THE AERONAUTIC INDUSTRY IN MEXICO : DEVELOPPMENT AND POTENTIAL
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CONTENT Presentation
The Global Aerospace Markets The Aerospace Industry in Mexico - At the glance - Challenges - The National Strategic Program of the Industry The FEMIA The ACQ (AeroClúster de Querétaro A.C.) PROHIBIDA LA REPRODUCCIÓN TOTAL O PARCIAL DE ESTE DOCUMENTO
Claude Gobenceaux Managing Director of Messier Services Americas in Querétaro, company of the MRO division of Messier-Bugatti-Dowty, SAFRAN Group Member of 2 Mexican R&D Center External Evaluation Boards: - CIDETEQ (and former President of this board) - CIDESI.
FEMIA - Federación Mexicana de la Industria Aeroespacial: - Founding member (2007) - Member of the Board of Administration - President of the following FEMIA’s Commissions: . Taxes, Customs and External Trade . Clusters . CENTA, National Center for Aerospace Technologies (temporary commission)
President of the ACQ - Aero Clúster de Querétaro, A.C. PROHIBIDA LA REPRODUCCIÓN TOTAL O PARCIAL DE ESTE DOCUMENTO
SAFRAN SAFRAN is a high technologies global group with 3 main branches: -
Aerospace (propulsion y equipment) Defense Security
55.000 employees More than USD 15 Billons sales
Worldwide number one for: -
Commercial aircraft engines (SNECMA – GE cooperation for the CFM) Helicopter engines (TURBOMECA) Landing gears and braking systems (MESSIER-DOWTY-BUGATTI) Harnesses (LABINAL) Biometric and fingerprint systems (MORPHO Identification).
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SAFRAN Since the early 80’s, SAFRAN have been active in México. Today: - 10 companies - 4.500+ employees - First Mexican employer of the aeronautic Industry - First French investor in Mexico (USD 1.3 Billon in the last 10 years) - Settled in 3 main areas: Querétaro, Chihuahua, Estado de México / DF
25% increase per year in the last years (Turnover and Headcounts). México is strategic for the SAFRAN Group -
Entry to the United States market Dollar area (Euro / Dollar Exchange Rate variance mitigation) Close to BOEING, Group main customer
SAFRAN is a FEMIA and ACQ active member. PROHIBIDA LA REPRODUCCIÓN TOTAL O PARCIAL DE ESTE DOCUMENTO
The Global Aerospace Markets World´s current Commercial market: -
550 Billion USD Fleet: 20,000 aircrafts not grounded , average 18+ years old Over 20,000 aircrafts must be replaced within 15 years + organic growth.
Large aircrafts OEMs (BOEING and AIRBUS) : -
Large aircrafts OEM are driving the industry market standards 7,000* aircraft portfolio Vs. an average output capacity of 1,800 / year Backlog orders: close to 4 years.
Medium aircrafts OEMs (BOMBARDIER, EMBRAER, MITSUBISHI, SUKHOI, COMAC,…) -
Backlog orders: 5 years
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The Global Aerospace Markets Private planes and helicopters -
Backlog orders: 3 years Mexico is one of the very first private planes fleet in the world.
Defense market: -
Considered over 4-5 times the commercial aerospace one Mexico entered in the Wassenaar Arrangement in 2012 (control of dual usage products).
*Aerospace Market News
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The Aerospace Industry in Mexico at the glance Over 270 companies: - 79% Manufacturing, 11% MRO & 10% D&E - Employment: 34,000+ in 18 States Exportations - 5.4 Billion USD in 2012 - Increase of 24% compared to 2011 - Almost 20% yearly growth rate since 2006 - Expecting over 15% growth in 2013
Aeronautics has been declared a strategic industry: the Pro-Aéreo has been presented in 2012 ( SE & Femia´s program)
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Public policies are directed to incorporate more suppliers and to enhance competitiveness of OEMs, Tiers 1 & 2.
The Aerospace Industry in Mexico at the glance Investment (FDI & NDI): - Almost USD 20 Billion total investment - Expected USD 1.3 Billion FDI in 2013 - Strong program to promote FDI & NDI
Mexico has been the largest aeronautics FDI worldwide recipient in last 4 years. Many major investments were announced in the last years.
Actual worldwide ranking: 14th. 10th largest supplier to the US market with a quick improvement rate.
