In 2016, crazy parallels can be drawn with the cyclical nature of the global aerospace industry and the way its fortunes roared up the runway to reach altitude, but instead of enjoying a period of calm cruising, hit turbulence. Post-Brexit related caution has set in and the industry now begins a nervous slow decent into the unknown.
At present the commercial aviation industry has unprecedented order backlogs, with Airbus and Boeing fully booked for the foreseeable future. To deliver this huge backlog, the entire aerospace supply chain is on standby to rapidly increase capacity and deal with near vertical ramp-up demands.
Meanwhile, aerospace OEMs have restructured their business models to become system integrators, exploring different ways of sharing development costs throughout their entire supply chains. Tier 1 suppliers are being invited to assemble major subsystems, which in turn rely on tier 2 suppliers to perform the majority of manufacturing tasks.
Without doubt, 2017 will be an interesting year for aerospace manufacturing with many twists, turns and even the odd barrel roll. So, strap yourself in, take a deep breath and hang on for the ride of your life. The strongest companies are those that are in it for the long run. They know that it’s going to take much more than improved performance, more than an innovative spark, more than just the bottom line and more than a lucky shot in the dark.
Mike Richardson, editor
