The Most Impactful Trends in Aerospace Manufacturing

Megan R. Nichols,
Freelance Technical Writer

The aerospace sector has seen its fair share of pitfalls. From the recent string of accidents in many parts of the world and the incidents with the Boeing 737 planes in early 2019, the industry has been a bit bumpy. Aside from that, though, the sector has been doing as well as expected, with the demand for air travel growing as time goes on.

The aerospace sector has seen its fair share of pitfalls. From the recent string of accidents in many parts of the world and the incidents with the Boeing 737 planes in early 2019, the industry has been a bit bumpy. Aside from that, though, the sector has been doing as well as expected, with the demand for air travel growing as time goes on.

Fluctuating Oil Prices

Naturally, oil is integral with everything in the aerospace sector. When oil prices lower or rise, everything in the sector changes to fit the price. In 2016, suppliers kept oil prices at a low level that made airlines more profitable. With the profits came concern that customers wouldn't want to seek newer aircraft in the face of such low prices for the ones they already had.

While people are still eager for new aircraft, which we'll get in a moment, the fact that oil prices lowered created a cascading effect. There were profits, but also some concern for the future. Keeping an eye on all these different portions of the aerospace sector is crucial when estimating the trends as a whole.

Advancements in Technology

Better technology and knowledge of aircraft have led to more comfortable rides. Less noise in cabins and better interior designs have driven consumer demand to travel more by air. All these elements are also changing the way aircraft manufacturers work, creating new challenges in supply while still turning a profit with customer support.

Even the way maintenance takes place has changed to suit newer technology. There are a lot of different tests to undergo and systems to check on, all of which takes time and money to ensure they take place safely and correctly. All the preventive efforts in place also contribute to trends in the industry by spending more money, but also increasing safety and profits from consumers.

Demands for Replacements

One trend has remained consistent for the last several years: a demand for new aircraft. These next-generation planes will be more fuel- and energy-efficient and save many airlines a lot of money. With oil going up since the lower prices of 2016, airlines have halted a lot of upgrades to their current fleets because they're waiting for new aircraft.

This trend has a lot of elements at play. First, current aircraft aren't seeing updates, which could cause a downward swing in consumer flying and safety in the coming years. Second, these next-generation planes aren't even in use yet, so money in the sector is at a standstill while airlines save up for them. Lastly, once these new planes are in use, prices and demand will likely fluctuate, possibly impacting the oil sector as well.

Supply and Demand

Due to a combination of factors, there has been a growing demand for new planes of the same generation in recent years. Airlines have ordered more than 14,000 planes that are backlogged in delivery, a figure that's an all-time high. As manufacturers rush to meet these numbers for demand, suppliers quickly face shortages as well. The entire prospect is a vicious cycle that spirals before anyone can rectify the internal issue of waiting for the next-generation planes.

Robin Lineberger, leader of Deloitte's Aerospace & Defense, suggested manufacturers should focus first on strengthening their supply lines before trying to meet demand. Boeing and Airbus have already found there is a shortage of engines to meet their needs. While Lineberger has sound advice, a lot of the problem comes down to time. Waiting for new planes has caused problems with current ones, resulting in more demand and fewer supplies. These instances drive up demand for the next-generation aircraft, as well, creating a loop.

Trends to Watch

Steady, predictable trends result from material supplies. Aircraft parts and oil are two of the most significant factors to look at when considering trends in the aerospace industry. Another reliable aspect is consumer demand to fly rather than drive. With convenience and lowering airline ticket costs, consumers are garnering more profit for airlines than ever before. Unfortunately, this is where the more predictable factors end.

With airlines waiting for the next generation of aircraft, which will most certainly live up to the hype, they're updating their planes less frequently. This phenomenon causes the aforementioned cycle we mentioned, raising demand on current aircraft and creating chokeholds in supply chains. While the wait seems to be only getting longer for these new aircraft, the industry should finally start evening out with their implementation, and may even start to boom again for awhile.