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The Aerospace Industry in Mexico at the glance Sonora (45)
Chihuahua (32) Coahuila (7)
Baja California (59)
Mexico: Inhabitants: 114,000,000 Foreign Trade: 680 BUSD GDP : 1,042 BUSD
Nuevo León (32) Tamaulipas (11) San Luis Potosí (5)
Durango (1)
Querétaro (33)
Zacatecas(1) Aguascalientes (2) Jalisco (11) Fuentes: Dirección General de Industrias Pesadas y de Alta Tecnología, de la SE., ProMéxico y FEMIA
Yucatán (3)
Guanajuato (3) EDOMEX (9)
Main Clusters PROHIBIDA LA REPRODUCCIÓN TOTAL O PARCIAL DE ESTE DOCUMENTO
México City (12)
Puebla (2) Hidalgo (2)
The Aerospace Industry in Mexico at the glance
5.4 BUSD*
6000 4000 2000
0
4500
3127 3500 2700 1266 1342 1299 1674 2029 2728 2700 3050 1058 1924 2466 2100 961 1055 923 1271
5150 3470
IMPORTS EXPORTS
* 2012 actual
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Source: DGIPAT with data from DGCE, * Figures in millions USD.
The Aerospace Industry in Mexico at the glance Micro 7% Large 28%
Small 22%
*
Medium 43%
Source: S.E
Structure by number of Employees
*15 corporations
with over 500 employees: 8 in Baja California, 2 in Chihuahua, 3 in Querétaro, 1 in Coahuila and 1 in Tamaulipas.
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Dirección General de Industrias Pesadas y de Alta Tecnología
Size
No. de Employers
Micro
1 - 10
Small
11 - 50
Medium Large
51 - 250 More than 251
The Aerospace Industry in Mexico at the glance Suppliers of OEMs by aircraft model in Mexico Corporation
Model
# of suppliers
# of suppliers in Mexico*
Percentage
Airbus
330-300
355
16
4.5
Airbus
A380
399
20
5.0
Boeing
787
299
14
4.7
Boeing
747-400
354
12
3.4
Bombardier
CRJ200
299
13
4.3
Embraer
ERJ 135
279
17
6.1
* Identified suppliers not necessarily supply parts for the mentioned models Source: S.E. and AROSPACE DATABASE, PROGRAM TRACKER. PROHIBIDA LA REPRODUCCIĂ“N TOTAL O PARCIAL DE ESTE DOCUMENTO
*
Challenges in the Aerospace Industry in Mexico
To optimize the main competitive advantages which are: -
Geographical positioning Infrastructure connectivity “Same time zone working” with USA and Canada High capacity to react to product requirements (working flexibility).
To increase supply of human talent to meet industry Nota: as many engineers as in Germany are trained every year.
needs.
To rationalize government incentives for R&D. To avoid waste of limited resources.
Supply chain, certifications and bilateral agreements - To strongly develop the industrial aerospace supply chain - To continue developing company certifications (AS 9100, Nadcap,…) - To review the aerospace bilateral agreement strategy: BASA with the USA, Canada.
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The National Strategic Program of the Aerospace Industry
2020 Pro-Aéreo Goals (1/2) To be within the 10 largest suppliers of the aerospace industry in the world in exports (2011)
To reach over $12 billion USD in exports a year (from 5.4 in 2012 today) To have over 110,000 workers in the aerospace business (from 34,000) To reach 50% of local content. PROHIBIDA LA REPRODUCCIÓN TOTAL O PARCIAL DE ESTE DOCUMENTO
The National Strategic Program of the Aerospace Industry 2020 Pro-Aéreo Goals (2/2)
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The National Strategic Program of the Aerospace Industry
5 Pro-AĂŠreo Key Strategies (1/2)
1. Promotion and development of internal and external markets. -
Defining niche markets Creating the instruments to support a continuous growth Industrial cooperation with Mexican institutions.
2. Strengthen and develop our aerospace industry capabilities -
Supply Chain and local suppliers development Cluster development.
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The National Strategic Program of the Aerospace Industry
5 Pro-Aéreo Key Strategies (2/2) 3. Development of the necessary human ressources for the industry -
Well defined technical and training programs Education-industry links.
4. Development of the necessary technology -
Test Laboratories R&D centers (new materials, …).
5. Development of programs required to assist the growth of the industry -
Institutional frame Incentives and financing.
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N
FEMIA: Federación Mexicana de la Industria Aeroespacial
A Non-for-profit Association -
Founded in November 2007 65+ Members Represents 90% + of the headcounts of the sector Represents 90% + of the exportations of the sector Website: www.femia.com.mx
Mission
To represent the aerospace sector and to be the reference as a corporate association, supporting all strategic challenges within the sector, aiming the best benefits for its membership. PROHIBIDA LA REPRODUCCIÓN TOTAL O PARCIAL DE ESTE DOCUMENTO
F
Structure - Board of Directors chaired by President - … supported by 3 Regional Vice Presidents and a General Director
9 Permanent Commissions - Internal Governance - National Strategic Plan - Education and Training -Taxes, Customs and International Trade - Incentives and Technological Development - Competitiveness - National Security - Clusters - Small and Medium Size Corporations - Plus temporary ones.
