Aerospace Industry Booms in Mexico

Aerospace Industry Booms in Mexico

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"We Have Infrastructure, Potential, and Legal Certainty" said Luis Alonso Aguirre

In the context of the Chihuahua Aerospace Summit, the National President of the Maquiladora Industry (CNIMME), Luis Alonso Aguirre Lang said that Mexico, must create a climate to encourage the consolidation of Mexico's aerospace industry.

Before more than 400 aerospace business leaders in Mexico, Luis Aguirre, shared the growth that this industry has had in our country. In 2005, Mexico had only 61 companies of this industrial sector, in 2011, it has more than 190 companies with more than 30,000 employees dedicated to manufacturing and design engineering.

According to Luis Alonso Aguirre, the great growth of the industry should be attributed to the expertise of skilled hands of the country,the geostrategic position and the many trade agreements of Mexico with other countries.

The experience we have today in Mexico, has been consolidated in other key sectors such as automotive and electronics industries, including that, the infrastructure exists, and that the potential and the legal conditions for the installation of new businesses and investment.

In his speech, CNIMME's President shared numbers that highlight that airlines around the world will need about 30 thousand new air cargo and passenger aircraft by the year 2030, with a value of 3.6 trillion dollars. Likewise, he shared that 44 percent of new airplanes will be designed to replace existing aircraft, while the other 56% will have the mission to meet the growing demand.

"As the President of the National Maquiladora Industry, I always emphasize the prestige that the Mexican manufacturing industry has, as well as in maintenance, repair and design," he said and continued "What does Mexico need to be the first service provider in the world of aerospace? A specialized institution that promotes and the clear commitment of the organized business sector. " He also shared the various measures that strengthen the industry, protect the jobs of Mexicans and promote global competitiveness and attract investment.The measure he mentioned, was the recent formalization of the extension of the validity of the flat income tax regime, which happened at the official residence of Los Pinos, last October.

The President of the Mexico, Felipe Calderon Hinojosa, signed the decree which extends from 1 January 2012 to December 31, 2013 the term of the related tax benefit of the Single Rate Business Tax, which applies to IMMEX companies . These benefits that had been originally granted by the Federal Government through a decree issued on November 5, 2007 and that was about to end in 11 weeks, on December 31, 2011. This provision keeps the official combined income tax and IETU of no more than 17.5% of the tax base on income for the maquiladora industry.

This announcement gives legal certainty to the maquiladora industry. President Felipe Calderon stated during the signing of the decree that this measure will bring economic benefits to thousands of companies in the sector. At a press conference, the National President of the Maquiladora, Luis Alonso Aguirre Lang said that the decree will allow the Mexican industry to remain within the global competitiveness and reported that the time was right to turn off the brake on investment and boost the Mexican economy "with this, we have operational and legal certainty" he said.

The National President of CNIMME, Luis AlonsoAguirre, added that if the federal executive had not signed the extension and the benefit was terminated in the last month of this year, the taxes for the maquiladora industry would have risen too much, pushing Mexico away of any international competitiveness, and as a consequence, causing the exit of many companies from the IMMEX maquiladora program.

The national leader of the maquiladoras in Mexico said that "we know how to compete, our cities like Juarez, are competitive", he invited the business sector to make the aerospace cluster "a new national growth strategy" and endorsed the commitment of CNIMME, to do and keep doing their part.