How Aerospace Manufacturers are Managing Aerospace Industry Growth
The aerospace industry has experienced some significant ups and downs in recent years. In the decade leading up to 2020, the aerospace industry experienced continuous growth, peaking around 2018. However, the advent of the COVID-19 pandemic led to the worst downturn in the history of manned flight. Virtually every part of the industry, from airlines to aircraft manufacturers, suffered.
Now, in 2023, the industry is back on a strong upward trajectory, as people return to air travel in droves. Numerous factors are contributing to aerospace industry growth, and the aerospace manufacturing sector may be poised to make it possible.
Why is the Aerospace Industry Growing?
End of Covid Pandemic
Throughout the COVID-19 pandemic, travel restrictions and border closures led to a dramatic reduction in both international and domestic flights. Some experts say that international flight volume decreased by as much as 68%, while domestic flights dropped by 40%. Aerospace and aircraft manufacturers experienced major downturns as a result.
While some countries are still refusing or restricting entry to unvaccinated individuals, virtually all other travel restrictions have long since been lifted. Business travel remains a bit muted, but leisure travel has made a booming return.
Advancing Military Technology
According to Deloitte, the defense segment of the aerospace industry is stable and on track to outperform commercial in the coming years. Technological advancement is an evergreen priority of many branches of the military, but the Russian invasion of Ukraine has prompted a worldwide bolstering of defense budgets and heightened demand for equipment. The United States and many European countries have reportedly budgeted a total of $204 billion to modernize their militaries, which could very well lead to a wealth of advancements and breakthroughs and meaningful industry growth.
Renewed Interest in Space Travel
Another major contributor to aerospace industry growth is growing interest in space travel. NASA and SpaceX have been the primary players for a while, but plenty of private companies and startups are beginning to venture into space travel. We set a new record for orbital launches in 2022, and countless small satellites are launched on a regular basis.
This is partially driven by growing interest in both establishing new industries in space and expanding existing industries toward the stars. Examples include space-based manufacturing and solar power, asteroid mining, and space tourism.
Another contributing factor is the growing interest in reusable launch vehicles. Both NASA and SpaceX have experimented and achieved success with reusable assets, and more advancements are likely on the horizon.
What Aerospace Industry Growth Means for Aerospace Component Manufacturers
Aerospace component manufacturers have the potential to reap tremendous benefits if they leverage this season of aerospace industry growth effectively. This requires a few key strategies:
- Offer supply chain visibility and resilience. After the supply chain disruptions that accompanied the COVID-19 pandemic, the aerospace industry is eager for stability and predictability throughout the aerospace manufacturing supply chain. According to the United States Department of Defense, aerospace component manufacturers should strive to be as reliable and transparent as possible, to soothe the anxieties of customers and ensure an increase in on-time deliveries.
- Offer flexibility and agility without sacrificing quality. Aerospace technology is advancing very quickly, and aircraft manufacturers are working hard to keep up. Aerospace component manufacturers can serve their customers by building in-house processes that allow them to turn on a dime and make fast changes while still delivering top-quality components.
- Be diligent about hiring and retention. Many manufacturing sectors are struggling with the ramifications of an older workforce and the challenge of hiring and keeping good talent. Aerospace component manufacturers should invest meaningfully in growing and nurturing excellent teams in every part of their business, so they are at the ready to meet their customers’ increasingly frequent staffing and shortages driven needs.
How NMG is Prepared to Meet Growing Industry Demands
NMG Aerospace has been part of the aerospace industry since 1967. We’ve supported our clients through many seasons of growth and struggle, earning their trust as a reliable manufacturing partner regardless of the state of the industry. As a result, we are fully equipped and ready to accommodate the opportunities, demands, and challenges that accompany seasons of tremendous growth.
All of our aerospace machining and manufacturing facilities are located on American soil, so we can contribute to our clients’ desire for stability in the supply chain. We place a high value on transparency and communication, so we’re always clear on exactly what our clients need, and our clients are never left wondering about the status or timeline of a given product. And thanks to our company-wide commitment to lean manufacturing processes, NMG is extremely agile and can adapt to big changes without wavering on our quality promise.
If you’re looking for a trusted domestic manufacturer of high-quality aerospace components with decades of experience in the industry, talk to the team at NMG >