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 1,060 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 167 workers and generates $58 million in annual revenue.
- The industry includes about 1,060 firms, generating about $61 billion in annual sales and employing 177,500 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
Recent Developments
Nov 13, 2023 - Growth Expected for Industry
- Higher demand for air travel and a more consistent supply chain are expected to support growth in the US aircraft engine and parts manufacturers industry, which is projected to grow at an over 9% CAGR from 2022 to 2027, according to a recent Inforum forecast. This rate is faster than the projected growth of the overall economy. The forecast follows several years of sales volatility during the pandemic in 2020 (-37%), 2021 (15.1%), and 2022 (25%).
- US airlines carried about 8% more passengers in August 2023 year over year, reaching 83.1 million passengers (unadjusted), according to data released by the Bureau of Transportation Statistics (BTS) in the American Journal of Transportation. Systemwide enplanements decreased by 0.9% from the August record high of 83.8 million reached in 2019. Domestic deplanements fell 1.7% in August 2023 to 71.5 million from an all-time August high of 72.7 million in 2019, while international enplanements reached a new high of 11.6 million for the month of August. 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 October 2023, falling below the baseline for growth for the twelfth consecutive month, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 46.7 in October, a slight decline from the 49 recorded in September. A reading above 50% indicates manufacturing expansion. October’s New Orders Index remained in the contraction zone at 45.5%. The October Production Index was 50.4%, a decrease from September’s 52.5%. Two of the manufacturing industries tracked by the ISM reported growth in October: Plastics & Rubber Products, and Food, Beverage & Tobacco Products. The 13 industries reporting contraction in October were: Printing & Related Support Activities; Textile Mills; Electrical Equipment, Appliances & Components; Machinery; Fabricated Metal Products; Wood Products; Computer & Electronic Products; Furniture & Related Products; Paper Products; Miscellaneous Manufacturing; Primary Metals; Chemical Products; and Transportation Equipment.
- The aerospace and defense (A&D) industry generated over $952 billion in total sales, up nearly 7% over 2021, according to the latest “Facts & Figures” report from S&P Global Market Intelligence and the Aerospace Industries Association. About $537 billion was generated through direct industry output and $415 billion from indirect output. The total economic value generated by the industry was $418 billion, or about 1.65% of the total nominal GDP for the US. Employment was higher in 2022, reaching 2.2 million, after falling the previous two years, and the average salary in the industry was $108,900. A&D jobs represent about 1.4% of the US total employment base. Most employment (57%) comes from the commercial aerospace sector, while defense and national security make up 43%.
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