Mexico Aerospace Forum 2019 Impact Report by Mexico Business Publishing

IMPACT REPORT

2019

PLATINUM SPONSOR

GOLD SPONSOR

SILVER SPONSORS

NETWORKING COFFEE BREAK SPONSOR

MEDIA PARTNERS

SUPPORTED BY

ORGANIZED BY

IN COOPERATION WITH

2019 Despite the uncertainty that looms over several of Mexico’s main manufacturing sectors, the local aerospace industry still thrives. Mexico remains an attractive destination for the international aerospace industry and this interest translates into numerous benefits for the country. Mexico has seen an increase in well-paying jobs for highly qualified workers, significant investments in infrastructure and the introduction of highly specialized processes and technologies that will allow the country to eventually position itself as a technological powerhouse.

While there is a positive outlook for Mexico’s aerospace sector, the country still grapples with old issues that have stopped it from reaching its true potential. Chief among them is the lack of a strong supplier base that can grant major players local access to the raw materials and specialized processes they need. While many efforts have been made to address this problem, there is still a long road ahead to solve the issues that are constricting Mexico’s competitiveness in the aerospace sector.

Against this backdrop, Mexico Aerospace Forum, the industry’s premier event, brings together the main players and key decision-makers who are shaping the sector’s future. Mexico Aerospace Forum provides the ultimate platform for developing new business relationships in this dynamic industry. Moreover, this year’s event will take a step forward and address the role of aviation in the development of Mexico’s economy. Airlines and airports are connectivity cornerstones for any country, as well as catalysts for tourism and industrial development. Mexico Aerospace Forum will analyze these and other factors as the country works toward the consolidation of a sector that will allow Mexico’s economy and industry to take off.

2019

Quick Look:

“More than 90 percent of the country's industrial capacity comes from foreign countries. Mexico's next step will be to improve its local capacity to emerge as a world leader in the field” Jorge Gutiérrez, Dean of UNAQ

INCLUDING: ∙ Marco Antonio del Prete, SEDESU Queretaro ∙ Carlos Robles, Bombardier Queretaro ∙ Major Gen. Rodolfo Rodríguez, FAMEX ∙ Cuitlahuac Gutierrez, IATA

20 TOP SPEAKERS

∙ Ricardo Dueñas, Grupo Aeroportuario Centro Norte (OMA) ∙ Felipe Bonifatti, Lufthansa Group ∙ Guilhem Mallet, Air France-KLM México ∙ Juan Alberto Porras, CONCAMIN ∙ Daniel Parfait, Safran México ∙ Luis Lizcano, FEMIA

TICKET PRICES FOR 2020

Super Early Bird Rate MX$10,000 + IVA (until 02/10/2020) Early Bird Rate MX$12,000 + IVA (until 30/10/2020) Conference Rate MX$14,000 + IVA (until 24/11/2020)

Get your 2020 tickets now: www.mexicobusinessevents.com

67 COMPANIES REPRESENTED

“The aerospace industry is not a simple matter, it should be considered a matter of national security” Antonio Velázquez, Managing Director of Aerocluster Queretaro at AM Querétaro

116

PARTICIPANTS

“Mexico Business Events has become a strategic ally of FAMEX to boost the development of the aerospace sector. It will contribute to the growth of the most important Aerospace Fair in Mexico and Latin America: FAMEX” Major Gen. Rodolfo Rodríguez, President of FAMEX

CO MPA N Y AT T E NDANC E A.E. Petsche

FEMIA

Accendo Banco

General Electric

Aerocharter

Grupo Aeroportuario Centro Norte (OMA)

Agencia Espacial Mexicana

Guhring Mexicana

Air France-KLM

Helmut Fischer

Alegre, Calderón y Marquez Abogados

Honeywell

ANCE

HT-MX Heat Treat & Hiping

AXON Interconex

IATA

Bancomext

InDeplo

Bell Helicopter

KAYAK

Bollore Logistics

Links World Group

Bombardier

Lufthansa

CAMEXA

Monterrey Aerocluster

Cargo Live

Municipio de Colón

Casa San Antonio

PPG

CENTA

PWC

CIDESI

Quality Aeronautical Engineering Consultants

CHG Meridian

Querétaro Aerocluster

CONCAMIN

Renault

Constructora Insur

Rever, Inc.

