2016 Aerospace study. Insights for Global Suppliers
Global demand
Various macroeconomic factors in today’s global economy have led to a significant increase in demand for new aircraft. As a result, backlogs for Airbus and Boeing, the major OEMs in the aerospace industry, have risen to all-time highs. In response these OEMs have increased their production rates to help satisfy the world’s hunger for single aisle aircraft. An aircraft is quite a large and expansive project. Won’t production rate increases of 25%-40% over just a few years have a significant ripple effect in the industry?
Global answer
To best address this question, the Mazars Group has embarked on a journey to determine how increases in production rates would affect suppliers throughout the global supply chain. It includes the results from a global survey conducted before the summer in both Europe and North America, an independent research performed together with Sciences Po University, and interviews with experts in the aerospace industry from France, Morocco, Mexico and USA.
We gratefully thank our academic partner and all our respondents and interviewees for their great contribution.
Key findings
This publication is a guide to the opportunities and risks suppliers face in navigating the complexity of the commercial aerospace supply chain. It also highlight some key differences between key suppliers in North America and Europe, where a majority of them are clustered.
The key findings of our publication illustrate the 5 following challenges:
- Price pressure
- Restrictions to a fast ramp-up
- Efficiency
- Diversification
- Globalization