It’s a small world, and the aviation industry is globalizing and outsourcing — Mexico has attracted Raytheon for wire harness work and Cessna has announced plans to follow. Last week, Bombardier Aerospace announced it will open a manufacturing plant in Queretaro, Mexico, in an effort to cut operating costs and boost profits. The company will invest about $200 million there over the next seven years. The new facility will manufacture and assemble wire harnesses for Bombardier aircraft. Will the change mean jobs lost in the company’s current workforce? Bombardier said it is “in the process of evaluating the impact of the transfer of these activities.” By late next year, the new facility is scheduled to start manufacturing major structural aircraft components currently being built by Bombardier Aerospace suppliers. By the end of 2006, employment at the Queretaro facility is expected to reach 300 workers and increase to 600 by the end of 2007.
Global Expansion For Bombardier
Key Takeaways:
- Bombardier Aerospace is opening a new manufacturing plant in Queretaro, Mexico, investing $200 million over seven years to cut operating costs and boost profits.
- The new facility will initially manufacture wire harnesses for Bombardier aircraft and later major structural components.
- This move follows a trend of globalization and outsourcing in the aviation industry, with other companies like Raytheon and Cessna also establishing operations in Mexico.
- While Bombardier is evaluating the impact on its current workforce, the Queretaro plant is projected to employ 600 workers by the end of 2007.
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