Opportunities in the Aerospace industry

in Mexico

…AND HOW TO START SERVING THOSE CLIENTS FROM A COST COMPETITIVE LOCATION

About American Industries Group

American Industries Group has helped over 200 global companies to successfully start up and grow distribution and

manufacturing operations throughout Mexico since 1976 through Site Selection, Incubator Programs, Administrative “Shelter”

services and Industrial Real Estate.

ReynosaMonterreyGómez Palacio & Torreon

Camargo

El Paso

Gómez FariasChihuahua

San Luis Potosi

México D.F.

Juárez

Querétaro

Delicias

León

Monclova

Guadalajara

Saltillo

Regional Offices, Incubator LocationsShelter and/or Real Estate Customers

SilaoLocations where we serve our clients in Mexico

Real EstateWe have built over 12 M Sq. Ft. Portfolio in

the most important industrial regions throughout Mexico

Shelter & Start-up Services• 52 Customers currently served• Over 10,600 Customer’s headcount• Over 30,000 trouble-free import and export

transactions per year

How we help aerospace companies to succeed in Mexico!

We are present at all stages of your industrial business needs in Mexico:

We help you find the right location for

your operations in Mexico including the

coordination of business agendas in

different regions.

Site Selection

Start up under an Incubator

Shelter Program

Expansion in other regions in Mexico

Supply Chain / Divisions Relocation

We take care of all start up, legal, operational and environmental permits,

human resources, customs, logistics, fiscal,

accounting and all the administrative part of the

business.

We help you grow your business by working

together with industrial clusters and

associations to promote your business in

different regions in Mexico. We help you to educate

and relocate your foreign suppliers or other

divisions near your operations in Mexico.

Contents

Aerospace international opportunity

Top 2 reasons why Aerospace Companies go to Mexico

Mexican Government efforts to support the aerospace industry

Industrial purchasing pool to grow business potential for your project in Mexico

Mexico’s Industrial Incubator Program

Aerospace International Opportunity: OEMs orders and forecast

BOEING and AIRBUS: orders for more than 7,000 units to bedelivered over the next 7 years.

BOMBARDIER (CAN), EMBRAER (BRA), MITSUBISHI (JAP),SUKHOI and IRKUT (RUS), COMPAC AND AVIC (CHINA), allhave orders for the next 5 years.

Private jets and helicopters (CESSNA, BEECHCRAFT,DASSAULT, GULFSTREAM, GRUMMAN, BELL, SICORSKY,AUGUSTA and EUROCOPTER) have orders for the next 3years.

The commercial aircraft fleet in the world will have to send morethan 20,000 aircraft to be replaced or refurbished in the next 7years.

The defense market is at least 4 times larger that thecommercial market.

Are you a supplier of any of these OEMs?

Are you ready to support that demand at a competitive cost?

Source: FEMIA

Top 2 Reasons why Global Aerospace Manufacturers go to Mexico

1. Their Current Manufacturing Clients are in Mexico:

More than 300 companies already established in Mexico

require their suppliers to be within a certain distance from

their plants.

Mexico reported 232 aerospace companies

that employed more than 30,000 workers in

2010, and primarily serve the US, Canadian,

German and French markets.

Source: Aerostrategy

Mexico – Global Leader in Aerospace Manufacturing Investment Attraction

In 2014, there were already more than 300

aerospace companies in Mexico and it is

expected to triple its labor force by 2020.

Largest Aerospace Players in the World: Mexico’s Shift

Source: FEMIA

Aerospace Exports Growth

Top Aerospace Manufacturing Countries

Aerospace Industry in Mexico

Number of Aerospace Companies

Aerospace OEMs Suppliers footprint in Mexico

If you are an aerospace supplier 

not in Mexico, what is holding you back?

Let’s see what Mexico is offering Now…

2. Skilled Labor Cost Savings:

Up to 80% savings in labor positions that go from

assembly operations to more qualified processes like

CNC machining, welding, metal stamping, plastic

injection molding, extrusion, metal finishing, etc.

Top 2 Reasons why Global Aerospace Manufacturers go to Mexico

Mexico has become the most cost effective location for US companies 

as far as labor and freight.

DURING the last 10 years the aerospace industry HASBEEN THE NUMBER ONE PRIORITY FOR THEMEXICAN GOVERNMENT.

Mexican Government efforts to support the aerospace industry

Since 2006 the government established a 0%

import duty rate for aerospace components,

regardless of the COUNTRY OF origin.

On September 18th, 2007, the Mexican and the US Governments signed the BASA

(Bilateral Aviation Safety Agreement).

UNDER THIS AGREEMENT the FAA (Federal Aviation Agency) recognizes the General

Direction of Civil Aeronautics (MEXICO) as an agency with full capacity to certify any

product or service of any corporation.

Mexican Government efforts to support the aerospace industry

Mexico’s Aerospace Industry: certifications and reach

The aerospace parts and components manufactured and assembled in Mexico currently reach more than 60 commercial airlines worldwide!

Capabilities and Products: What Mexico has and what Mexico needs!

US companies that have being working with Mexico have found opportunities in the following components:

Turbines:–Rings machining, valves, electronics, filters, buckets, gears, shafts, air and fuel cooling lines and turbine maintenance.

Components of aircraft dashboards:–Harnesses, printed circuit boards and cabinets.

Other components:–Jigs and fixtures, and special heat treatments.

Fuselage - Special paints, seats, carpets and other parts.

