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An aerospace manufacturer is a
company A company, abbreviated as co., is a Legal personality, legal entity representing an association of legal people, whether Natural person, natural, Juridical person, juridical or a mixture of both, with a specific objective. Company members ...
or individual involved in the various aspects of
designing A design is the concept or proposal for an object, process, or system. The word ''design'' refers to something that is or has been intentionally created by a thinking agent, and is sometimes used to refer to the inherent nature of something ...
, building, testing, selling, and maintaining
aircraft An aircraft ( aircraft) is a vehicle that is able to flight, fly by gaining support from the Atmosphere of Earth, air. It counters the force of gravity by using either Buoyancy, static lift or the Lift (force), dynamic lift of an airfoil, or, i ...
, aircraft parts,
missile A missile is an airborne ranged weapon capable of self-propelled flight aided usually by a propellant, jet engine or rocket motor. Historically, 'missile' referred to any projectile that is thrown, shot or propelled towards a target; this ...
s,
rocket A rocket (from , and so named for its shape) is a vehicle that uses jet propulsion to accelerate without using any surrounding air. A rocket engine produces thrust by reaction to exhaust expelled at high speed. Rocket engines work entirely ...
s, or
spacecraft A spacecraft is a vehicle that is designed spaceflight, to fly and operate in outer space. Spacecraft are used for a variety of purposes, including Telecommunications, communications, Earth observation satellite, Earth observation, Weather s ...
.
Aerospace Aerospace is a term used to collectively refer to the atmosphere and outer space. Aerospace activity is very diverse, with a multitude of commercial, industrial, and military applications. Aerospace engineering consists of aeronautics and astron ...
is a
high tech High technology (high tech or high-tech), also known as advanced technology (advanced tech) or exotechnology, is technology that is at the state of the art, cutting edge: the highest form of technology available. It can be defined as either the ...
nology industry. The aircraft industry is the industry supporting
aviation Aviation includes the activities surrounding mechanical flight and the aircraft industry. ''Aircraft'' include fixed-wing and rotary-wing types, morphable wings, wing-less lifting bodies, as well as lighter-than-air aircraft such as h ...
by building
aircraft An aircraft ( aircraft) is a vehicle that is able to flight, fly by gaining support from the Atmosphere of Earth, air. It counters the force of gravity by using either Buoyancy, static lift or the Lift (force), dynamic lift of an airfoil, or, i ...
and manufacturing aircraft parts for their
maintenance The technical meaning of maintenance involves functional checks, servicing, repairing or replacing of necessary devices, equipment, machinery, building infrastructure and supporting utilities in industrial, business, and residential installa ...
. This includes aircraft and parts used for
civil aviation Civil aviation is one of two major categories of flying, representing all non-military and non-state aviation, which can be both private and commercial. Most countries in the world are members of the International Civil Aviation Organization and ...
and
military aviation Military aviation is the design, development and use of military aircraft and other flying machines for the purposes of conducting or enabling aerial warfare, including national airlift (air cargo) capacity to provide military logistics, logist ...
. Most production is done pursuant to
type certificate A type certificate signifies the airworthiness of a particular category of aircraft, according to its manufacturing design (''type design''). Certification confirms that the aircraft of a new type intended for serial production is in compliance w ...
s and Defense Standards issued by a government body. This term has been largely subsumed by the more encompassing term: "
aerospace Aerospace is a term used to collectively refer to the atmosphere and outer space. Aerospace activity is very diverse, with a multitude of commercial, industrial, and military applications. Aerospace engineering consists of aeronautics and astron ...
industry".