Construye Industrial

Ricoh Latin America

Cramex

Safran Group

CROCSA

Secretaria de Desarrollo Sustentable de Querétaro

CSIRUS

Secretaria de Economía

Daimler

Secretaria de Fomento Económico de Yucatán

Dassault Systèmes

SITA

Doinglobal

SITRES Latam

DREX CNC

TechBA

Embajada de Canadá

Thales

Embajada de Francia

Top Management México

Embajada de Rusia

Transportes Aereos Pegaso

Europartners Group

UNAQ

FAMEX

Walbridge

FedEx Express

+80% PEOPLE WERE SATISFIED

Most Valuable Element

Profile of Attendees

24,777 IMPRESSIONS 38% C-Level High-Level 33% High-Level Mid-Level 29% Mid-Level C-Level

38% Content Speakers 27% Speakers/ Panelists Networking 35% Networking Content

14,549 IMPRESSIONS

P R O GR A M

07:30 REGISTRATION 08:30

MEXICO: KEY TO THE GLOBAL AEROSPACE SUPPLY CHAIN

Presentation: Luis Lizcano, Managing Director of FEMIA 09:15

ACHIEVING CRITICAL MASS IN MANUFACTURING

Moderator:

Carlos Robles, Vice President of Bombardier Queretaro

Panelists:

Antonio Velázquez, Managing Director of Queretaro Aerocluster

Claire Barnouin, Executive Director of Monterrey Aerocluster

René Espinosa, President of Chihuahua Aerospace Cluster

10:15

NETWORKING COFFEE BREAK

11:00

QUERETARO AEROSPACE HUB: BEST PRACTICES AND NEXT STEPS

Presentation: Marco Antonio del Prete, Minister of Sustainable Development of Queretaro 11:30

CRITICAL SUCCESS FACTORS IN AVIATION SAFETY

Moderator:

Luis Muñoz, International TAX Partner at PwC

Panelists:

Gunther Barajas, Vice President of Dassault Systèmes de México

Benjamín Mejía, Deputy Director General of Aerocharter

12:15

NETWORKING COFFEE BREAK

12:45

FAMEX: AEROSPACE INDUSTRY CATALYST IN MEXICO

Presentation: Major Gen. Rodolfo Rodríguez, President of FAMEX 13:30

NETWORKING LUNCH

15:00

COMPETITION, COLLABORATION AND DESTINATION MARKETING

Moderator:

Cuitlahuac Gutierrez, Country Manager Mexico of IATA

Panelists:

Ricardo Dueñas, Director General of Grupo Aeroportuario Centro Norte (OMA)

Felipe Bonifatti, Director General Mexico, Central America and Caribbean of Lufthansa Group

Guilhem Mallet, General Manager of Air France-KLM México

15:45

COLON, ENGINE OF THE AEROSPACE INDUSTRY

Presentation: José Alejandro Ochoa, Mayor of Colon, Queretaro 16:15

MEXICO’S PRODUCTION COMPETITIVENESS: WHAT SHOULD COME NEXT?

Moderator:

Jorge Gutiérrez, Dean of UNAQ

Panelists:

Alberto Robles, LATAM Strategic Supply Chain Leader of GE Infrastructure Queretaro

Juan Alberto Porras, Director General of CONCAMIN

Daniel Parfait, President of Safran México

Sergio Silva, Head of the Economic Intelligence Unit at the Ministry of Economy

17:00

NETWORKING COCKTAIL

KEY SPEAKER

MEXICO: KEY TO THE GLOBAL AEROSPACE SUPPLY CHAIN The local aerospace industry is still small but it is growing at an accelerated rate thanks to its ideal location close to the US and a young but highly qualified labour force. Mexico’s trade agreements with over 45 countries and low manufacturing costs also make it an attractive option but there are still many challenges ahead. “Mexico became one of the key players in the industry a short while ago. After this, companies started to see the country as a prospective industrial location,” said Managing Director of FEMIA Luis Lizcano at the Mexico Aerospace Forum 2019, held

LUIS LIZCANO

at Mexico City’s Hotel Marquis on Wednesday.

Managing Director of FEMIA Luis Lizcano has over 25 years of

Mexico’s proximity to the US and the availability of talent have helped it gain a

experience in industrial development

foothold in the global industry, Lizcano said. Unlike other industries, there are no

at both public and private institutions.

logistics problems for aerospace and related costs are low compared, he added.

He was in charge of FDI attraction for the State of Chihuahua, where he

The country’s trade ties also play in its favor, Lizcano said. "At present, Mexico

had the opportunity to design and

has a network of 12 Free Trade Agreements (FTAs) with 46 countries. The country

implement the Aerospace Industry

also actively participates in multilateral and regional organizations and forums such

Development Strategy to attract

as the World Trade Organization (WTO), the Asia-Pacific Economic Cooperation

companies like Cessna, Honeywell

Mechanism (APEC), the Organization for Economic Cooperation and Development

Aerospace, Beechcraft and Bell

(OECD) and ALADI"

Helicopter. He has a background in economic development, automotive,

However, Mexico’s authorities do not yet consider the industry as an area of

aerospace and industrial real estate.

opportunity, and this is a challenge. "In a span of 15 years, the industry has grown

Lizcano holds a Bachelor’s in industrial

about 14 percent annually,” Lizcano pointed out. Mexico ranks 12th on the world stage

engineering from the Monterrey

with a 2 percent market share. “This demonstrates the great potential we have in the

Institute of Technology.

country. We have the production capacity for all systems, from motors to turbines.” According to FEMIA data, the five regions in Mexico with the most aerospace development in recent years are Baja California, Queretaro, Nuevo Leon, Chihuahua and Sonora. To face this challenge, Lizcano said the country needs a public policy for the industry to take full advantage of the capital it can attract. If this were to happen, Lizcano believes Mexico could manufacture its own airplane within a year. For its part, FEMIA

H I GH L I GH TS 2 019 launched the Supplier Development National Program for the Aerospace Industry, which aims to train people and support projects focused on the development of the industry. “It is not a matter of providing incentives,” Lizcano said. “The aerospace

need to build 40,000 to 44,000 new aircraft, which is the equivalent

“The aerospace industry is a sector of skills and knowledge, and as we are prepared for that, we will be better positioned.”

of building twice the fleet that is currently operating in the world.

