The Paris Air Show is set to highlight the increasing demand for commercial aircraft and military technology. However, behind the scenes, executives and consultants are grappling with the challenge of delivering parts for these planes and weapon systems in a timely manner. While there are signs of stabilization and hope, there is a growing consensus that the industry’s supply chain needs a complete overhaul to fully recover from the effects of the pandemic.
Engine maker CFM International’s CEO, Gael Meheust, emphasized the impact of the pandemic on the supply chain and expressed relief at the return of air traffic. However, smaller suppliers that took on debt during the pandemic are struggling to secure funding for new capacity, causing concern among industry experts.
Efforts to address these challenges involve a case-by-case approach, with priority lists being revised on a monthly basis. The CEO of lessor Avolon, Andy Cronin, highlighted the difficulties faced by tier-three suppliers and lower in meeting the demand and appeasing lenders. Attention is now focused on helping smaller and medium-sized companies in the aerospace sector get back to pre-pandemic production levels.
Labor shortages are also a significant issue impacting the aerospace ecosystem, from assembly to repair shops. Many companies in the industry are seeking assistance in fixing their supply chains. The industry’s attention is therefore directed towards resolving these labor shortages and supporting suppliers in meeting demand for travel and aircraft.
Recent concerns have been raised about the availability of weather radar and emergency locator transmitters for narrowbody jets manufactured by Airbus and Boeing. These issues are being closely monitored, with Airbus and Boeing cooperating with suppliers to address the challenges faced by the industry.
Efforts are underway to revamp the supply chain. Honeywell Aerospace has observed improvements in the electrical part of the supply base as consumer product demand decreases, freeing up capacity. Large suppliers are considering bringing some work in-house, which marks a departure from the previous trend of outsourcing. Consolidation within the industry could also play a role in streamlining the supply chain.
Airbus Chief Executive Guillaume Faury highlighted the numerous mergers and acquisitions in the French aerospace industry, which aim to support small companies. The objective is to not only restore the supply chain to pre-pandemic levels but also to make it stronger and more resilient.
Overall, the aerospace industry recognizes the need to rebuild its supply chain to meet the challenges posed by the pandemic. It is a complex process that will require time and effort from all stakeholders involved.
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