Aerospace Products and Parts Manufacture - Market Research Reports

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Aerospace Products and Parts Manufacture

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Executive Summary

Brief Excerpt from Industry Overview Chapter:

The US aerospace products and parts manufacturing industry includes about 1,500 companies with combined annual revenue of $145 billion. Major companies include Boeing, Northrop Grumman, Lockheed Martin, Raytheon, and General Dynamics. The industry is highly concentrated: the 20 largest companies account for about 90 percent of industry revenue. Many companies work primarily as subcontractors to the five largest manufacturers.

COMPETITIVE LANDSCAPE

Demand is driven by the US military budget 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. Production of aircraft and major aircraft components is highly automated: average revenue per employee is nearly $300,000.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products are aircraft, including commercial, military, private and business planes; aircraft components, including engines, fuselages, interiors, and avionics; missiles and satellites; and space vehicles. Aircraft manufacturing accounts for nearly 50 percent of industry revenue; aircraft engines and components for about 40 percent; and missiles and space vehicles for almost 10 percent.

Boeing is the only US manufacturer for commercial aircraft, but outsources portions of its business to numerous ...

Contents:

Industry Overview
Quarterly Industry Update
Business Challenges
Trends AND Opportunities
Call Preparation Questions
Financial Information
Industry Forecast
Website and Media Links
Glossary of Acronyms

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