business, and civilian use.

What is the Aerospace Industry?

Aerospace is a term used to collectively refer to the atmosphere and outer space. An aerospace-related activity is very diverse, with a multitude of commercial, industrial, and military applications. Aerospace engineering consists of aeronautics and astronautics.

Aerospace organizations research, design, manufacture, operate, or maintain aircraft, spacecraft, and related topics.

The beginning of space and the ending of the air is considered as 100 km (62 mi) above the ground according to the physical explanation that the air pressure is too low for a lifting body to generate meaningful lift force without exceeding orbital velocity.

What are the top Aerospace Companies?

The world’s airliner fleet is dominated by Airbus and Boeing. The two aircraft manufacturers are the competitive employers of aerospace graduates and produce highly successful jet models, including the Airbus A320 and Boeing’s 737 aircraft, which were often named as one of the best-selling jets worldwide. Bombardier, Embraer, and Mitsubishi Heavy Industries are also competitors in the market.

10. Honeywell

engineer designing airplane 3D model

Honeywell International is an American multinational company specializing in Aerospace, safety and productivity solutions, performance materials, etc. The company aims to enable increased fuel efficiency, better operations, safer and on-time flights, and in turn, satisfied passengers.

Their new platform, Honeywell Forge, uses the advanced technology of big data and machine learning to drive airline profitability and eliminate 35% of equipment failures. 

9. Rolls-Royce

Rolls-Royce took the automotive industry by storm with its luxury leather seats and Spirit of Ecstacy, and it is doing the same to the aerospace industry. With over 16,000 military engines in service with 160 customers spanning across 103 countries, it is evident that they are successful in this department as well.

From domestic transport to combat, Rolls-Royce’s engines and service solutions provide world-leading technology to customers. In 2020, Rolls-Royce Holdings produced a staggering underlying revenue of £11.7 billion.

8. L3Harris

L3Harris has been serving the United Kingdom for over 100 years, delivering unique capabilities across air, land, sea, space, and cyber for military, security, and commercial customers, internationally, through their team of over 2,000 employees. 

Some of the company’s air capabilities include:

  • Sky Warden™ ISR Strike Aircraft – The sturdy aircraft is designed to perform in austere, disaggregated combat environments with minimal infrastructure.
  • FVR-90 Airframe – The airframe s designed for endurance, 12 to 18 hours, with an 8 to 22-pound payload capacity.

7. Safran

Safran S.A. is a French multinational aerospace-component corporation, since its creation in 2005, the company has gained a name for itself and its 81,000 employees. The company was formed through a merger between SNECMA and SAGEM.

The company specializes in:

Aircraft equipment

Aircraft interiors

Aircraft propulsion

Defense

Space

6. Raytheon

Raytheon Technologies Corporation is an American aerospace and defence company that is focused on advancing aviation, creating innovations, etc. 

Not only do they use advanced technology to provide innovative solutions to customers, but they are also committed to making an impact. Their corporate social responsibility initiative, Connect Up, connects talented, purpose-driven people to uplift the community. 

5. General Electric (GE Aviation)

helicopter technician standing against helicopter

GE Aviation a subsidiary of General Electric (a world energy leader) founded in 1917. The company manufacturers and sells jet engines, components, and advanced systems for commercial and military aircraft. 

The innovative company recently passed major manufacturing milestones, firstly the Asheville facility shipped its 100,000th turbine while the Auburn facility shipped its 100,000th additively manufactured fuel nozzle tip.

4. Northrop Grumman

Northrop Grumman is an American aerospace and defense technology company, founded in 1994. Since then, the company has jumped from strength to strength and built and transformed its business to operate in many areas; Cyber, Air, Space, Land, Sea, and more.

The company says that they are “defining possible” from building some of the world’s most advanced aircraft to providing critical logistics to America’s emergency services.