Luis Lizcano, Managing Director of FEMIA

industry is a sector of skills and knowledge, and as we are prepared for that, we will be better positioned. Currently, we have a lack of tier 2 and 3 suppliers. This represents an opportunity and it is just a matter of time,” he added. Lizcano also highlighted that in the next 20 years, the industry will

Mexico, he said, should grab that opportunity. “Traveling by plane is becoming increasingly popular. Every day, it is getting easier and cheaper and people who had never traveled by plane now do so. In the AsiaPacific region, 17 new airports will be built in the next five years, nine of them in China. There is an urgent need for airplanes and airports,” Lizcano said.

ACHIEVING CRITICAL MASS IN MANUFACTURING Carlos Robles, Vice President of Bombardier Queretaro told the audience at the Mexico Aerospace Forum 2019 that three main clusters are boosting Mexico’s national and international strategies to strengthen the aerospace industry. “Each of the clusters is integrated and focused on developing strategies to improve their state’s industry but also work together in creating better conditions to help the industry grow,” he said at the Marquis Hotel in Mexico City on Wednesday.

KEY SPEAKER The three clusters from Monterrey, Chihuahua and Queretaro agreed that the development of programs to address aerospace needs is one of the strategies that clusters are implementing together. “Together, we have identified three main areas that are key to boosting the sector: competitiveness regarding human talent, supply chain and investment,” said Claire Barnouin, Executive Director of Monterrey Aerocluster. In addition, Managing Director of Aerocluster Queretaro Antonio Velázquez stressed that talent and consistency have been keys to state and regional strategies. “Human talent has been the basis of our success, along with the consistency of our actions

CARLOS ROBLES

across time to push the development of the sector.” He continued saying, “the

Vice President of Bombardier Queretaro

establishment of UNAQ in Queretaro and the sum of beneficial factors between the

Carlos Robles started at Bombardier

state and the cluster were decisive for Bombardier to establish in the state.”

as Director of Operations in 2011, after working for 12 years in several

For Chihuahua Aerocluster’s part, the contribution to the joint strategy has been the

leadership positions at Volkswagen

support for the country’s SMEs in the sector. “The support for SMEs has generated

Mexico. Later, he became General

the appearance of companies to fill gaps that large companies and other existing

Manager of Bombardier and was

companies have not been able to fill, thus strengthening the entire value chain,” René

responsible for the design and

Espinosa, President of Chihuahua Aerospace Cluster, said.

execution of the company’s production strategies in Mexico’s manufacturing

Despite the three clusters working together, each also saw particular areas of interest

centers. In 2017, Robles was named

when trying to strengthen their value chain. Queretaro is focusing on taking decisions

Vice President of Bombardier. He is

in a surgical manner for critical areas of the sector. “SMEs are key to the sector, so

also President of FEMIA and Counselor

in the state these have preferential payment schemes and other benefits to ensure

at the Popular Autonomous University

fair competition in the market with other players,” said Velázquez.

of Puebla (UPAEP).

For Monterrey, communicating the benefits of the sector is the cluster's main support tool. "Sharing and communicating the opportunities of the aerospace sector has helped companies to enter and link up with the supply chain," said Barnouin. Although the strategy was planned for the aerospace sector, this benefit has spread to other sectors. "The cluster focuses on providing a wide range of services to different sectors. Thanks to this, other industries have learned from the aerospace sector, which has been the least affected by Mexico's economic recession," said Barnouin. In the case of the Chihuahua Aerospace Cluster, the strengthening of the value chain has focused on mapping the companies and the areas they serve. “In 2013, the cluster created a route map of the different components and identified the local capacities

KEY SPEAKER

established to know which other companies could complement the value chain,” said Espinosa. He stressed that the mapping has been a complex but necessary process to boost Chihuahua’s competitiveness. Approaching the end of the discussion, Robles highlighted that the Golden Aerospace Triangle, consisting of Monterrey, Chihuahua and Queretaro, will be crucial to the strengthening and national development of the industry. For Espinosa, “it is not necessary to have a cluster by state, but a proper representation and support that drives from the existing clusters to other states.”

MARCO ANTONIO DEL PRETE

In the same vein, Barnouin highlighted the importance of continuing to work on

Minister of Sustainable

individual strategies that are tailored to the needs of each state. “Each of the states

Development of Queretaro

has, in addition to the opportunities and general challenges, particular characteristics.

