Introduction. 1. The Aerospace and Defense Industry in Mexico. 2. The Aerospace and Defense Industry of Baja California

Transcription

1

2

3 Copyright 202 by ProMéxico. All rights reserved. Caino a Santa Teresa 679, Col. Jardines del Pedregal, Del. Álvaro Obregón, C.P. 0900, México, D.F. proexico@proexico.gob.x st edition Mexico City, June 202 PROMÉXICO Carlos Guzán Bofill CEO Ana María Rivas Llaas Head of the Adinistration and Finance Unit Carlos Casas Guerrero Head of the Export Prootion Unit Juan Ángel Vargas Plata Head of the Business Inteligence Unit Juan Carlos Téllez Girón Barrón Head of the Institutional Support and Relations Unit Luis Anthony Olivé Hawley Head of the Investent and International Business Prootion Unit Sebastián Escalante Bañuelos Director of Publications and Content Natalia Herrero Martínez Editing Izael Mijangos González Design Created by: Manuel Sandoval Ríos María Cristina Carreón Sánchez Juan Héctor Algrávez Góez Ronald Eduardo Pérez Díaz Introduction. The Aerospace and Defense Industry in Mexico.. Maturity Profile of the Aerospace Industry in Mexico and Governent Strategy 2. The Aerospace and Defense Industry of Baja California 2. SWOT Analysis 3. Road Map (TRM) of the Aerospace and Defense Sector of Baja California 4. Strategic Milestones and Projects 4.. Creation and Integration of a Capacity Map of the Sector (by City) with Reference Points (Regional and International) 4.2. Talent Manageent Syste by Copetencies 4.3. Integration of a Strategic Plan and State TRM for the Industry 4.4. Training and Education Capabilities Map Conclusions With the support of: Matrix of Capabilities, Products and Processes 30 Gilberto Macías Zavala Eduardo González Díaz de León María Josefa Padilla Monroy José Mariano Moreno Blat María Luisa Silva Hernández Working Group Mebers (TRM of the Aerospace and Defense Sector of Baja California): Baja Aerospace Group Baja California State Governent CETYS University Coast Aluinu Cobha Eaton Galvanizadora Tijuana GKN Aerospace Goodrich Honeywell Mexicali s Industrial Developent Coission Mexican Space Agency (AEM) National Chaber of IT, Telecounications and Electronics Industry (CANIETI) Parker Aerospace The United States-Mexico Foundation for Science (FUMEC) Tijuana s City Council Tijuana s Industrial and Econoic Developent (Deitac) Tijuana s Technological University (UTT) Volare Engineering Zodiac Aerospace Business Directory 35 All rights reserved. No part of this book ay be reproduced in any for by any electronic or echanical eans (including photocopying, recording, or inforation storage and retrieval) without previous written perission fro ProMéxico. Whereas every effort has been ade to ensure that the inforation given in this docuent is accurate, ProMéxico accepts no responsibility for any errors, oissions or isleading stateents in this docuent. Also, no warranty is given or responsibility is accepted, as to the standing of any individual, copany or other organization entioned in this docuent.

4 Introduction Introduction The guidelines contained in the National Flight Plan for the Aerospace Sector Road Map represent one of the ost iportant national efforts to iprove the vision of the developent that the country s aerospace and defense industry has recorded over the last decade. The Road Map is the product of the vision of said docuent. Fro an integral approach that draws on the efforts of acadeia, the leading businesses of the sector, and the governent, ediu and long ter strategic goals and guidelines have been created. The ai is to consolidate Baja California as the ain cluster in Mexico for high added value, knowledge-based outsourcing (KPO) for the aerospace and defense (A+D) industry. The state of Baja California has the potential to develop fuselage systes and power plants, aking it an iportant anufacturing supplier with integrated value chains. Various opportunities for the A+D sector have opened in Mexico since the creation of an export control syste and the country s involveent in the Wassenaar Arrangeent. Most notable is the correct anageent of dual use technologies in industrial processes and in Mexico s exports. The capture of high added value investents is a task that requires substantial prootion, which will benefit the state s plans regarding KPO services for the A+D industry. The efforts of this regional road ap involve a process of continuous iproveent, constant evaluation and the convergence of every stakeholder who contributes knowledge. Therefore, it is a docuent that ust be updated and adapted constantly. The purpose of the Wassenaar Arrangeent is to proote transparency and inforation exchange during dual use technology anufacturing and avoid the proliferation of conventional weapons. It prootes a safe environent for the trade of restricted and dual use goods and technologies aong the 4 countries that have adhered to the echanis to date. 7

