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 1,030 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 184 workers and generates $74-75 million in annual revenue.

    • The industry includes about 1,030 firms, generating about $77 billion in annual sales and employing 190,600 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.
    • The 5 largest commercial aircraft manufacturing customers are Boeing, Airbus, Bombardier, Embraer, and Tupolev. The 5 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
                                  Source: Vertical IQ and Inforum

                                  Recent Developments

                                  Mar 16, 2023 - Aircraft Deliveries Climb in 2022
                                  • In 2022, all aircraft segments increased year over year in shipments, and preliminary aircraft deliveries increased in value by 6% to $26.8 billion, according to the 2022 General Aviation Aircraft Shipment and Billing Report released by the General Aviation Manufacturers Association (GAMA). The value of airplane and helicopter deliveries increased by 5.8% to $22.9 billion and 6.8% to $4 billion, respectively. Piston airplane deliveries saw an 8.2% increase in 2022 over 2021 to 1,524 units, turboprop airplane deliveries saw a 10.4% increase to 582 units, and business jet deliveries saw a 2% increase to 712 units. Helicopter deliveries also increased: 7.2% for piston helicopters and 7.6% for preliminary civil-commercial turbine helicopters. Added Pete Bunce, GAMA President and CEO, “The general aviation manufacturing industry continues to show increasing strength despite workforce and supply chain challenges across our industry.”
                                  • US manufacturing activity contracted in February 2023, falling below the baseline for growth for the fourth consecutive month, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 47.7 in February, a slight change from the 47.4 recorded in January. A reading above 50% indicates manufacturing expansion. In February, the ISM’s Purchasing Managers Index (PMI) fell to 47.4%, down from 48.4% in January. February’s New Orders Index remained in the contraction zone at 47%. The February Production Index decreased slightly to 47.3%. Of the manufacturing industries tracked by the ISM, four reported growth in February: Apparel, Leather & Allied Products; Transportation Equipment; Petroleum & Coal Products; and Electrical Equipment, Appliances & Components. Fourteen sectors reported contraction, including Computer & Electronic Products, Fabricated Metal Products, Nonmetallic Mineral Products, Plastics & Rubber Products, Primary Metals, Textile Mills, and Wood Products.
                                  • Globally, full-year total passenger traffic rose 64.4% in 2022 over 2021 and reached 68.5% of pre-pandemic (2019) levels, as measured in revenue passenger kilometers (RPKs), according to data released by the International Air Transport Association (IATA). International traffic climbed 152.1% in 2022 compared to 2021 and reached 62.2% of 2019 levels. Meanwhile, domestic traffic increased by 10.9% compared to 2021 and reached 79.6% of the pre-pandemic levels. Regions with the largest traffic increases in 2022 include Asia-Pacific (up 363.3%), the Middle East (up 157.4%), Europe (up 132.2%), and North America (up 130.2%). According to Willie Walsh, IATA’s Director General, “The industry left 2022 in far stronger shape than it entered, as most governments lifted COVID-19 travel restrictions during the year and people took advantage of the restoration of their freedom to travel. This momentum is expected to continue in the New Year, despite some governments’ over-reactions to China’s re-opening.”
                                  • The global aircraft engines market is expected to grow at a CAGR of 6.2% from 2022 to 2030 and reach $95.5 billion by 2030, according to a new report by Turbofan and turboshaft engines are projected to grow by 6.6% and 6%, respectively, during the forecast period, as part of the post-pandemic recovery. China’s aircraft engines market is estimated to grow by 10.2% and reach $21.5 billion by 2030 during the forecast period. Japan, Germany, and Canada have a growth forecast of 2.3%, 3.5%, and 6.6%, respectively, during the forecast period.
                                  Get A Demo

                                  Vertical IQ’s Industry Intelligence Platform

                                  See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.

                                  Build valuable, lasting relationships by having smarter conversations -
                                  check out Vertical IQ today.

                                  Request A Demo