Marco Antonio del Prete is the

It is not possible to ignore local needs due to national conditions, but it is necessary

Minister of Sustainable Development

to work on multiple schemes and levels.”

of Queretaro for the 2015-2021 period. Before becoming Minister, Promotion at the Ministry of Tourism,

QUERETARO AEROSPACE HUB: BEST PRACTICES AND NEXT STEPS

Commercial Director of the Queretaro

From 2009-2019, Queretaro received 50 percent of all aerospace investments in

Intercontinental Airport and Minister

the country, an accomplishment that demonstrates the state’s resolve to get into

of Sustainable Development at the

the aerospace sector was well-placed, said Marco Antonio del Prete III, Minister of

del Prete was Director of Tourism

Queretaro Municipality. He has a

Sustainable Development of the state of Queretaro at the Mexico Aerospace Forum

Bachelor’s in industrial engineering

2019 on Wednesday. “Seventeen years ago, it seemed absurd to build a new airport

and a Master’s in administration from

so close to other cities like Mexico City or Leon. Today, we can see that Queretaro’s

the Monterrey Institute of Technology.

aerospace capacities began from that visionary decision.”

H I GH L I GH TS 2 019 Queretaro is the world’s fourth-ranked destination for aerospace FDI. The reason? “Queretaro has more than 80 companies and institutions focused on the industry, including two aerospace OEMs, 26 Tier 1 or 2 companies, five MROs, seven academic institutions, including UNAQ, which is the only aerospace university in the country, 12 R&D centers, 19 general services companies and four companies focused on developing new materials,” del Prete said during his presentation at the Marquis Hotel in Mexico City.

“Together, we have identified three main areas that are key to boosting the sector: competitiveness regarding human talent, supply chain and investment.” Claire Barnouin, Executive Director of the Monterrey Aerocluster

Bombardier was the first large aerospace company to establish in the state in the early 2000s. “The reasons behind Bombardier’s arrival to the state were not only the airport but the government’s willingness to establish the first and only university in the country focused on the industry.” This set the stage for companies such as Safran, Delta TechOps and ITP to later arrive to the state. Seventy-two percent of Queretaro’s aerospace industry is focused on manufacturing, 11 percent on maintenance and 13 percent on research and development. Queretaro Intercontinental Airport (AIQ) remains a cornerstone for the industry in the state, with an industrial park next to the airport, Queretaro’s Aeronautic University (UNAQ), a cargo area, passenger terminal and a military base in the near future. From 2013 to 2018, AIQ passenger traffic grew at a 50 percent rate. Del Prete also confirmed that Queretaro Gov. Francisco Domínguez has conducted talks with President López Obrador to make AIQ an alternative for shipments into Mexico City International Airport (AICM). “Queretaro has direct cargo flights from Luxembourg and Hamburg, we are a DHL and FedEx international hub as well. The airport has a 10,000m2 storage capacity, including temperaturesensitive shipments. We have plans to expand that area to 18,000m2 so AIQ can receive shipments from AICM,” he said. The state government also has started investing in Industry 4.0 projects to foster Queretaro’s advanced manufacturing capacities. “We recently began a three-party investment between General Electric, CIDESI and CONACYT to establish an additive manufacturing and 3D manufacturing consortium for the aerospace and medical industries. We are taking advantage of the GE design center in the state, which designs Boeing’s engines in partnership with Safran,” del Prete said.

SAFETY KEY TO A PEACEFUL CO-EXISTENCE AMONG SANTA LUCIA, TOLUCA AND MEXICO CITY AIRPORTS Every day, there are between 8,000 and 20,000 airplanes in midflight across the globe. A large number of flying aircraft at any given time is a constant challenge for pilots, airports, airlines, regulators, MROs and many other players in the aviation industry. While the sector is relentless in its pursuit of safety, the industry’s rapid growth will only bring more challenges.

HIG HL I G HTS 201 9 In light of this situation, Mexico should grab the opportunity to offer a safer service through technology, especially with the expected Santa Lucia airport, Toluca and the Mexico City International Airport (AICM) working simultaneously, panelists said at the Mexico Aerospace Forum on Wednesday at Mexico City’s Hotel Marquis. Deputy Director General of Aerocharter Benjamin Mejía pointed out, however, that the country has no growth plan other than air terminals, although the saturation in airports such as Guadalajara and Nuevo Leon will peak in 2021 and 2023, respectively. Some airlines, he noted, are already reporting 20 percent growth in passenger numbers. Between 2017 and 2018, the number of accidents increased by 2.6 percent. But Mejía sees that as a marginal increase and believes the industry’s safety rating is still high. However, as companies in Mexico grow at an accelerated pace and increase their capacity, there is a greater need for a couple of infrastructure and security. “Talking separately about infrastructure and security is not right. In Mexico, the aerospace industry has been constantly growing for 10 years,” Mejía added. Gunthar Barajas, Vice President of Dassault Systèmes de México, suggested a key

KEY SPEAKER

concern in terms of safety was the increasing prevalence of cyber attacks. “Currently in the sector, everything is connected. We must ensure that the information is not hacked. It is imperative to work on security issues,” he said. While coordinating as much as possible, it is also imperative for Mexican companies to resolve these issues independently, added Mejía, who added that more educational facilities were needed. There are agreements with Airbus to develop high-level certifications at schools, but the number of schools is insufficient, he said. Developing talent should be a priority if the industry is to continue growing, and

MAJOR GEN. RODOLFO RODRÍGUEZ

more is needed in this area, said Barajas. “More pilots, engineers, flight attendants and other professionals are needed to continue driving the aerospace sector."

