Aerospace manufacturer
An aerospace manufacturer is a company or individual involved in the various aspects of designing, building, testing, selling, and maintaining aircraft, aircraft parts, missiles, rockets, or spacecraft. Aerospace is a high technology industry.
The aircraft industry is the
Market
In 2015 the aircraft production was worth US$180.3 billion: 61%
The global aerospace industry was worth $838.5 billion in 2017: aircraft & engine
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.[3]
Largest aerospace companies
Company | 2022[4] | 2019[5] | 2018[6] | 2017[7] | 2016[8] | 2015[9] | 2014[10] | Country |
---|---|---|---|---|---|---|---|---|
RTX Corporation | 67.1 | United States | ||||||
Boeing[a] | 66.6 | 76.6 | 101.0 | 93.4 | 94.6 | 96.1 | 90.8 | United States |
Lockheed Martin | 66.0 | 59.8 | 53.8 | 51.0 | 47.2 | 40.5 | 45.6 | United States |
Airbus[a] | 61.8 | 78.9 | 75.1 | 72.3 | 70.8 | 68.8 | 80.6 | France Germany Spain |
Northrop Grumman | 36.6 | 33.8 | 30.1 | 25.8 | 24.5 | 23.5 | 24.0 | United States |
Rostec | 30.0 | Russia | ||||||
BAE Systems | 27.0 | 22.8 | 12.8 | 13.4 | 13.4 | 13.9 | 13.7 | United Kingdom |
GE Aerospace | 26.1 | 30.6 | 27.4 | 26.3 | 24.7 | 24.0 | United States | |
Safran | 20.0 | 25.2 | 17.9 | 16.8 | 16.6 | 18.3 | France | |
Rolls-Royce Holdings | 17.2 | 15.0 | 12.7 | 12.0 | 13.2 | 14.7 | United Kingdom | |
L3Harris | 17.1 | United States | ||||||
Leonardo (Finmeccanica) | 15.5 | 14.4 | 12.5 | 12.8 | 13.9 | 17.2 | Italy | |
United Technologies[b] | 46.9 | 36.0 | 30.9 | 29.0 | 33.1 | 36.2 | United States | |
Raytheon Company[b]
|
27.1 | 25.3 | 24.1 | 23.2 | 22.8 | United States |
Company | 2022[4] | 2019[5] | 2018[6] | 2017[7] | 2016[8] | 2015[9] | 2014[10] | Country |
---|---|---|---|---|---|---|---|---|
Lockheed Martin | 8.35 | 8.55 | 7.33 | 5.90 | 5.55 | 4.71 | 5.59 | United States |
Airbus[a] | 5.60 | 1.5 | 5.95 | 3.70 | 2.40 | 4.34 | 4.50 | France Germany Spain |
RTX Corporation | 5.41 | United States | ||||||
GE Aerospace | 4.78 | 6.47 | 6.64 | 6.12 | 5.51 | 5.00 | United States | |
Northrop Grumman | 3.60 | 3.97 | 3.78 | 3.30 | 3.19 | 3.08 | 3.20 | United States |
Rostec | 3.18 | Russia | ||||||
Safran | 2.06 | 3.43 | 2.58 | 2.54 | 1.71 | 2.74 | France | |
L3Harris | 1.27 | United States | ||||||
Leonardo (Finmeccanica) | 0.87 | 0.59 | 0.90 | 1.05 | 0.94 | 0.72 | Italy | |
Boeing[a] | -3.55 | -1.98 | 12.00 | 10.30 | 4.90 | 5.18 | 7.47 | United States |
BAE Systems | - | - | - | - | - | - | United Kingdom | |
Rolls-Royce Holdings | 0.44 | 1.11 | 0.98 | 1.77 | 2.15 | United Kingdom | ||
United Technologies[b] | 5.77 | 3.57 | 3.83 | 3.84 | 3.00 | 4.57 | United States | |
Raytheon Company[b]
|
4.54 | 3.32 | 3.24 | 3.01 | 3.18 | United States |
- ^ a b c d In 2019, Airbus displaced Boeing as the largest aerospace company by revenue due to the Boeing 737 MAX groundings, with $2 billion operating losses down from $12 billion profits the previous year.[5]
- ^ Raytheon Company in April 2020 to form Raytheon Technologies (RTX Corporation).[11]
Geography
In September 2018,
). Following were Canada, Singapore, Switzerland and United Kingdom.[12]Within the US, the most attractive was
In the US, the
This section needs additional citations for verification. (January 2023) |
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
In
Cities
Important locations of the civil aerospace industry worldwide include
Consolidation
Several consolidations took place in the aerospace and defense industries over the last few decades.
