Aircraft Parts Manufacture - Market Research Reports

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Aircraft Parts Manufacture

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Executive Summary

Brief Excerpt from Industry Overview Chapter:

In the US, 1,500 companies manufacture aircraft parts with combined annual revenue of about $45 billion. The engine sector is dominated by GE Aviation and Pratt & Whitney, which together account for about 80 percent of engine revenue. The remainder of the industry is highly fragmented. Aside from divisions of a few large companies like Honeywell and Northrop Grumman, few parts manufacturers have annual revenue in excess of $100 million. A typical parts company has 150 employees and revenue of $25 million.

COMPETITIVE LANDSCAPE

Demand for commercial, military, and private airplanes drives the aircraft parts industry. The profitability of individual companies depends on efficient operations and the ability to secure long-term contracts. Small companies can compete by specializing in high-end, low-volume, or hard-to-find parts, or in production of low-price commodity parts. Large companies have economies of scale in production and purchasing. The industry is labor-intensive: annual revenue per employee is about $200,000 at larger companies, $125,000 at smaller ones.

PRODUCTS, OPERATIONS & TECHNOLOGY

Manufacturers usually specialize in producing parts for one of several major systems, including engine, fuselage, propellers and rotors, landing gear, electric and hydraulic control systems, and electronic systems (avionics). Primary subcontractors ("primes") that deliver major systems like engines or wings to the original equipment manufacturer (OEM), in turn subcontract much of the component manufacturing activity to smaller contractors.

Aircraft parts manufacture is generally high-precision and high-technology, where the performance of ...

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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