President of FAMEX Major Gen. Rodolfo Rodríguez has

Speaking to the cancelation of the Texcoco airport project that rattled investors

served 45 years in the Mexican Air

after the election of López Obrador, International TAX Partner at PwC Luis Muñoz

Force. While a military pilot, Rodríguez

said that it was imperative that the country regain the trust of investors. “Investors

studied a Bachelor’s in military

take into account connections and the ability to move passengers, which so far in

administration and a Master’s in

2019 total 80 million and represents a market of US$200 million. We need response,

military administration for national

agility and strategies.”

defense and security at Mexico’s Army and Air Force University. He studies from the Alabama War College

FAMEX, MEXICO BUSINESS EVENTS SIGN ALLIANCE TO STRENGTHEN THE AEROSPACE SECTOR

and has studied several courses in

Major Gen. Rodolfo Rodríguez, President of FAMEX, said on Wednesday that Mexico

countries such as China and the US.

Business Events would play a key role in the growth of the aerospace sector under

As President of FAMEX, Rodríguez

a triple helix scheme for FAMEX 2021. “Mexico Business Publishing has become a

is in charge of organizing Mexico's

strategic ally of FAMEX to boost the development of the aerospace sector. It will

aerospace industry’s largest event.

contribute to the growth of the most important Aerospace Fair in Mexico and Latin

also holds a Master’s in strategic

H I GH L I GH TS 2 019 America: FAMEX,” he said during his presentation at Mexico Aerospace Forum 2019

KEY SPEAKER

at the Marquis Hotel in Mexico City. To formalize the alliance, José Alejandro Ochoa Valencia, Municipal President of the Municipality of Colon in the State of Queretaro, Rodríguez, and Jeroen Posma, General Director of Mexico Business Events, signed an agreement before 150 industry leaders and top public officials gathered at the forum. Mexico Business Publishing is an independent provider of business information, industry data and marketing solutions in print, digital and online formats. The next FAMEX will be held in Queretaro in 2021. “Queretaro is a representative state for the industry. It is ranked fourth globally in terms of aerospace FDI, houses the most relevant companies, it is one of the safest states, and it has the connectivity needed to communicate with the rest of the country,” Rodríguez said.

RICARDO DUEÑAS Director General of Grupo Aeroportuario Centro Norte (OMA)

In its first edition, FAMEX 2015 attracted 240 aeronautical companies from 16

Ricardo Dueñas has significant

countries. Thirty-two aircraft were on display and 3,500 business meetings were

experience in the airport and

held in Mexico City. Today, FAMEX has expanded significantly. "FAMEX 2019 was

infrastructure sectors. He was

attended by 635 companies from 39 countries, with 61 aircraft on display and it

Finance Corporate Director at Grupo

generated 5,800 business meetings," Rodríguez said. "The last FAMEX made this

Aeroportuario de la Ciudad de

event the most important fair in Latin America, while it also increased its scope by

México (GACM) from 2015 to 2018

having Canada as a partner country," he added.

and consulted for the Ministry of Communications and Transportation

FAMEX 2021 will be supported by the Ministry of Economy, the Ministry of Foreign

on several infrastructure projects.

Affairs and the Ministry of Governance. “With the arrival of Andrés Manuel López

He has a Bachelor’s in economics

Obrador to the presidency, the sector saw the arrival of new opportunities.

from the Autonomous Technological

The government has helped grow the sector, which has seen an increase in the

Institute of Mexico, an MBA from

number of passengers and overall increased its contribution to the country’s

Harvard Business School and a

GDP,” said Rodríguez. “There is no doubt the sector will remain a key player in

Master’s in public administration from

Mexico’s economy.”

the Harvard Kennedy School.

HIG HL I G HTS 201 9 KEY SPEAKER

COMPETITION, COLLABORATION AND DESTINATION MARKETING Rather than offering a transportation service, airports and airlines need to deliver a customized experience for a more demanding customer profile, panelists at the Mexico Aerospace Forum 2019 said on Wednesday at the Marquis Hotel in Mexico City. The panel kicking off the afternoon session featured Ricardo Dueñas, Director General of Grupo Aeroportuario del Norte (OMA); Felipe Bonifatti, Director General of Mexico of Luftansa Group; Guillhem Mallet, General Manager of Air France-KLM México; and Cuitlahuac Gutierrez, Country Manager Mexico of IATA.

