Aircraft Engine & Parts Manufacturing

Aircraft Engine & Parts Manufacturing

Brief Excerpt from Industry Overview Chapter:

Companies in this industry manufacture aircraft engines and engine parts; as well as fuselage, propeller and rotor, landing gear, electric and hydraulic control, and avionics systems. Major companies include GE Aerospace and Pratt & Whitney (both based in the US); as well as Kawasaki Heavy Industries (Japan), Rolls-Royce (UK), and Safran and Thales (both based in France).

COMPETITIVE LANDSCAPE

Rapid changes in technology and geographic shifts in demand are affecting how and where aircraft engine and parts manufacturers compete. Amid passenger and cargo demand growth in emerging markets, companies are forging global partnerships to share risks, costs, and sales, and to increase their manufacturing and support services footprints. Technologies including additive manufacturing, the internet of things (IoT), and big data are increasingly important competitive differentiators. Engine and parts companies aim to leverage these and other technologies to reduce aircraft operating costs and improve their own cost structures.

PRODUCTS, OPERATIONS & TECHNOLOGY

Makers of engines and engine parts typically get the bulk of their revenue from parts and accessories for civilian aircrafts, accounting for about 25% of the industry revenue. This is followed by military aircraft engines (about 15%) and aeronautical services on aircraft engines (nearly 15%). Other products also include aeronautical services on aircraft engines (about 10%).