The "Aeronautical and Space Technology Weekly" website published a joint article on July 16 from Kevin Michaels, managing director of American Aerodynamics, and Richard Abrafiah, vice president of the Teal Group. The article states that in this study, Aeronautical Power Consulting and Teal Group took a closer look at the numbers reported by national aerospace industry associations, harmonized these numbers with their definitions, and used them to cover hundreds of aerospace companies , Market, and project proprietary databases validate them. The author carefully excludes the work done by the company outside its home country, and counts this part of the work income in the country actually completed.
According to the article, although the report uses consistent revenue figures, it should be noted that different countries and different market segments have very different characteristics. The profit of military projects is often higher than that of civilian projects. Aftermarket aftermarket jobs are often more lucrative than new jobs. Some countries are more focused on exports, while others are designed to meet domestic demand.
The article states that China now has the world's third largest aerospace industry, but almost none of its products are exported. Other countries in the top five (US, France, UK, and Germany) have high exports as a percentage of total output and are often quite profitable.
The study also shows that the aerospace industry is dominated by the most successful players. The US aerospace industry accounts for nearly half of global output. The top ten countries produced US $ 731 billion last year, accounting for 87% of the world's total. By region, the Americas accounted for 54%, followed by Europe, the Middle East and Africa (31%) and Asia (15%).
According to the article, in terms of activities, maintenance, repairs and overhauls are becoming more and more important in this $ 838 billion industry, and its output exceeds $ 220 billion, which includes activities, upgrades and related parts of "rotary wrenches". A large proportion of these activities are not reflected in conventional aerospace industry estimates. Military aircraft maintenance is a good example. Each year, this cost is about $ 70 billion, with most of the work done by military personnel. Military maintenance agencies usually do not belong to the National Industry Association.
In addition, the article states that, including extended supply chains, civilian and military aircraft and engine manufacturing account for 54% of global aerospace activities. Aerodynamics Consulting and Teal Group analyzed the multi-tier supply chain of the original equipment manufacturer. For example, 60% to 70% of aircraft procurement costs for aircraft OEMs come from suppliers. Tier 1 systems and aircraft component suppliers account for 40% to 60% of their product procurement costs from sub-suppliers. The same is true for Tier 2 and Tier 3 suppliers.
Other categories of interest include satellite and space (7%) and missiles and drones (5%). Although the number of drones is increasing, the annual output of these aircraft is less than $ 3 billion. This is equivalent to about 10% of the value of a manned fighter.
The article analyzes that at present, there is little indication that the proportion of these market segments will be significantly affected by economic or technical factors. But historically, the strongest long-term growth has come from the large commercial aircraft transportation sector and related suppliers and service providers. Strong global travel indicators mean that these market segments will continue to expand their share of the entire industry.
According to the article, this year's study provides a brief analysis of 2017 revenue. Based on his project and market databases, the author believes that it is very clear that the current figures of the industry are close to historical records and that there will be further growth at least in the next one or two years.