3. Lockheed Martin

Lockheed Martin Corporation is American aviation, information security, and technology corporation, birthed by the merger of Lockheed Corporation and Martin Marietta in 1995. Since then, it has been advancing scientific discoveries and constantly using innovative technology to solve complex challenges and ensure the safety of customers.

2. Boeing

The everlasting battle between Boeing and Airbus continues. Boeing is an American specialist company that designs, manufactures, and sells airplanes, rockets, and many more innovative products. 

For over a decade, the company has been taking the aerospace industry by storm, becoming a household name and racking up revenue of $17.0 billion in Q2 of 2021.

Their most famous products include the 737 MAX, which they have made great progress with getting back into service, the 787 (Dreamliner) but commercial is not all that they do, they serve for defense and space too.

1. Airbus

airplane turbine

At the top of the list is the international aerospace pioneer, Airbus which has been battling with Boeing since the 1990s and taking the industry by storm since 1970. 

Whilst every industry has been shaken by the COVID-19, however, the innovative aerospace company has not let it dampen them, they sold 297 commercial aircraft in the first half of 2021, racking up an impressive revenue of € 24.6 billion in just six months, in what has been a turbulent year.

Their most famous products include the A380, a modern domestic model, and the Eurofighter, a modern swing-role fighter jet.

Manufacturing for the global aerospace industry

The global aerospace parts manufacturing market size is expected to reach USD 1,233.2 billion by 2030. Increasing passenger and freight traffic in emerging economies and the addition of state and local incentives are driving the demand for next-generation aircraft, which in turn is expected to boost the market growth.

A majority of aerospace manufacturing companies are integrated across the value chain and are highly active in the parts manufacturing process. These aerospace companies have in-house production facilities as well as supplier contracts for the procurement of these parts.

Raw Material Procurement

Aerospace manufacturing is also involved in raw material procurement and designing and quality control of the parts offered by third-party suppliers.

Aerospace companies are becoming more global due to heightened competition, growing travel demands, and increased security requirements in emerging markets. Globalization provides opportunities for lower costs and for technologically advanced product introductions.

Increasingly, these products can be designed and manufactured virtually anywhere. Globalization is also affecting product selections, in that military and commercial customers alike are requiring that value be “offset” by placing work closer to their countries of origin.

United States Outlook

engineer working with airplane

This tendency is likely to continue, as traditional countries are pressured to keep their jobs at home, but is balanced by the need for companies to grow revenues and continue to reduce labor costs. The trend in the industry towards globalization is also marked by new market entrants, particularly in the commercial aircraft segment.

Reducing defense expenditures

No matter the outcome of the budget sequester action, there is likely to be continued pressure to reduce defense expenditures. Continued debate on several important questions regarding united technologies US defense and security policy and investment priorities are expected to shape the financial performance of the defense industry.

The formulation of a renewed US defense strategy, coupled with the resulting warfighter requirements, and ultimately the defense budget, will likely provide the guidance necessary for defense contractors to size their workforce appropriately, to understand what revenues they can count on, and therefore what their financial performance will be.

Political leaders of China, the U.S., the Middle East, and Russia are increasingly spending billions of dollars in military expenditure. Overall, the U.S. holds the largest share of worldwide military outlays; the country accounts for around 40 percent of global defense spending. Conflicting interests between countries’ expansion services stress the development of more military technology innovations. For instance, drones have become an indispensable weapon and are in great demand in many parts of the world.

Manufacturing Locally

At BF&S Manufacturing, we use cutting-edge hardware to provide the finest machining services available in aerospace manufacturing today. Our experienced staff has years of experience working with each type and size machine to fit your production needs – no matter how complex the project.

BF&S Manufacturing

aircraft hangar

We are more than just a contract machine shop. We make sure to provide our customers with the best service and products possible by strictly adhering to honest business practices. This way, you save money through efficient operations that keep things running smoothly; without compromising on quality or customer satisfaction.

We are committed to the highest standards of quality. Every step in our process is oriented towards achieving this goal; from inspections and testing all the way through distribution.