FELIPE BONIFATTI

Mallet suggested that three actors are involved in improving flight routes and

Director General México,

destinations: airports, airlines and public authorities. “Each one of these parties must

Central America and Caribbean

assume part of the risk a new airport and a new route represents. This is a long-term

of Lufthansa Group

project and we need to provide stability for its success. Consequently, we need to

Felipe Bonifatti was named Sales

sit at the table and negotiate.”

Director of Mexico, Central America and the Caribbean at Lufthansa

Dueñas added that airport operators are a fourth element in this formula. “What we

Group in January 2019 after 27 years

have done together is to look at the market and see how we can support each other

working for the airline. Previously,

to open new routes.” He explained that airlines and airport operators hold annual

he occupied several management

meetings where operators can make the case for some destinations to be taken into

positions, including Director General

account. “Often, legal certainty and insecurity can be decisive factors when airlines

for Colombia, Peru and Ecuador.

choose new routes,” he said.

Before coming to Mexico, Bonifatti directed sales for Central America

Without a doubt, a growing tourism industry is shaping the plans for airlines.

and the Caribbean from Panama. He

According to Gutierrez, “countries in Latin America and the Caribbean are fighting

has a law degree from the National

over every tourist.” Lufthansa already is planning an expansion, said Bonifatti. “This

University of Mar de Plata and a

year, we opened a Barbados-Frankfurt direct flight three times a week. Next year,

Master’s in international relations

we will open 13 new routes in the Americas, all of them in tourist destinations. The

from Belgrano University.

industry is telling us to focus on tourism.”

H I GH L I GH TS 2 019 The four agreed that Mexico’s demographic bonus will bring new challenges to both airlines and airports as globalization raises standards. “We have a more demanding customer than before. They are global,” said Dueñas. Regarding how airlines are preparing for this change, Mallet mentioned three important elements Air France-KLM is taking into account. “First, there is connectivity; second, passenger experience on the plane; and third, sustainability. For us, flying responsibly

“Often, legal certainty and insecurity can be decisive factors when airlines choose new routes.” Ricardo Dueñas, Director General of Grupo Aeroportuario Centro Norte (OMA)

has become a priority.” For its part, Lufthansa’s focus now is on digitalization. “Our challenge is how do we incorporate digitalization into the travel experience of our users. The more digitalization helps to create customized travel experiences, the more we can attend the needs of new generations to travel instead of just being transported from A to B,” Bonifatti said. Technology will also present new opportunities to increase customer satisfaction when going through airports. According to Dueñas, airport operators foresee a day when security checks are no longer necessary. “Twenty years ago, if you would have told people that you could travel only with your phone, it would have been unbelievable. Now, we can discuss having machines, cameras and sensors surrounding passengers as they walk through airport halls and if needed, they will be asked to undergo an inspection,” Dueñas said. The two airline representatives, Mallet and Bonifatti, agreed that steps were needed to alleviate the saturation at Mexico City International Airport (AICM). “We focus on finding a balance between passenger satisfaction and costs,” said Mallet. “We operate a 380-model plane, with more than 500 seats. Infrastructure is key.” Bonifatti agreed that a revision of Mexico’s air space and infrastructure is needed. “Frankfurt airport

KEY SPEAKER

was in a very similar situation to AICM in 1991. However, European airports constantly renovate their facilities and make plans to avoid any possible saturation. Every time I pass through Frankfurt, I see work going on at the airport,” he said.

COLON: ENGINE OF QUERETARO'S AEROSPACE INDUSTRY Queretaro is on its way to solidifying its position in the aerospace industry as a destination for investment and as a potential national hub. Colon, a municipality in the state with a strong industrial sector, is playing a key role, said Colon Mayor

GUILHEM MALLET

José Alejandro Ochoa at the Mexico Aerospace Forum 2019, held at Mexico City’s

General Manager of Air

Hotel Marquis on Wednesday. “Governments have to be investment promoters and

France-KLM México

generate employment through opportunities. In 2015, Colon had 16 companies and

Guilhem Mallet has over 15 years of

three industrial parks. Today, it has more than 74 companies and will close 2019 with

experience at Air France-KLM. He has

11 industrial parks, mostly focused on the aeronautical sector,” Ochoa said.

significant management experience working with the airline in Brazil,

Ochoa is convinced that the generation of employment and strategies with academia

Cuba, Morroco and France. Mallet has

will help to create a circular economy to attract greater investment. Queretaro is

experience in the airline, travel and

already ranked fourth worldwide in aerospace FDI. Colon itself is home to more than

tourism sectors and has a background

120 foreign capital companies and generates around 10,000 jobs. “We have to believe

in revenue management, sales,

in the potential of the country. In the US, labor is becoming scarce and Mexico is

marketing, pricing and alliances. He

already training a specialized workforce.”

has a Bachelor’s in engineering from the São Paulo University and a Master’s

One project that seeks to potentiate investment is Emerald City, a complex with

in engineering from Universidade

a perimeter of about 5km around the Queretaro airport that aims to encourage

Federal do Paraná and from Université

the mobility necessary for the development of the state. “This model attracted

de Technologie de Compiègne.

