Commercial aerospace set to grow, says expo speaker

Aerospace remains the bedrock of the state’s manufacturing industry, but growth opportunities abound in other industries and across the border.

That was the message given Wednesday by the head of a state manufacturers’ group at the Southern Arizona Tech + Business Expo.

Aerospace and defense manufacturers face challenges because of efforts to cut the federal budget, Steve Macias, chairman of the Arizona Manufacturers Council, said in his keynote address at the expo, hosted by the Arizona Technology Council at the Westin La Paloma Resort and Spa.

“A lot of it has to do with politics, and politics doesn’t always make sense,” said Macias, who is president of Phoenix-based Pivot Manufacturing.

Fortunately, commercial aerospace is set to grow, with historic backlogs at aircraft makers like Bombardier Aerospace, he noted.

Arizona is a leader in aerospace particularly for the military, Macias said, noting that the state is among the top eight in Defense Department contracts.

But the state faces challenges from other states looking to boost their aerospace sectors, he said.

“We have a target on our backs when it comes to other states in aerospace,” Macias said.

To continue to grow, Arizona manufacturers should look to growing sectors including the biosciences, solar energy and the oil and gas industry, he said.

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Growth opportunities also await across the border, Macias said, noting that Arizona already enjoys $14 billion in annual trade with Mexico.

Tensions are easing in Mexico, and the government and industry there seek more collaboration with U.S. companies, Macias said.

He cited a surge in aerospace development in the Guaymas/Empalme area of Sonora and the strength of the automotive industry in Monterey.

Awards bestowed

A retired University of Arizona professor who founded a company that makes structure-strengthening materials, and a fast-growing local industrial fabrication company were both honored at the expo.

Mo Ehsani, UA professor emeritus of civil engineering and founder of QuakeWrap Inc., was named Tucson Technology Leader of the Year at the event. The company’s fiber-reinforced polymer structure wrapping system is used to strengthen buildings, pipelines and other structures, and has been widely recognized with industry awards.

CAID Industries, a 65-year-old fabrication firm, was named Manufacturer of the Year for its rapid expansion into industrial automation since mid-2012. The new division’s revenues rose from $550,000 in 2012 to $10 million in 2013, Alex Rodriguez, the Tech Council’s vice president for Southern Arizona, noted in announcing the award.

Accepting the award, CAID President and CEO Bill Assenmacher said the company has added 50 employees and undergone three major expansion projects in the past two years and expects continued growth, adding, “We’re rocking and rolling.”