Aerospace Products & Parts Manufacturing

First Research, Inc.
March 23, 2015
10 Pages - SKU: FRRS5508771
Countries covered: United States

Aerospace Products & Parts Manufacturing

Brief Excerpt from Industry Overview Chapter:

Companies in this industry manufacture aircraft, aircraft components, and missiles and space vehicles. Major companies include US-based Boeing, General Dynamics, Lockheed Martin, Northrop Grumman, and Raytheon, as well as Airbus Group (the Netherlands), BAE Systems (UK), Bombardier (Canada), and Finmeccanica (Italy). Many companies work primarily as subcontractors to the largest manufacturers.

Top countries for aerospace manufacturing include Canada, France, the UK, and the US. North America and Europe are the largest markets for aerospace products, but emerging economies in the Asia/Pacific region are expected to provide the greatest growth opportunities.

The US aerospace products and parts manufacturing industry includes about 1,400 companies with combined annual revenue of about $220 billion.

COMPETITIVE LANDSCAPE

Demand is driven by military budgets and the overall economic climate, which affects airline traffic and demand for new commercial aircraft. The profitability of individual companies depends on technical expertise and the ability to accurately price long-term contracts. Large companies enjoy economies of scale in design, manufacturing, and purchasing. Small companies can compete effectively by concentrating on selected components and parts manufacturing for particular prime contractors. Increasingly, small companies are developing system integration capabilities as large firms outsource more aspects of contracts. The US industry is highly concentrated: the 20 largest companies account for about 90 percent of industry revenue.

The US aerospace industry exports a significant portion of its output. The countries receiving the largest amount of US exports include China, the UK, France, Japan, and Canada....



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