Despite a significant backlog of orders, the aerospace sector is still trying to climb above the turbulence of political and economic uncertainties. Fortunately, those same concerns are providing a tailwind for the defense manufacturing industry.
Even though there is a pent-up demand and sizeable order backlog for commercial airframes, most major aircraft manufacturers continue to struggle with sluggish deliveries and skilled workforce issues stemming from Covid pandemic shutdowns. Manufacturers are simply unable to replace lost workers, and that is affecting production throughout the line. The problem has become so consequential that some manufacturers are scrambling to initiate and expand apprenticeship and training programs to narrow the manufacturing skills gap.
Deliveries are on the increase, however. Indications are that Airbus will equal its 2019, pre-pandemic production rates, while Boeing is expected to make gains back to the company’s 2023 output. But as the major manufacturers begin to regain their footing, they must also contend with a hazy economic horizon.
Current tariff turf battles that affect steel and aluminum are factoring into the manufacturing business calculus. Costs of critical manufacturing metals are rising or, in a best-case scenario, no longer certain. Unsettled geopolitical footing could hamstring the supply chain for titanium and other exotic metals. The collective impact of these issues leans towards increased costs for customers and a hesitancy on the part of manufacturers to make capital investments that further compounds production and delivery problems.
However, the jet engine and Maintenance, Repair and Overhaul (MRO) sectors will most likely withstand these pressures and even expand. Slow deliveries coupled with economic demands that will convince carriers to put new orders on hold and maintain their existing fleets will drive MRO operations. Jet engine components and MRO expansion should have a positive trickle-down impact as many of these enterprises are smaller, independent shops who depend on tooling suppliers for production. Further, engine manufacturers like GE and Pratt & Whitney are expanding operations to keep pace with anticipated MRO growth.
Concerns buffeting the commercial aviation industry are also impacting the defense sector as well. Renewed scrutiny and audits of governmental spending could have similar impacts for military aviation. Many programs, while perhaps not cancelled outright, may get pushed back or paused until current headwinds clear.
Some defense spending, however, will most likely continue given the current geopolitical climate. Submarine, missile and munitions manufacturing are all poised for continued growth and replenishment.
Facing and overcoming challenges is nothing new for aerospace manufacturers. Whether they machine high-precision components for commercial aircraft, fighter planes or rockets, in aerospace production, everything matters. REGO-FIX has been providing the aerospace industry with the most advanced tool holding technology available to help manufacturers optimize processes, increase tool life and reduce cost per part. Our product specialists are available to solve your aerospace and defense challenges. Contact us today.