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An aerospace manufacturer is a company or individual involved in the various aspects of designing, building, testing, selling, and maintaining
aircraft An aircraft is a vehicle that is able to fly by gaining support from the air. It counters the force of gravity by using either static lift or by using the dynamic lift of an airfoil, or in a few cases the downward thrust from jet engines. ...
, aircraft parts,
missile In military terminology, a missile is a missile guidance, guided airborne ranged weapon capable of self-propelled flight usually by a jet engine or rocket motor. Missiles are thus also called guided missiles or guided rockets (when a previously ...
s,
rocket A rocket (from it, rocchetto, , bobbin/spool) is a vehicle that uses jet propulsion to accelerate without using the surrounding air. A rocket engine produces thrust by reaction to exhaust expelled at high speed. Rocket engines work entire ...
s, or
spacecraft A spacecraft is a vehicle or machine designed to spaceflight, fly in outer space. A type of artificial satellite, spacecraft are used for a variety of purposes, including Telecommunications, communications, Earth observation satellite, Earth ...
.
Aerospace Aerospace is a term used to collectively refer to the atmosphere and outer space. Aerospace activity is very diverse, with a multitude of commercial, industrial and military applications. Aerospace engineering consists of aeronautics and astrona ...
is a
high tech High technology (high tech), also known as advanced technology (advanced tech) or exotechnology, is technology that is at the cutting edge: the highest form of technology available. It can be defined as either the most complex or the newest tec ...
nology industry. The aircraft industry is the industry supporting
aviation Aviation includes the activities surrounding mechanical flight and the aircraft industry. ''Aircraft'' includes fixed-wing and rotary-wing types, morphable wings, wing-less lifting bodies, as well as lighter-than-air craft such as hot ...
by building
aircraft An aircraft is a vehicle that is able to fly by gaining support from the air. It counters the force of gravity by using either static lift or by using the dynamic lift of an airfoil, or in a few cases the downward thrust from jet engines. ...
and manufacturing aircraft parts for their maintenance. This includes aircraft and parts used for civil aviation and
military aviation Military aviation comprises military aircraft and other flying machines for the purposes of conducting or enabling aerial warfare, including national airlift ( air cargo) capacity to provide logistical supply to forces stationed in a war thea ...
. 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 Aerospace is a term used to collectively refer to the atmosphere and outer space. Aerospace activity is very diverse, with a multitude of commercial, industrial and military applications. Aerospace engineering consists of aeronautics and astrona ...
industry".


