Aircraft Engine & Parts Manufacturing Industry Overview

Excerpt from Aircraft Engine & Parts Manufacturing Report

Companies in this industry manufacture aircraft engines and engine parts, as well as fuselage, propeller and rotor, landing gear, electric and hydraulic control, and avionic systems. Major companies include GE Aviation and Pratt & Whitney (US); Kawasaki Heavy Industries (Japan); Rolls-Royce (UK); and SAFRAN, Thales, and Zodiac (France).

Competitive Landscape

Demand for commercial, military, and private airplanes drives the aircraft parts industry. The profitability of individual companies depends on efficient operations and the ability to secure long-term contracts. Small companies can compete by specializing in high-end, low-volume, or hard-to-find parts, or in production of low-price commodity parts. Large companies have economies of scale in production and purchasing. The industry is highly concentrated.

Products, Operations & Technology

Makers of engines and engine parts make up about 55 percent of the market; manufacturers of non-engine parts account for the remaining 45 percent. Manufacturers usually specialize in producing parts for one of several major systems, including engine, fuselage, propellers and rotors, landing gear, electric and hydraulic control systems, and electronic systems (avionics). Primary subcontractors ("primes") that deliver major systems like engines or wings to the original equipment manufacturer (OEM), in turn subcontract much of the component manufacturing activity to smaller contractors.