After the pandemic, the Mexican aerospace industry experienced numerous challenges in recovering production and strengthening the supply chain.

According to Luis Lizcano, executive president of the Mexican Federation of the Aerospace Industry (FEMIA), in the last 15 years, the aerospace industry in Mexico has maintained an average annual growth of 14%.

While by the end of 2023, Lizcano said that a growth of 13% is expected, and by 2024, the growth is estimated to reach 12%.

” It is expected that we will recover to 2019 levels in a 2023 and 2024 time frame. The pandemic hit was significant, so the recovery will be gradual. We hope that the same growth trend will result in the coming years,” Lizcano pointed out.

The executive explained that Mexico currently participates in almost all aircraft systems, ranging from propulsion components (engines) and aerostructures to aircraft interiors, landing system components, electrical and electronic systems, precision machining, engineering design, surface treatments, maintenance, and repair services.

“The Mexican aerospace industry has a great presence in the most important commercial aircraft in the world; for example, the entire set of doors on the Dreamliner is made in Mexico. Like the signal transmission system and all the wiring, it is manufactured and designed in the country. Likewise, the interiors of Embraer’s E2 regional jets are also made in Mexico,” Lizcano said.

Lizcano went on to express that, although it is difficult to assess Mexico’s participation in the world market, within the context of exports from the aerospace industry, the country maintains an important place and is located in the top 10 exporters in the sector.

For his part, René Espinosa, president of FEMIA, said that Mexico is a relevant and strategic player in the aerospace supply chain for North America and Europe today.

“We cannot talk about the growth and development of the Mexican aerospace industry if we do not carry out projects that stimulate the advancement of national companies, as well as the training of talent based on the development trends of new technologies and cutting-edge materials,” Espinosa said.

He added that it is essential to align the educational opportunities offered with the current and future needs of the industry by strengthening regional and national strategies with a comprehensive vision to meet the sector’s needs.

“One of the factors and a great differential that represents us and gives us a competitive advantage as a country in this sector is our talent. In addition, our technical and engineering capacity make Mexico a fundamental pole for supply strategies with large OEMs and leading companies in this sector,” added the executive.

In this sense, he explained that, for example, the industrial sector in the United States is currently facing a great talent crisis because, in the next five years, 53% of its engineers and technicians are about to retire: “This makes Mexico a destination strategic with industrial capacity and talent in one of the most important regional economic blocks, such as North America.”

Strategic agenda of the Mexican aerospace industry for 2030

Recently, Jorge Gutiérrez de Velasco, president of the Mexican Council for Aerospace Education (COMEA) and former rector of the Aeronautical University in Querétaro (UNAQ), presented the “Aeronautical and Space Strategic Agenda for Higher Education Institutions 2030.”

The vision of the strategic agenda is to generate knowledge and train people to solve the challenges facing the Mexican aerospace industry.

He said the intention is to potentiate the aerospace industry through the close linkage of educational processes and activities of greater added value, such as research and development of leaders who face the challenges the sector demands and will demand.

The president of COMEA specified that education is a critical element in the logic of the triple helix to develop the capacities that the sector requires and that they have already identified.

“This effort has involved 31 educational institutions in Mexico. The logic of the strategic agenda is to map the needs of the aerospace Mexican aerospace industry regarding its technologies and personnel. In addition, we also examine an overview of what the industry itself is identifying that will impact or has impacted”, explained Gutiérrez de Velasco.

