Between January 2009 and March 2015, a total of 60 aerospace FDI projects in Mexico were recorded from 38 companies, placing the country third globally by this measure. These projects represent a total capital investment of $3bn and created an estimated 7400 jobs, according to figures from greenfield investment monitor fDi Markets.
The two most successful states in Mexico for attracting aerospace investment are Querétaro and Chihuahua, which are ranked fifth and 11th globally for number of projects received over the past five years. These states’ capital cities rank fourth and sixth, respectively, among all global cities for aerospace.
Advertisement
Among recent investment, in early 2015, Snecma, a subsidiary of France-based Safran, announced that it is to expand its aerospace engine components plant in Querétaro with the addition of new production lines. The expanded capacity will meet global demand following technological changes in turbine design. This follows the announcement in 2014 by Canada-based Dishon, a provider of computer numerically controlled machining services, that it plans to invest $20m in a new 20,000-square-metre plant in Querétaro by 2019. The company also said it would create up to 150 jobs by 2016.
Other key findings from fDi Markets include:
FDI projects peaked in 2012
In 2012, there were 14 inbound projects in Mexico, with an estimated $538m capital invested. Average project size peaked in 2009 for both capital investment and jobs created.
Manufacturing is top business activity
Out of a total of five business activities, manufacturing accounted for 70% of projects in Mexico. Project volume in this business activity peaked during 2009, with nine projects tracked. Manufacturing has generated the highest number of total jobs and greatest investment with a total of 7213 jobs and $2.5bn in investment. This business activity also has the largest project size on average in terms of both investment and job creation.
Advertisement
Destinations list is top heavy
The top five destination cities account for almost two-thirds of projects. Querétaro is the top destination city, accounting for more than one-quarter of projects tracked and $1.2bn in capital investment. Chihuahua received the highest number of total jobs, while Querétaro has the highest total investment.
The US remains top source of investment
The US is the top source country into Mexican aerospace accounting for almost two-fifths of projects tracked and $1.2bn in investment.