BAE Systems 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.[citation needed]
Airbus prominently illustrated the European airliner manufacturing consolidation in the late 1960s.[14]
Between 1988 and 2010, more than 5,452 mergers and acquisitions with a total known-value of US$579 billion were announced worldwide.[15]
In 1993, then United States Secretary of Defense Les Aspin and his deputy William J. Perry held the "Last Supper" at the Pentagon 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, Lockheed Martin, Northrop Grumman and Raytheon.[16] Boeing bought McDonnell Douglas for US$13.3 billion in 1996.[17] Raytheon acquired Hughes Aircraft Company for $9.5 billion in 1997.[18]
In 2002, when
On September 4, 2017, United Technologies acquired Rockwell Collins in cash and stock for $23 billion, $30 billion including Rockwell Collins' net debt, for $500+ million of synergies expected by year four.[20]
Target | Buyer | Closed | U.S. Bn | Ref |
---|---|---|---|---|
Precision Castparts |
Berkshire Hathaway | January 2016 | 37.2 | |
Rockwell Collins | United Technologies | November 2018 | 30.0 | |
Goodrich | United Technologies | July 2012 | 18.3 | |
Orbital ATK |
Northrop Grumman | June 2018 | 9.2 | [21] |
Sikorsky | Lockheed Martin | November 2015 | 9.0 | |
B/E Aerospace | Rockwell Collins | April 2017 | 8.6 | |
Alliant Techsystems' A&D Group | Orbital ATK | February 2015 | 5.0 | |
Exelis Inc. | Harris Corp. |
May 2015 | 4.75 | |
Avio S.p.A. Aviation Business |
General Electric | August 2013 | 4.3 | |
Titanium Metals Corp |
Precision Castparts | December 2012 | 3.0 | |
Firth Rixson | Alcoa | July 2015 | 2.85 |
The Oct. 16, 2017 announcement of the
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.[23] The weight of
On April 3, 2020,
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.[26]
Suppliers
The largest aerospace suppliers are
On 26 November 2018, United Technologies announced the completion of its Rockwell Collins acquisition, renaming systems supplier UTC Aerospace Systems as Collins Aerospace, 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.[29]
Supply chain
Before the 1980s/1990s, aircraft and aeroengine manufacturers were
In the 2000s, Rolls-Royce reduced its supplier count after bringing in automotive supply chain executives. On the Airbus A380, less than 100 major suppliers outsource 60% of its value, even 80% on the A350.
See also
- Aerospace
- Aerospace industry in the United Kingdom
- Military–industrial complex
- Aircraft industry
- Aircraft industry of Russia
- Aircraft parts industry
- List of aircraft manufacturers
- Space industry
- Supplier-furnished equipment
References
- ^ Kevin Michaels (April 28, 2016). "MRO Industry Outlook" (PDF). ICF International.
- ^ a b Richard Aboulafia; Kevin Michaels (16 July 2018). "The Global Aerospace Industry Size & Country Rankings" (PDF). The Teal Group / AeroDynamic Advisory.
- ^ Lee Ann Shay (Jan 2, 2018). "Commercial Spending Will Lead MRO Field In 2018". Aviation Week & Space Technology. Comparing civil, helicopter, business aviation and military MRO forecasts for 2018.
- ^ a b Murdo Morrison (18 August 2023). "Top 100 aerospace companies ranked by revenue 2022". FlightGlobal.