Market

In 2015 the aircraft production was worth US$180.3 billion: 61%
airliner An airliner is a type of airplane for transporting passengers and air cargo. Such aircraft are most often operated by airlines. The modern and most common variant of the airliner is a long, tube shaped, and jet powered aircraft. The largest ...
s, 14% business and
general aviation General aviation (GA) is defined by the International Civil Aviation Organization (ICAO) as all civil aviation aircraft operations except for commercial air transport or aerial work, which is defined as specialized aviation services for other ...
, 12%
military aircraft A military aircraft is any Fixed-wing aircraft, fixed-wing or rotorcraft, rotary-wing aircraft that is operated by a legal or insurrectionary military of any type. Some military aircraft engage directly in aerial warfare, while others take on su ...
, 10% military rotary wing and 3% civil rotary wing; while their MRO was worth $135.1 Bn or $ Bn combined. The global aerospace industry was worth $838.5 billion in 2017: aircraft & engine OEMs represented 28% ($ Bn), civil & military MRO & upgrades 27% ($ Bn), aircraft systems & component manufacturing 26% ($ Bn),
satellite A satellite or an artificial satellite is an object, typically a spacecraft, placed into orbit around a celestial body. They have a variety of uses, including communication relay, weather forecasting, navigation ( GPS), broadcasting, scient ...
s & space 7% ($ Bn),
missile A missile is an airborne ranged weapon capable of self-propelled flight aided usually by a propellant, jet engine or rocket motor. Historically, 'missile' referred to any projectile that is thrown, shot or propelled towards a target; this ...
s & UAVs 5% ($ Bn) and other activity, including flight simulators, defense electronics, public research accounted for 7% ($ Bn). The Top 10 countries with the largest industrial bases in 2017 were the
United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...
with $408.4 billion (representing % of the whole), followed by
France France, officially the French Republic, is a country located primarily in Western Europe. Overseas France, Its overseas regions and territories include French Guiana in South America, Saint Pierre and Miquelon in the Atlantic Ocean#North Atlan ...
with $69 billion (%), then
China China, officially the People's Republic of China (PRC), is a country in East Asia. With population of China, a population exceeding 1.4 billion, it is the list of countries by population (United Nations), second-most populous country after ...
with $61.2 billion (%), the
United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Northwestern Europe, off the coast of European mainland, the continental mainland. It comprises England, Scotlan ...
with $48.8 billion (%),
Germany Germany, officially the Federal Republic of Germany, is a country in Central Europe. It lies between the Baltic Sea and the North Sea to the north and the Alps to the south. Its sixteen States of Germany, constituent states have a total popu ...
with $46.2 billion (%),
Russia Russia, or the Russian Federation, is a country spanning Eastern Europe and North Asia. It is the list of countries and dependencies by area, largest country in the world, and extends across Time in Russia, eleven time zones, sharing Borders ...
with $27.1 billion (%),
Canada Canada is a country in North America. Its Provinces and territories of Canada, ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, making it the world's List of coun ...
with $24 billion (%),
Japan Japan is an island country in East Asia. Located in the Pacific Ocean off the northeast coast of the Asia, Asian mainland, it is bordered on the west by the Sea of Japan and extends from the Sea of Okhotsk in the north to the East China Sea ...
with $21 billion (%),
Spain Spain, or the Kingdom of Spain, is a country in Southern Europe, Southern and Western Europe with territories in North Africa. Featuring the Punta de Tarifa, southernmost point of continental Europe, it is the largest country in Southern Eur ...
with $14 billion (%) and
India India, officially the Republic of India, is a country in South Asia. It is the List of countries and dependencies by area, seventh-largest country by area; the List of countries by population (United Nations), most populous country since ...
with $11 billion (%). These ten countries represent $731 billion or % of the whole industry. In 2018, the new commercial aircraft value is projected for $270.4 billion while business aircraft will amount for $18 billion and civil helicopters for $4 billion.


