Arthur D. LittleArthur D. Little

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Aerospace Supplier Squeeze – Ways Out?

Aerospace Supplier Squeeze – Ways Out?

Arthur D. Little’s strategic recommendations for commercial aerospace suppliers

The aerospace and defense (A&D) industry today struggles with a duality: defense-driven segments take hits due to significant governmental budget cuts, while commercial aircraft manufacturing is enjoying double-digit growth. Commercial aircraft deliveries at Airbus and Boeing grew by a CAGR of 7.5% between 2010 and 2015, with both companies registering record annual deliveries in recent years. Nevertheless, the commercial aircraft value chain is under stress: only half of the manufacturing firms in the chain show healthy profitability growth, and European players especially have struggled to enhance shareholder value. Which strategies should players take to surf the growth wave?

Released: February 2016

Download File ADL_AerospaceSupplierSqueeze_01.pdf (.PDF, 309 Kb)

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