4 Things to Know About the Aircraft Parts Manufacturing Industry

Many industries in 2019 are facing unprecedented amounts of competition and change, and the aircraft parts manufacturing industry is no exception.

As far back as 2009, automobile and aircraft parts were considered to be two pillars of the U.S. manufacturing industry.

Needless to say, that's still true today. However, with factors such as President Donald Trump's materials tariffs and Boeing's recent fall from grace impacting the industry, it can be hard to know where things stand.

Here's what you need to know about the U.S. aircraft parts manufacturing industry in 2019.

1. North America is the Largest Region for the Aircraft Parts Manufacturing Market

In 2017, North America alone accounted for 42% of the aircraft and components manufacturing market. The second largest region, Asia Pacific, accounted for 24% market share in comparison.

The primary driver for activity in the aircraft parts manufacturing market in North America is the presence of enterprise aircraft manufacturers such as Spirit AeroSystems, Inc., The Boeing Co., Bell Helicopter Textron, Inc. and more.

North America's strong presence in the market is indicative of a historically strong aircraft part manufacturing presence in the region, particularly in the U.S.

2. The Industry is Growing

The global aerospace parts manufacturing market is anticipated to accelerate at a compound annual growth rate (CAGR) of 3.8%, reaching an expected market value of $1.14 trillion by 2025.

The global aerospace parts manufacturing market was valued at $877 billion in 2018.

In reflection of this growth, 8% of U.S. aircraft parts manufacturers reported employment increases and 2% reported sales growth in 2018, according to data from Manufacturing News, Inc.

At a time when other manufacturing industries such as the automotive manufacturing industry, are struggling, the aircraft parts manufacturing industry stands to grow in comparison.

3. Several Factors Could Affect the U.S. Aircraft Parts Manufacturing Industry

Although the global aircraft parts manufacturing industry is currently growing, the U.S. market faces some challenges.

First, Boeing - the second-largest aircraft parts manufacturer in the U.S. - is under significant duress at the present moment.

Multiple failures with Boeing's 737 Max airplanes have caused dozens of countries to discontinue use of the aircraft. Boeing's public relations campaign to address safety concerns has also failed in many respects, leaving the company in a precarious position.

Additionally, Trump's steel tariffs have cost the U.S. economy over $5.5 billion. Trump's materials tariffs stand to affect every manufacturing industry in the U.S. negatively, and the aircraft parts manufacturing industry is no exception.

4. Aircraft Parts Manufacturers Aim to Innovate

Despite these challenges, aircraft parts manufacturers are forging onwards and upwards.

Additive manufacturing technology has hugely impacted the industry, allowing manufacturers to quickly and easily make complicated parts.

The efficiency of additive manufacturing technology may very well offset the impact of negatives such as tariffs on the industry.

Many aircraft parts manufacturers are also pushing towards the creation of energy-efficient aircraft, as energy costs still represent the most significant financial impact for most airlines.

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