Largest aerospace companies


Geography

In September 2018,
PwC PricewaterhouseCoopers, also known as PwC, is a Multinational corporation, multinational professional services network based in London, United Kingdom. It is the second-largest professional services network in the world and is one of the Big Fo ...
ranked aerospace manufacturing attractiveness: the most attractive country was the
United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...
, with $240 billion in sales in 2017, due to the size of its industry (#1), an educated
workforce In macroeconomics, the workforce or labour force is the sum of people either working (i.e., the employed) or looking for work (i.e., the unemployed): \text = \text + \text Those neither working in the marketplace nor looking for work are out ...
(#1), low geopolitical risk (#4, #1 is
Japan Japan is an island country in East Asia. Located in the Pacific Ocean off the northeast coast of the Asia, Asian mainland, it is bordered on the west by the Sea of Japan and extends from the Sea of Okhotsk in the north to the East China Sea ...
), strong
transportation infrastructure Transport (in British English) or transportation (in American English) is the intentional movement of humans, animals, and goods from one location to another. Modes of transport include air, land ( rail and road), water, cable, pipelines, ...
(#5, #1 is
Hong Kong Hong Kong)., Legally Hong Kong, China in international treaties and organizations. is a special administrative region of China. With 7.5 million residents in a territory, Hong Kong is the fourth most densely populated region in the wor ...
), a healthy
economy An economy is an area of the Production (economics), production, Distribution (economics), distribution and trade, as well as Consumption (economics), consumption of Goods (economics), goods and Service (economics), services. In general, it is ...
(#10, #1 is
China China, officially the People's Republic of China (PRC), is a country in East Asia. With population of China, a population exceeding 1.4 billion, it is the list of countries by population (United Nations), second-most populous country after ...
), but high costs (#7, #1 is
Denmark Denmark is a Nordic countries, Nordic country in Northern Europe. It is the metropole and most populous constituent of the Kingdom of Denmark,, . also known as the Danish Realm, a constitutionally unitary state that includes the Autonomous a ...
) and average tax policy (#36, #1 is
Qatar Qatar, officially the State of Qatar, is a country in West Asia. It occupies the Geography of Qatar, Qatar Peninsula on the northeastern coast of the Arabian Peninsula in the Middle East; it shares Qatar–Saudi Arabia border, its sole land b ...
). Following were
Canada Canada is a country in North America. Its Provinces and territories of Canada, ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, making it the world's List of coun ...
,
Singapore Singapore, officially the Republic of Singapore, is an island country and city-state in Southeast Asia. The country's territory comprises one main island, 63 satellite islands and islets, and one outlying islet. It is about one degree ...
,
Switzerland Switzerland, officially the Swiss Confederation, is a landlocked country located in west-central Europe. It is bordered by Italy to the south, France to the west, Germany to the north, and Austria and Liechtenstein to the east. Switzerland ...
and the
United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Northwestern Europe, off the coast of European mainland, the continental mainland. It comprises England, Scotlan ...
. Within the US, the most attractive was Washington state, due to the best Industry (#1), leading Infrastructure (#4,
New Jersey New Jersey is a U.S. state, state located in both the Mid-Atlantic States, Mid-Atlantic and Northeastern United States, Northeastern regions of the United States. Located at the geographic hub of the urban area, heavily urbanized Northeas ...
is #1) and Economy (#4,
Texas Texas ( , ; or ) is the most populous U.S. state, state in the South Central United States, South Central region of the United States. It borders Louisiana to the east, Arkansas to the northeast, Oklahoma to the north, New Mexico to the we ...
is #1), good labor (#9,
Massachusetts Massachusetts ( ; ), officially the Commonwealth of Massachusetts, is a U.S. state, state in the New England region of the Northeastern United States. It borders the Atlantic Ocean and the Gulf of Maine to its east, Connecticut and Rhode ...
is #1), average tax policy (#17,
Alaska Alaska ( ) is a non-contiguous U.S. state on the northwest extremity of North America. Part of the Western United States region, it is one of the two non-contiguous U.S. states, alongside Hawaii. Alaska is also considered to be the north ...
is #1) but is costly (#33,
Montana Montana ( ) is a landlocked U.S. state, state in the Mountain states, Mountain West subregion of the Western United States. It is bordered by Idaho to the west, North Dakota to the east, South Dakota to the southeast, Wyoming to the south, an ...