In this sense, he went on to raise some of the technological trends that will impact the Mexican industry between the present and 2030, which include:

• A higher percentage of composite materials in aircraft
• Increased participation in additive manufacturing and composite materials with 3D fabrics
• Morphing Aircraft Systems
• Smart materials in structural components
• Digitization and incorporation of advanced technologies to improve MRO efficiency
• New product segments and attention to new customers
• Replacement of the aging fleet and revision of old technologies
• Trends toward the approval of maintenance systems and procedures
• Technological developments 4.0, along with the development of cybersecurity systems
• Evaluation of large volumes of data and decision-making in real-time
• Updating operating procedures for new digital technologies
• Autonomous maintenance-free systems
• New power cells
• Fully electronic flight control innovations
• Analysis of big data volumes for satellites
• Maintenance programs for orbiting satellites
• Development of nanosatellites to transmit information
• Composite materials with resistance to very high temperatures
• Clean and quiet electric drive
• Better electrical energy storage with less impact on the environment.

For FEMIA’s René Espinosa, there has been talk in the Mexican aerospace industry of the future and its global relevance in recent years: “We see it as a response to increasing our country’s regional competitiveness and productivity. For example, additive manufacturing and virtual reality are standard and familiar topics for the aerospace industry and other industrial sectors today.

The importance of human capital in the Mexican aerospace industry

Gutiérrez de Velasco said that, as part of the strategic agenda, a prospective exercise was carried out towards the year 2030 to identify the human capital needs of the Mexican aerospace industry.

“Something that caught our attention is the distribution of personnel that will be required at the end of the decade. The vocation in Mexico will continue to be manufacturing and labor-intensive since 67% will be assembly line workers. In other words, it will continue to be the operational staff that dominates the training area”, explained the manager.

He pointed out that, by 2030, more than 105,000 specialized professionals will be required, of which 19% must have higher education and training.

“This invites us to reflect on what else we have to do so that the number of engineering-level personnel, depending on the processes and products with the highest added value, is higher, from the field of public policy or of the productive organizations,” he indicated.

Furthermore, Gutiérrez de Velasco pointed out that eight programs and eighteen projects seek to close the gap between the human capital needs of the Mexican aerospace industry and the vision for the future. The eight programs include technological and skill strengthening for teachers; the creation and availability of spaces and sustainable infrastructure; the link with the sector and society; research, technological development, and innovation; the relevant and agile academic offer; the management of comprehensive educational quality; digital transformation and appropriate budget allocation.

“It is necessary for the industry that specialized higher education have high-level coordination that deploys the projects. It is said that it should be in a triple helix. We know that combining the efforts, the intention, and the will of all is a challenge per se. Still, I believe that if we do not lose sight of it, we have a great possibility, both within the educational institutions and the Mexican aerospace industry”, indicated Gutiérrez de Velasco.

In this regard, Luis Lizcano said that the aerospace sector is based on knowledge and skills: “So, we have to prepare ourselves. We must prepare our people to develop these skills so that our companies can compete more effectively. We must be prepared to price better and deliver higher quality products.”

The challenges of supply in the Mexican aerospace industry

René Espinosa expresses that, on the world stage, large manufacturers have been forced to undertake tactics of geographical relocation of their suppliers to be more strategically nimble. In this regard, Luis Lizcano explained that the geopolitical situation poses an important opportunity for Mexico as an industrial sector.

“We need to be prepared to take advantage of the opportunities that present themselves. Therefore, we need to do our homework internally; that is, we must be prepared so that when the contracts come and the possibilities of a listing materialize, we can do it successfully,” he explained.

For his part, Arnoldo Castilla, general director of Business Consulting and president of the Supplier Development Commission of the Baja California Aerospace Cluster, said that one of the main challenges for suppliers is the ability of suppliers to deliver on time.

“It is a crucial area. The aerospace industry is very dispersed around the world, and the ability to deliver on time always exists and is the one that worries the industry the most,” he explained.

He said that the second major challenge is the ability of suppliers to meet quality requirements: “It is not a quality requirement as the commercial industry knows it, for example, with ISO 9001 certification. The industry has multiple stringent requirements.”

Finally, he pointed out that the third challenge is the cost on a global scale: “Competitiveness occurs in delivery times, ability to meet quality requirements and ability to work within market targets.”

