Aerospace manufacturer
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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 industry supporting aviation by building aircraft and manufacturing aircraft parts for their maintenance. This includes aircraft and parts used for civil aviation and military aviation. Most production is done pursuant to type certificates and Defense Standards issued by a government body. This term has been largely subsumed by the more encompassing term: "aerospace industry".
Market
[edit]In 2015 the aircraft production was worth US$180.3 billion: 61% airliners, 14% business and general aviation, 12% military aircraft, 10% military rotary wing and 3% civil rotary wing; while their MRO was worth $135.1 Bn or $315.4 Bn combined.[1]
The global aerospace industry was worth $838.5 billion in 2017: aircraft & engine OEMs represented 28% ($235 Bn), civil & military MRO & upgrades 27% ($226 Bn), aircraft systems & component manufacturing 26% ($218 Bn), satellites & space 7% ($59 Bn), missiles & UAVs 5% ($42 Bn) and other activity, including flight simulators, defense electronics, public research accounted for 7% ($59 Bn).[2] The Top 10 countries with the largest industrial bases in 2017 were the United States with $408.4 billion (representing 49% of the whole), followed by France with $69 billion (8.2%), then China with $61.2 billion (7.3%), the United Kingdom with $48.8 billion (5.8%), Germany with $46.2 billion (5.5%), Russia with $27.1 billion (3.2%), Canada with $24 billion (2.9%), Japan with $21 billion (2.5%), Spain with $14 billion (1.7%) and India with $11 billion (1.3%). These ten countries represent $731 billion or 87.2% of the whole industry.[2]
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
[edit]| Company | 2022[4] | 2019[5] | 2018[6] | 2017[7] | 2016[8] | 2015[9] | 2014[10] | Country |
|---|---|---|---|---|---|---|---|---|
| RTX Corporation | 67.1 |  United States (In July 2023, Raytheon Technologies Corporation changed its name to RTX Corporation.[11]) | ||||||
| Airbus[a] | 66.6 | 76.6 | 101.0 | 93.4 | 94.6 | 96.1 | 90.8 |  France Germany United Kingdom Spain /  Europe |
| Lockheed Martin | 66.0 | 59.8 | 53.8 | 51.0 | 47.2 | 40.5 | 45.6 | United States |
| Boeing[a] | 61.8 | 78.9 | 75.1 | 72.3 | 70.8 | 68.8 | 80.6 | United States |
| 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 United States |
| 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 Kingdom | |
| 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 United Kingdom Spain / Europe |
| RTX Corporation | 5.41 | United States (In July 2023, Raytheon Technologies Corporation changed its name to RTX Corporation.[13]) | ||||||
| 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 United Kingdom | |
| Boeing[a] | -3.55 | -1.98 | 12.00 | 10.30 | 4.90 | 5.18 | 7.47 | United States |
| BAE Systems | - | - | - | - | - | - | United Kingdom United States | |
| 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 | ||
- 1 2 3 4 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]
- 1 2 3 4 United Technologies merged with the Raytheon Company in April 2020 to form Raytheon Technologies (RTX Corporation).[12]
Geography
[edit]
In September 2018, PwC ranked aerospace manufacturing attractiveness: the most attractive country was the United States, with $240 billion in sales in 2017, due to the size of its industry (#1), an educated workforce (#1), low geopolitical risk (#4, #1 is Japan), strong transportation infrastructure (#5, #1 is Hong Kong), a healthy economy (#10, #1 is China), but high costs (#7, #1 is Denmark) and average tax policy (#36, #1 is Qatar). Following were Canada, Singapore, Switzerland and the United Kingdom.[14]
Within the US, the most attractive was Washington state, due to the best Industry (#1), leading Infrastructure (#4, New Jersey is #1) and Economy (#4, Texas is #1), good labor (#9, Massachusetts is #1), average tax policy (#17, Alaska is #1) but is costly (#33, Montana is #1). Washington is tied to Boeing Commercial Airplanes, earning $10.3 billion, is home to 1,400 aerospace-related businesses, and has the highest aerospace jobs concentration. Following are Texas, Georgia, Arizona and Colorado.[14]
In the US, the Department of Defense and NASA are the two biggest consumers of aerospace technology and products.[citation needed] 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;[citation needed] this marked a steep decline from the peak years during the Reagan Administration when total employment exceeded 1,000,000 aerospace industry workers.[15]
 | This section needs more citations. (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 the world aerospace market. By 1999 the U.S. share of the world market fell to 52 percent.
In the European Union, aerospace companies such as Airbus, Safran, BAE Systems, Thales, Dassault, Saab AB, Terma A/S, Patria Plc and Leonardo are participants in the global aerospace industry and research effort.
In Russia, large aerospace companies like Oboronprom and the United Aircraft Corporation (encompassing Mikoyan, Sukhoi, Ilyushin, Tupolev, Yakovlev, and Irkut, which includes Beriev) are among the major global players in this industry.
Cities
[edit]Important locations of the civil aerospace industry worldwide include Seattle, Wichita, Kansas, Dayton, Ohio and St. Louis in the United States (Boeing), Montreal and Toronto in Canada (Bombardier, Pratt & Whitney Canada), Toulouse and Bordeaux in France (Airbus, Dassault, ATR), Seville in Spain and Hamburg in Germany (Airbus), the North-West of England and Bristol in Britain (Airbus and AgustaWestland), Komsomolsk-on-Amur and Irkutsk in Russia (Sukhoi, Beriev), Kyiv and Kharkiv in Ukraine (Antonov), Nagoya in Japan (Mitsubishi Heavy Industries Aerospace and Kawasaki Heavy Industries Aerospace), as well as São José dos Campos in Brazil where Embraer is based.[16]
Consolidation
[edit]Several consolidations took place in the aerospace and defense industries over the last few decades.
Airbus prominently illustrated the European airliner manufacturing consolidation in the late 1960s.[17]
Between 1988 and 2010, more than 5,452 mergers and acquisitions with a total known-value of US$579 billion were announced worldwide.[18]
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.[19] Boeing bought McDonnell Douglas for US$13.3 billion in 1996.[20] Raytheon acquired Hughes Aircraft Company for $9.5 billion in 1997.[21]
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] Marconi Electronic Systems, a subsidiary of the General Electric Company, was acquired by British Aerospace for US$12.3 billion in 1999 merger,[22] to form BAE Systems.
In 2002, when