Market

In 2015 the aircraft production was worth US$180.3 Billion: 61%
airliner An airliner is a type of aircraft for transporting passengers and air cargo. Such aircraft are most often operated by airlines. Although the definition of an airliner can vary from country to country, an airliner is typically defined as an ...
s, 14% business and
general aviation General aviation (GA) is defined by the International Civil Aviation Organization (ICAO) as all civil aviation aircraft operations with the exception of commercial air transport or aerial work, which is defined as specialized aviation service ...
, 12%
Military aircraft A military aircraft is any fixed-wing or rotary-wing aircraft that is operated by a legal or insurrectionary armed service of any type. Military aircraft can be either combat or non-combat: * Combat aircraft are designed to destroy enemy equi ...
, 10% military rotary wing and 3% civil rotary wing; while their MRO was worth $135.1 Bn or $ Bn combined. The global aerospace industry was worth $838 billion in 2017: Aircraft & Engine OEMs represented 28% ($ Bn), Civil & Military MRO & Upgrades 27% ($ Bn), Aircraft Systems & Component Manufacturing 26% ($ Bn),
Satellite A satellite or artificial satellite is an object intentionally placed into orbit in outer space. Except for passive satellites, most satellites have an electricity generation system for equipment on board, such as solar panels or radioiso ...
s & Space 7% ($ Bn),
Missile In military terminology, a missile is a missile guidance, guided airborne ranged weapon capable of self-propelled flight usually by a jet engine or rocket motor. Missiles are thus also called guided missiles or guided rockets (when a previously ...
s & UAVs 5% ($ Bn) and other activity, including flight simulators, defense electronics, public research accounted for 7% ($ Bn). The countries with the largest industry were led by the
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., federal district, five ma ...
with $408.4 Bn (%) followed by
France France (), officially the French Republic ( ), is a country primarily located in Western Europe. It also comprises of overseas regions and territories in the Americas and the Atlantic, Pacific and Indian Oceans. Its metropolitan ar ...
with $69 Bn (%) then China with $61.2 Bn (%),
United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the European mainland, continental mainland. It comprises England, Scotlan ...
with $48.8 Bn (%),
Germany Germany, officially the Federal Republic of Germany (FRG),, is a country in Central Europe. It is the most populous member state of the European Union. Germany lies between the Baltic and North Sea to the north and the Alps to the sou ...
with $46.2 Bn (%),
Russia Russia (, , ), or the Russian Federation, is a transcontinental country spanning Eastern Europe and Northern Asia. It is the largest country in the world, with its internationally recognised territory covering , and encompassing one-eigh ...
with $27.1 Bn (%),
Canada Canada is a country in North America. Its ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, covering over , making it the world's second-largest country by tota ...
with $24 Bn (%), Japan with $21 Bn (%),
Spain , image_flag = Bandera de España.svg , image_coat = Escudo de España (mazonado).svg , national_motto = '' Plus ultra'' ( Latin)(English: "Further Beyond") , national_anthem = (English: "Royal March") , ...
with $14 Bn (%) and
India India, officially the Republic of India ( Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the ...
with $11Bn (%). The top 10 countries represent $731 Bn or % of the whole industry. 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 PricewaterhouseCoopers is an international professional services brand of firms, operating as partnerships under the PwC brand. It is the second-largest professional services network in the world and is considered one of the Big Four accounting ...
ranked aerospace manufacturing attractiveness: the most attractive country was the
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., federal district, five ma ...
, with $240 billion in sales in 2017, due to 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 Hong Kong ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China (abbr. Hong Kong SAR or HKSAR), is a city and special administrative region of China on the eastern Pearl River Delta i ...
), a healthy
economy An economy is an area of the production, distribution and trade, as well as consumption of goods and services. In general, it is defined as a social domain that emphasize the practices, discourses, and material expressions associated with t ...
(#10, #1 is China), but high costs (#7, #1 is
Denmark ) , song = ( en, "King Christian stood by the lofty mast") , song_type = National and royal anthem , image_map = EU-Denmark.svg , map_caption = , subdivision_type = Sovereign state , subdivision_name = Kingdom of Denmark , establishe ...
