Nearshoring and the Aerospace Industry

Rising fuel costs are making Mexico’s geographical proximity to ODM/OEM (original design manufacturers/original equipment manufacturers) in the United States and Canada even more attractive to manufacturers in the aerospace industry. Sustained unrest overseas may drive fuel costs higher, making shipping costs even more of a concern for global manufacturers and suppliers.

“Whether we’re talking about aerospace manufacturers or manufacturers in other industries, rising fuel costs are putting the spotlight on the benefit of nearshoring in Mexico, rather than offshoring,” said Maria Elena Rigoli, President of Collectron International Management Inc. “Today, aerospace manufacturers like Radiall, whose Mexican manufacturing facility was set up with the assistance of Collectron’s maquiladora shelter program, are increasingly discovering the many advantages of manufacturing in Mexico, with close proximity being only one cost-effective benefit” said Maria Elena.

Supported by the local, state and federal governments of Mexico, Collectron has helped more than 200 companies start up and operate maquiladora plants in Mexico, in areas such as aerospace, electronics, medical devices, moulding and plastics, automotive, and communication devices. Collectron offers manufacturers the benefit of being located in the state of Sonora (across the AZ border) with immediate access through the Port of Nogales, recognized as the best-operated port in the United States, along with the availability of major transportation companies.

In addition to the benefit of geographic location, Mexico offers aerospace and other manufacturers the advantage of operating in the same time zone as its northern neighbors, expediting communication and coordination between a company and its Mexican operations. A well-educated, skilled workforce, lower manufacturing costs, and patent and intellectual property protection add to the advantages of manufacturing in Mexico.

Government programs and agreements over the years have continued to ease the way for improved and expanded trade relations, as well. The Bilateral Aviation Safety Agreement between the United States and Mexico, for example, underscored Mexico’s commitment to improved and expanded trade relations in the aerospace industry