is #1). Washington is tied to
Boeing Commercial Airplanes Boeing Commercial Airplanes (BCA) is a division of the Boeing Company. It designs, assembles, markets, and sells commercial aircraft, including the 737, 767, 777, and 787, along with freighter and business jet variants of most. The divis ...
, earning $10.3 billion, is home to 1,400 aerospace-related businesses, and has the highest aerospace jobs concentration. Following are Texas,
Georgia Georgia most commonly refers to: * Georgia (country), a country in the South Caucasus * Georgia (U.S. state), a state in the southeastern United States Georgia may also refer to: People and fictional characters * Georgia (name), a list of pe ...
,
Arizona Arizona is a U.S. state, state in the Southwestern United States, Southwestern region of the United States, sharing the Four Corners region of the western United States with Colorado, New Mexico, and Utah. It also borders Nevada to the nort ...
and
Colorado Colorado is a U.S. state, state in the Western United States. It is one of the Mountain states, sharing the Four Corners region with Arizona, New Mexico, and Utah. It is also bordered by Wyoming to the north, Nebraska to the northeast, Kansas ...
. In the US, the Department of Defense and
NASA The National Aeronautics and Space Administration (NASA ) is an independent agencies of the United States government, independent agency of the federal government of the United States, US federal government responsible for the United States ...
are the two biggest consumers of aerospace technology and products. The Bureau of Labor Statistics of the United States reported that the aerospace industry employed 444,000 wage and salary jobs in 2004, many of which were in Washington and California, this marked a steep decline from the peak years during the
Reagan Administration Ronald Reagan's tenure as the 40th president of the United States began with his first inauguration on January 20, 1981, and ended on January 20, 1989. Reagan, a Republican from California, took office following his landslide victory over ...
when total employment exceeded 1,000,000 aerospace industry workers. During that period of recovery a special program to restore U.S. competitiveness across all U.S. industries, Project Socrates, contributed to employment growth as the U.S. aerospace industry captured 72 percent of world aerospace market. By 1999 U.S. share of the world market fell to 52 percent. In the
European Union The European Union (EU) is a supranational union, supranational political union, political and economic union of Member state of the European Union, member states that are Geography of the European Union, located primarily in Europe. The u ...
, aerospace companies such as
Airbus Airbus SE ( ; ; ; ) is a Pan-European aerospace corporation. The company's primary business is the design and manufacturing of commercial aircraft but it also has separate Airbus Defence and Space, defence and space and Airbus Helicopters, he ...
, Safran,
BAE Systems BAE Systems plc is a British Multinational corporation, multinational Aerospace industry, aerospace, military technology, military and information security company, based in London. It is the largest manufacturer in Britain as of 2017. It is ...
,
Thales Thales of Miletus ( ; ; ) was an Ancient Greek philosophy, Ancient Greek Pre-Socratic philosophy, pre-Socratic Philosophy, philosopher from Miletus in Ionia, Asia Minor. Thales was one of the Seven Sages of Greece, Seven Sages, founding figure ...
, Dassault, Saab AB, Terma A/S, Patria Plc and Leonardo are participants in the global aerospace industry and research effort. In
Russia Russia, or the Russian Federation, is a country spanning Eastern Europe and North Asia. It is the list of countries and dependencies by area, largest country in the world, and extends across Time in Russia, eleven time zones, sharing Borders ...
, large aerospace companies like Oboronprom and the United Aircraft Corporation (encompassing Mikoyan, Sukhoi, Ilyushin,
Tupolev Tupolev ( rus, Туполев, , ˈtupəlʲɪf), officially United Aircraft Company Tupolev - Public Joint Stock Company, is a Russian aerospace and Arms industry, defence company headquartered in Basmanny District, Moscow. UAC Tupolev is succes ...
,
Yakovlev The Joint-stock company, JSC A.S. Yakovlev Design Bureau () is a Russian aircraft designer and manufacturer (design office prefix Yak). Its head office is in Aeroport District, Northern Administrative Okrug, Moscow. It is a subsidiary of Yakovle ...
, and Irkut, which includes
Beriev The PJSC Beriev Aircraft Company (), formerly Beriev Design Bureau, is a Russian aircraft manufacturer (design office prefix Be), specializing in amphibious aircraft. The company was founded in Taganrog in 1934 as OKB-49 by Georgy Mikhailovich B ...
) are among the major global players in this industry.