5 // The Aerospace and Defense Industry in Mexico. The Aerospace and Defense Industry in Mexico Mexico has been a reliable partner for coponents developent, anufacture and services of the aerospace sector. During the last seven years, Mexico has recorded sustained annual growth of alost 20% in exports fro the 249 aerospace and defense copanies established in the country. 2 Mexico has a series of advantages that ake it the ideal destination for the attraction of investent projects in this sector. The country has talented and highly-skilled people: ore than 5,000 engineers graduate every year, aking Mexico the ain source of technological talent in the Aericas. 3 According to Alix Partners, Mexico ranks higher than India and China in ters of copetitive anufacturing costs for the United States, the world s leading trade partner. 4 In addition, the country s strategic location enables it to share borders with the leading arket in aerospace and defense production and consuption. This also places Mexico in the dollar zone, which is the ost coon currency for trade in this industry. To suarize, due to Mexico s advantages, the aount of strategic investent projects has been constant in the last decade. In 20, when Mexico s aerospace and defense sector s net worth was easured, exports of products and coponents reached 4.3 billion dollars. Mexico offers services for the aerospace and defense sector that, given their potential to create high added value goods, have a higher strategic value than operative. Such is the case of KPO exports, such as engineering and design of coponents, software and industrial processes, which contributed to exports with ore than 600 illion dollars in An opportunity to further the developent of KPOs in the Baja California A+D cluster is based on the country s opportunities as a privileged destination for projects that include restricted and dual use technology (for shared civil and ilitary use). This is the result of the creation of an export control syste and the adission of Mexico to the renowned Wassenaar Arrangeent, which to date involves 4 countries with dual technologies in their industrial and export processes. The possibility of receiving investent projects that include restricted high technology affects national copetition through technology transfer. These investent projects support econoic and social welfare by creating well-paid jobs for Mexican citizens. According to conservative estiates, the Wassenaar Arrangeent will enable the national industry to access a potential high technology export arket of approxiately.3 billion dollars, plus the potential creation of between 30,000 and 40,000 highly-paid jobs in the next five years. 6 2 Created in 202 by ProMéxico s Business Intelligence Unit (UIN), with data fro 20 by the General Directorate of Foreign Trade (DGCE) of the Ministry of Econoy (SE) Projections, INEGI - ANUIES, Graduate Studies Statistics Yearbooks Ministry of Education, Mexico s Presidential Office. 4 Alix Partners, US Manufacturing-Outsourcing Index, 20 co/en/whatwethink/ Manufacturing/20USMa nufacturingoutsourcing Index.aspx 5 Alost 20% growth estiates in the aerospace and defense sector, UIN ProMéxico, DGCE, SE, 20. It should be noted that Mexico s iage abroad aong its trade partners is also a favorable factor. The country fosters the protection of intellectual property and aintains Arrangeents to guarantee the quality of its services and products, which have positively affected certainty and security for aerospace and defense copanies established in Mexico. These factors have enabled the creation of highly-copetitive poles that operate in a certified and world-class ecosyste. An exaple is the Bilateral Air Safety Arrangeent (BASA) with the United States, which enables copanies located in national territory to 9

6 // The Aerospace and Defense Industry in Mexico validate certifications granted by the Directorate of Civil Aviation (DGAC) with those granted by the Federal Aviation Adinistration (FAA), with the goal of introducing goods and design to the US arket.. Maturity Profile of the Aerospace Sector in Mexico Cabridge University s Institute for Manufacturing developed the concept of strategies for sector developent. In this study, the Institute classifies sectors based on global and national developent. It then defines seven areas, where each represents a sector strategy based on industry developent. Area 5: The industry is declining, but ay be eerging or growing globally. The decision to intervene will be based on whether the country is losing an industry to international copetition or oving away fro an industry that is not relevant. Area 6: By definition, there is a sall and relatively stable nuber of producers in the country. While the global position falls, it is probably an industry that is declining and therefore not suited to receive support. Area 7: If the industry was declining before it developed in the country, it is ore likely that it is declining globally. In the case of Mexico, as can be seen, the aerospace industry is in Area 2, which eans that the national strategy should lean toward protecting an eerging sector. The strategies are: Graph : Maturity profile Graph 2: Maturity profile of the industries in Mexico D M C E E C Area : Industrial policy overlaps with science and technology policy, while new industries are aintained as they eerge for the first tie. Area 2: Protection of the eerging industry, where countries seek to participate in an existing industry in the world and protect theselves fro industry-related learning and cost curves. Area 3: A country has significant leadership as this industry develops M D Overall level of developent D Aniation Video Gaes M C E Aerospace E Energy E-Learning TIC s Advertising Mining Multiedia C Autootive Electronic Cineatography Metal-working Level of national developent The aerospace sector in Mexico is developing into a globally ature industry, and so requires a strategy that focuses on the insertion of innovation capabilities in international networks and the attraction of strategic projects. The Mexican aerospace sector s growth will depend on its capacity to generate endogenous innovation fraeworks and increase the added value of products that are anufactured in the country. M D Area 4: While the industry atures, attention will preferably focus on iproving productivity and copetitiveness, providing transition support to industries that are declining or that ipose fees and take protectionist easures to aintain the industry. 0

7 2 // The Aerospace and Defense Industry of Baja California 2. The Aerospace and Defense Industry of Baja California The developent of the aerospace industry in Baja California began after ore than four decades of anufacturing activities, brought about by its geographic and cultural closeness to the United States. This closeness has enabled a significant core of copanies to be aintained, which respond to requireents such as high quality standards and copliance with regulations, with a daily involveent in the production of coponents for space and defense applications. Baja California is one of the ost iportant states for the Mexican aerospace industry. There are ore than 50 copanies and support entities fro the sector that have recorded exports of approxiately.48 billion dollars per year, 27% of national exports. 7 7 Created by ProMéxico s UIN with inforation fro SE, 20. The United States attracts two thirds of Baja California s exports. The rest goes to Canada, England, France and Gerany, aong other countries. It should be noted that exports to these countries have aintained a sustained growth since Baja California focuses its innovation capabilities on coplete integration aircraft testing and interior design. In ters of anufacturing, the state specializes in precision achining, electrical and power systes, hydraulic systes and interiors and etal plate conforation processes. Soe copanies have internal capabilities for special processes, theral and surface treatents. They also perfor MRO activities on engine parts. Graph 3. Capabilities of the aerospace and defense sector of Baja California Airfrae Assebly and Sales On-Board Avionic Systes Propulsion Systes Airfrae Structures, Subasseblies and Subsystes Electronic and Electrical Coponents and Parts Engines and Coponents Engine Accesories Fuselages and Structures Interior Cabin Systes and Coponents Environental Control Systes Electronic Systes and Subsystes Starting Systes and Electrical Power Sources Coponents and parts suppliers Fuel Systes Landing Gear Systes Hydraulic Systes Note: Capabilities arked in purple relate to anufacturing and innovation activities. Capabilities arked in blue relate to design and engineering. 3

