Northrop Grumman - Competitors

Northrop Grumman Competition

Now Viewing Northrop Grumman's competition in: Aerospace Products and Parts Manufacture

Recent Developments

Tanker Fleet Contract Competition Reopened - A US Air Force contract awarded to Northrop Grumman and European aircraft builder Airbus was recently reopened by Secretary of Defense Robert Gates. Boeing contested the $35 billion contract to supply the Air Force's next generation of refueling tankers. In March 2008, the Government Accountability Office said that Boeing should be given another chance to bid, citing Air Force errors in the original process.

Boeing, Airbus Rack Up Orders at Farnborough Airshow - Rival aircraft makers Boeing and Airbus registered nearly $54 billion worth of firm plane orders at the UK's Farnborough International Airshow. Airbus' 241 orders, worth nearly $37 billion, bested Boeing's 152 worth almost $17 billion. The new planes were ordered primarily by airlines in Asia and the Middle East and by plane leasing firms. The relatively cash-poor airlines of the US and Europe largely didn't participate in the buying spree.

Bombardier Enters Commercial Plane Market - Canadian aircraft maker Bombardier, typically known for its business jets, plans to introduce the 110-130 seat CSeries commercial aircraft in 2013. The CSeries is designed to compete with the smaller versions of Boeing's 737 and Airbus' A320, as well as Embraer's ERJ195. The CSeries will burn 20 percent less fuel than its closest Embraer competitor, and enjoy even better efficiency gains against the Boeing 737-600 and 700, according to Bombardier executives.

Competitive Landscape

Demand is driven by the US military budget and the overall economic climate, which affects airline traffic and demand for new commercial aircraft. The profitability of individual companies depends on technical expertise and the ability to accurately price long-term contracts. Large companies enjoy economies of scale in design, manufacturing, and purchasing. Small companies can compete effectively by concentrating on selected components and parts manufacturing for particular prime contractors. Increasingly, small companies are developing system integration capabilities as large firms outsource more aspects of contracts. Production of aircraft and major aircraft components is highly automated: average revenue per employee is over $300,000.

Full Industry Overview For Aerospace Products and Parts Manufacture

Aerospace Products and Parts Manufacture Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US aerospace products is forecast to grow at an annual compounded rate of 6.8 percent between 2008 and 2013.

Aerospace Manufacturing Growth Fairly Even

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.