The advanced air mobility (AAM) industry is poised to revolutionize the aviation sector by introducing innovative aircraft technologies, such as electric vertical takeoff and landing (eVTOL) and hybrid aircraft, that offer sustainable and efficient transportation solutions. With the increasing global emphasis on decarbonization and advanced mobility, nearshoring to Mexico presents a unique opportunity for companies to capitalize on its potential to become a significant player in this emerging industry. By leveraging its established aerospace manufacturing base, strategic location near the United States, and strong trade agreements like USMCA, Mexico is well-positioned to support the AAM sector.
What is Advanced Air Mobility (AAM)?
Advanced Air Mobility (AAM) refers to a transformative aviation concept that envisions the integration of new, highly automated, and sustainable aircraft systems into both urban and rural environments. These aircraft, which include electric vertical takeoff and landing (eVTOL) vehicles, drones, and electric short takeoff and landing (eSTOL) aircraft, aim to provide fast, efficient, and eco-friendly transportation for passengers and cargo over short to medium distances. AAM seeks to alleviate urban congestion, reduce travel times, and create new transportation networks by leveraging electric propulsion, automation, and innovative infrastructure like vertiports. By enabling point-to-point air transport in underserved or congested areas, AAM has the potential to revolutionize mobility and logistics on a global scale.
AP Photo/Bebeto Matthews
The Current Landscape of AAM
AAM is a broad aviation concept that encompasses new technologies and aircraft designed to transport goods and people over short and regional distances in urban, suburban, and rural settings. The AAM sector primarily focuses on developing eVTOL aircraft and electric short takeoff and landing (eSTOL) aircraft to reduce congestion and enhance transportation efficiency. According to the white paper on advanced air mobility, AAM offers substantial benefits, including reducing travel times in congested urban environments and providing zero-emission transportation solutions.
Mexico, already recognized for its capabilities in the aerospace sector, has a unique advantage in integrating these new technologies into its industrial ecosystem. The Mexican aerospace industry has seen exponential growth, particularly in regions like Querétaro, Baja California, and Chihuahua, which are hubs for aerospace manufacturing. The existing expertise in producing aircraft components, as well as the availability of a skilled workforce, makes these regions ideal for fostering the development of AAM technologies.
Nearshoring Opportunities for Mexico
As nearshoring trends continue to gain traction, Mexico’s proximity to the United States offers significant advantages for U.S. companies looking to streamline their AAM supply chains. As the aerospace and other advanced manufacturing industries grow and mature in Mexico, nearshoring opportunities in Mexico's aerospace industry will increase.
Manufacturing Capabilities
Mexico is already a key player in manufacturing aircraft components for companies like Bombardier, Safran, and Airbus. With a robust supply chain in place, the country has the infrastructure necessary to produce components for AAM vehicles. Advanced air mobility demands lightweight materials like carbon fiber composites, which are already being produced in Mexico’s aerospace hubs. Companies such as Zoltek and Toray, suppliers of critical composite materials, play pivotal roles in supporting the production of eVTOL aircraft. By expanding this infrastructure to support AAM, Mexico can capture a significant share of the global market.
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Supply Chain Integration
AAM requires collaboration across various industries, including automotive, aerospace, and electronics. Nearshoring to Mexico offers a strategic advantage, as the country's deep integration with the U.S. supply chain through the USMCA agreement makes it an attractive partner for AAM development. This alignment underscores the importance of nearshoring and supply chain integration, enabling seamless collaboration and efficiency between industries critical to AAM success. Mexico already plays a central role in North America's automotive and electronics sectors, industries vital to AAM vehicle production. For example, companies like Toyota, which are significant players in both the automotive and aerospace industries, have been investing in electric propulsion technologies. By leveraging nearshoring opportunities, Mexico could further strengthen its position by becoming a hub for battery production and electric propulsion systems.