We invite you to learn more about aerospace manufacturing in Mexico by continuing to explore our website.

Aerospace Industry in Mexico

Aerospace Industry in MexicoAccording to the International Trade Administration (ITA), the aerospace industry in Mexico has played an integral part in Mexico’s economic growth for decades. What is aerospace? How long has the aerospace industry played a role in Mexico’s economic development? Why is Mexico an ideal location for the aerospace industry? And, finally, what certifications authorize a manufacturing company in Mexico to work on aerospace projects?

What Is Aerospace?

Aerospace is a term used to describe both the earth’s atmosphere and outer space. The aerospace industry is tasked with designing, testing, and managing the manufacturing of aircraft, satellites, spacecraft, and missiles. Sectors of the aerospace industry include Industrial, Commercial, Private, and Defense Aviation.

Aerospace Engineers

Aerospace engineers design, test, and manage the manufacturing of missiles, spacecraft, satellites, and aircraft. They are also responsible for testing prototypes created to support space exploration, aviation, and national defense systems.

According to CareerExplore.com, “Aerospace engineers can specialize in a specific type of aerospace product, such as…spacecraft, helicopters, or commercial aircraft. Or they may choose to specialize in specific areas, such as instrumentation and communication, navigation and control, structural design, guidance, or production methods.”

Aerospace Industry in Mexico

The aerospace industry is one of Mexico’s leading business divisions resulting in job growth, infrastructure development, and a growing interest from foreign investors. A recent report released by the ITA stated that 3.6 billion dollars (USD) worth of aerospace products and services were exported from Mexico in 2020. Those products included fuselages, electrical wiring systems, and jet turbines.

The ITA highlights that Baja, California (Tijuana and Mexicali) and Queretaro are aerospace clusters for aerospace manufacturing in Mexico. However, there are also facilities in other parts of Mexico that exemplify the best in what draws foreign companies to Mexico’s aerospace manufacturing firms.

Aerospace Companies

According to the Mexican Aerospace Industry Federation (FEMIA), the aerospace industry in Mexico grew from 100 manufacturing firms and organizations in 2004 to an estimated 360 by mid-2019. This growth is expected to continue as more foreign manufactures discover the unmatched benefits of choosing Mexico to meet their aerospace industry needs.

The state of Baja, California (Tijuana and Mexicali) has the largest concentration of aerospace companies with more than 82 aerospace manufacturing companies. This cluster of aerospace manufacturing companies provides a healthy supply chain throughout the world.

The United States receives two-thirds of its aerospace exports from Baja, California. Some of the other countries that benefit from aerospace manufacturing in Mexico include France, Germany, Canada, and England.

Some well-known manufacturing companies that rely on the aerospace industry in Mexico include Honeywell, Airbus, Rockwell Collins, Rolls Royce, and The Boeing Company.

What Is an Aerospace Cluster?

Aerospace Cluster in Baja, CA

Aerospace clusters are defined as manufacturers who position themselves as a magnet as parts supplier; logistics; training; support organizations; and much more! The aerospace manufacturing industry in Mexico is a leader in creating aerospace clusters that meet the needs of the international aerospace industry.

The aerospace industry in Mexico has five key clusters: Sonora, Baja California, Chihuahua, Nuevo Leon, and Queretaro.

One aerospace sector that benefits from Mexico’s aerospace clusters is the automotive parts manufacturing companies. Research shows that an estimated 53.2% of the production of these parts happens in one of Mexico’s aerospace clusters.

Why does the international aerospace industry, including the United States, rely on Mexico to meet their aerospace production needs?

Expanding Trade Agreements

In 2019, the North American Free Trade Agreement (NAFTA) ended. The transition to the United States-Mexico-Canada Agreement (USMCA) presented manufacturers with new opportunities. This new trade agreement opened the door to new aerospace manufacturing growth opportunities in Mexico. However, some manufacturers might ask: What sets Mexico apart from other aerospace manufacturing destinations?