) and average tax policy (#36, #1 is
Qatar Qatar (, ; ar, قطر, Qaṭar ; local vernacular pronunciation: ), officially the State of Qatar,) is a country in Western Asia. It occupies the Qatar Peninsula on the northeastern coast of the Arabian Peninsula in the Middle East; it ...
). Following were
Canada Canada is a country in North America. Its ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, covering over , making it the world's second-largest country by tota ...
,
Singapore Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, borde ...
, Switzerland and
United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the European mainland, continental mainland. It comprises England, Scotlan ...
. Within the US, the most attractive was Washington state, due to the best Industry (#1), leading Infrastructure (#4,
New Jersey New Jersey is a U.S. state, state in the Mid-Atlantic States, Mid-Atlantic and Northeastern United States, Northeastern regions of the United States. It is bordered on the north and east by the state of New York (state), New York; on the ea ...
is #1) and Economy (#4,
Texas Texas (, ; Spanish language, Spanish: ''Texas'', ''Tejas'') is a state in the South Central United States, South Central region of the United States. At 268,596 square miles (695,662 km2), and with more than 29.1 million residents in 2 ...
is #1), good labor (#9,
Massachusetts Massachusetts (Massachusett language, Massachusett: ''Muhsachuweesut assachusett writing systems, məhswatʃəwiːsət'' English: , ), officially the Commonwealth of Massachusetts, is the most populous U.S. state, state in the New England ...
is #1), average tax policy (#17,
Alaska Alaska ( ; russian: Аляска, Alyaska; ale, Alax̂sxax̂; ; ems, Alas'kaaq; Yup'ik: ''Alaskaq''; tli, Anáaski) is a state located in the Western United States on the northwest extremity of North America. A semi-exclave of the U.S ...
is #1) but is costly (#33,
Montana Montana () is a U.S. state, state in the Mountain states, Mountain West List of regions of the United States#Census Bureau-designated regions and divisions, division of the Western United States. It is bordered by Idaho to the west, North ...
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 Georgia most commonly refers to: * Georgia (country), a country in the Caucasus region of Eurasia * Georgia (U.S. state), a state in the Southeast United States Georgia may also refer to: Places Historical states and entities * Related to t ...
,
Arizona Arizona ( ; nv, Hoozdo Hahoodzo ; ood, Alĭ ṣonak ) is a U.S. state, state in the Southwestern United States. It is the list of U.S. states and territories by area, 6th largest and the list of U.S. states and territories by population, 14 ...
and
Colorado Colorado (, other variants) is a state in the Mountain states, Mountain West subregion of the Western United States. It encompasses most of the Southern Rocky Mountains, as well as the northeastern portion of the Colorado Plateau and the wes ...
. In the
European Union The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been ...
, aerospace companies such as Airbus, Safran, BAE Systems,
Thales Thales of Miletus ( ; grc-gre, Θαλῆς; ) was a Greek mathematician, astronomer, statesman, and pre-Socratic philosopher from Miletus in Ionia, Asia Minor. He was one of the Seven Sages of Greece. Many, most notably Aristotle, regard ...
,
Dassault Dassault Group (; also GIM Dassault or Groupe Industriel Marcel Dassault SAS) is a French group of companies established in 1929 with the creation of Société des Avions Marcel Bloch (now Dassault Aviation) by Marcel Dassault, and led by son ...
, Saab AB, Terma A/S,
Patria Plc Patria Plc ( fi, Patria Oyj, sv, Patria Abp) is a Finnish provider of defence, security and aviation life-cycle support services. Patria is owned 50.1% by the Finnish government and 49.9% by Norwegian defense group Kongsberg Defense & Aerospac ...
and Leonardo are participants in the global aerospace industry and research effort. In
Russia Russia (, , ), or the Russian Federation, is a transcontinental country spanning Eastern Europe and Northern Asia. It is the largest country in the world, with its internationally recognised territory covering , and encompassing one-eigh ...
, 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 The National Aeronautics and Space Administration (NASA ) is an independent agency of the US federal government responsible for the civil space program, aeronautics research, and space research. NASA was established in 1958, succeedi ...
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 Project Socrates was a classified U.S. Defense Intelligence Agency program established in 1983 within the Reagan administration. It was founded and directed by physicist Michael C. Sekora to determine why the United States was unable to maintain ec ...