8 2 // The Aerospace and Defense Industry of Baja California 8 ANUIES ( ). Enrollent in engineering and technology progras in Baja California aounts to 20,923 students fro a total of approxiately 774,597 nationally, aking it one of the states with the largest nuber of students in these progras. 8 Baja California is becoing a pole that defines its capabilities transversally; therefore, it can capitalize its experience in the electronics, etal-working and plastics and coposite aterials industries. It is iportant to reinforce engineering activities related to developent and support infrastructure for talent training and the supply of required technical and technological services, leveraging the global reach of its anufacturing industry s current operations. 2.. SWOT Analysis For the developent of the strategy for the Baja California A+D industry, and to learn ore about its situation, a SWOT analysis was carried out by the TRM working group. Strengths High talent supply Wide experience in the industry Higher business concentration Coordination of the triple helix Support fro federal, state and unicipal governents Weaknesses Coordination and counication aong the state s cities in early stages Lack of supplier developent Need for quality certifications for the industry in local supply chain Lack of coordination between acadeia and the industry s needs Low-skilled huan resources Opportunities Geographic location Study progras aied at industry needs Budgetary cuts for defense projects in the United States Econoic strength Wassenaar Arrangeent Evolution of aerospace anufacturing toward added value services and design centers (KPO) Threats International copetition Econoic crossroads Perception of insecurity Change of governent Fiscal uncertainty The working group of the Baja California A+D Road Map intends to turn the state into the ain cluster in Mexico in ters of KPOs for the A+D industry. After identifying the region s inhibitors and prooters to reach this goal, the working group pointed out that the large talent pool for the A+D industry, the industrial and business concentration experience, coordination between the triple helix and governent support have been fundaental to leverage this developent. In addition, they ephasized the advantages of neighboring the world s leading aerospace arket, as well as budget cuts to technology research and developent projects and dual use technology anufacturing in the US as factors that have driven Mexico to becoe a copetitive trade partner for the continuation of these projects. 4 5

9 2 // The Aerospace and Defense Industry of Baja California Graph 4. Causal Map After analyzing the trends identified by the working group of the A+D Road Map of Baja California, it was deterined that the vocation selected for this cluster is aligned with an iportant global trend: industrialized countries perfor KPOs in eerging countries, with dynaic econoies like Mexico. Business Concentration Talent Supply National Experience Supplier Developent Effective Acadey- Industry Coordination In 200, KPOs were valued at 7 billion dollars, and India was the largest recipient (7% arket share). The trend towards global KPOs is increasing. According to KPMG s estiates, Mexico will have an iportant share in this sector, which is valued at 34 billion dollars by Aong the advantages that ake Mexico a privileged partner to receive investent projects for KPOs are its strategic geographic location; the use of siilar tie zones; the pool of skilled and quality talent that offers the copetitive costs required for this econoic niche; and a strong econoic relationship with the United States, which enable Mexico ease into this sector that generates high added value. In addition, the trend analysis showed a huge opportunity for the Baja California A+D KPO cluster with budgetary cuts for defense in the United States. 0 These cuts force aerospace firs that have received production projects to continue with saller budgets. This entails closing research and developent centers in the United States for projects that contain restricted and dual use technologies. 9 The New Focus of Outsourcing: KPO, KPMG, es/issuesandinsights/ articlespublications/ paginas/iagennuevo-enfoque-deloutsourcing-kpo.aspx 0 co/202/0/26/ ilitary-budget-cutspentagon_n_ htl Coordination aong Countries Willingness to Coordinate the Triple Helix Governent Support Due to national security and intellectual property reasons that could endanger the US s technology leadership, partnership options are liited to certain regions and the nationality of professionals who can participate in the US defense arket. However, Mexico and its citizens are eligible for outsourcing this type of project, which supports the success of the Baja California A+D in KPO cluster to attract projects to export controlled goods and services to the United States. dangerroo/20// ega-weapons-lab/ Beginning Scores and Certifications Low-skilled Huan Resources Based on the results of the SWOT analysis and the analysis of the current situation of the Baja California A+D industry, the ain challenge to ake the state the ost copetitive pole in KPOs for this sector lies in the generation of new technicians and engineers who can adapt to the new technologies deanded by the industry. Of the 20,923 engineering and technology students in Baja California,,8 graduate and,772 obtain degrees each year. The infrastructure capacity and quality of universities and technology centers in the state ust be leveraged by ipleenting new progras aied at satisfying industry needs and focusing on Baja California s opportunity in high terinal efficiency. 6 7

