By AdvanceCT
It is no secret that global airline fleets are aging, and given the cost of maintenance and overhaul for the post-pandemic mothballing of a huge percentage of the global fleet, paying for new equipment doesn’t seem quite so onerous these days.
On the heels of the Paris Air Show, aerospace companies have a renewed sense of optimism and urgency. At the Air Show, billions of dollars in contracts were awarded to companies across the supply chain as orders from around the world flooded in.
Companies like Connecticut-based Pratt & Whitney announced engine orders surpassing 800 units, enormous by any standard. The Triumph Group, also with multiple facilities in Connecticut, was awarded a contract from The Boeing Company for cooling systems.
The sheer number of orders and the trickle-down effect they will have on the supply chain are staggering. The next decade in manufacturing, especially aerospace and defense manufacturing, is going to be exciting and challenging for the companies scrambling to meet the needs of their customers.
Demand is the Driver
There is going to be enormous demand for anything that flies. Whether it be in space, for defense purposes, commercial, unmanned, or private aviation, the demand aerospace products has analysts and industry insiders on the edge of their seats, working to determine how the industry will be able to fill the orders coming in to companies up and down the supply chain.
Everyone is bullish about the aerospace industry into the next decade and the industry is in response mode, feverishly working to fill demand for their products. There are a number of hurdles to overcome, but a few present an exceptional challenge, such as capacity, workforce, and, one of the most concerning hurdles, access to the materials needed to fulfil these orders.
Titanium is a prime example of one of these materials. It is used in most aerospace component manufacturing and the fact that Russia is one of the largest suppliers of aerospace grade titanium has only compounded the issue of gaining access to this valuable resource.
Raw materials will be a pain point for the industry for the next decade as global manufacturers are increasingly limited by their supplier options, but this will also breed a number of new opportunities to explore new materials, composites, coatings, and alternatives to current production processes.
Need is the Mother of Invention
As aerospace manufacturers solve their complicated natural resource supply issues, their solutions will drive innovation in the industry. Research and development in aerospace will continue to grow and diversify as manufacturers explore alternatives to current raw materials that are difficult to procure. In other words, engineers will look to subvert the global materials stranglehold and discover new solutions, which will lead to further innovations in the aerospace industry. In essence, these perceived challenges may actually translate into innovative new manufacturing methods that could revolutionize the entire industry.
Aerospace Hubs Drive Innovation
Aerospace states with anchor OEM’s and strong university and engineering programs, like Connecticut, will have the opportunity to lead the way in navigating the industry through the hurdles and challenges presented by procurement difficulties. In working toward a more independent and predictable supply chain, the industry will be looking for new ways to meet the growing demand for aerospace products. Innovation, especially in coatings, new materials, and new processes, will drive the future of the industry.
It will come as no surprise that states and aerospace ecosystems with a greater concentration of companies and depth of knowledge will experience the largest industry growth over the next decade as suppliers move closer to their customers and OEM’s look for more stability in their supply chains. Control and predictability will be key, leading to states and regions with existing clusters to rapidly outgrow those with lesser developed ecosystems.
Connecticut is an excellent example as the state is already starting to see movement from foreign suppliers entering the market and companies relocating their headquarters to get closer to their top tier customers. There are two headquarter relocation announcements in the pipeline and in recent months, the following companies have announced expansions and relocations to Connecticut:
- Atla Air – Market entry with a joint venture
- Banner Industries – Relocated to access Connecticut’s Aerospace Alley
- Barnes Aerospace – Expansion
- Bauer Inc – Expansion
- Burke Aerospace – Expansion
- Ensign Bickford – Expansion
- Mirion Technologies – Expansion
- Polamer Precision Inc. – Expansion
- PYC Manufacturing – Expansion
- Triumph – Expansion
The Next Ten Years
With the flood of orders for commercial and defense equipment, the next ten years look promising for companies catering to the aerospace industry. It is going to be a time of growth and innovation. Talent will continue to be a pain point, as government and industry work together to train the workforce delivering the equipment in the pipeline.
Not only will a new generation of solutions emerge, but the next generation of the aerospace workforce will begin to take shape over the decade. The jobs will be plentiful, they will pay well, and for the most part they will come with the training required for the workforce to perform at the high-level required in this industry. Companies are busy recruiting young people right out of high school, offering them apprenticeships, skills and opportunities that are difficult to match.
Those states that have an existing high-quality workforce already in place and are willing to further invest in their people will be the ones that truly emerge above the rest.
Ensuring that collaboration between industry, government, and higher education defines the creation of this next generation workforce will be paramount. States like Connecticut have seen the writing on the wall and have made numerous advancements to their talent pipeline efforts to ensure that the future needs of the industry can be met and that domestic aerospace clusters continue to grow.
The next decade in the aerospace industry promises to be one of the most challenging and exciting in its existence. As future-ready states and localities step up to provide the solutions required to overcome and evolve past these challenges, these industry clusters will become global centers of innovation.
