Aerospace Manufacturing Comes to Mexico

Bombardier, Honeywell International , Goodrich Corp. and MD Helicopters had one place in common when choosing where to go to slash costs: Mexico.

The aerospace companies, lured by wages as low as $5 an hour, are opening training schools and expanding as workers prove they can perform more complex manufacturing tasks such as assembling an entire plane.

Bombardier, the Canadian maker of regional and corporate jets, moved up its timetable to build fuselages in Mexico by three years after workers exceeded production expectations for wire harnesses.

Morris Township-based Honeywell, which has 1,400 workers in Mexico, began operations with simple manufacturing of heat exchangers.

Soon, it will employ Mexican engineers to test electrical systems of new commercial jets from Boeing Co. and Airbus.

"The move to low-cost countries and lean manufacturing is certainly more aggressive than in the past," said Christopher Glynn, an analyst with CIBC World Markets Corp. in New York, who expects Honeywell shares to rise to $62 in the next 12 to 18 months.


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