Vertiport Infrastructure Development
For AAM to succeed, a new infrastructure network of vertiports—designated areas for eVTOL takeoffs and landings—must be developed. Mexico's geographic diversity, coupled with its expansive urban centers, makes it an ideal location to pilot and implement vertiport infrastructure. Cities like Mexico City, Guadalajara, and Monterrey are potential candidates for early vertiport installations due to their significant congestion and transportation needs. Moreover, given the country’s tourism industry, coastal regions could also benefit from AAM for transporting tourists between resorts, airports, and key attractions.
Cargo and Military Operations
The cargo segment of AAM is gaining traction, with companies like BETA Technologies and Elroy Air pioneering autonomous cargo aircraft. Mexico’s strategic location makes it a prime candidate for AAM cargo operations, especially in regions near the U.S. border, where fast logistics and transportation are critical for supply chain efficiency. Additionally, the Mexican military could benefit from AAM technologies for logistics and medical evacuation operations, similar to the U.S. Air Force's Agility Prime Program, which is exploring the military applications of AAM vehicles.
Regulatory Support and Collaboration
Mexico can take advantage of its regulatory framework to create a conducive environment for AAM development. By collaborating with international regulators, such as the Federal Aviation Administration (FAA) in the U.S. and the European Union Aviation Safety Agency (EASA), Mexico can align its certification processes with global standards, making it easier for AAM companies to operate internationally. Additionally, shelter service providers in Mexico can assist AAM companies with navigating the complex regulatory landscape, ensuring smooth operations .
Garrett King / Archer Aviation
Conclusion
The advanced air mobility industry is set to transform the aviation sector, offering new opportunities for sustainable transportation. Nearshoring to Mexico positions the country as a significant player in this market by leveraging its aerospace manufacturing capabilities, strategic location, and robust supply chain integration. As the sector continues to grow, the benefits of nearshoring in the advanced air mobility sector can position Mexico capture a substantial portion of this market by:
- Investing in infrastructure
- Fostering international collaboration
- Supporting the development of critical technologies
By embracing AAM and the opportunities presented through nearshoring, Mexico can enhance its position as a key player in the global aerospace industry and contribute to the future of sustainable transportation in North America.
Farnborough 2024 by Marco Kuljacha
This summer I had the chance to travel to the Farnborough International Airshow in Europe. It was impressive to see the ramp-up and the overall magnitude of the eVTOL industry, including their future projections.
At their peak, aerospace OEMs like Boeing or Airbus manufacture around 50-60 airplanes per month. The supply chain is characterized by the low volume requirements. But that will change as the eVTOL industry picks up. eVTOLs will become more similar to the automotive industry, characterized by high volume and the global aerospace supply chain will need to make supply chain shifts in order to meet the demand. This will most certainly impact the current aerospace supply chains in Mexico.
In fact, as of just this month, The Federal Aviation Administration (FAA) has introduced a new category for powered lift aircraft in the U.S., marking a significant step forward for the eVTOL (electric Vertical Takeoff and Landing) industry. This is the first new aircraft category since the 1940s and is tailored specifically for powered lift vehicles, which combine characteristics of both fixed-wing aircraft and helicopters. The new regulations cover pilot training, certification, and operational standards, including performance-based requirements for safe altitudes and visibility. FAA Administrator Mike Whitaker emphasized that this rule provides a framework for safely integrating eVTOLs into U.S. airspace, paving the way for Advanced Air Mobility. This regulatory milestone establishes a foundational pathway for urban air mobility operations.
Nearshoring and evolving aerospace supply chains will continue to be strengthened by related advanced manufacturing sectors, which will permit the eVTOL industry to grow in the region.
My trip to Farnborough International Airshow demonstrated the excitement the aerospace industry sees around the eVTOL industry and its potential to transform the industry supply chains, highlighting the great partner that Mexico is to that success.
Reach out to speak to our nearshoring advisors on the opportunities in the aerospace industry.
Sources:
- Powering the Future of Flight white paper by TE Connectivity
- Demystifying Advanced Air Mobility (AAM) white paper by Eric Schiff