10 2 // The Aerospace and Defense Industry of Baja California Graph 5. Global trends in A+D KPOs Engineering and design igration to Mexico Professional drain Social Increase in econoically active population Utilization of leisure capacity of executive jets Passenger experience influences airplane design Investent in new aterial developent (nanocoposites) Reconversion of hydraulic and pneuatic systes to electrical systes Integration of aerospace systes Increase in industry deand and production technological Ipleentation of new technology in aircraft Increase in instruentation and code inside aircraft Copetition with other eans of transportation Integration of technologies fro other industries to the aerospace industry COMAC launches the C99 Higher protectionis in developed econoies Using off the shelf coponents for defense applications Econoic crossroads in the United States (businesses in the region are affected) Growth of the aviation industry in China Industry igration to Mexico Cost reduction and efficiency deanded in the industry econoic environental political and legal Macro-econoic stability Increase in the cost of entry ticket to the aerospace industry Increase in global confidence in Mexico as a destination Increase in supply of regional jets Increase in energy costs Developent of alternative supply zones in eerging econoies Progressive igration to eulate autootive quality systes Lighter airplanes (new generation) Increase in environental regulations More efficient and less harful turbines Elections in Mexico and the United States Developent of sector-related public policies More efficient alternative configurations for the aerospace industry Green processes and aterials Airplanes use alternative/renewable energies 8 9

11 3 // Road Map of the Aerospace and Defense Sector of Baja California 3. Road Map of the Aerospace and Defense Sector of Baja California The Road Map is planned in two stages; priority was established by the working group based on the relevance of strategic projects. During the first stage, they agreed to work on projects identified as high ipact and feasibility for the developent of the aerospace industry of Baja California. Graph 6. Road Map Diagnosis of training needs Creation and integration of a ap of sector capabilities (by city) including benchark (regional and international) Talent anageent syste by copetencies Map of training and education capabilities of Baja California Integration of a strategic plan and state TRM for the industry Specialization progras for engineers, technicians, operators and soft skills (aligned with the industry s DNCs) International copetitive cluster through the articulation of a high value productive ecosyste V.C.O.= Export volue, level of sophistication of exports, FDI iport substitution, local suppliers 205 Identification of and approach to leading businesses to proote their capabilities Integration of regional capabilities to global innovation systes in SFPP Progra for branding, advertising and disseination the zone s capabilities Vertical support for the industry with a focus on SMBs Main hub of exportation of high value knowledgebased services (KPO) for the A+D industry in Mexico 2020 Technology, industrial innovation and arket trend observatory Practices progra and dual syste (national and international) KPO attraction for fuselage systes and power plants Ipleentation of technology capabilities, innovation, testing and certification infrastructure Strategic alliances with siilar international organizations Cross-border coission for pole developent Mature fleet recycling hub Triggers and coordinates Mexico s leadership in Latin Aerica in KPO for fuselage systes and power plants

12 4 // Strategic Milestones and Projects 4. Strategic Milestones and Projects A strategic ilestone is a goal or objective based on the prospective analysis of trends. In addition, for a ilestone to be considered strategic, it ust fulfill SMART requireents. S: Specific; M: Measurable; A: Aggressive but Attainable; R: Relevant; T: Tie-fraed. Below are the three strategic ilestones on which the road ap focuses, obtained by the working group created to analyze the. Graph 7. Strategic Milestones Baja California is the ain export hub of high value, knowledge-based services (KPO) for Mexico s A+D industry Baja California is an international copetitiveness pole thanks to the articulation of a high-quality cluster. Baja California is a trigger. It coordinates actions to turn Mexico into a KPO leader for fuselage systes and power plants in Latin Aerica. 23

13 4 // Strategic Milestones and Projects Every subsequent activity which focused on prooting the ideal conditions to achieve this ilestone was then scheduled. The triple helix (acadeia, industry and governent) will have to work together to achieve these three iportant goals in the tie fraes and anner required; the active and purposeful participation of all those involved is of the utost iportance. After the evaluation and consideration of strategic projects in the workshops of the aforeentioned working group, 5 strategic projects are presented. It was agreed to work on these projects based on the results of the ipact/feasibility study generated in the road ap workshops.. Creation and integration of a capabilities ap of the sector by city with regional and international reference points. 2. Talent anageent syste by copetencies. 3. Integration of a strategic plan and state TRM for the industry. 4. Training and education capabilities ap. Stage : Diagnosis of training needs. Stage 2: Specialization progras at engineering, technician, operator and soft skills level, aligned with the industry s DNCs. 5. Identification and approach to leading copanies to proote their capabilities. 6. Integration of regional capabilities to global SFPP (Project Forulation and Preparation Services) innovation systes. 7. Progra to position, proote and counicate the area s capabilities. 8. Vertical support for the industry with a focus on SMBs. 9. Technology, industrial intelligence and arket trends observatory. 0. Practices and dual syste (national and international) progra.. KPO attraction for fuselage and power plant systes. 2. Ipleentation of technological, innovation, testing and certification capabilities infrastructure. 3. Strategic alliances with siilar international organizations. 4. Cross-border coission for pole developent. 5. Mature fleet recycling hub. 4.. Creation and Integration of a Capabilities Map of the Sector (by City) with Reference Points (Regional and International) The goal of this project is to identify the capabilities for Baja California s industrial processes and value chain and to develop suppliers, as well as copetencies for professional training in the sector. The road ap will establish the basis to support strategies that lead the state s industry to achieve its goals. It is a fundaental tool for the ipleentation of a productive coordination syste. The scope of the project includes an analysis of the leading copanies capabilities and their goods and service suppliers by city, to iprove business by developing the value chain of local industry. The leadership of this project, based on the working group s decision, depends on the coitent of the representation of the Mexico-United States Foundation for Science (FUMEC), to follow up on actions to fulfill this strategic project. Support and Benefits The benefit of this project is being able to see the current reach of Baja California s industry, categorized by copetencies and capabilities to strengthen the supply value chain. It also seeks to create strategies to aintain and capitalize on strengths, and identify and proote the areas of opportunity required to eet the ain goals of the sector in this state. Disaggregating the copetencies offering enables the sector to be prooted aong other value niches where current and developing copetencies are required, beyond the sale of technical specialization. This project will help trigger others, such as strategic planning, industrial technology and the intelligence observatory, to have continuous and historical inforation to support the decision-aking that will guide the industry. The verification of the feasibility of developent and strengthening in previously identified niches of opportunity (fuselage systes and power plants) guides efforts and accelerates developent by executing strategic projects to ultiately position Baja California in the global arket Talent Manageent Syste by Copetencies The goal of this project is to identify profiles and copetencies required for high-deand A+D positions. To do so, it covers the developent and use of a technological platfor and the use of advanced talent anageent and business intelligence practices. Based on the decision of the working group, the president of the Baja California cluster will lead the project with the coitent to follow up on activities. Support and Benefits The creation of a talent anageent platfor is required to trigger talent in this region. The underlying benefits are: 24 25

