Aircraft Engine & Parts Mfrs
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 1,042 aircraft engine and parts manufacturers in the US produce civilian and military aircraft engines, engine parts and accessories, other aircraft parts and subassemblies, and auxiliary equipment for aircraft. They may also provide design and development services for new engines and parts, as well as support and repair services for existing products.
Government Regulations and Policies
The aircraft industry is highly regulated by the Federal Aviation Administration in the United States, and equivalent regulatory agencies in other countries.
Availability of Raw Materials
Many expensive and sometimes rare specialty metals are used in the manufacture of aircraft engines and parts.
Industry size & Structure
The average aircraft engine and parts manufacturer employs 179 workers and generates $59 million in annual revenue.
- The industry includes about 1,042 firms, generating about $61.5 billion in annual sales and employing 186,000 workers.
- The aircraft engine and parts industry is a high technology-driven manufacturing business, characterized by a few large engine and aircraft manufacturers working in close collaboration with many smaller, highly specialized engine subassembly and parts manufacturers.
- About 79% of the industry's establishments have 100 or fewer employees, yet the largest manufacturers employ over 80% of the total industry workforce.
- The largest engine manufacturers, in order of worldwide market share, are GE Aviation, Rolls-Royce, and Pratt-Whitney.
- Most engine and aircraft parts manufacturers sell to civilian, commercial and defense aircraft manufacturers, but usually the end-user customer, such as a commercial airline, dictates which competitive engine and subsystems will be installed in their aircraft.
- Large commercial aircraft manufacturing customers include Boeing, Airbus, Bombardier, and Embraer. The largest general aviation manufacturing customers are Cessna, Cirrus Aircraft, Diamond Aircraft, Mooney, and Piper.
- The largest numbers of industry-related manufacturers are in California, Connecticut, Florida, Texas, Ohio, Michigan, and Arizona.
Industry Forecast
Aircraft Engine & Parts Mfrs Industry Growth
Recent Developments
Jan 20, 2025 - Decline in Industry Orders, Shipments
- Nondefense aircraft and parts new orders and shipments were down 58.3% and 9.8% in November, respectively, year over year, per the Census Bureau. Nondefense aircraft and parts inventories rose 6.3% in November year over year. Quarterly sales for aerospace products and parts companies climbed in Q3 2024, up 2.6% from Q3 2023 and down 0.8% from the previous quarter, according to the Census Bureau. Producer prices for aircraft engine and engine parts manufacturers rose 3.2% in November 2024 compared to a year ago, according to the Bureau of Labor Statistics (BLS). Employment for the industry grew 3.8% in October 2024 year over year while wages at aerospace products and parts manufacturers increased 5.6% during the same period.
- US airlines carried 0.2% more passengers in October 2024 year over year, reaching 80.9 million passengers (seasonally adjusted), according to data released by the Bureau of Transportation Statistics (BTS). Passenger enplanements grew 0.6% seasonally adjusted in October 2024 compared to the previous month and were up 5.4% unadjusted compared to October 2019. Per the report, domestic deplanements were 69.9 million (seasonally adjusted) while international enplanements reached 11 million for the month. The data was compiled from monthly reports filed with the BTS by commercial US air carriers detailing operations, passenger traffic, and freight traffic.
- US manufacturing activity contracted in December 2024, marking the ninth consecutive month of contraction for the Manufacturing PMI, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 49.5% in December, up 0.9 percentage points from the 48.4% recorded in November. A reading above 50% indicates manufacturing expansion. Transportation equipment was one of the seven industries that reported contraction in December, along with Textile Mills; Fabricated Metal Products; Printing & Related Support Activities; Machinery; Chemical Products; and Nonmetallic Mineral Products. Seven manufacturing industries reported growth in December, including Primary Metals; Electrical Equipment, Appliances & Components; Wood Products; Furniture & Related Products; Paper Products; Miscellaneous Manufacturing; and Plastics & Rubber Products.
- According to BNN Bloomberg, GE Aerospace CEO Larry Culp said the company is working with more than a dozen suppliers to resolve disruptions that have slowed the delivery of its jet engines and created delays for planemakers and airlines. Per Culp, “The shortages that cause us to be late on deliveries really come from about 15 different suppliers across our supply chain. We have 550 engineers going in to work with those suppliers to identify bottlenecks, identify constraints and really solve those problems.” He would not elaborate on the amount of time it would take to fix the problems with its suppliers. Culp noted that the company is also focused on ensuring there are no counterfeit parts in the supply chain, noting the issue is a “high priority.”
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