HIG HL I G HTS 201 9 investment. There is a great future in the sector and Colon is going to continue betting on local sustainable economies,” he added. But the municipality wants to cover all the angles and instil the trust necessary to encourage investment. To this end, the local government sought to improve its regulatory framework. “Procedures to mitigate corruption were simplified,” Ochoa said. “Now, the only way to justify an expense is to generate opportunities.” Regarding the cancellation of the planned new international airport at Lake Texcoco that rattled investors, Ochoa expressed regret about the government’s decision but he believes it is going to be beneficial for the state as the Queretaro international airport will now grow in importance. “It will become an alternate airport, not just for cargo,” he said, adding that having the Mexican Air Force establish a presence in the area will be an added benefit.

WHAT IS NEXT FOR THE AEROSPACE SECTOR IN MEXICO? It’s time for Mexico to take the next step on the world’s aerospace stage, which means

KEY SPEAKER

bolstering its capacities, said Jorge Gutiérrez, Dean of UNAQ, during the Mexico Aerospace Forum 2019 at the Marquis Hotel in Mexico City on Wednesday. “More than 90 percent of the country's industrial capacity comes from foreign countries. Mexico's next step will be to improve its local capacity to emerge as a world leader in the field.” Gutiérrez moderated the event’s final discussion and sought each panelist’s view regarding what comes next in their respective areas and how their organizations aim to participate in this future scenario.

JUAN ALBERTO PORRAS

Daniel Parfait, President of Safran México, stressed that the seeds for the future of

Director General of CONCAMIN

the aerospace sector have already been sewn. “We hope to continue to grow with

Juan Alberto Porras leads the

the same energy and, in return, to see greater investment from both the private and

Mexican Confederation of Industrial

public sectors to improve Mexico's capabilities globally,” he said. "A clear example

Chambers (CONCAMIN), a business

that Mexico is growing is that when Safran started operating in the region, it had

organization that aims to develop

only five clients. Today, it has 40 companies."

sustainable business projects and initiatives across the country. Porras

In general, the industry needs more growth, but at the local level, companies are

has significant experience leading

looking for ways to help SMEs transition into the sector’s value chain. Alberto Robles,

business organizations from his work

LATAM Strategic Supply Chain Leader at General Electric Infrastructure Querétaro

as President, Treasurer and Secretary

(GEIQ), believes “the industry is growing at an accelerated pace and perceiving a

of CAREINTRA. Porras has a Bachelor’s

growing demand from the Asian continent. The industry needs to strengthen the

in law from Universidad Univer, a

participation of local providers, especially tiers 2,3 and 4, if it wants to solidify this

specialization in penal law from the

transformation.”

same institution and a certification in plastics and polymer engineering

The main obstacle for including SMEs into the value chain is their lack of a cooperative

technology from the CIQA.

culture. “There is a resistance from small and medium-sized companies to comply

H I GH L I GH TS 2 019 with the industry’s certifications and norms. Although many SMEs have joined this

KEY SPEAKER

initiative, there is still room for improvement,” said Juan Alberto Porras, Director General of CONCAMIN. Gutiérrez asked the representatives of the Confederation of Industrial Chambers (CONCAMIN) and the Ministry of Economy, as key players in Mexico’s economy, how they support the development of local investment and development of local providers. CONCAMIN represents around 54 percent of Mexico’s GDP and its member companies employ the majority of workers in the country. “CONCAMIN has been an important actor in developing public policies that support the growth of the different

DANIEL PARFAIT

economic sectors of the country and to guide the government to pay more attention

President of Safran México

to talent and SME development,” said Porras.

Daniel Parfait is a career diplomat. He

Sergio Silva, Head of the Economic Intelligence Unit at the Ministry of Economy,

from 2008 to 2012 and to Colombia

said the aerospace sector will continue to grow in the coming years. “Andrés

from 2000 to 2004. He held several

Manuel López Obrador’s administration is aware of the importance of the sector

responsibilities within the French

and it is sure it will continue to grow in the coming 15 years to become a leader

Ministry of Foreign Affairs, including

in the global market.”

Deputy Minister of the Americas and

was French Ambassador to Mexico

the Caribbean between 2004 and 2008. Nevertheless, to consolidate this growth, there must be changes to how economic

Previously, he had occupied diplomatic

development is approached. "As far as industrial policy is concerned, we are seeking

positions in Peru, Germany and the US,

a stabilizing element that must be adapted to the new reality of the economy. Not

where he was in charge of relations with

to protect ourselves from external competition, but to integrate our economy into

the US Congress. He was also Director

the global value chain," said Silva.

of Disarmament and Non-Proliferation at the Ministry of Foreign Affairs.