Cities

Important locations of the civil aerospace industry worldwide include
Seattle Seattle ( ) is the most populous city in the U.S. state of Washington and in the Pacific Northwest region of North America. With a population of 780,995 in 2024, it is the 18th-most populous city in the United States. The city is the cou ...
,
Wichita, Kansas Wichita ( ) is the List of cities in Kansas, most populous city in the U.S. state of Kansas and the county seat of Sedgwick County, Kansas, Sedgwick County. As of the 2020 United States census, 2020 census, the population of the city was 397, ...
,
Dayton, Ohio Dayton () is a city in Montgomery County, Ohio, United States, and its county seat. It is the List of cities in Ohio, sixth-most populous city in Ohio, with a population of 137,644 at the 2020 United States census, 2020 census. The Dayton metro ...
and St. Louis in the United States (
Boeing The Boeing Company, or simply Boeing (), is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, and missiles worldwide. The company also provides leasing and product support s ...
),
Montreal Montreal is the List of towns in Quebec, largest city in the Provinces and territories of Canada, province of Quebec, the List of the largest municipalities in Canada by population, second-largest in Canada, and the List of North American cit ...
and
Toronto Toronto ( , locally pronounced or ) is the List of the largest municipalities in Canada by population, most populous city in Canada. It is the capital city of the Provinces and territories of Canada, Canadian province of Ontario. With a p ...
in Canada ( Bombardier, Pratt & Whitney Canada),
Toulouse Toulouse (, ; ; ) is a city in southern France, the Prefectures in France, prefecture of the Haute-Garonne department and of the Occitania (administrative region), Occitania region. The city is on the banks of the Garonne, River Garonne, from ...
and
Bordeaux Bordeaux ( ; ; Gascon language, Gascon ; ) is a city on the river Garonne in the Gironde Departments of France, department, southwestern France. A port city, it is the capital of the Nouvelle-Aquitaine region, as well as the Prefectures in F ...
in France (
Airbus Airbus SE ( ; ; ; ) is a Pan-European aerospace corporation. The company's primary business is the design and manufacturing of commercial aircraft but it also has separate Airbus Defence and Space, defence and space and Airbus Helicopters, he ...
, Dassault, ATR),
Seville Seville ( ; , ) is the capital and largest city of the Spain, Spanish autonomous communities of Spain, autonomous community of Andalusia and the province of Seville. It is situated on the lower reaches of the Guadalquivir, River Guadalquivir, ...
in Spain and
Hamburg Hamburg (, ; ), officially the Free and Hanseatic City of Hamburg,. is the List of cities in Germany by population, second-largest city in Germany after Berlin and List of cities in the European Union by population within city limits, 7th-lar ...
in Germany (
Airbus Airbus SE ( ; ; ; ) is a Pan-European aerospace corporation. The company's primary business is the design and manufacturing of commercial aircraft but it also has separate Airbus Defence and Space, defence and space and Airbus Helicopters, he ...
), the North-West of England and
Bristol Bristol () is a City status in the United Kingdom, cathedral city, unitary authority area and ceremonial county in South West England, the most populous city in the region. Built around the River Avon, Bristol, River Avon, it is bordered by t ...
in Britain (
Airbus Airbus SE ( ; ; ; ) is a Pan-European aerospace corporation. The company's primary business is the design and manufacturing of commercial aircraft but it also has separate Airbus Defence and Space, defence and space and Airbus Helicopters, he ...
and AgustaWestland),
Komsomolsk-on-Amur Komsomolsk-on-Amur ( rus, Комсомольск-на-Амуре, r=Komsomolsk-na-Amure, p=kəmsɐˈmolʲsk nɐ‿ɐˈmurʲə) is a types of inhabited localities in Russia, city in Khabarovsk Krai, Russia, located on the west bank of the Amur R ...
and
Irkutsk Irkutsk ( ; rus, Иркутск, p=ɪrˈkutsk; Buryat language, Buryat and , ''Erhüü'', ) is the largest city and administrative center of Irkutsk Oblast, Russia. With a population of 587,891 Irkutsk is the List of cities and towns in Russ ...
in Russia ( Sukhoi,
Beriev The PJSC Beriev Aircraft Company (), formerly Beriev Design Bureau, is a Russian aircraft manufacturer (design office prefix Be), specializing in amphibious aircraft. The company was founded in Taganrog in 1934 as OKB-49 by Georgy Mikhailovich B ...
),
Kyiv Kyiv, also Kiev, is the capital and most populous List of cities in Ukraine, city of Ukraine. Located in the north-central part of the country, it straddles both sides of the Dnieper, Dnieper River. As of 1 January 2022, its population was 2, ...
and
Kharkiv Kharkiv, also known as Kharkov, is the second-largest List of cities in Ukraine, city in Ukraine.
in Ukraine ( Antonov),
Nagoya is the largest city in the Chūbu region of Japan. It is the list of cities in Japan, fourth-most populous city in Japan, with a population of 2.3million in 2020, and the principal city of the Chūkyō metropolitan area, which is the List of ...
in Japan ( Mitsubishi Heavy Industries Aerospace and Kawasaki Heavy Industries Aerospace), as well as
São José dos Campos São José dos Campos (, meaning Saint Joseph of the Fields) is a major city and the seat of the Municipalities of Brazil, municipality of the same name in the state of São Paulo (state), São Paulo, Brazil. One of the leading industrial and res ...
in Brazil where Embraer is based.


