1 / 31

Las Vegas, Nevada

Manufacturing in Mexico Conference. Near-Shoring - Maquiladoras - Site Selection. Las Vegas, Nevada. May 19-20, 2011. Bellagio. Cover. Mexico. and. Globalization of Aerospace Industry. Manufacturing in. Mexico Conference. Las Vegas. May 19 th , 2011. Section 1 – Globalization.

kaiser
Download Presentation

Las Vegas, Nevada

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. ManufacturinginMexicoConference Near-Shoring-Maquiladoras-SiteSelection LasVegas,Nevada May19-20,2011 Bellagio

  2. Cover Mexico and GlobalizationofAerospaceIndustry Manufacturingin MexicoConference LasVegas May19th,2011

  3. Section1–Globalization Aerospacebusinesspracticesinevolution RelevancyofMexicoinAerospace TheDecisionofOffshoring

  4. Aerospaceisembracingnewrealities PaceofchangesweighsonAerospace Socio-economics Demographical Market Competition Bestpractices AmatterofIndustrysurvival Technologies Challengingtheestablishedorder: TraditionalAerospaceplayers ProtectionismaroundAerospace Waysofdoingthings

  5. TheTransformationofoursourcingpractices Traditional Purchasing Competitive Purchasing Strategic Sourcing Develop partnerships withlarge suppliers Getting suppliers involvedin studies Subcontract complete systems Reductioninnumber ofsuppliers Outsourcing manufacturing Risksharing TheOEMsimposeprofoundchangesonSuppliers Source:NorthropGrumman&BusinessWeek

  6. AnewmodelofcollaborationbetweenPrimes&Suppliers Targetareafor QualifyingSuppliers Performance ation er op Co ContributiontoOEMbusinessinterests Source:EADSGSN-May2007

  7. GlobalizationoftheSupplyChain “OEMsarereconstructingtheirValueChainby positioningeachlinkattheplaceintheworldthat willminimizeCOSTandmaximizeRETURN” Source: ConferenceBoardofCanada,Sept2008 AtpresentationtoAerospaceIndustriesAssociationofCanada MajorValueChain Investments by121OEMs 1990-2009* Source:AeroStrategy,September2009 *AsofAugust2009

  8. Newbattlegroundsforcompetitiveness-Example FrenchAerospace–StrongdeploymentinMoroccoandTunisia For •Thelanguage •Itscosts •Itsproximity •Itslogistics •Easeforsuppliers Investmentsin •Newcapabilities •Newinfrastructures •Training

  9. Section1–Globalization Aerospacebusinesspracticesinevolution RelevancyofMexicoinAerospace TheDecisionofOffshoring

  10. ThePrecursors–before2005 Westartedtoseeanincreasingnumberofaerospacecompanies establishinginMexico(60-100)intheearlyofdecade2000 Thevastmajorityweresmallermanufacturinginvestments ThemajoritywereU.S.investments Evenbignamesstartedverymodestly 2001–25employees LABINAL 1998–AcquisitionofAerotec 1986–40employees

  11. TheBeginningofOrganizedAerospaceinMexico-2005

  12. TheBeginningofOrganizedAerospaceinMexico-2005 Bombardier’sannounceditsMexicoinvestmentinOctober2005 TheycamewithaLong-TermStrategicview DecidedtosetupinMexicoasatanyotherBombardierplant FortheeventualassemblyofairplanesinMexico Forthousandsofjobs WithaSupplierStrategyinmind Theywereinstrumentalin CreationofaNationalAerospace School DevelopmentofaSupplierPark BASA

  13. SurgeofFrenchAerospaceinMexico Late2007andearly2008havebeendifficultforEuropeanaerospace TheexchangerateoftheBritishPoundandEuroagainsttheUSDollar reachedrecordhighs ThePrimessuchasRolls-Royce,EADS,SAFRANsuffereddeeplythe imbalancebetweentheirproductioncostinlocalcurrencyrelativetothe portionoftheirrevenuemadeinUSD. Mexicothembecameastrategicplatformto •Diminishcosts •Edgingthecurrencyeffect–MexicoisaUSDzone •PenetratingstrategicallytheNorthAmericanaerospacemarket ForFrance,forinstance,Mexicobecamesuchanimportantplatform thatitreceivedthehighestlevelofattention Mexicowasdeclareda“PôledeCompétitivité”fortheFrenchAerospace TheFrenchandMexicanGovernmentsestablishedaBilateralHigh-Level Committeetostudycollaborationinitiativesintheareasof: •Aerospaceeducation •Supporttoinvestmentsanddevelopmentofsuppliers

  14. TheFrenchAerospaceisdevelopingastrongpresence Thereisarapiddeployment ofFrenchaerospace companiesinMexico Forinstance,SAFRANisthe largestaerospaceemployer inMexicowithover3000 employeesin6plants. Sourcing • • • EADShasopenedaGlobalsourcingoffice FrenchprimesareholdingsuppliersconferencesinMexico MexicanlocalcompaniesareassistedbyFrenchcompaniestoqualifyfortheirwork AerospaceTradeEducation Franceisgivingitssupporttoseveralaerospacetraininginitiatives: Anaerospacecampuswithacapacityof600to70studentswasannouncedlastJulyby SAFRAN Eurocopterhasdevelopedseveralpartnershipwithlocaltradeschoolsanduniversitiesin supporttothetrainingofitsworkforce