The specialist specified that suppliers need to demonstrate that they are consistent in what they do and do it well all the time: “With the ability to innovate and improve since it is a changing high-tech industry, which requires its suppliers the ability to grow and innovate.

In turn, Frida Fuentes, sales manager of APCA Ingeniería, pointed out five aspects that identify a good supplier:

1. Meets industry standards. Buyers must know that suppliers do not pose additional risks to their organizations.
2. Keeps information up to date. Companies must ensure that the data is accurate and regularly updated.
3. Make continuous efforts to improve. Demonstrate to buyers that an organization is committed to continually improving what has been learned from audit reports and achieving better results year after year.
4. Demonstrate innovation. Buyers seek innovative, competitive, and standards-compliant suppliers.
5. Has an initiative-taking attitude. Engage with your customers, be it the marketing team or the person responsible for sales, to promote company performance.

The kinds of labor contracts in Brazil and other countries change over time. This article provides a general overview of the types of employment contracts that exist in South America’s largest country in 2023.

Labor contracts in Brazil: what are they?

An employment contract is an agreement, as a legal basis, established between an employer and their future employee.

In addition to signifying a bond between the two parties, labor contracts in Brazil also serve as a document that usually contains information regarding the employee and the tasks to be performed.

That is, when the employer delivers an employment contract to the employee, it contains information regarding the employee and information proving its legal validity. In addition, labor contracts in Brazil also spell out rules related to the company. Accordingly, it defines the position the employee will fill and outlines the salary and benefits they will receive.

What are the main types of labor contracts in Brazil?

Labor contracts in Brazil have several variants. These include internship contracts, freelancer contracts, legal work contracts, full-time work contracts, youth work contracts, and apprenticeships.

Let’s examine the various agreements between employers and employees in Brazil.

Indefinite employment

This employment contract is most commonly seen in the Brazilian labor market. It is the most traditional for most active companies at present.

As the name implies, this contract model has no deadline for terminating the employee’s activities. Instead, the contract ends at the employer’s discretion.

Prior notice is required if the parties decide to terminate an employment contract. Notification must be given to the company by the employee in the event of a breach of contract, and, in turn, the employee must inform the employer of their intent to sever the contractual relationship.

As a result of Brazil’s most recent labor reform, both the employer and the worker can enter into one agreement to terminate the contract permanently.

Fixed-term employment contract

In contrast to the option highlighted above, these types of labor contracts in Brazil are under the obligation of the employer to establish the start date and end date for the contract term; fixed-term employment contracts in Brazil do not exceed two years.

Suppose this type of contract is amended and extended beyond the maximum of 2 years. In that case, the agreement must be revised by the employer and his employee and converted into an indefinite employment contract.

Occasional work contracts

This type of labor contract in Brazil originates from the contract for temporary employment or, as mentioned above, a fixed-term contract.

However, unlike the fixed-term agreement,  under the occasional employment contract, a temporary worker performs the defined work tasks for short or even sporadic periods and usually is not considered a company employee.

Home office work contract

Despite being considered a new type of work on the market, these labor contracts in Brazil are also one of the agreements regulated by Brazilian law.

In its legal context, home office work is any task the worker performs during working hours outside the company’s physical location at a place such as a home office.

Despite this being a Brazilian labor contract that guarantees that the employee can carry out assigned tasks during a workday at home, they can still go to the company’s physical location and work in the organization’s internal environment on a sporadic basis.

To ensure that this contract is valid and in compliance with Brazilian labor legislation, the labor agreement must contain all pertinent information related to employee duties and information on the equipment the company has provided to the employee for use in their home office.

Intermittent work contracts

This agreement is another of the many types of labor contracts that exist in Brazil. It allows for sporadic employment for an agreed-upon rate of remuneration. Also, it consists of an agreement between the parties as to the period of provision of mutually agreed upon services.

