We are please to share our Advanced Manufacturing in Aerospace, Space & Defense Industry Report. Packed with insightful analysis and comprehensive market trends, we believe this report will prove to be an invaluable resource for industry professionals like yourself.
Key Highlights
- Passenger Count reached an all-time high in February of this year at 82.4 million passengers and revenue per passenger mile was up 8% year-over-year
- This surge has, however, led to significant order backlogs. The current backlog for new aircraft has reached a five-year high, presenting challenges for major manufacturers like Airbus and Boeing as they struggle to meet escalating demand
- As of 2023, Airbus and Boeing faced order backlogs of over 8,600 and 6,100 units, respectively
- This strain on the supply chain has benefitted suppliers who can deliver on time and offer competitive pricing, and has also spurred demand for Maintenance, Repair, and Overhaul (MRO) services to maintain existing fleets
- This surge has, however, led to significant order backlogs. The current backlog for new aircraft has reached a five-year high, presenting challenges for major manufacturers like Airbus and Boeing as they struggle to meet escalating demand
- Despite these challenges, suppliers capable of meeting demand have leveraged their position to command premium pricing, as evidenced by the significant rise in the Price Index for Aerospace parts
- Defense budgets have also seen an uptick, with substantial funding earmarked for space initiatives, highlighting a growing convergence between the space and defense sectors, especially with the emergence of the Space Force
- Approximately $28.9 billion has been allocated to the U.S. Space Force by the Department of Defense (DoD)
- Of note, the federal government has played a proactive role in supporting the supply chain by funding smaller companies through Research, Development, Test, and Evaluation (RDT&E) grants, often earmarked as Small Business Innovation Research (SBIR). These grants allow companies to retain intellectual property rights, fostering innovation
- Overall, Advanced Manufacturing companies that serve the Aerospace, Space and Defense sector are well positioned to benefit from this dynamic end market, particularly where they can help alleviate supply chain constraints and/or have new technologies and materials to advance Defense and Space products