Aerospace Supply Chain Faced with Daunting Backlog

By Freddie Pierce
The aerospace industry experienced a substantial boost last year after a sizeable increase in commercial aircraft orders, but now is faced with an equa...

The aerospace industry experienced a substantial boost last year after a sizeable increase in commercial aircraft orders, but now is faced with an equally sizeable backlog. The news comes as part of a report released by AlixPartners, a global business advisory firm, analyzing the current and future state of the aerospace and defense industry.

"Right now, beneath the surface, every level of the aerospace and defense supply chain is
scrambling to accelerate in terms of performance, on-time delivery and service levels,” said Eric Bernardini, managing director at AlixPartners and head of the firm's global Aerospace & Defense Practice.

2011 witnessed a number of exciting developments in the field, including the launch of the Airbus A320neo and the Boeing 737 MAX. To meet increased demand – the biggest challenge facing the industry in upcoming years – production rates must be ramped up by 45% in volume by 2015, according to the study.

SEE RELATED STORIES FROM THE WDM CONTENT NETWORK:

Align Aerospace Steps up Presence at Farnborough International Airshow 2012

JP Aerospace Offers Discount Cargo to the Edge of Space

Click here to read the latest edition of Supply Chain Digital

Fuel instability and various degrading economic factors mean the future profitability of the airline industry will remain uncertain and net profits have been squeezed to an all-time industry low of 0.5% of revenues worldwide as a result of rising operating costs, fierce competition in the industry, and overcapacity-related revenue pressures.

On a brighter note, the study concludes, the aerospace and defense industry as a whole is in better shape than last year, namely the commercial aircraft sector, which was fueled by a roughly 5% growth in airline and cargo traffic. Moving forward, Bernardini said, “Companies need to ask a lot of questions in order to make sure they are in total control of the ramp-up and have the insight to anticipate any issues."

Share

Featured Articles

Disruptive supply chain tech for 2023 - FourKites

Delbert Cope, CTO at supply chain visibility platform FourKites, on the tech likely to have the biggest impact for supply professionals in 2023

Blockchain strengthening links in supply chain

Though use of blockchain solutions in supply chain is still relatively low, Tech Mahindra is among pioneers driving its adoption

Earthquake tech inspired Partsch to invent SCM in 1970s

In the late 1970s, physicist Dr Wolfgang Partsch - the father of supply chain management - used science as the basis for his revolutionary concept of SCM

SaaS bloat 'hitting procurement bottom lines'

Digital Supply Chain

Cold chain logistics 'flying blind' - Tive & FreightWaves

Technology

Logistics innovation 'hampered by C-suite, cash & staffing'

Digital Supply Chain