The rules for this type of contract provide that the employee will be compensated for the work performed can be at least the amount paid to another employee to exercise the same function within the company, whether that employee is working under an intermittent labor contract or not.

Another point that helps to differentiate this type of contract from the others is that the employee has the right to vacation, pension, and the yearly bonus payment proportionate to the time worked.

Part-time labor contracts in Brazil

A partial employment contract in Brazil has a shorter time frame and is limited to 30 hours a week without the possibility of working overtime.

This type of contract is usually established for interns, who need to dedicate part of their time to their studies.

Outsourced labor contract

This type of contract is usually established and worked between companies, where one activity of the contracting company is transferred to another.

The contracted company is responsible for paying legally mandated benefits, wages, training, and other costs related to employees.

Autonomous labor contracts in Brazil

This type of contract is very similar to the standard employment contract many Brazilians are accustomed to.

In this arrangement, the employment contract is autonomous and functions as a provider of services in which the worker and the company do not sign an employment agreement.

In this way, the service provider is not subordinated to the contracting party, and all the work is previously agreed upon and established by the parties that are party to the relationship.

It is worth noting that this type of work is considered self-employed. Payment for services rendered is made through the issuance of self-employed payment receipts (RPA). Social Security contributions must be recorded ( INSS ), and income tax must be paid to the Federal Government.

Contracts for interns

Hiring interns is quite common in the Brazilian labor market. This is even more so the case for youth who are enrolled in a college or university. Under this type of agreement, the internship serves as extra academic hours that enable a student to acquire real-life work experience.

This type of contract is not classified as a typical labor agreement because it is considered a learning opportunity for the intern.

Because of this, the intern does not have the right to receive severance pay, salary bonus,  or vacation pay.

However, The intern has the right to be covered under personal accident insurance and, where applicable, a monthly stipend to cover living expenses.

Labor contracts in Brazil for trainees

This type of contract applies to recent graduates aged 21 to 30 years old.

The hiring time for this modality of employment varies from 4 to 6 years of work. The employment relationship with the contracting company is configured as established by Brazilian labor legislation.

It is worth mentioning that it is the responsibility of the contracting company to determine the period of the contract. This means that the company must indicate whether it will be for a fixed or indefinite period.

Employment contracts for young apprentices

We can see this type of contract in companies that hire people between 14 years old and 24 years old. These individuals are usually enrolled in an apprenticeship program a training organization runs.

In this case, the young apprentice may already have completed their education or still be enrolled. It is essential to point out that if the person selected has any disability, the maximum age does not apply.

As with contracts for interns, a work contract for a young apprentice can be up to 6 hours a day, and the employment contract can be up to two years.

Conclusion

The country’s labor market is vast, and Brazil has many other types of labor contracts.

While they differ on specific issues, they are very similar on others. Because of this, there is a need to highlight functions, rights, and duties, as well as the matters linked to wages and benefits.

Introduction to the medical device manufacturing sector in the Dominican Republic:

Medical device manufacturing in the Dominican Republic is crucial in providing innovative and life-saving technologies to the global healthcare industry. In recent years, the Dominican Republic has emerged as a significant player in this sector, establishing itself as a hub of medical device manufacturing and innovation. As a result, the Dominican Republic is the third leading exporter of medical devices in Latin America after Mexico and Costa Rica. This post explores the growth and potential of the medical device manufacturing sector in the Dominican Republic, highlighting its favorable factors, contributions to the nation’s overall economy, and the industry’s challenges.