Consolidation

Several consolidations took place in the aerospace and defense industries over the last few decades.
Airbus Airbus SE ( ; ; ; ) is a Pan-European aerospace corporation. The company's primary business is the design and manufacturing of commercial aircraft but it also has separate Airbus Defence and Space, defence and space and Airbus Helicopters, he ...
prominently illustrated the European airliner manufacturing consolidation in the late 1960s. Between 1988 and 2010, more than 5,452
mergers and acquisitions Mergers and acquisitions (M&A) are business transactions in which the ownership of a company, business organization, or one of their operating units is transferred to or consolidated with another entity. They may happen through direct absorpt ...
with a total known-value of US$579 billion were announced worldwide. In 1993, then
United States Secretary of Defense The United States secretary of defense (acronym: SecDef) is the head of the United States Department of Defense (DoD), the United States federal executive departments, executive department of the United States Armed Forces, U.S. Armed Forces, a ...
Les Aspin and his deputy William J. Perry held the "Last Supper" at
the Pentagon The Pentagon is the headquarters building of the United States Department of Defense, in Arlington County, Virginia, across the Potomac River from Washington, D.C. The building was constructed on an accelerated schedule during World War II. As ...
with contractors executives who were told that there were twice as many military suppliers as he wanted to see: $55 billion in military–industry mergers took place from 1992 to 1997, leaving mainly
Boeing The Boeing Company, or simply Boeing (), is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, and missiles worldwide. The company also provides leasing and product support s ...
,
Lockheed Martin The Lockheed Martin Corporation is an American Arms industry, defense and aerospace manufacturer with worldwide interests. It was formed by the merger of Lockheed Corporation with Martin Marietta on March 15, 1995. It is headquartered in North ...
,
Northrop Grumman Northrop Grumman Corporation is an American multinational Aerospace manufacturer, aerospace and Arms industry, defense company. With 97,000 employees and an annual revenue in excess of $40 billion, it is one of the world's largest Arms industry ...
and
Raytheon Raytheon is a business unit of RTX Corporation and is a major U.S. defense contractor and industrial corporation with manufacturing concentrations in weapons and military and commercial electronics. Founded in 1922, it merged in 2020 with Unite ...
.
Boeing The Boeing Company, or simply Boeing (), is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, and missiles worldwide. The company also provides leasing and product support s ...
bought
McDonnell Douglas McDonnell Douglas Corporation was a major American Aerospace manufacturer, aerospace manufacturing corporation and defense contractor, formed by the merger of McDonnell Aircraft and the Douglas Aircraft Company in 1967. Between then and its own ...
for US$13.3 billion in 1996.
Raytheon Raytheon is a business unit of RTX Corporation and is a major U.S. defense contractor and industrial corporation with manufacturing concentrations in weapons and military and commercial electronics. Founded in 1922, it merged in 2020 with Unite ...
acquired Hughes Aircraft Company for $9.5 billion in 1997.
BAE Systems BAE Systems plc is a British Multinational corporation, multinational Aerospace industry, aerospace, military technology, military and information security company, based in London. It is the largest manufacturer in Britain as of 2017. It is ...
is the successor company to numerous British aircraft manufacturers which merged throughout the second half of the 20th century. Many of these mergers followed the 1957 Defence White Paper.
Marconi Electronic Systems Marconi Electronic Systems Limited (MES), or GEC-Marconi as it was until 1998, was the defence arm of General Electric Company (GEC). It was split off from GEC and bought by British Aerospace (BAe) on 30 November 1999 to form BAE Systems. GEC ...
, a subsidiary of the
General Electric Company The General Electric Company (GEC) was a major British industrial conglomerate involved in consumer and Arms industry, defence electronics, communications, and engineering. It was originally founded in 1886 as G. Binswanger and Company as an e ...
, was acquired by British Aerospace for US$12.3 billion in 1999 merger, to form
BAE Systems BAE Systems plc is a British Multinational corporation, multinational Aerospace industry, aerospace, military technology, military and information security company, based in London. It is the largest manufacturer in Britain as of 2017. It is ...
. In 2002, when Fairchild Dornier was
bankrupt Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the de ...
, Airbus, Boeing or Bombardier declined to take the 728JET/928JET large regional jet program as mainline and regional aircraft manufacturers were split and Airbus was digesting its ill-fated
Fokker Fokker (; ) was a Dutch aircraft manufacturer that operated from 1912 to 1996. The company was founded by the Dutch aviator Anthony Fokker and became famous during World War I for its fighter aircraft. During its most successful period in the 19 ...
acquisition a decade earlier. On September 4, 2017,
United Technologies United Technologies Corporation (UTC) was an American multinational corporation, multinational list of conglomerates, conglomerate headquartered in Farmington, Connecticut. It researched, developed, and manufactured products in numerous are ...
acquired
Rockwell Collins Rockwell Collins, Inc. was a multinational corporation headquartered in Cedar Rapids, Iowa, providing avionics and information technology systems and services to government agencies and aircraft manufacturers. It was formed when the Collins Radi ...
in cash and stock for $23 billion, $30 billion including Rockwell Collins' net debt, for $500+ million of synergies expected by year four. The Oct. 16, 2017 announcement of the CSeries partnership between
Airbus Airbus SE ( ; ; ; ) is a Pan-European aerospace corporation. The company's primary business is the design and manufacturing of commercial aircraft but it also has separate Airbus Defence and Space, defence and space and Airbus Helicopters, he ...
and Bombardier Aerospace could trigger a daisy chain of reactions towards a new order. Airbus gets a new, efficient model at the lower end of the narrowbody market which provides the bulk of
airliner An airliner is a type of airplane for transporting passengers and air cargo. Such aircraft are most often operated by airlines. The modern and most common variant of the airliner is a long, tube shaped, and jet powered aircraft. The largest ...
profits and can abandon the slow selling A319 while Bombardier benefits from the growth in this expanded market even if it holds a smaller residual stake. Boeing could forge a similar alliance with either Embraer with its E-jet E2 or
Mitsubishi Heavy Industries is a Japanese Multinational corporation, multinational engineering, electrical equipment and electronics corporation headquartered in Tokyo, Japan. MHI is one of the core companies of the Mitsubishi Group and its automobile division is the prede ...
and its MRJ. On 21 December, Boeing and Embraer confirmed to be discussing a potential combination with a transaction subject to Brazilian government regulators, the companies' boards and shareholders approvals. The weight of Airbus and Boeing could help E2 and CSeries sales but the 100-150 seats market seems slow. As the CSeries, renamed A220, and E-jet E2 are more capable than their predecessors, they moved closer to the lower end of the narrowbodies. In 2018, the four Western airframers combined into two within nine months as Boeing acquired 80% of Embraer's airliners for $3.8 billion on July 5. On April 3, 2020,
Raytheon Raytheon is a business unit of RTX Corporation and is a major U.S. defense contractor and industrial corporation with manufacturing concentrations in weapons and military and commercial electronics. Founded in 1922, it merged in 2020 with Unite ...
and
United Technologies Corporation United Technologies Corporation (UTC) was an American multinational corporation, multinational list of conglomerates, conglomerate headquartered in Farmington, Connecticut. It researched, developed, and manufactured products in numerous are ...
(except Otis Worldwide, leaving
Rockwell Collins Rockwell Collins, Inc. was a multinational corporation headquartered in Cedar Rapids, Iowa, providing avionics and information technology systems and services to government agencies and aircraft manufacturers. It was formed when the Collins Radi ...
and engine maker Pratt and Whitney) merged to form Raytheon Technologies Corporation, with combined sales of $79 billion in 2019. The most prominent unions between 1995 and 2020 include those of Boeing and McDonnell Douglas; the French, German and Spanish parts of EADS; and United Technologies with Rockwell Collins then Raytheon, but many mergers projects did not went through: Textron-Bombardier, EADS-BAE Systems, Hawker Beechcraft-Superior Aviation, GE-Honeywell, BAE Systems-Boeing (or Lockheed Martin), Dassault-Aerospatiale, Safran-Thales, BAE Systems-Rolls-Royce or Lockheed Martin–Northrop Grumman.


