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
                                  Source: Vertical IQ and Inforum

                                  Recent Developments

                                  Sep 24, 2024 - Aircraft Shipments Up, New Orders Down
                                  • Shipments for nondefense aircraft and parts increased 13.2% in June 2024 compared to a year ago and were 96.2% higher than the previous month, according to the Census Bureau. New orders for nondefense aircraft and parts fell 72.3% compared to a year ago and were 12.2% higher than the previous month. Inventories of nondefense aircraft and parts were up 7.8% in June 2024 compared to a year ago and down 0.9% from the previous month. Sales for aerospace products and parts companies, including aircraft engine and parts manufacturers, were $74.5 billion in Q1 2024, a 4.5% increase from a year ago and an 11% decrease from the previous quarter.
                                  • US airlines carried 6.7% more passengers in June 2024 year over year, reaching 89.7 million passengers (unadjusted), according to data released by the Bureau of Transportation Statistics (BTS). Passenger enplanements grew 2.8% seasonally adjusted in June 2024 compared to the previous month and were up 35.6% unadjusted compared to three years ago. Per the report, domestic deplanements were 77.2 million, an all-time high for the month, while international enplanements reached a new all-time high of 12.5 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.
                                  • The Federal Aviation Administration has launched an investigation into whether Boeing and Airbus may have used counterfeit titanium in parts on planes, according to NBC News. The investigation was launched in June 2024 after evidence from a supplier, Spirit Aerosystems, claimed the two companies used titanium that came with paperwork verifying its authenticity that may have been falsified. A Spirit Aerosystems spokesperson stated the company acted to remove all suspect titanium from the supply chain and performed more than 1,000 tests to confirm the mechanical and metallurgical properties of the affected material to ensure airworthiness. Boeing said the company was removing any affected parts on airplanes prior to delivery.
                                  • All aircraft segments increased year over year in shipments, and preliminary aircraft deliveries increased in value by over 3% to $27.8 billion in 2023, according to the annual General Aviation Aircraft Shipment and Billing Report released by the General Aviation Manufacturers Association (GAMA). The value of airplane and helicopter deliveries in 2023 increased by 2.5% to $22.9 billion and 5.4% to $2.7 billion, respectively, from 2022. Piston airplane deliveries saw an 11.8% increase in 2023 over the previous year to 1,682 units, turboprop airplane deliveries saw a 9.6% increase to 638 units, and business jet deliveries saw a 2.5% increase to 753 units. Helicopter deliveries increased in 2023 over 2022: 7.7% for piston helicopters and 10.4% for turbine helicopters. Added Pete Bunce, GAMA President and CEO, “While the deliveries from 2023 are very encouraging, our industry faces headwinds from ongoing supply chain issues, workforce shortages, uncertainty and unpredictability from global regulators, and short-sighted efforts aimed at curbing business and general aviation, particularly in Europe.”
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