14 4 // Strategic Milestones and Projects To identify aong professionals leaning towards aerospace, engineering, design, restricted technologies and general sciences, fro those with the potential to integrate into this sector. To analyze future staff trends and requireents to facilitate planning for capabilities and abilities that ust be developed based on ilestones and projects set by the sector s strategic road aps. Huan capital is an essential eleent and a trigger of the aerospace industry s developent. That is why there is a need to guide efforts and strategies to strengthen the training and education offering to turn Baja California into the ain high added value, knowledgebased services export cluster. To guide and support professionals, providing the with developent routes based on their area of specialization and level, to clear their growth perspective in aerospace disciplines and restricted high technologies. The ain challenge for Baja California is to cover the deand for engineer, technician and specialist training, considering that in leading countries (such as the United States) there is a talent deficit and a lower nuber of available engineers per capita than in Mexico. In addition, Mexico is a strategic trade partner for the United States and eets the requireents of specialist subcontracting Integration of a Strategic Plan and State TRM for the Industry The goal of this project is to create a strategic plan to identify the region s developent potential and define a specific vocation, using road ap ethodology, where participation and cooperation fro the leading copanies of the sector, acadeia and the governent are essential. Based on the decision of the working group, the representative of ProMéxico s state office will lead this project with the coitent to follow up on sectorial strategy activities. Support and Benefits A strategy is fundaental for the correct developent of an industry. It helps to identify critical factors that are linked to copetitiveness, to define future lines of action through trends and technologies, and to correctly plan resource distribution to eet goals. A strategy helps to trace the path that industry could take to achieve long ter goals. In addition, it establishes channels of counication aong players and a knowledge anageent syste that acts as a coon base to develop the industry s strategy regionally Training and Education Capabilities Map The goal of this project is to identify current progras in universities and technical schools to evaluate the state s research and developent capabilities for the sector. The representative of private initiative in the aerospace cluster of Mexicali will be the leader to correctly follow-up on activities required to coplete the project. Support and Benefits This project will establish the foundation to create a study on the gap between the sector s needs and the educational offering, to achieve a stronger link between the aerospace industry and higher education institutions, with the goal of reducing the learning curve and providing a higher degree of specialization

15 Conclusions Conclusions The increasing nuber of investent projects in the aerospace and defense sector that have been leveraged in Mexico support one of the ost iportant developents of the industry in the last decade. Mexico has positioned itself to its trade partners as one of the ost copetitive and strategic destinations for the sector s anufacturing, service outsourcing and industrial processes. This road ap was copleted with the intention of creating a vision for the aerospace sector s industrial developent in Baja California to create a strategic road of action. Through the coordination between the business sector, acadeia and governent, a shared vision was created with specific coitents, to enable Baja California to becoe the ain cluster in Mexico for KPO-based services for the A+D industry, and the developent of suppliers required to consolidate the value chain of several niches, such as fuselage systes and power plants. The analysis of global KPO trends shows a huge opportunity in the face of the industrial slowdown of the United States, that forces the ain econoic sectors to aintain their copetitiveness in the industry. To deal with increasingly higher costs, and the lack of talent they require for developent, the ain industries in the United States ust look for ore copetitive options to aintain their research and developent activities, and protect theselves fro activities that require highly specialized professional capabilities. Baja California s various endogenous advantages, such as its frontier with the ain KPO arket in the world, its highly-skilled population, extreely copetitive anufacturing costs and cultural affinity with the United States, ake it the ideal destination for activities that require high added value, knowledge and advanced anufacturing for the aerospace and defense sector. This road ap is flexible and requires constant updating to fulfill the goals established. Now that this path has been traced, Baja California can reach its destination successfully through the joined efforts and collaboration of the specified players. 29