Favorable Factors:

The Dominican Republic possesses several favorable factors that have contributed to the growth of its medical device manufacturing sector:

1. ) Geographical Location and Proximity to Key Markets: Located strategically in the Caribbean region, the Dominican Republic benefits from its proximity to significant healthcare markets, such as the United States. This geographic advantage enables efficient transportation of medical devices, reducing costs and delivery time-to-market.
2. ) Skilled Workforce: The country boasts a skilled and adaptable workforce with engineering, manufacturing, and quality control expertise. The government and private sector have invested in technical training programs, ensuring the availability of a talented labor pool. Recently the Ministry of Superior Education of Science and Technology of the Dominican Republic and the Technological Institute of the Americas have collaborated to create a program of studies to offer a degree program for Technologists in the Manufacture of Medical Devices.
3. ) Attractive Investment Environment: The Dominican Republic offers a favorable investment climate characterized by political stability, economic incentives, and a supportive regulatory framework. The government has implemented policies to attract foreign direct investment (FDI) in the medical device manufacturing sector in the Dominican Republic, promoting job creation and technology transfer.

Contributions of the medical device manufacturing sector in the Dominican Republic to the national economy:

The growth of the medical device manufacturing sector in the Dominican Republic has brought significant economic benefits to the country:

1. ) Job Creation: The sector has generated numerous direct and indirect employment opportunities, providing livelihoods for thousands of skilled workers. The expansion of manufacturing facilities and the establishment of research and development centers have further increased employment prospects.
2. ) Economic Growth and Export Revenues: The sector’s growth has contributed to the overall economic development of the Dominican Republic. The export of medical devices manufactured in the country has increased, generating valuable foreign exchange earnings and diversifying the export base. Thirty-three medical device and pharmaceutical manufacturing companies are in the country’s free zones. These manufacturers are the source of approximately 24,000 direct labor jobs and an influx of 1.3 billion dollars in foreign direct investment.
3. ) Technology Transfer and Knowledge Spillover: Collaboration between domestic manufacturers and multinational companies has facilitated technology transfer and knowledge spillover. This exchange of expertise and innovation has contributed to developing local capabilities and the sector’s overall competitiveness.

Challenges and Future Outlook:

Despite its remarkable progress, medical device manufacturing in the Dominican Republic faces specific challenges that need to be addressed:

1. ) Infrastructure and Logistics: Enhancing transportation infrastructure and logistics networks would further streamline the supply chain, reducing costs and improving overall competitiveness.
2. ) Research and Development: Encouraging investment in research and development activities within the sector can promote innovation, creating advanced medical devices and higher value-added manufacturing.
3. ) Regulatory Compliance and Quality Assurance: Ensuring compliance with international standards and regulatory requirements is crucial for maintaining the sector’s credibility and expanding market access.

The future outlook for the medical device manufacturing sector in the Dominican Republic appears promising. The national government’s commitment to fostering a favorable business environment, coupled with ongoing investments in infrastructure and human capital, will likely attract additional foreign direct investment and encourage the growth of domestic companies. Furthermore, leveraging digital technologies and embracing Industry 4.0 principles can enhance the sector’s productivity, efficiency, and competitiveness.

Conclusion:

Medical device manufacturing in the Dominican Republic has emerged as a dynamic and rapidly growing industry driven by favorable factors such as geographic location, skilled workforce, and a supportive investment environment. Its contributions to job creation, economic growth, and technology transfer are noteworthy. While challenges exist, strategic investments in infrastructure, research, development, and regulatory compliance can further strengthen the sector’s position as a global medical device manufacturing hub. With continued commitment from both the public and private sectors, the Dominican Republic is poised to realize its

Spanish investment in Central America favors Panama. The country is the EU’s leading investor in the Central American nation.

After a short period of stagnation, coinciding with the pandemic and the post-pandemic period, Panama again stands out as the nation with the most Spanish investment in Central America. Furthermore, the former country has consolidated its position as one of the leading destinations for FDI in Latin America and the Caribbean, after the sizable markets of South America and Mexico.

Panama will be one of the nine in Latin America countries where Spanish investment will increase in 2023. This is according to the latest report from IE University, ‘Panorama of Spanish investment in Latin America.’