Suppliers

The largest aerospace suppliers are
United Technologies United Technologies Corporation (UTC) was an American multinational corporation, multinational list of conglomerates, conglomerate headquartered in Farmington, Connecticut. It researched, developed, and manufactured products in numerous are ...
with $28.2 billion of revenue, followed by GE Aerospace with $24.7 billion, Safran with $22.5 billion,
Rolls-Royce Holdings Rolls-Royce Holdings plc is a British Multinational corporation, multinational aerospace and defence company incorporated in February 2011. The company owns Rolls-Royce, a business established in 1904 which today designs, manufactures and dist ...
with $16.9 billion,
Honeywell Aerospace Honeywell Aerospace Technologies is a manufacturer of aircraft engines and avionics, as well as a producer of auxiliary power units (APUs) and other aviation products. Headquartered in Phoenix, Arizona, it is a division of the Honeywell Intern ...
with $15.2 billion and
Rockwell Collins Rockwell Collins, Inc. was a multinational corporation headquartered in Cedar Rapids, Iowa, providing avionics and information technology systems and services to government agencies and aircraft manufacturers. It was formed when the Collins Radi ...
including B/E Aerospace with $8.1 billion.
Electric aircraft An electric aircraft is an aircraft powered by electricity. Electric aircraft are seen as a way to reduce the environmental effects of aviation, providing zero emissions and quieter flights. Electricity may be supplied by a variety of methods, ...
development could generate large changes for the aerospace suppliers. On 26 November 2018, United Technologies announced the completion of its Rockwell Collins acquisition, renaming systems supplier UTC Aerospace Systems as
Collins Aerospace Collins Aerospace is an American technology company that is one of the world's largest suppliers of aerospace and defense products. It was formed in 2018 from the merger of Rockwell Collins and UTC Aerospace Systems. Headquartered in Charlotte, ...
, for $23 billion of sales in 2017 and 70,000 employees, and $39.0 billion of sales in 2017 combined with engine manufacturer
Pratt & Whitney Pratt & Whitney is an American aerospace manufacturer with global service operations. It is a subsidiary of RTX Corporation (formerly Raytheon Technologies). Pratt & Whitney's aircraft engines are widely used in both civil aviation (especially ...
.


