Aerostructures revolution continues

Citation

(2006), "Aerostructures revolution continues", Aircraft Engineering and Aerospace Technology, Vol. 78 No. 2. https://doi.org/10.1108/aeat.2006.12778baf.011

Aerostructures revolution continues

Aerostructures revolution continues

Keywords: Aircraft, Composites

Continuing revolution in both industry structure and technology is predicted by Counterpoint Market Intelligence (CPMIL) in Aerostructures 2005, their second annual review of the world aerostructures market.

One major change since the publication of CPMIL’s 2004 study is an increase of 22 percent in the amount of work outsourced from the primes. This now stands at 49 percent and has been caused principally by the sale of Boeing Wichita to Onex. There have also been some smaller transactions, such as Boeing’s sale of Arnprior. The report also identifies an increased amount of subcontracting and states that this is growing with every new programme.

Overall the market remains very fragmented and a major consolidation phase has yet to happen. However, this is still expected to come about, not least because the two largest independent players are both owned by private equity companies, making their ownership inherently volatile. The report examines the range of strategies being adopted by structures companies and looks at possible consolidation patterns.

On the technology front, composites continues to be a growth market, expanding faster than the aerostructures sector as a whole. The potential of this technology is illustrated by the Boeing 787, an aircraft that promises to usher in a step change in performance. Much of this derives from its composite fuselage, the benefits of which include cost/price reduction, reduced weight and a cabin pressurised to 6,000 ft.

The report’s authors predict that B737 and A320 replacements will almost certainly have composite fuselages and that both these aircraft will be launched sooner than the manufacturers are saying. They also expect much of the B787 technology to read across to the B737 replacement.

While the prospects look rosy, the report states that much of the growth will be in major components, such as composites fuselages together with composite wing boxes, spars and ribs. Work of this nature will require significant investment in automation and early commitment to programmes. High oil prices are not expected to retard the growth of composites, rather prospects will be enhanced by the even greater incentive to reduce the weight of aircraft structures.

The production of structures continues to migrate towards low cost countries, partly to meet strategic sourcing and offset requirements and partly to take advantage of lower labour costs. Despite this, Western manufacturers are likely to remain competitive for assembly, highly automated production and complex components. Some production also stays in the West for security of supply reasons and where the state has invested in the programme.

In addition to analysis of markets and trends, Aerostructures 2006 profiles 142 primes and suppliers, with up-to-date news and market intelligence. CPMIL Director, George Burton, said, “Our 2004 report stimulated a very impressive level of response from the industry. A large number of senior people are sending us comments and ideas, providing valuable input for our new publication.”

Details available from: Counterpoint Market Intelligence. Tel: 44 (0)1722 718265 or 44 (0)1300 341281.