Swedback says car makers and their suppliers have been flocking to Mexico for the past three years with several manufacturing campuses in development, including Ford's in Hermosillo.
   "The automotive sector is hot and will continue to be hot," Swedback says. "Some plants are exporting all over the world."
   As documented in the November 2006 issue of Site Selection, aerospace is also booming in Mexico. The industry is particularly strong in Baja California, where there are currently 40 companies that manufacture, assemble, repair or design aerospace- related products. These companies employ more than 12,000, with Gulfstream (1,000), Honeywell (1,000) and Rockwell Collins (1,300) being the major employers. Chihuahua and Querétaro are other states seeing significant aerospace investment.
   One recent expansion involves MD Helicopters, which is building fuselages at a new facility near Monterrey.
   Aerospace exports are on a steady rise in Mexico, totaling more than $600 million in 2005, according to Bancomext.
   Products manufactured in Mexico include engine components, harnesses and cables, landing systems components, plastic injection parts, heat exchanges, precision machining, audio and video systems, electronic components and fuselage insulation.    Home appliance giant Electrolux continues to build its huge manufacturing city in Ciudad Juárez following its 2004 announcement it would be leaving Greenville, Mich. Electrolux broke ground in July for a new laundry products factory at the company's campus in Ciudad Juárez. The new $130- million factory is going up adjacent to the company's 1.8- million- sq.- ft. (167,220 sq.- m.) refrigerator plant

"Monterrey has proven to be an ideal site for us. It offers a well- educated work force in a modern industrial setting." — Richard R. Harris, CEO, United Plastics Group

that opened in 2005, and will manufacture front- loading washers and companion dryers. A 210- acre (85- hectare) supplier park has been built adjacent to the complex.
   United Plastics Group launched its second factory in Monterrey in October to meet a spike in demand by Tier 1 automotive and consumer product customers for custom manufacturing.
   "The kind of quality work that delights customers requires good equipment, but it especially requires good people," said Richard R. Harris, CEO. "In this respect, Monterrey has proven to be an ideal site for us. It offers a well- educated work force in a modern industrial setting with many advantages, allowing us to deliver high- quality components to customers at low cost.
   UPG attributes the success of its Mexican assembly operation largely to rigorous recruitment, effective employee retention programs and extensive training in team problem- solving.
   "Our objective is global manufacturing on the highest levels, using lean manufacturing facilities that can move quickly on new projects, no matter how complex," said Thomas Cho, vice president of operations. "For the second Monterrey facility, we were able to apply startup methodologies and resources developed at headquarters, supplemented by an experienced core team from the first Monterrey plant. Doing so allowed us to build on a strong foundation of success to deliver quality product using proven processes and managed by highly qualified people."
   Michelin upgraded its Querétaro plant to manufacture Michelin- brand passenger and light truck tires. The tire maker is also building a new plant in Querétaro, adjacent to the passenger car facility, that will produce tread rubber for retreading Michelin's commercial truck tires. This facility will open in the spring of 2007.
   "In the past three years, Michelin's replacement tire sales in Mexico have jumped more than 60 percent," said Jim Micali, chairman and president of Michelin North America. "Mexico is one of the top 10 tire markets in the world, growing at almost twice the rate of the U.S. market."