Six Benefits to Aerospace Manufacturing in Mexico

Lowering the Cost

Mexico has emerged as a leader in the aerospace manufacturing sector because Mexico’s labor costs are 40-50% lower than in the U.S. Even skilled laborers earn less in Mexico. As wages in Mexico grow, evidence shows that productivity also increases. This ratio means companies can continue to keep loaded labor rates low while building revenue.

Aerospace Shelter & Sub-Contracting Companies in Mexico

For over 50 years, Mexico’s shelter services have simplified the process of moving a foreign company’s aerospace operations to Mexico. Providing a turnkey, start-up approach to manufacturing is only one of the benefits. Under a shelter company, you maintain all intellectual property rights, and you are shielded from liability.

This protection means that foreign companies are not vulnerable to Mexico’s legal system. In other words, a shelter company focuses on the administrative and legal logistics of a business, while the foreign company focuses on its core goal: Aerospace manufacturing. The production value of the product remains high while decreasing the operating costs.

Using a shelter company in Mexico is not a foreign company’s only option. Mexico provides excellent sub-contracting opportunities as well. By utilizing Mexico’s success as a sub-contractor, you can reap the benefits of Mexico’s skilled labor force while completing the bulk of the project in the United States. For example, BF&S Manufacturing’s quality certifications make us an ideal partner for sub-contracting products like wire harnesses, small electric motors, cargo doors, and engine parts.

Access to Skilled Labor

To work on an aerospace project, the manufacturing company in Mexico must meet international quality control standards. For example, BF&S Manufacturing is AS-9100D certified. This certification qualifies them to work on aerospace projects in Mexico. To maintain their AS-9100D accreditation, they are required to maintain the highest standards in manufacturing. They meet those standards in both the materials they use and the assembly of the finished product.

Reduced Travel ExpensesReduced Travel Expenses

The United States’ proximity to the aerospace industry in Mexico means you will reduce the cost of lengthy international travel. Your executives will be able to spend more time in their offices. When you can’t be on-site, a knowledgeable workforce will provide clear information.

Bilingual Support

Unlike other parts of the world, aerospace manufacturing in Mexico is known for employing management teams and engineers that are fluid English-speakers. This unparalleled benefit reduces disruptions to aerospace supply chains, cuts the resulting production costs that can be passed onto customers, and saves time.

Fewer Headaches at the Border

Nothing is worse than having an item stuck in Customs, especially if customers do not understand that some things are out of a company’s control. The logistics of transporting items through Mexico’s ports are less complicated than other contract manufacturing options. Once again, this benefit of manufacturing in Mexico ensures that not only does your supply chain flow smoothly, but your customers stay happy.

The BF&S Manufacturing Difference

When considering moving your aerospace manufacturing sector to Mexico, it is essential to note that BF&S Manufacturing is a United States-based company. All contracts are made with a U.S. company and not with a foreign entity. Your legal options fall under U.S. law. We also use American-based management practices in all our Mexican-based manufacturing facilities. These standards serve as a familiar benchmark for U.S. executives and allow for a smooth transition from the United States to BF&S Manufacturing’s location in Mexico. BF&S Manufacturing’s status as one of the few manufacturers in Mexico that can offer both sub-contracting and shelter company support makes us an excellent choice for your manufacturing needs.

AS-9100D Certified in Aerospace IndustryAs stated earlier, BF&S Manufacturing is AS-9100D certified. This certification qualifies us to work on aerospace projects in Mexico. To maintain our AS-9100D accreditation, we are required to maintain the highest standards in manufacturing. We meet those standards in both the materials we use and the assembly of the finished product.

If you want to lower your loaded labor rates, while increasing production in the aerospace industry (or any other), BF&S Manufacturing has a solution for you. Call or e-mail us today to discover the BF&S Manufacturing difference for yourself.