An aerospace manufacturer is a company or individual involved in the various aspects
of designing, building, testing, selling, and maintaining aircraft, aircraft parts,
missiles, rockets, or spacecraft.
Aerospace is a high technology industry.The aircraft industry is the industry supporting
aviation by building aircraft and manufacturing aircraft parts for their maintenance.
This includes aircraft and parts used for civil aviation and military aviation.
Most production is done pursuant to type certificates and Defense Standards issued by a government
body.
This term has been largely subsumed by the more encompassing term: "aerospace industry".
== Market == In 2015 the Aircraft Production was worth
$180.3 Billion: 61% airliners, 14% business and general aviation, 12% Military aircraft,
10% military rotary wing and 3% civil rotary wing; while their MRO was worth $135.1 Bn
or $315.4 Bn combined.The global aerospace industry was worth $838 billion in 2017: Aircraft
& Engine OEMs represented 28% ($235 Bn), Civil & Military MRO & Upgrades 27% ($226 Bn), Aircraft
Systems & Component Manufacturing 26% ($218 Bn), Satellites & Space 7% ($59 Bn), Missiles
& UAVs 5% ($42 Bn) and other activity, including flight simulators, defense electronics, public
research accounted for 7% ($59 Bn).
The countries with the largest industry were led by the United States with $408.4 Bn (49%)
followed by France with $69 Bn (8.2%) then China with $61.2 Bn (7.3%), United Kingdom
with $48.8 Bn (5.8%), Germany with $46.2 Bn (5.5%), Russia with $27.1 Bn (3.2%), Canada
with $24 Bn (2.9%) and Japan with $21 Bn (2.5%).In 2018, the new commercial aircraft value is
projected for $270.4 billion while business aircraft will amount for $18 billion and civil
helicopters for $4 billion.
== Largest Companies ==
== Geography == In September 2018, PwC ranked aerospace manufacturing
attractiveness: the most attractive country was the United States, with $240 billion in
sales in 2017, due the sheer size of the industry (#1) and educated workforce (#1), low geopolitical
risk (#4, #1 is Japan), strong transportation infrastructure (#5, #1 is Hong Kong), a healthy
economy (#10, #1 is China), but high costs (#7, #1 is Denmark) and average tax policy
(#36, #1 is Qatar).
Following were Canada, Singapore, Switzerland and United Kingdom.Within the US, the most
attractive was Washington state, due to the best Industry (#1), leading Infrastructure
(#4, New Jersey is #1) and Economy (#4, Texas is #1), good labor (#9, Massachusetts is #1),
average tax policy (#17, Alaska is #1) but is costly (#33, Montana is #1).
Washington is tied to Boeing Commercial Airplanes, earning $10.3 billion, is home to 1,400 aerospace-related
businesses, and has the highest aerospace jobs concentration.
Following are Texas, Georgia, Arizona and Colorado.In the European Union, aerospace
companies such as Airbus, BAE Systems, Thales, Dassault, Saab AB, Terma A/S, Patria and Leonardo
are participants in the global aerospace industry and research effort.
In Russia, large aerospace companies like Oboronprom and the United Aircraft Corporation
(encompassing Mikoyan, Sukhoi, Ilyushin, Tupolev, Yakovlev, and Irkut, which includes Beriev)
are among the major global players in this industry.
In the US, the Department of Defense and NASA are the two biggest consumers of aerospace
technology and products.
The Bureau of Labor Statistics of the United States reported that the aerospace industry
employed 444,000 wage and salary jobs in 2004, many of which were in Washington and California,
this marked a steep decline from the peak years during the Reagan Administration when
total employment exceeded 1,000,000 aerospace industry workers.During that period of recovery
a special program to restore U.S. competitiveness across all U.S. industries, Project Socrates,
contributed to employment growth as the U.S. aerospace industry captured 72 percent of
world aerospace market.
By 1999 U.S. share of the world market fell to 52 percent.
=== Cities === Important locations of the civil aerospace
industry worldwide include Seattle, Wichita, Kansas, Dayton, Ohio and St. Louis in the
United States (Boeing), Montreal and Toronto in Canada (Bombardier, Pratt & Whitney Canada),
Toulouse in France and Hamburg in Germany (Airbus, EADS), the North-West of England
and Bristol in Britain (BAE Systems, Airbus and AgustaWestland), Komsomolsk-on-Amur and
Irkutsk in Russia (Sukhoi, Beriev), Kiev and Kharkiv in Ukraine (Antonov), Nagoya in Japan
(Mitsubishi Heavy Industries Aerospace and Kawasaki Heavy Industries Aerospace), as well
as São José dos Campos in Brazil where Embraer is based.
== Consolidation == Several consolidations took place in the aerospace
and defense industries over the last few decades.