, 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 Seattle ( ) is a port, seaport city on the West Coast of the United States. It is the county seat, seat of King County, Washington, King County, Washington (state), Washington. With a 2020 population of 737,015, it is the largest city in bo ...
,
Wichita, Kansas Wichita ( ) is the largest city in the U.S. state of Kansas and the county seat of Sedgwick County. As of the 2020 census, the population of the city was 397,532. The Wichita metro area had a population of 647,610 in 2020. It is located in ...
,
Dayton, Ohio Dayton () is the sixth-largest city in the U.S. state of Ohio and the county seat of Montgomery County. A small part of the city extends into Greene County. The 2020 U.S. census estimate put the city population at 137,644, while Greater ...
and St. Louis in the United States (
Boeing The Boeing Company () is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, telecommunications equipment, and missiles worldwide. The company also provides leasing and ...
),
Montreal Montreal ( ; officially Montréal, ) is the second-most populous city in Canada and most populous city in the Canadian province of Quebec. Founded in 1642 as '' Ville-Marie'', or "City of Mary", it is named after Mount Royal, the triple- ...
and
Toronto Toronto ( ; or ) is the capital city of the Provinces and territories of Canada, Canadian province of Ontario. With a recorded population of 2,794,356 in 2021, it is the List of the largest municipalities in Canada by population, most pop ...
in Canada ( Bombardier, Pratt & Whitney Canada),
Toulouse Toulouse ( , ; oc, Tolosa ) is the Prefectures in France, prefecture of the Departments of France, French department of Haute-Garonne and of the larger Regions of France, region of Occitania (administrative region), Occitania. The city is on t ...
and
Bordeaux Bordeaux ( , ; Gascon oc, Bordèu ; eu, Bordele; it, Bordò; es, Burdeos) is a port city on the river Garonne in the Gironde department, Southwestern France. It is the capital of the Nouvelle-Aquitaine region, as well as the prefecture ...
in France ( Airbus,
Dassault Dassault Group (; also GIM Dassault or Groupe Industriel Marcel Dassault SAS) is a French group of companies established in 1929 with the creation of Société des Avions Marcel Bloch (now Dassault Aviation) by Marcel Dassault, and led by son ...
, ATR),
Seville Seville (; es, Sevilla, ) is the capital and largest city of the Spanish autonomous community of Andalusia and the province of Seville. It is situated on the lower reaches of the River Guadalquivir, in the southwest of the Iberian Peninsul ...
in Spain and
Hamburg Hamburg (, ; nds, label=Hamburg German, Low Saxon, Hamborg ), officially the Free and Hanseatic City of Hamburg (german: Freie und Hansestadt Hamburg; nds, label=Low Saxon, Friee un Hansestadt Hamborg),. is the List of cities in Germany by popul ...
in Germany ( Airbus, EADS), the North-West of England and
Bristol Bristol () is a city, ceremonial county and unitary authority in England. Situated on the River Avon, it is bordered by the ceremonial counties of Gloucestershire to the north and Somerset to the south. Bristol is the most populous city i ...
in Britain ( BAE Systems, Airbus and AgustaWestland), Komsomolsk-on-Amur and Irkutsk in Russia ( Sukhoi, Beriev),
Kyiv Kyiv, also spelled Kiev, is the capital and most populous city of Ukraine. It is in north-central Ukraine along the Dnieper, Dnieper River. As of 1 January 2021, its population was 2,962,180, making Kyiv the List of European cities by populat ...
and
Kharkiv Kharkiv ( uk, wikt:Харків, Ха́рків, ), also known as Kharkov (russian: Харькoв, ), is the second-largest List of cities in Ukraine, city and List of hromadas of Ukraine, municipality in Ukraine.Antonov),
Nagoya is the largest city in the Chūbu region, the fourth-most populous city and third most populous urban area in Japan, with a population of 2.3million in 2020. Located on the Pacific coast in central Honshu, it is the capital and the most p ...
in Japan ( Mitsubishi Heavy Industries Aerospace and
Kawasaki Heavy Industries Aerospace is the aerospace division of Kawasaki Heavy Industries (KHI). It produces aircraft, space systems, simulators, jet engines, missiles, and electronic equipment. During the 1930s and 1940s, Kawasaki Aircraft Industries developed numerous types ...
), 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 The United States secretary of defense (SecDef) is the head of the United States Department of Defense, the executive department of the U.S. Armed Forces, and is a high ranking member of the federal cabinet. DoDD 5100.1: Enclosure 2: a The ...
Les Aspin and his deputy William J. Perry held the "Last Supper" at
the Pentagon The Pentagon is the headquarters building of the United States Department of Defense. It was constructed on an accelerated schedule during World War II. As a symbol of the U.S. military, the phrase ''The Pentagon'' is often used as a metonym ...
