In 2015 the aircraft production was worth US$180.3 billion: 61% airliners, 14% business and general aviation, 12% military aircraft, 10% military rotary wing and 3% civil rotary wing; while their MRO was worth $135.1 Bn or $315.4 Bn combined.[1]
The global aerospace industry was worth $838.5 billion in 2017: aircraft & engine OEMs represented 28% ($235 Bn), civil & military MRO & upgrades 27% ($226 Bn), aircraft systems & component manufacturing 26% ($218 Bn), satellites & space 7% ($59 Bn), missiles & UAVs 5% ($42 Bn) and other activity, including flight simulators, defense electronics, public research accounted for 7% ($59 Bn).[2]
The Top 10 countries with the largest industrial bases in 2017 were the United States with $408.4 billion (representing 49% of the whole), followed by France with $69 billion (8.2%), then China with $61.2 billion (7.3%), the United Kingdom with $48.8 billion (5.8%), Germany with $46.2 billion (5.5%), Russia with $27.1 billion (3.2%), Canada with $24 billion (2.9%), Japan with $21 billion (2.5%), Spain with $14 billion (1.7%) and India with $11 billion (1.3%). These ten countries represent $731 billion or 87.2% of the whole industry.[2]
In 2018, the new commercial aircraft value is projected for $270.4 billion while business aircraft will amount for $18 billion and civil helicopters for $4 billion.[3]
^ abcdIn 2019, Airbus displaced Boeing as the largest aerospace company by revenue due to the Boeing 737 MAX groundings, with $2 billion operating losses down from $12 billion profits the previous year.[5]
Within the US, the most attractive was Washington state, due to the best Industry (#1), leading Infrastructure (#4, New Jersey is #1) and Economy (#4, Texas is #1), good labor (#9, Massachusetts is #1), average tax policy (#17, Alaska is #1) but is costly (#33, Montana is #1).
Washington is tied to Boeing Commercial Airplanes, earning $10.3 billion, is home to 1,400 aerospace-related businesses, and has the highest aerospace jobs concentration.
Following are Texas, Georgia, Arizona and Colorado.[12]
In the US, the Department of Defense and NASA are the two biggest consumers of aerospace technology and products.[citation needed] The Bureau of Labor Statistics of the United States reported that the aerospace industry employed 444,000 wage and salary jobs in 2004, many of which were in Washington and California,[citation needed] this marked a steep decline from the peak years during the Reagan Administration when total employment exceeded 1,000,000 aerospace industry workers.[13]
During that period of recovery a special program to restore U.S. competitiveness across all U.S. industries, Project Socrates, contributed to employment growth as the U.S. aerospace industry captured 72 percent of world aerospace market. By 1999 U.S. share of the world market fell to 52 percent.
In 2002, when Fairchild Dornier was bankrupt, Airbus, Boeing or Bombardier declined to take the 728JET/928JET large regional jet program as mainline and regional aircraft manufacturers were split and Airbus was digesting its ill-fated Fokker acquisition a decade earlier.[14]
On September 4, 2017, United Technologies acquired Rockwell Collins in cash and stock for $23 billion, $30 billion including Rockwell Collins' net debt, for $500+ million of synergies expected by year four.[20]
The Oct. 16, 2017 announcement of the CSeries partnership between Airbus and Bombardier Aerospace could trigger a daisy chain of reactions towards a new order.
Airbus gets a new, efficient model at the lower end of the narrowbody market which provides the bulk of airliner profits and can abandon the slow selling A319 while Bombardier benefits from the growth in this expanded market even if it holds a smaller residual stake.
Boeing could forge a similar alliance with either Embraer with its E-jet E2 or Mitsubishi Heavy Industries and its MRJ.[22]
On 21 December, Boeing and Embraer confirmed to be discussing a potential combination with a transaction subject to Brazilian government regulators, the companies' boards and shareholders approvals.[23]
The weight of Airbus and Boeing could help E2 and CSeries sales but the 100-150 seats market seems slow.[24]
As the CSeries, renamed A220, and E-jet E2 are more capable than their predecessors, they moved closer to the lower end of the narrowbodies.
In 2018, the four Western airframers combined into two within nine months as Boeing acquired 80% of Embraer's airliners for $3.8 billion on July 5.[14]
The most prominent unions between 1995 and 2020 include those of Boeing and McDonnell Douglas; the French, German and Spanish parts of EADS; and United Technologies with Rockwell Collins then Raytheon, but many mergers projects did not went through: Textron-Bombardier, EADS-BAE Systems, Hawker Beechcraft-Superior Aviation, GE-Honeywell, BAE Systems-Boeing (or Lockheed Martin), Dassault-Aerospatiale, Safran-Thales, BAE Systems-Rolls-Royce or Lockheed Martin–Northrop Grumman.[26]
On 26 November 2018, United Technologies announced the completion of its Rockwell Collins acquisition, renaming systems supplier UTC Aerospace Systems as Collins Aerospace, for $23 billion of sales in 2017 and 70,000 employees, and $39.0 billion of sales in 2017 combined with engine manufacturer Pratt & Whitney.[29]
In the 2000s, Rolls-Royce reduced its supplier count after bringing in automotive supply chain executives.
On the Airbus A380, less than 100 major suppliers outsource 60% of its value, even 80% on the A350.
Boeing embraced an aggressive Tier 1 model for the 787 but with its difficulties began to question why it was earning lower margins than its suppliers while it seemed to take all the risk, ensuing its 2011 Partnering for Success initiative, as Airbus initiated its own Scope+ initiative for the A320.
Tier 1 consolidation also affects engine manufacturers : GE Aerospace acquired Avio in 2013 and Rolls-Royce took control of ITP Aero.[30]
Hartley, Keith. The Political Economy Of Aerospace Industries: A Key Driver of Growth and International Competitiveness? (Edward Elgar, 2014); 288 pages; the industry in Britain, continental Europe, and the US with a case study of BAE Systems.
Newhouse, John. The Sporty Game: The High-Risk Competitive Business of Making and Selling Commercial Airliners. New York: Alfred A. Knopf, 1982. ISBN978-0-394-51447-5.
Wills, Jocelyn. Tug of War: Surveillance Capitalism, Military Contracting, and the Rise of the Security State (McGill-Queen's University Press, 2017), scholarly history of MDA in Canada. online book review
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