FEMIA expects 10% growth in the aerospace sector by 2025

For this year, despite the context of high uncertainty and the impact that tariffs could have, growth expectations in the aeronautical sector remain at 10%, estimated Luis Lizcano, director of the Mexican Federation of the Aerospace Industry (FEMIA).

In an interview with A21, the executive said that once the “dust of uncertainty” settles, there will be more opportunities than challenges for the country and double-digit growth.

He noted that the current value of the aerospace industry in the country amounts to US$10.7 billion or US$10.9 billion in exports, a figure that is based on estimates, as last year's figures are not yet available.

He explained that this figure is very important, especially when compared to the US$1.3 billion exported in 2004, 20 years ago.

Lizcano explained that the factors considered in these growth expectations are related to the aviation industry, where there will be a 5% increase in commercial passenger volume, as well as the country's supply chain, which generates potential foreign direct investment.

He explained that of the aerospace industry's production in Mexico, over 82% is exported to the United States, and of that figure, between 16% and 18% goes to the northern neighbor for logistical reasons but ends up in programs in Europe, especially at Airbus.

The director recalled that the country produces aerostructures, fuselages, stabilizers, wings, interiors, propulsion systems, engines, landing gear, and avionics; in other words, practically all aircraft components are made in Mexico.

Regarding tariffs on steel and aluminum, the FEMIA executive explained that aluminum is used in the sector, but much of it comes from the United States and complies with the rules of the United States-Mexico-Canada Agreement (USMCA).

Imported aluminum undergoes a significant transformation process, which results in a tariff jump and, in most cases, makes it a USMCA product.

“The United States continues to be our main market; at this point, Mexico has an advantage because it is part of the USMCA, and if the products comply with the USMCA rules of origin, in that sense (they expect) not to pay (as many) tariffs,” he said.

Last Tuesday, US President Donald Trump imposed 50% tariffs on steel and aluminum, arguing that many countries are transferring their surpluses to his country, to the detriment of US industry.