Aerospace remains the bedrock of the states 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 doesnt 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.

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

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Commercial aerospace set to grow, says expo speaker