The U.S. Aerospace & Defense industry is an leader in the development, manufacture and design of technically advanced aerospace systems, space programs and defense technologies. This branch of the military services encompasses a wide range of activities which are essential for national security. Most of the aerospace technologies used today have been in use for over 60 years. Aerospace software refers to the applications that support aircraft operations and navigation.
The Air Force, Navy and Marine Corps comprise the main parts of the Aerospace & Defense supply chain. The U.S. Military seeks to maintain an abundance of aircraft, spacecraft, ground equipment and supplies. Due to their large numbers, these acquisitions and maintenance requirements have become a significant drag on budgeting and financial resources. The U.S. Government and other key partners have a strong interest in procuring reliable aircraft and components at minimal cost. The Aerospace & Defense budget is therefore constrained and aircraft purchase activity has been one of the most sensitive areas of defense budgeting.
Aircraft manufacturing is a critical component of the aerospace & defense supply chain. Production of aircraft begins with design and concept development followed by cost estimating and manufacturing. It continues through developmental airframe and aircraft assembly phases. Some aircraft manufacturers rely heavily on subcontractors while others provide “off the shelf” aircraft components and services. Aircraft manufacturers such as Boeing and Raytheon develop their own “open source” designs and rely on expert mROI providers for help with engineering and manufacturing support.
A key goal of U.S. Military efforts is to procure aircraft and military aircraft components which are more efficient and reliable. To meet this goal there must be a long-term commitment to invest in new technologies, equipment and structures. Investments in research and development (R&D), test and inspection activities, and relationship marketing between suppliers, customers and other subcontractors must be sustained over the life of the program. To this end, there must be a long-term commitment to building new factories, processing plants, repair and overhaul facilities, and service support facilities. This will reduce the burden on U.S. taxpayers while ensuring the necessary infrastructure to support the long-term life and maintenance needs of the program.
The economic environment will continue to be challenging with the uncertainty of the federal government’s ability to maintain its fiscal responsibilities and maintain U.S. military funding at its existing level of funding. U.S. Congress will need to reauthorize the defense programs at least three additional times through fiscal years (FY) 2021, which will increase the likelihood of U.S. military funding delays and programs. The legislation will also need to include provisions for procurement authorities to retain necessary capability and build necessary infrastructure. These programs and projects will be critical to the success of the aerospace and domestic defense requirements.
A key requirement of civil aircraft is support from the U.S. commercial airlines and businesses. Reauthorization will provide consistent and adequate levels of support to these businesses and the U.S. government. Commercial airlines must remain viable to support ongoing operations and continue attracting new business if U.S. transportation funding remains uncertain. The provision of necessary aircraft and facilities will help sustain long-term viability.
U.S. civil aerospace manufacturers must incorporate robust value chains in all phases of production to maintain competitiveness. Without these “value chains” a company is unable to build aircraft or maintain the necessary infrastructure to support its business. Without support for value chains from start to finish the company cannot expect to achieve its goal of low-rate production, high-volume production and consistent service to both government and civilian customers. This is the “covid-19 pandemic.”
MROs must remain competitive to remain relevant. We are seeing this through a growing number of MROs within our defense vertical. In fact there are now several MROs within the commercial and civil aerospace markets. Therefore we must stay ahead of competition if we want to continue to drive down the cost of materials and equipment to support our nation’s aircraft and maintain our aerospace edge.