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News

Manufacturing Report On Aircraft Components


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Research And Markets
: 25 June, 2010  (New Product)
The US Aircraft parts manufacturing industry comes under the spotlight in new report available from Research and Markets
Research and Markets has announced the addition of the 'Aircraft Parts Manufacture ' report to their offering.

The US aircraft parts manufacturing industry includes about 1,000 companies with combined annual revenue of about $65 billion. The engine and engine parts segment, which accounts for more than half of industry revenue, is dominated by GE Aviation and Pratt & Whitney, which together account for more than 80 percent of segment revenue. The remainder of the aircraft parts manufacturing industry, which includes companies such as Honeywell and Northrop Grumman, is also highly concentrated: the 50 largest companies account for nearly 90 of industry revenue.

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 capital-intensive: average annual revenue per employee is about $350,000.

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.
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