- ^ a b c Murdo Morrison (15 September 2020). "Airbus displaces Boeing as aerospace's biggest company". FlightGlobal.
- ^ a b "Top 100 aerospace companies by revenue 2018" (PDF). Flight International. 3 Sep 2019.
- ^ a b "Top 100 aerospace companies by revenue 2017". Flight International. 3 Sep 2018.
- ^ a b "Top 100 aerospace companies grow more profitable". Flight International. 1 September 2017.
- ^ a b "Top 100 Special Report". Flight International. 13 September 2016.
- ^ a b "Top 100 Aerospace Companies" (PDF). Flight International. 15–21 September 2015.
- ^ "United Technologies and Raytheon Complete Merger of Equals Transaction". www.rtx.com (Press release). Raytheon Technologies. 3 April 2020. Retrieved 3 April 2020.
- ^ a b "Aerospace manufacturing attractiveness rankings" (PDF). PwC. September 2018.
- ^ Parker, Dana T. Building Victory: Aircraft Manufacturing in the Los Angeles Area in World War II, pp. 131-2, Cypress, CA, 2013.
- ^ a b c Jens Flottau (Jul 12, 2018). "Aerospace Consolidation Anew: Now It's The Commercial Airframers". Aviation Week & Space Technology.
- ^ "Mergers & Acquisitions - Aerospace & Defense". Thomson Financial, Institute for Mergers, Acquisitions and Alliances.
- ^ Leslie Wayne (Feb 27, 1998). "The Shrinking Military Complex; After the Cold War, the Pentagon Is Just Another Customer". New York Times.
- ^ "Boeing offering $13 billion to buy McDonnell Douglas". New York Times. Dec 16, 1996.
- ^ "Raytheon wins bidding war for Hughes Aircraft". Flight International. 22 January 1997.
- ^ "All-UK merger sends European defence into disarray". Flight International. 27 January 1999.
- ^ "United Technologies To Acquire Rockwell Collins For $30 Billion" (Press release). United Technologies. September 4, 2017.
- ^ Michael Bruno (Sep 18, 2017). "Northrop To Buy Orbital For More Than $9B". Aviation Week & Space Technology.
- ^ Jerrold T. Lundquist (Oct 18, 2017). "Opinion: C Series Deal Ends Aerospace Status Quo". Aviation Week & Space Technology.
- ^ Michael Bruno and Guy Norris (Dec 21, 2017). "Boeing, Embraer Mull Combination That Could Reset OEM Industry". Aviation Week Network.
- ^ Jon Hemmerdinger (6 June 2018). "Mergers may fuel long-awaited E2 and CSeries sales bump". Flightglobal.
- ^ Jon Hemmerdinger (3 April 2020). "United Technologies-Raytheon merger to close today". Flightglobal.
- ^ Murdo Morrison (9 April 2020). "Failed marriages: Top 10 aerospace mergers that never were". Flightglobal.
- ^ Thierry Dubois and Jens Flottau (Jan 20, 2017). "Tier 1 Consolidation Continues As Safran Takes Over Zodiac". Aviation Week & Space Technology.
- ^ Michael Bruno (Dec 6, 2017). "Industry Landscape Could Reboot Under Aircraft Electrification". Aviation Week & Space Technology.
- ^ "United Technologies Announces Intention to Separate Into Three Independent Companies; Completes Acquisition of Rockwell Collins" (Press release). United Technologies. November 26, 2018.
- ^ a b Kevin Michaels (May 18, 2017). "Beware, OEM-supplier Relations Are Changing". Aviation Week & Space Technology.
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. ISBN 978-0-394-51447-5.
- 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
- "U.S. Aerospace Industries Association".
- "Aerospace, Defense & Government Services – Mergers & Acquisitions (January 1993 - December 2016)" (PDF). Grundman Advisory. 6 Apr 2017.
- Jens Flottau (Feb 22, 2018). "Opinion: Airframers Should Watch Where They Squeeze Suppliers". Aviation Week & Space Technology.
- Aerospace Craft & Structural Components