16 Matrix of Capabilities, Products and Processes Baja california: Matrix of Capabilities, Products and Processes NDT= Nondestructive Testing C= Coatings CHP= Cheical Processing HT= Heat Treating MT= Material Testing NM&SE= Non Conventional Machining and Surface Enhaceent W= Welding M= Manufacture MRO= Maintenance, Repair & Overhaul I+D= Engineering + Design = Capabilities and Certifications Copany Aeroengine Coponents: Propelers / Rotors, etc. Aerostructure Coponents Fuselage Manufacture Aircraft Construction and Assebly Aeroengine Coponents: Propelers / Rotors, etc. Avionics Raw Material Supply / Material Manufacturer Aeroengine & Aerostructure Subasseblies Electric & Electronics: Panels, Coponents, Equipents and Power Systes Electrical Cable Accessories / Harnesses Aircraft Interiors Equipent Furnishings Tooling Ground Support & Airfield Equipent Araents and Related Equipent: Missile-Related Products Autoflight Systes and Equipent: Pilot Navaids Counication Systes and Equipent Control Systes and Equipent Fuel and Fuel Systes Hydraulic Systes and Equipent Safety and Survival Equipent Indicating, Data and Recording Systes Landing Gear Space Systes and Equipent Standards Parts Windows Wings Galley Equipent Fasteners Technical Textiles Aviation Services Research, Design & Developent Consultancy, Finance and Logistics Training Skills - Universities, Colleges and Institutes HR Manpower Others Flight Training Stock Solutions Turning Machinery Manufacture - CNC and Precision Engineering Rough Milling Finish Coputer Syste Software MBD Forging & Aerostructure Fabrication Foring Labor Work Labor Work Turning Honing CATIA V5 CAD / CAM / CAE Forging Deburring Shot Peen Grit Blasting (Surface Prep) Quench & Teper Heat Treat Stress Relieving Solution + Age Chroe Plate Treatent Processes HVOF Spray Cad Plating Surface Treatents MCAC Sulfuric Anodise Chroic Anodise Prie & Paint MPI LPI NDT Acid Etch Testing & Certifications Cheical MCL Mechanical Stainless Steel Steel 300M or Equivalent Raw Materials Material Range Aluinu Titaniu Delran Coposites Investent Castings DIe Transforation Processes Sand Joint Processes Soldering & Welding Adhesives Others AS900 AS900B AS999 NADCAP ISO 9000:2000 ISO 900:2000 ISO 900:2008 TS 6949:2002 FAA DGAC ITAR MIL. Aerodesign de México, S.A. de C.V (C&D Zodiac Aerospace) 2. Aerospace Coatings International (Industrial Vallera de Mexicali, S.A. de C.V.) ro 3. Alied, Tools & Die Copany 4. Anodiex de México, S. de R.L. de C.V. 5. AP PARPRO (Ensables del Pacífico, S. de R.L. de C.V.) 6. BC Manufacturing, S. de R. L de C. V. 7. Bourns de México, S.A. de C.V. 8. Chroalloy, S.A. de C.V. (Chroalloy Aerospace) / ro 9. Cobha (Reec México, S.A. de C.V.) 0. Copoende Aeronáutica de México, S.A. de C.V. i+d. Consolidated Precision Products, S. de R.L. de C.V. 2. Crissair de México, S.A. de C.V. 3. Custo Sensors and Technologies de México Aerospace NDT/ ht/ chp/ w 4. Delphi Connection Systes Tijuana, S.A. de C.V. 5. Dynaic Resources Group Tecate Llc, S.A. de C.V. 6. Eaton Industries, S. de R.L. de C.V. NDT/ ht/ chp/ w 7. Epresas L.M., S.A. de C.V. 8. Esterline (Leach International México, S. de R.L. de C.V.) 9. FSI de Baja, S.A. de C.V. 20. GKN Aerospace Che-tronics Inc. (Industrial Vallera de Mexicali, S.A. de C.V.) / ro / ro 2. Goodrich Aerospace de México, S. de R.L. de C.V. 22. Gulfstrea-Interiores Aéreos, S.A. de C.V. 23. Honeywell Aerospace de México, S. de R.L. de C.V. / i+ 24. Hutchinson Seal de México, S.A. de C. V. 25. Jonathan Mfg. de México, S. de R.L. de C.V. 30 3