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 The Boeing Company () is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, telecommunications equipment, and missiles worldwide. The company also provides leasing and ...
, Lockheed Martin,
Northrop Grumman Northrop Grumman Corporation is an American multinational aerospace and defense technology company. With 90,000 employees and an annual revenue in excess of $30 billion, it is one of the world's largest weapons manufacturers and military tec ...
and
Raytheon Raytheon Technologies Corporation is an American multinational aerospace and defense conglomerate headquartered in Arlington, Virginia. It is one of the largest aerospace and defense manufacturers in the world by revenue and market capitaliz ...
.
Boeing The Boeing Company () is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, telecommunications equipment, and missiles worldwide. The company also provides leasing and ...
bought
McDonnell Douglas McDonnell Douglas was a major American aerospace manufacturing corporation and defense contractor, formed by the merger of McDonnell Aircraft and the Douglas Aircraft Company in 1967. Between then and its own merger with Boeing in 1997, it ...
for US$13.3 billion in 1996.
Raytheon Raytheon Technologies Corporation is an American multinational aerospace and defense conglomerate headquartered in Arlington, Virginia. It is one of the largest aerospace and defense manufacturers in the world by revenue and market capitaliz ...
acquired Hughes Aircraft Company for $9.5 billion in 1997. Marconi Electronic Systems, a subsidiary of the
General Electric Company plc The General Electric Company (GEC) was a major British industrial conglomerate involved in consumer and defence Defense or defence may refer to: Tactical, martial, and political acts or groups * Defense (military), forces primarily intende ...
, 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 The Fairchild Dornier 728/928 family was a series of jet-powered regional airliners that was being developed by German-American aviation conglomerate Fairchild Dornier. It was a relatively ambitious bid to develop a group of aircraft that would ...
/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 Bombardier Aviation is a division of Bombardier Inc. It is headquartered in Dorval, Quebec, Canada. Its most popular aircraft included the Dash 8 Series 400, CRJ100/200/440, and CRJ700/900/1000 lines of regional airliners, and the newer ...
could trigger a daisy chain of reactions towards a new order. Airbus gets a new, efficient model at the lower end of the
narrowbody A narrow-body aircraft or single-aisle aircraft is an airliner arranged along a single aisle, permitting up to 6-abreast seating in a cabin less than in width. In contrast, a wide-body aircraft is a larger airliner usually configured with mult ...
market which provides the bulk of
airliner An airliner is a type of aircraft for transporting passengers and air cargo. Such aircraft are most often operated by airlines. Although the definition of an airliner can vary from country to country, an airliner is typically defined as an ...
profits and can abandon the slow selling
A319 The Airbus A319 is a member of the Airbus A320 family of short- to medium-range, narrow-body, commercial passenger twin-engine jet airliners manufactured by Airbus. The A319 carries 124 to 156 passengers and has a maximum range of . Final assem ...
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 The competition between Airbus and Boeing has been characterized as a duopoly in the large jet airliner market since the 1990s. This resulted from a series of mergers within the global aerospace industry, with Airbus beginning as a pan-European ...
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. On April 3, 2020,
Raytheon Raytheon Technologies Corporation is an American multinational aerospace and defense conglomerate headquartered in Arlington, Virginia. It is one of the largest aerospace and defense manufacturers in the world by revenue and market capitaliz ...
and
United Technologies Corporation United Technologies Corporation (UTC) was an American multinational conglomerate headquartered in Farmington, Connecticut. It researched, developed, and manufactured products in numerous areas, including aircraft engines, aerospace system ...
(except Otis Worldwide, leaving Rockwell Collins and engine maker Pratt and Whitney) merged to form Raytheon Technologies Corporation, with combined sales of $79 billion in 2019. The most prominent unions between 1995 and 2020 include those of Boeing and McDonnell Douglas; the French, German and Spanish parts of EADS; and United Technologies with Rockwell Collins then Raytheon, but many mergers projects did not went through: Textron-Bombardier, EADS-BAE Systems, Hawker Beechcraft-Superior Aviation, GE-Honeywell, BAE Systems-Boeing (or Lockheed Martin), Dassault-Aerospatiale, Safran-Thales, BAE Systems-Rolls-Royce or Lockheed Martin–Northrop Grumman.