Spanish investors prefer Panama

The report highlights Panama as the country with the best economic performance, not only because of its ability to react to the Covid-19 crisis but also because it belongs to the list of preferred ‘offshore’ destinations for Spain. The country leads growth projections in Latin America, according to Spanish businessmen. Panama is preferred ahead of other countries in the region, such as Uruguay, the Dominican Republic, Mexico, and Colombia. Spanish companies especially value the security and air connectivity of this market, and, in addition, Panama City ranks as the second preferred regional metropolis to reside in for businessmen seeking to augment Spanish investment in Central America.

Spanish firms also highlight the importance of legal certainty in Panama, its favorable regulatory framework for investment, and the boost the country’s government gives to public-private partnerships. In addition, numerous conventions and agreements between Spain and Panama reinforce a clear framework for investment. These include the Double Taxation Agreement, signed in 2010, and the Agreement for the Promotion and Reciprocal Protection of Investments, which has been in force since 1998.

Panama is, by far, the Central American country with the most significant presence of Spanish companies and investment projects. Spain is the third global investor and the first European in this Central American market. More than 400 companies are present there, notably in the infrastructure sector, but also in renewables and, increasingly, in tourism.

Spanish investment in Panama is significant

Spanish companies in Panama include OHLA, Acciona, Grupo Puentes, ACS, Naturgy, Indra, Mapfre, Meliá, Barceló, NH, Riu, Evenia, Ayesa, Iberia, Abanca, Air Europa, Duro Felguera, San José, Copisa, Ortiz, Iberdrola, Elecnor, Ecoener, Sur de Renovables, Cox Energy, Inelsa and Avanzalia. In addition, Telefónica sold its subsidiary in the country in 2019. In recent months, Grupo Puentes won a contract for 250 million dollars to expand a section of the Pan-American Highway to six lanes. In addition, Naturgy has announced that it will inject 450 million in electricity distribution through the Panamanian Empresa de Distribución Eléctrica Metro-Oeste (Edemet) and Empresa de Distribución Eléctrica Chiriquí (Edechi), controlled by the Spanish company.

According to the latest World Bank projections, Panama will lead the growth in Central America and the Caribbean, together with the Dominican Republic, with a positive rate of expansion of 5%, with mining production and tourism as significant engines of growth. ECLAC forecasts a lower increase, of 4.2%, after 7.4% last year, when Panama recovered from the strong impact suffered in 2020 by the restrictions imposed on mobility and economic activity by Covid. In 2022 there was a reactivation of trade, construction, and tourism activity in the Colon Free Zone, improvement of operations in the Panama Canal, mining, and sectors of agricultural activity, according to Panamanian government data. As a result, Panama has grown at an average rate of 6.3% during the last twenty years. This is the highest growth rate in Latin America. GDP expanded by 15.3% in 2021, driven by the Canal, after falling 17.9% in 2020.

Sectoral opportunities for Spanish investment in Central America

Spain is also one of Panama’s most important trade partners. The latter is a country that offers, according to ProPanama, “advantageous investment opportunities for Spanish businessmen, from the traditional sectors of tourism and agriculture to the digital sector or through the Energy Transition Strategy. It also holds a prominent position as a logistics hub ‘ and its infrastructure places the country as the ideal place for ‘nearshoring.’” Among the opportunities at a more concrete level is the Canal’s plan to invest 1.8 billion dollars in its new water management system. Additionally, the Ministry of Economy plans to promote eight projects with a public-private partnership, including rehabilitating the Pan-American highway from Las Garzas to Yaviza.

Last February 2023, the Panamanian government identified eight areas for developing investment opportunities through a map prepared with the UN Development Program (UNDP) and aligned with the Sustainable Development Goals. The Minister of Trade and Industry, Alfaro Boyd, explained that the initiative seeks to identify business opportunities and models that have significant potential to promote the SDGs with substantial financial returns for investors. In addition, he pointed out that public-private partnerships are essential for sustainable development. Areas identified for investment include renewables, agri-food, health, and infrastructure.