17 Matrix of Capabilities, Products and Processes Baja california: Matrix of Capabilities, Products and Processes NDT= Nondestructive Testing C= Coatings CHP= Cheical Processing HT= Heat Treating MT= Material Testing NM&SE= Non Conventional Machining and Surface Enhaceent W= Welding M= Manufacture MRO= Maintenance, Repair & Overhaul I+D= Engineering + Design = Capabilities and Certifications Copany Aeroengine Coponents: Propelers / Rotors, etc. Aerostructure Coponents Fuselage Manufacture Aircraft Construction and Assebly Aeroengine Coponents: Propelers / Rotors, etc. Avionics Raw Material Supply / Material Manufacturer Aeroengine & Aerostructure Subasseblies Electric & Electronics: Panels, Coponents, Equipents and Power Systes Electrical Cable Accessories / Harnesses Aircraft Interiors Equipent Furnishings Tooling Ground Support & Airfield Equipent Araents and Related Equipent: Missile-Related Products Autoflight Systes and Equipent: Pilot Navaids Counication Systes and Equipent Control Systes and Equipent Fuel and Fuel Systes Hydraulic Systes and Equipent Safety and Survival Equipent Indicating, Data and Recording Systes Landing Gear Space Systes and Equipent Standards Parts Windows Wings Galley Equipent Fasteners Technical Textiles Aviation Services Research, Design & Developent Consultancy, Finance and Logistics Training Skills - Universities, Colleges and Institutes HR Manpower Others Flight Training Stock Solutions Turning Machinery Manufacture - CNC and Precision Engineering Rough Milling Turning Finish Honing Coputer Syste Software MBD Forging & Aerostructure Fabrication Foring CATIA V5 CAD / CAM / CAE Forging Deburring Shot Peen Labor Work Labor Work Grit Blasting (Surface Prep) Quench & Teper Heat Treat Stress Relieving Solution + Age Chroe Plate Treatent Processes HVOF Spray Cad Plating Surface Treatents MCAC Sulfuric Anodise Chroic Anodise Prie & Paint MPI LPI NDT Acid Etch Testing & Certifications Cheical MCL Mechanical Stainless Steel Steel 300M or Equivalent Raw Materials Material Range Aluinu Titaniu Delran Coposites Investent Castings DIe Transforation Processes Sand Joint Processes Soldering & Welding Adhesives Others AS900 AS900B AS999 NADCAP ISO 9000:2000 ISO 900:2000 ISO 900:2008 TS 6949:2002 FAA DGAC ITAR MIL 26. Lat Aero-Espacial, S.A. de C.V. 27. LMI Aerospace (Industrial Vallera de Mexicali, S.A. de C.V.) 28. Lockheed Martin (Electro-Ópticas Superior, S.A. de C.V.) 29. MAHETSA (Máquinas, Accesorios y Herraientas de Tijuana, S.A.) 30. Nex Tech Aerospace (Industrial Vallera de Mexicali, S.A. de C.V.) 3. North Aerican Production Sharing de México, S.A. de C.V. 32. Orcon de México, S.A. de C.V. / ro / ro/ I+D / ro/ I+D 33. Parker Industrial, S. de R.L. de C.V. 34. Placas Terodináicas, S.A. de C.V. 35. Procesos Téricos y Especiales de Mexicali, S. de R.L. de C.V. 36. River Manufacturing International 37. Rkern Manufacturing de México, S. de R.L. de C.V. 38. Rockwell Collins (Ensabladores Electrónicos de México, S.A.) / i+d / i+d 39. SEA CON Global Production, S. de R.L. de C.V. 40. Segó Precisión de México, S. de R.L. de C.V. 4. Southco Inc. - Hartwell Dzus, S.A. de C.V. 42. Suntek Manufacturing Technologies, S.A. de C.V. 43. Suntron de México, S. de R.L. de C.V. 44. Switch Luz, S.A. 45. TDI -Transistor Devices de México, S. de R.L. de C.V. 46. Technology and Industrial Services de México 47. Transex International, S.A. 48. Tyco Electronics Tecnologías, S.A. de C.V. 49. Volare Engineering, S. de R.L. de C.V. I+D I+D 32 33

18 Business Directory Business Directory Allpower Mfg. Co. (Co-Production) Fernando Bello Taller Pirul 302-A Parque Industrial Tecate. 0 (665) fbello@rbcbearings.co Consolidated Precision Products, S. de R.L. de C.V. Ulises Váldez Carretera Tijuana - Ensenada K. 97.5, El Sauza de Rodríguez, 22760, Ensenada. 0(646) ulises.valdez@cpp.corp.co FSI de Baja, S.A. de C.V. Arturo Berecochea Av. Refora 394, Fraccionaiento Loa Linda, 22890, Ensenada. 0(646) arturo.berecochea@tidebaja.co Hutchinson Seal de México, S.A. de C.V. Mario García, General Manager / Ignacio Sánchez, Head of Aerospace Pelícano 33, Col. Loas de San Fernando, 22785, Ensenada. 0(646) isanchez@stillancseal.co ario.garcia@hutchinson-seal-exico.co isanchez@stillanseal.co Orcon de México, S.A. de C.V. Roberto Buelna de la Toba, Director General Blvd. Lázaro Cárdenas 244, Parque Industrial Chapultepec, 22785, Ensenada. 0(646) / sonia.edrano@orcon.co roberto.buelna@orcon.co javier.alfabaun@orcon.co Aerospace Coatings International (Industrial Vallera de Mexicali, S.A. de C.V.) Fortunato G. Arce, Director General / Celia Castro Assistant Industria del Papel 7, Parque Industrial El Vigia, 2389, Mexicali. 0(686) farce@aerocoatings.co 35