Suppliers

The largest aerospace suppliers are United Technologies with $28.2 Billion of revenue, followed by
GE Aviation GE Aviation, a subsidiary of General Electric, is headquartered in Evendale, Ohio, outside Cincinnati. GE Aviation is among the top aircraft engine suppliers, and offers engines for the majority of commercial aircraft. GE Aviation is part of ...
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 In microeconomics, management and international political economy, vertical integration is a term that describes the arrangement in which the supply chain of a company is integrated and owned by that company. Usually each member of the suppl ...
. Then Douglas aircraft outsourced large aerostructures and the Bombardier Global Express pioneered the "Tier 1" supply chain model inspired by
automotive industry The automotive industry comprises a wide range of companies and organizations involved in the design, development, manufacturing, marketing, and selling of motor vehicles. It is one of the world's largest industries by revenue (from 16 % su ...
, with 10-12 risk-sharing
limited partners A limited partnership (LP) is a form of partnership similar to a general partnership except that while a general partnership must have at least two general partners (GPs), a limited partnership must have at least one GP and at least one limited ...
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 A35 or A-35 may refer to: * A-35 anti-ballistic missile system, a system deployed around Moscow, currently upgraded to the A-135 system * Aero A.35, a Czech airliner of the 1930s * Archambault A35, a French sailboat design * Archambault A35R, a Fr ...
.
Boeing The Boeing Company () is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, telecommunications equipment, and missiles worldwide. The company also provides leasing and ...
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 GE Aviation, a subsidiary of General Electric, is headquartered in Evendale, Ohio, outside Cincinnati. GE Aviation is among the top aircraft engine suppliers, and offers engines for the majority of commercial aircraft. GE Aviation is part of ...
acquired Avio in 2013 and Rolls-Royce plc is taking control of
Industria de Turbo Propulsores ITP Aero (Industria de Turbo Propulsores) is a Spanish aero engine and gas turbine manufacturer. It was established in 1989 as a joint venture between Spanish engineering conglomerate SENER and Rolls-Royce Plc. By 2015, it had grown to beco ...
.


See also

*
Aerospace Aerospace is a term used to collectively refer to the atmosphere and outer space. Aerospace activity is very diverse, with a multitude of commercial, industrial and military applications. Aerospace engineering consists of aeronautics and astrona ...
* Aerospace industry in the United Kingdom * Military–industrial complex * Aircraft industry ** Aircraft industry of Russia ** Aircraft parts industry ** List of aircraft manufacturers * Space industry ** Space industry of India ** Space industry of Russia ** Commercial Spaceflight Federation (US) ** List of spacecraft manufacturers *
Supplier-furnished equipment In aviation, when an aircraft is built and delivered, it will come with supplier-furnished equipment (SFE): materials and parts provided by the manufacturer. The opposite of SFE is buyer-furnished equipment (BFE), which is purchased by the buyer an ...


References


Further reading

* Hartley, Keith. '' The Political Economy Of Aerospace Industries: A Key Driver of Growth and International Competitiveness? (Edward Elgar, 2014); 288 pages; the industry in Britain, continental Europe, and the US with a case study of BAE Systems. * Newhouse, John. ''The Sporty Game: The High-Risk Competitive Business of Making and Selling Commercial Airliners.'' New York: Alfred A. Knopf, 1982. .


External links

* * *
Aerospace Craft & Structural Components
{{DEFAULTSORT:Aerospace Manufacturer Manufacturer *Manufacturer Aircraft industry Aerospace