Manufacturing processes:- Forging, die cast, machining with 4 and 5 axels, stamping and

plastic injection.

CompanyA

StampingMachining

CompanyB

CompanyC

SupplierCompany B

Stamping

Stamping

SupplierCompany A

SupplierCompany C

Plastic Injection

MachiningMachining

Plastic Injection

Plastic Injection

We have identified similar needs in the supply chain of various companies. We integrated their needs into a common purchasing pool and organized B2B events bringing a more profitable business case for aerospace suppliers interested in starting operations in Mexico and working with other industries.

Industrial purchasing pool to grow business potential for your project in Mexico

v

v

Aerospace Automotive Metal Mechanic Electronic

Plastics Energy GenerationMedical

Various

Companies participating in the purchasing pools!

Mexico’s Industrial Shelter ProgramDESIGNED TO MAKE IT EASY FOR YOUR COMPANY TO START BUSINESSOPERATIONS TO SERVE THE AEROSPACE INDUSTRY IN MEXICO.

Mexico’s Industrial Shelter Program: what it is

This program is designed specifically for companies that have no previous experience in doing business in Mexico.

When you sign up for this program, you will get all theprivileges, benefits and incentives as if you were alreadyan expert in doing business in Mexico with a large andmature operation.

Take this opportunity as a new competitive edge for yourcompany where you will be conquering new markets witha very unique advantage: being able to focus on yourclients and production!

What are the benefits for your business?

Mexico’s Industrial Shelter Program: Benefits

You will get assistance with:

B2B meetings and business agenda coordination with aerospace,automotive and metal mechanic clusters to help you promote yourproducts and services.

Real estate space: starting from 5,000 Sq Ft Freedom to start doing business in Mexico without a Legal Entity! Legal and operational permits: fast start up in 9 weeksHuman resources: we will help you find and recruit your sales, distributionand operations staff (starting from 5 employees).

Government incentives negotiation on technical training.Customs: we will help you get the maximum tariffs savings from the freetrade agreements with 45 countries for your imports and exports.

Fiscal and accounting management + NO INCOME TAX for the first 4 years NO VAT effect on cash flow

NO Start up or Exit FEEsNO risks: no legal or administrative liabilities

Starting at an estimated fully loaded cost per hour of $18 USD peremployee including labor, logistics, real estate and utilities.

Mexico’s Industrial Shelter Program: Stages

The Shelter program will help you to take your first steps in Mexico entirely focused on sales, customer service andproduction and you will not face any legal or administrative risks or liabilities on your start up stage.

Request your Shelter

Application

You will get a tailored evaluation and roadmap to start operations in the regions that there might be potential for yourbusiness to grow in Mexico (like Chihuahua or Queretaro)

You will get a tailored cost model where you will be able to compare the total cost of production per hour in each region.

Get a Business Agenda in

Mexico

Start up (9 weeks)

At this point we will coordinate business agendas in the selected regions for your operations in Mexico with industrialassociations and clusters.

As part of the agenda, you will be able to visit the Shelter’s real estate facilities where you will be able to operate. Additionally, you will get a presentation of the different enabling services that you will get as part of the Incubator and

you will be able to meet with government officials.

At this stage you will get all permits for your operations. You will get your human resources hired and organized (including payroll management). You will get your machinery and equipment installed. You will get all your customs & logistics set up. You will get all paperwork and administrative tasks done so that you can start serving your clients from your new location.

Sharing Responsibilities under the Shelter Program

•Management to direct operations.•Machinery & equipment.• Raw materials.• Full control over distribution, production and quality.

Manufacturing

Maintenance

Your Company American Industries

Engineering

Design

Quality

Scheduling

Raw Materials

InventoryManagement

PurchasingDirect Mat

PurchasingIndirect Mat

Import & Export

Customs

Duties Optimization

Logistics

Operational Permits

Accounting

Fiscal

Accounts Payables& Receivable

HumanResources

Recruitment& Selection

Training compliance

Salary & BenefitsAdministration

Payroll

Labor Management

Union Relation

General Manager

General Administration

Environmentalcompliance

Expat Support

Sorting & Kitting Labeling Just-In-Time delivery to clients

This diagram shows the functions that you will need to perform in your new business operations in Mexico to serve your clients. TheShelter program takes full responsibility of the blue side of the business.

Mexico’s Industrial Shelter Program: How to qualify

You can qualify for this program if you want to start any of the following operations

Just-In-Time or distribution operation Assembly operation Kitting & labeling operation Manufacturing operation

Or if you fit into any of these categories

You have little or no experience in doing business in Mexico You don’t have a legal presence in Mexico You don’t require a large facility You want to experience doing business in Mexico for the first time with a low risk framework You want to share costs with other small operations.

Are you pre-qualified for the Incubator Program?

What are the Next Steps?

Request your free Application Form to apply for the Shelter

Program today at:

www.AmericanIndustriesGroup

So, what else do you need to jump on board?

The opportunity is there: OEMs growing their demand! Mexico’s Government is offering great incentives! The industry is creating purchasing pools to grow your potential business case! Mexico’s Shelter program offers you a fast track entry at a very competitive cost, including

labor, logistics, real estate, customs with free trade agreements!

What are you waiting for?

Thank Youwww.AmericanIndustriesGroup.com

For more information contact:

facilitator@americanindustriesgroup.com

US Toll Free +1 877 698 3905 | Mexico +52 614 439‐3631