19 Business Directory Chroalloy, S.A. de C.V. (Chroalloy Aerospace) Héctor Vázquez, Plant Manager Galaxia 9, Parque Industrial Mexicali I, 220, Mexicali. 0(686) / hvazquez@chroalloy.co Copoende Aeronáutica de México, S.A. de C.V. Ricardo Martínez, Representative Júpiter 93, Parque Industrial Mexicali I, 220, Mexicali. 0(686) ricardo@copoende.co infol@copoende.co Epresas L.M., S.A. de C.V. Luis Mendivil N., General Manager / Luis Fernando Mendivil S., Production Manager Av. Mecánicos 350, Col. Industrial, 200, Mexicali. 0(686) / luisendivil@el-aerospace.co fernandoendivil@el-aerospace.co Rockwell Collins (Ensabladores Electrónicos de México, S.A.) Aldo Roero Moreno, Director General / Anabel Valle Astorga, Plant Manager Ernesto Duarte Magaña / Legal Representative Av. Sierra San Agustín 2498, Col. El Porvenir, Parque Industrial Progreso, 285, Mexicali. 0(686) / aroero9@rockwellcollins.co rvalde0@rockwellcollins.co GKN Aerospace Che-tronics Inc. (Industrial Vallera de Mexicali, S.A. de C.V.) Dave Harrian, Plant VP / Ardy Najafian, General Manager Circuito Siglo XXI 974, Parque Industrial Ex-XXI, 2290, Mexicali. 0(686) / dave.harrian@usa.gkn.aerospace.co ardy.najafian@usa.gknaerospace.co Goodrich Aerospace de México, S. de R.L. de C.V. J.J. Pérez, Plant Manager / Bijan Latifzadeh, Gerardo Teuttli, Gary M. Sullivan, Legal Representatives Calzada Venustiano Carranza 238, Desarrollo Industrial Colorado, 4a. Etapa, 2384, Mexicali. 0(686) / gerardo.teuttli@goodrich.co bijan.latizadeh@goodrich.co gary.sullivan@goodrich.co Gulfstrea-Interiores Aéreos, S.A. de C.V. Daniel O Malley Juday, General Manager / Joana Cervantes Blvd. Lázaro Cárdenas 2385, Col. Elías Calles, 2397, Mexicali. 0(686) / 0 daniel.oalley@gulfstrea.co aida.esponda@gulfstrea.co Honeywell Aerospace de México, S. de R.L. de C.V. José del Muro, Line Production Manager / Jaes Bedon, General Manager Aldo Roero Moreno, Plant Director / Alfredo Cárdenas, Plant Manager Circuito Aeroespacial 2, Parque Industrial El Vigía II, 2395, Mexicali. 0(686) / 07 / 85 jose.deluro@honeywell.co jaes.bedon@honeywell.co aldo.roero@honeywell.co alfredo.cardenas@honeywell.co Jonathan Mfg. de México, S. de R.L. de C.V. Eduardo Lavalle, Materials Manager / Marco Jiénez Circuito Siglo XXI 236, Parque Industrial Ex-XXI, 2259 Mexicali 0(686) (686) jienez@jonathanengr.co LMI Aerospace (Industrial Vallera de Mexicali, S.A. de C.V.) Arando Vargas, HR Manager / Brad Nelson, Progra Manager Av. Eucalipto 235, Módulos C y D, Parque Industrial Calafia, 2259, Mexicali. 0(686) avagas@liaerospace.co bnelson@liaerospace.co 36 37

20 Business Directory Nex Tech Aerospace (Industrial Vallera de Mexicali, S.A. de C.V.) Saturno 2, PIMSA, Parque Industrial Mexicali Alaitos, 220, Mexicali. 0(686) Suntek Manufacturing Technologies, S.A. de C.V. Zaven Arakelian, Director General / Santos Soriano, General Manager / Daniel Hernández Circuito Internacional Norte 4-Sur, Parque Industrial Nelson, 2395, Mexicali. 0(686) gperez@karelanufacturing.co c.santiago@karelanufacturing.co dhernandez@karelanufacturing.co TDI-Transistor Devices de México, S. de R.L. de C.V. Martín Quezada, General Manager Viñedos 3000, Parque Industrial El Bajío, 2440, Tecate. 0(665) artin_quezada@tdipower.co juan_robles@tdipower.co Anodiex de México, S. de R.L. de C.V. Roberto Lión / Yolanda A. Ortiz, Legal Representative Blvd. Pacífico 927, Parque Industrial Pacífico, 22709, Tijuana. 0(664) anodiex@prodigy.net.x Volare Engineering, S. de R.L. de C.V. Edgar Paz, Director / Sergio Segura, Representative Calz. Cuauhtéoc 899-2A, Col. Pro-hogar, 2240, Mexicali. 0(686) / edgar.paz@volare-eng.co sergio.segura@volare-eng.co Triuph Insulation Systes (Placas Terodináicas) Steven Wilson, Director General / Luisa Miraontes, General Manager Av. El Rey del Desierto 66, Parque Industrial El Sahuaro, 2399, Mexicali. 0(686) suzana.rivas@exil.co luisa.iraontes@exil.co Dynaic Resources Group Tecate Llc, S.A. de C.V. Roeo A. Toledo Muñóz, General Manager / Martha Benítez Av. Maple 7B-, Parque Industrial Tecate, 2430, Tecate. 0(665) roeot@craigtools.co arthab@craigtools.co Southco Inc-Hartwell Dzus, S.A. de C.V. Javier Mendoza, General Manager Prol. Av. Juárez 999, Col. El Refugio, 2440, Tecate. 0(665) / jendoza@southco.co BC Manufacturing, S. de R.L. de C. V. Mario Alberto Rodríguez García, General Manager Rapa de Otay 5, Parque Industrial Misiones de las Californias, 22396, Tijuana. 0(664) / rodriguez@bcanufacturing.co Aerodesign de México Gustavo Treviño, RH Manager Blvd. Pacífico 4634, Parque Industrial Pacífico, 22670, Tijuana. 0(664) / 58 gustavo.trevino@zodiacaerospace.co Crissair de México, S.A. de C.V. Salvador Jiénez, Plant Manager / Karla Anaya Roano 3525-M, Fracc. Alcalá La Mesa, 22440, Tijuana. 0(664) sal@crissair.co; kanaya@crissair.co Delphi Connection Systes Tijuana, S.A. de C.V. Natividad Rosario Osuna, Plant Manager and Representative Blvd. Pacífico 4532, Parque Industrial Pacífico, 22643, Tijuana. 0(664) / 52 / 55 rosario.osuna@delphi.co 38 39