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The AeroClúster de Querétaro, A.C. (ACQ) Querétaro context In 2005 only 2 aerospace companies (ITR and GE) Bombardier and Safran arrived at the same time in 2006. Then other main players as Meggit, Heyroux-Devtek (PCC Group), Eurocopter (Airbus Helicopters), … Strong governmental implication in the Cluster Development: proactive team.
Strong Industry implication and networking Strong links between Authorities, Universities, R&D Centers and Industry. PROHIBIDA LA REPRODUCCIÓN TOTAL O PARCIAL DE ESTE DOCUMENTO
The AeroClúster de Querétaro, A.C. (ACQ) ACQ: origin and evolution (1/2) In 2008 was created the RIIAQ (Querétaro Aerospace Industry Network for
Investigation and Innovation) which is an AERI (Strategic Alliance and innovation Network, “Mexican CONACYT status”) in order to launch the first Querétaro aerospace prospective studies In 2012 transformation of the RIIAQ in “Asociación Civil”: el Aero Clúster de Querétaro A.C. (ACQ) Today 25 ACQ members (out of which 17 are RIIAQ members). Soon 2 members from the Guanajuato State will be part of the Cluster. Industry leaded cluster.
6 Commissions. Internal Governance, HR, Supply
Chain, R&D, Shared Services and Financing, Certification. PROHIBIDA LA REPRODUCCIÓN TOTAL O PARCIAL DE ESTE DOCUMENTO
The AeroClúster de Querétaro, A.C. (ACQ) ACQ: origin and evolution (2/2) Members, such as: -
-
Bombardier, GE, Airbus Helicopters, Snecma, Snecma Services, Messier-BugattiDowty, Messier Services, ITP/ITR, Aernova, Kuo, … Universities: UNAQ, UNAM, ITESM, IPN/CICATA, UAQ,… R&I centers: CIDESI, CINVESTAV, CIDETEQ, CIATEQ Governmental entities CENAM, CONCYTEQ, Permanent invited members: SEDESU and Querétaro SEP
Are invited to join the ACQ: -
All the new aeronautic companies arriving in Querétaro Administrative entities (DGAC, AEM) Technological Universities and schools,…
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The AeroClúster de Querétaro, A.C. (ACQ) The ACQ mission - Extract from the status Integrar, coordinar, promover y defender los intereses generales de la industria en el Estado
Diseñar, divulgar y ejecutar las políticas, programas e instrumentos para el fomento de la industria, en estrecha vinculación con las autoridades y demás actores involucrados a nivel estatal, nacional e internacional. Impulsar, fortalecer y consolidar la Industria en el Estado a través de 3 actividades fundamentales: Investigación, Innovación y Desarrollo.
Seleccionar proyectos cooperativos y coherentes con las necesidades de la industria Estado de Querétaro. PROHIBIDA LA REPRODUCCIÓN TOTAL O PARCIAL DE ESTE DOCUMENTO
The AeroClúster de Querétaro, A.C. (ACQ) Cluster Strengths (1/2) Geographical position Historical industrial city, social and safety climates International airport and good infrastructures, R&D Centers, …
Querétaro Authorities commitment to develop this Industry Querétaro Aerospace Industry organization and commitment Aeronautic Technical Trainings and Universities: - UNAQ: National Aeronautic University of Querétaro: engineers & technicians - ITESM: CEDIA - UNAM: works for the AEM - CONALEP: technicians with DGAC License - Good technological universities. PROHIBIDA LA REPRODUCCIÓN TOTAL O PARCIAL DE ESTE DOCUMENTO
The AeroClúster de Querétaro, A.C. (ACQ) Cluster Strengths (2/2) 2 Dedicated Industrial Park (the first Aeronautic Park in México)
Orientation of R&D centers towards the industry
First DGAC out of Mexico City
One of the first 2 AEM (Mexican Space Agency) office out of Mexico
LABTA (Laboratorio de Pruebas Aeronáuticas)
CENTA project (National Center for Aeronautic Technologies): President Peña Nieto Commitment initially for aeronautic composite materials …
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WE ARE STILL YOUNG, WE JUST STARTING THE FLIGHT. JOIN US! WELCOME!
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THANKS! Claude Gobenceaux SAFRAN / Messier-Bugatti-Dowty / MRO Division Americas Managing Director FEMIA Board Member AeroClúster de Querétaro A.C. President Claude.gobenceaux@safranmbd.com PROHIBIDA LA REPRODUCCIÓN TOTAL O PARCIAL DE ESTE DOCUMENTO