  15. Significantgrowthsince MexicoisstrategicaswellfortheUKAerospace AsanOffshoreManufacturingLocation AsaStrategicSourcingLocation ADShasconductedseveralmissionsinMexico,includingarecentoneinBajaCalifornia UKTIinMexicoisactivelysupportingUKaerospacedevelopmentactivitiesthecountry CanadaandtheUnitedStatesseeastheirstrategiclow-costpartner withintheframeworkofanintegratedNorthAmericaneconomy

  16. Mexicoisbuildingitsaerospacebackbone Mexicohasmadesignificantstrivesinthelast5years Assettheessentialsbodiesrequiredforstructuringtheindustrysuchas theMexicanAerospaceIndustryAssociation IsgettingmoreCOHERENTandSTRATEGICinitsdeployment Isharmonizingitslawandrulesofaviationwithothercountries Isinvestingandcooperatinginthedevelopmentofaerospaceeducation Issupportinginitiativesinsupportofaerospacecertificationofsuppliers Isreviewingwaystoprovidebettergovernmentsupporttotheindustry

  17. AerospaceIndustryinMexico 37.5 1,200 7,500 310 1,100 31.0 21.0 250 190 900 5,000 150 110 16.5 12.5 7.5 3,400 2,700 1,300 450 250 200 65 270 200120042007200820102012E TotalNumberofPlants 200120042007200820102012E TotalEmployment (inthousand) 200120042007200820102012E AnnualInvestment (US$Million) 200120042007200820102012E AnnualExport (US$Million) Source:MexicoNowResearch

  18. MainAerospaceClusters BajaCalifornia •Mexicali •Tijuana

  19. MainAerospaceClusters Sonora •Nogales •Guaymas

  20. MainAerospaceClusters Chihuahua •Chihuahua •Cd.Juarez

  21. MainAerospaceClusters NuevoLeon •Monterrey

  22. MainAerospaceClusters Queretaro •Queretaro

  23. Mexicoisbuildingitsaerospacebackbone AerospaceTradeProgramsavailablefromTECHNICALCOLLEGES LONGPROGRAMS 6monthsto18monthsprograms Withfreeinternshipincompanies SHORTCOURSES Metrology NDT QualityStandard Chihuahua AircraftStructureassembly ElectricalHarnessassembly Composites BasicMachining AdvancedCNCMachining SheetMetal/Fabrication AircraftMaintenance

  24. FUTURE–ExpansionofAerospaceinMexico …roomtogrow Established Imminent NextPhase Phase 2ndNext

  25. Section1–Globalization Aerospacebusinesspracticesinevolution RelevancyofMexicoinAerospace OffshoringtoMexicoasOneoption

  26. Aerospacesupplychainundergreatpressure Long-termgrowthmeansembracingOEMs/Tier-1strategies&priorities Businessmodel Globalization Costreduction ProcessimprovementsinitiativessuchSixSigma,LeanManufacturing, ValueEngineeringandotherswillnotbesufficienttorespondtoentire requirementsofcostreductionandtoremaincompetitive Canprocessimprovementsguaranteeforlong-termsurvival? Canprocessimprovementscanrealisticallyprovideanet20%-30%cost improvement? MarketcompetitiongrowsinLowCostEconomies,eitherthrough MytraditionalcompetitorstakingtheopportunityofGlobalization NewSuppliersbeinggroomedabroadbytheOEM’s IsStatusQuoanoption?

  27. Offshoringasoneofthestrategies Itisonemoreoptioninour“CardDeck”ofManufacturing Strategies Mustnotbetheuniquestrategy Itoffersaparadigmshift.Thereoffersthepossibilitytoreplicate thebestofwhatwearebutinalowercoststructure. Withoutcompromiseonthecontent,complexityandpractices Offersopportunitiestocreatevalue-addedactivitiesathome Thewholecreatingincreasingoverallenterprisevalue ProbablynomoreeffortsthanmanyotherImprovement/COST Savinginitiativesavailabletoyou

  28. MexicoasanewmarketforAerospace? Mexico,bylarge,isnotanetsourceofnewAerospacebusiness. Thevolumeofworldwideaerospaceworkissetbythenumberofcommercial, business,rotaryaircraftinproductionandthemilitaryspending. TheproductionofaerospacegoodsofMexicoisageographicalredistribution ofanexistingmarket. AretheresomepocketsofnewopportunitiesinaerospaceinMexico? Certainly,butitremainsmarginal MoreMROworkastheMexicanfleetofaircraftisgrowingmorerapidlythan theaverage Moreairport-relatedservicesandequipmentastheairportinfrastructuresof Mexicoaregettingbeef-up Mexicomustbeseenasaplatform -Forglobalcompetitiveness -ToreachtheU.S./Canadianmarkets

  29. Isitwithinmyreach? Iamonlyarelativelysmallsupplier! LimitedFinancialResources LimitedHumanResourcestoapplyagainstproject Managementattentionisspreadout Iamriskadverse–alotofunknown ManagingatDistance Shouldbeacomplexundertaking CanIrealisticallyconsideranOffshoreoperation? ANSWER:DefinitelyYESunderpropersetting, underproperguidance

  30. Thanksforyourattention AeroShoresisaConsultingandServicesfirmdedicatedatthe successfullaunchofmanufacturinginvestmentsinMexico Ourvaluesresidesin ourstrategicthinking ourexpertiseinmanufacturing ourhands-onexperienceatimplementations ourknowledgeofMexico Yourcontact: LucBeaudoin–Principal Tel:+1(514)667-1534 Cell:+1(514)916-1720 Luc.Beaudoin@AeroShores.com www.AeroShores.com

  31. ManufacturinginMexicoConference Near-Shoring-Maquiladoras-SiteSelection LasVegas,Nevada May19-20,2011 Bellagio

More Related