Supply chain

Before the 1980s/1990s, aircraft and aeroengine manufacturers were vertically integrated. Then Douglas aircraft outsourced large aerostructures and the Bombardier Global Express pioneered the "Tier 1"
supply chain A supply chain is a complex logistics system that consists of facilities that convert raw materials into finished products and distribute them to end consumers or end customers, while supply chain management deals with the flow of goods in distri ...
model inspired by
automotive industry The automotive industry comprises a wide range of company, companies and organizations involved in the design, Business development, development, manufacturing, marketing, selling, Maintenance, repairing, and Custom car, modification of motor ve ...
, with 10-12 risk-sharing limited partners funding around half of the development costs. The Embraer E-Jet followed in the late 1990s with fewer than 40 primary suppliers. Tier 1 suppliers were led by
Honeywell Honeywell International Inc. is an American publicly traded, multinational conglomerate corporation headquartered in Charlotte, North Carolina. It primarily operates in four areas of business: aerospace, building automation, industrial automa ...
, Safran, Goodrich Corporation and Hamilton Sundstrand. In the 2000s, Rolls-Royce reduced its supplier count after bringing in automotive supply chain executives. On the
Airbus A380 The Airbus A380 is a very large wide-body airliner, developed and produced by Airbus until 2021. It is the world's largest passenger airliner and the only full-length double-deck jet airliner. Airbus studies started in 1988, and the pr ...
, less than 100 major suppliers outsource 60% of its value, even 80% on the A350.
Boeing The Boeing Company, or simply Boeing (), is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, and missiles worldwide. The company also provides leasing and product support s ...
embraced an aggressive Tier 1 model for the 787 but with its difficulties began to question why it was earning lower margins than its suppliers while it seemed to take all the risk, ensuing its 2011 ''Partnering for Success'' initiative, as
Airbus Airbus SE ( ; ; ; ) is a Pan-European aerospace corporation. The company's primary business is the design and manufacturing of commercial aircraft but it also has separate Airbus Defence and Space, defence and space and Airbus Helicopters, he ...
initiated its own ''Scope+'' initiative for the A320. Tier 1 consolidation also affects engine manufacturers : GE Aerospace acquired Avio in 2013 and
Rolls-Royce Rolls-Royce (always hyphenated) may refer to: * Rolls-Royce Limited, a British manufacturer of cars and later aero engines, founded in 1906, now defunct Automobiles * Rolls-Royce Motor Cars, the current car manufacturing company incorporated in ...
took control of ITP Aero.


See also

*
Aerospace Aerospace is a term used to collectively refer to the atmosphere and outer space. Aerospace activity is very diverse, with a multitude of commercial, industrial, and military applications. Aerospace engineering consists of aeronautics and astron ...
* Aerospace industry in the United Kingdom * Military–industrial complex * Aircraft industry ** Aircraft industry of Russia ** Aircraft parts industry ** List of aircraft manufacturers * Space industry ** Space industry of India ** Space industry of Russia ** Commercial Spaceflight Federation (US) ** List of spacecraft manufacturers * Supplier-furnished equipment


References


Further reading

* Hartley, Keith. ''The Political Economy Of Aerospace Industries: A Key Driver of Growth and International Competitiveness?'' (Edward Elgar, 2014); 288 pages; the industry in Britain, continental Europe, and the US with a case study of BAE Systems. * Newhouse, John. ''The Sporty Game: The High-Risk Competitive Business of Making and Selling Commercial Airliners.'' New York: Alfred A. Knopf, 1982. . * Wills, Jocelyn. ''Tug of War: Surveillance Capitalism, Military Contracting, and the Rise of the Security State'' (McGill-Queen's University Press, 2017), scholarly history of MDA in Canada
online book review


External links

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Aerospace Craft & Structural Components
{{DEFAULTSORT:Aerospace Manufacturer
Manufacturer Manufacturing is the creation or Production (economics), production of goods with the help of equipment, Work (human activity), labor, machines, tools, and chemical or biological processing or formulation. It is the essence of the secondary se ...
*Manufacturer Aircraft industry Aerospace