BAE Systems is the successor company to numerous British aircraft manufacturers which merged
throughout the second half of the 20th century.
Many of these mergers followed the 1957 Defence White Paper.
Airbus prominently illustrated the European airliner manufacturing consolidation in the
late 1960s.Between 1988 and 2010, more than 5,452 mergers and acquisitions with a total
known-value of US$579 billion were announced worldwide.In 1993, then United States Secretary
of Defense Les Aspin and his deputy William J. Perry held the "Last Supper" at the Pentagon
with contractors executives who were told that there were twice as many military suppliers
as he wanted to see: $55 billion in military-industry mergers took place from 1992 to 1997, leaving
mainly Boeing, Lockheed Martin and Raytheon.Boeing bought McDonnell Douglas for US$13.3 billion
in 1996.Raytheon acquired Hughes Aircraft Company for $9.5 billion in 1997.Marconi Electronic
Systems, a subsidiary of the General Electric Company plc, was acquired by British Aerospace
for US$12.3 billion in 1999 merger, to form BAE Systems.
In 2002, when Fairchild Dornier was bankrupt, Airbus, Boeing or Bombardier declined to take
the 728JET/928JET large regional jet program as mainline and regional aircraft manufacturers
were split and Airbus was digesting its ill-fated Fokker acquisition a decade earlier.On September
4, 2017, United Technologies acquired Rockwell Collins in cash and stock for $23 billion,
$30 billion including Rockwell Collins' net debt, for $500+ million of synergies expected
by year four.
The Oct. 16, 2017 announcement of the CSeries partnership between Airbus and Bombardier
Aerospace could trigger a daisy chain of reactions towards a new order.
Airbus gets a new, efficient model at the lower end of the narrowbody market which provides
the bulk of airliner profits and can abandon the slow selling A319 while Bombardier benefits
from the growth in this expanded market even if it holds a smaller residual stake.
Boeing could forge a similar alliance with either Embraer with its E-jet E2 or Mitsubishi
Heavy Industries and its MRJ.On 21 December, Boeing and Embraer confirmed to be discussing
a potential combination with a transaction subject to Brazilian government regulators,
the companies’ boards and shareholders approvals.
The weight of Airbus and Boeing could help E2 and CSeries sales but the 100-150 seats
market seems slow.
As the CSeries, renamed A220, and E-jet E2 are more capable than their predecessors,
they moved closer to the lower end of the narrowbodies.
In 2018, the four Western airframers combined into two within nine months as Boeing acquired
80% of Embraer's airliners for $3.8 billion on July 5.
== Suppliers == The largest aerospace suppliers are United
Technologies with $28.2 Billion of revenue, followed by GE Aviation with $24.7 Billion,
Safran with $22.5 Billion, Rolls-Royce Holdings with $16.9 Billion, Honeywell Aerospace with
$15.2 Billion and Rockwell Collins including B/E Aerospace with $8.1 Billion.
The electric aircraft development could generate large changes for the aerospace suppliers.On
26 November 2018, United Technologies announced the completion of its Rockwell Collins acquisition,
renaming systems supplier UTC Aerospace Systems as Collins Aerospace, for $23 billion of sales
in 2017 and 70,000 employees, and $39.0 billion of sales in 2017 combined with engine manufacturer
Pratt & Whitney.
== Supply chain == Before the 1980s/1990s, aircraft and aeroengine
manufacturers were vertically integrated.
Then Douglas aircraft outsourced large aerostructures and the Bombardier Global Express pioneered
the “Tier 1” supply chain model inspired by automotive industry, with 10-12 risk-sharing
limited partners funding around half of the development costs.
The Embraer E-Jet followed in the late 1990s with fewer than 40 primary suppliers.
Tier 1 suppliers were led by Honeywell, Safran, Goodrich Corporation and Hamilton Sundstrand.In
the 2000s Rolls-Royce reduced its supplier count after bringing in automotive supply
chain executives.
On the Airbus A380, less than 100 major suppliers outsource 60% of its value, even 80% on the
A350XWB.
Boeing embraced an aggressive Tier 1 model for the B787 but with its difficulties began
to question why it was earning lower margins than its suppliers while it seemed to take
all the risk, ensuing its 2011 Partnering for Success initiative, as Airbus initiated
its own Scope+ initiative for the A320.
Tier 1 consolidation also affects engine manufacturers : GE Aviation acquired Avio in 2013 and Rolls-Royce
plc is taking control of Industria de Turbo Propulsores.
== See also == Aerospace
Aviation accidents and incidents List of aircraft manufacturers
List of spacecraft manufacturers Military-industrial complex
Aircraft parts industry Aerospace industry of Russia
Aviation