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Aerospace manufacturer

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An aerospace manufacturer is a specialized company or individual. They are involved in designing, building, testing, selling, and maintaining complex machines. These machines include aircraft, aircraft parts, missiles, rockets, or spacecraft. Because these technologies are so advanced, it is considered a high technology industry. The term "aerospace industry" is a broad category that covers everything from civil aviation to space exploration.

A321 final assembly (9351765668)
A321 final assembly (9351765668)

To ensure safety and reliability, manufacturers follow strict processes. Most production is done according to type certificates. These are official documents issued by a government body. They also follow Defense Standards for military equipment. The process involves designing the machine and then manufacturing parts. Once built, the machines must undergo rigorous testing. Manufacturers also provide MRO, which stands for maintenance, repair, and overhaul.

ConsolidatedWomenWorkers
ConsolidatedWomenWorkers

This service ensures that aircraft remain safe for continued use.

The industry is divided into several distinct market segments. In 2015, aircraft production was valued at US$180.3 billion. This market was split into different types of vehicles. Airliners made up 61% of that value. Business and general aviation accounted for 14%. Military aircraft represented 12%, while military rotary wing aircraft made up 10%. Civil rotary wing vehicles accounted for the remaining 3%. The broader global aerospace industry was worth $838.5 billion in 2017. This total included satellites, space technology, and missiles.

AIM in clean room
AIM in clean room

History shows that the industry is constantly changing through consolidation. Consolidation happens when companies merge to become one larger entity. Between 1988 and 2010, over 5,452 mergers and acquisitions were announced. These deals had a total known value of US$579 billion. In 1993, a famous meeting called the "Last Supper" occurred at the Pentagon. Defense Secretary Les Aspin told contractors that there were too many suppliers. This led to massive mergers in the military-industry sector. For example, Boeing bought McDonnell Douglas for US$13.3 billion in 1996.

Many countries maintain large industrial bases for aerospace. In 2017, the United States led the world with $408.4 billion. France followed with $69 billion, and China had $61.2 billion. The United Kingdom and Germany also held major positions. These top ten countries represented $731 billion of the global industry. The United States is particularly attractive for manufacturing. It has a large industry and an educated workforce. However, it also faces high costs and average tax policies.

A321 final assembly (9351765668)
A321 final assembly (9351765668)

Large corporations dominate the global revenue rankings. In 2022, RTX Corporation reported $67.1 billion in revenue. Airbus followed closely with $66.6 billion. Lockheed Martin reported $66.0 billion in revenue. Boeing reported $61.8 billion for the same year. These companies operate in many different countries. For instance, Airbus has major operations in France, Germany, and Spain. Boeing is closely tied to Washington state in the United States. This state is home to 1,400 aerospace-related businesses.

The industry relies on a complex global supply chain. In the past, manufacturers were vertically integrated. This means they owned almost every part of the process. Today, many use a "Tier 1" supply chain model. This model was pioneered by the Bombardier Global Express. In this system, limited partners help fund development costs. This allows companies to share the financial risks of building new technology. Major suppliers like United Technologies and GE Aerospace provide essential components. This interconnected system allows for the creation of incredibly advanced flight technology.

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