(1888PressRelease)
November 06, 2007 - The main winners in the global aviation manufacturing sector - in terms of contract value and securing long-term business streams – are still raw materials suppliers and systems integrators, according to a new study by PMi-Media, The Aviation Supply Chain Database. But producers of niche products such as power distribution systems and smart actuator systems have seen the value of their business rise at much faster rate over recent years.
“If you break down where the money is going within the Boeing 787 supply chain, for example,” said PMi-Media’s Editorial Director Philip Butterworth-Hayes, “then it is predominantly to systems and structures integrators such as Hamilton Sundstrand ($8 billion plus), Vought ($5 billion plus), Goodrich ($4 billion plus), Honeywell ($2.8 billion plus) and Parker ($1 billion) or raw materials suppliers such as Toray Industries ($6 billion). But these values no longer overshadow the amounts being earned by single structure and sub-systems suppliers. For example, Japan’s Jamco - which is supplying galleys, lavatories, flight deck door and bulkhead, and flight deck linings, consoles and stowage – will be earning more than $1 billion from the Boeing 787, as will Zodiac, from France, which is supplying a range of niche components.”
The Aviation Supply Chain Database analysis of the Boeing 787 (available free at the PMi-Media website www.pmi-media.com) also shows the geographic spread of aircraft systems manufacturing – most recently with new plants being opened up in countries such as Mexico and Thailand.
“Yet the aerospace companies are moving much more slowly than organizations in other manufacturing sectors to take advantage of low-cost labour rates,” said Butterworth-Hayes. “If you look where the high-value work is concentrated it still remains in the traditional aircraft manufacturing areas such as Washington state – even though companies that undertake the work have new names. The power of aircraft manufacturing clusters remains potent – with very few Indian companies, for example, supplying parts to the Boeing 787.”
The Aerospace Supply Chain Database (ASCD) lists every major aircraft in production and analyses the relationship between the suppliers. It identifies where each supplier sits within the supply chain, the value of the contract with suppliers and customers (where in the public domain), the length of the contract and the location where the work takes place.
PMi Media is an Anglo-German aviation research and publishing company.
For more information on report's findings please contact Philip Butterworth-Hayes on +44 1273 724 238, mobile +44 7778 030 633, email Phayes ( @ ) pmi-media dot com dot
For order information please visit www.pmi-media.com, or contact Rainer Vogel on +49 7305 927292 or rainer.vogel ( @ ) pmi-media dot com.
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