Aerospace industry migrating to Mexico in greater numbers

[Omaha Steve]

http://www.azcentral.com/arizonarepublic/news/articles/0402mex-planes0402.html

Companies follow automakers' lead to cut costs

Chris Hawley
Republic Mexico City Bureau
Apr. 2, 2008 12:00 AM

QUERÉTARO, Mexico - Chances are much of your car was built in Mexico. Increasingly, the planes you fly on are, too.

Aerospace companies are streaming to Mexico, drawn by lower wages, enthusiastic government promotion, a new safety agreement with the United States and an increasingly sophisticated workforce.

In a new plant in the central Mexican city of Querétaro, workers who make $3.50 an hour are building rudders and bundles of wiring for airliners. Across town, engineers at General Electric's research center are designing jet engines. In a nearby industrial park, workers are overhauling landing gear at a gleaming new plant.

"Every day, we are seeing more and more activity of this kind in Mexico," said José Javier Roch, head of aviation for Mexico's General Directorate of Civil Aeronautics.

Mexico's aerospace-related exports have more than tripled since 2004, from $146.2 million to $683.2 million last year, and exports are accelerating quickly as manufacturers move into big-ticket items like tails and fuselages. One aircraft maker, Canada's Bombardier Inc., says it hopes to eventually assemble complete jets in Mexico.

Companies say that, because of a booming market for aircraft worldwide, the move to Mexico has not resulted in major layoffs in the United States. But American unions are afraid it might if aviation takes a downturn.

FULL story at link.

[AzDar]

1. Another big mistake.