2020 QUERETARO NOVEMBER 25, 2020 Mexico Aerospace Forum is the industry’s premier event, bringing together key national and international players involved in the transformation of the country’s aerospace industry. The summit provides an invaluable platform to present an insider’s perspective through constructive debate on key topics, combined with targeted and effective networking opportunities.

www.mexicobusinessevents.com/aerospace

high-profile speakers

business and political leaders

Become a sponsor

Platinum Sponsor | US$18,500 Gold Sponsor | US$13,500

PRICES 2020

CONTACT

Live-Streaming Sponsor | US$5,000

Misael Oliver mo@mexicobusinessevents.com +52 55 5263 0221 Mariana Montes de Oca mm@mexicobusinesspublishing.com +52 55 5263 0214

NETWORKING MATTERS. WE DO THE WORK. YOU GET THE RECOGNITION.

Our networking events, which are exclusively available to our top clients, are a must for C-level professionals who want to expand their business, improve their contacts or simply gain insights from other key stakeholders in their industry.

Networking Breakfast The ideal setting for a gathering of up to 25 industry executives to discuss key topics relevant to their sector while energy is high.

Networking Lunch An intimate working lunch with up to 20 sector leaders designed around a relevant discussion topic and sure to lead to new ideas and ventures.

Networking Cocktail A larger, evening event and the perfect opportunity to unwind over drinks and canapes. Our cocktails feature a VIP speaker invited to provide insight into a trending topic.

events per year

1000+ high-profile attendees

THIS IS HOW YOU BENEFIT: Exclusive, by invitation only Network with the people and businesses that matter to you

ONE ELITE EVENT TO HIGHLIGHT YOUR BRAND. CALL NOW. Exclusive Cocktail Sponsor

US$10,500

Value-added opportunity to discuss trends and strategies Speaker presentations Topics and themes specific to your business segment

CONTACT

C-level participants Misael Oliver mo@mexicobusinessevents.com +52 55 5263 0221 Mariana Montes de Oca mm@mexicobusinesspublishing.com +52 55 5263 0214

2020 1

STATE OF THE ECONOMY

NATIONAL CHAMPIONS

FAMILY BUSINESSES & FOUNDATIONS

RELEASE DATE MAY 2020 Mexico Business Review is your entrance into the ranks of the elite of Mexico’s key industries. Take advantage of this opportunity to get inside the minds of the leaders who are shaping Mexico’s economic future, including public sector decision-makers, domestic and international C-level executives, top investors and the key voices across the country’s value chains. Mexico’s business community at your fingertips.

DIGITAL TRANSFORMATION

AEROSPACE

CONSTRUCTION & MATERIALS

REAL ESTATE

TOURISM

LOGISTICS

5,000 COPIES

AGRIBUSINESS

FOODSTUFFS

BEVERAGES

CONSUMPTION & RETAIL

FOOTWEAR & TEXTILES

VISIT US ONLINE www.mexicobusinesspublishing.com/business

PROVIDING UNPARALLELED IMPACT, MEXICO BUSINESS REVIEW IS DISTRIBUTED TO: Federal and state governments Primary institutional investors and funds Presidents, CEOs and Country Managers of the leading companies across the top industries Leading national and international service providers across various value chains

CONTACT: Mariana Montes de Oca mm@mexicobusinesspublishing.com +52 55 5263 0214

1/2 Page Horizontal | US$12,000 1/3 Page | US$9,500 Bookmark | US$22,500 Spotlight | US$12,500

Jorge Naupari jn@mexicobusinesspublishing.com

*20% surcharge for special positioning

+52 55 5263 0218

CHAPTER 204

206 208 210

8: AGRIBUS

INESS

ANALYSIS: A griculture

205

E: Enrique

VIEW FROM

osco de

uan Carlos

212 214 215

VIEW FROM

lejandro

APHIC: Prima

216 217 218 219

221 222 223 224 225

VIEW FROM VIEW FROM VIEW FROM VIEW FROM

anuel Bravo,

VIEW FROM VIEW FROM VIEW FROM

Syngenta

a North

osé Escalan

te, Velsime x

lberto Amkie,

Agropark

avier Martíne z, Groasis

astón Mauvez

in, Proteak

THE TOP: R odrigo Domen

zain, Amar

THE TOP: Í

ñigo Pérez-R

Hidroponia

asilla, Sofagro

THE TOP: D

iego Martíne z, Aneber

ries

x Martíne z, ANICA

VIEW FROM

AgroBIO

Monsanto

Latin Americ

THE TOP: J

THE TOP: A

THE TOP: J

THE TOP: G

INSIGHT: Féli VIEW FROM

203

ry Succes s

THE TOP: M ier Valdés,

220

tum

Monteagudo,

INFOGR

VIEW FROM

THE TOP: L

uis Tejado,

BlueDrop Agrofo

restry

THE TOP: J

Growth Momen

CNA

Anaya, GCMA

COMECARNE

THE TOP: A

INSIGHT: Jav

to Keep

of Jalisco

la Vega,

THE TOP: J

INSIGHT: Car

Needed

Alfaro, State

THE TOP: B

la Suárez,

211

4.0, Training

GUEST ARTICL VIEW FROM

uan Pablo

Flores, AVS

México