Navigating turbulence in the aerospace supply chain

Shaun Rowley, Managing Director of ANT Industries, observes the global resurgence of the aerospace industry with cautious optimism. Since mid-2020, the sector has witnessed a gradual but steady growth, buoyed by the recovery of air travel demand following the challenges posed by the COVID-19 pandemic. By December 2023, demand had surged back to 97 percent of pre-pandemic levels, and projections suggest an annual growth rate of 5 to 10 percent until 2026, with approximately 15,700 new aircraft orders on the books. However, despite this positive outlook, the industry grapples with a host of challenges.

Commercial-aerospace OEMs and suppliers face a myriad of issues, including quality control concerns, evolving regulations, talent shortages, and geopolitical uncertainties. Of particular concern is the persistent strain on the supply chain. Data analysis from McKinsey’s study indicates a significant uptick in supply-chain-related discussions among aerospace executives, with mentions of terms like “shortages” increasing by a factor of 18 during earnings calls in 2022 compared to 2014. This trend reflects a growing unease surrounding supply chain performance, exacerbated by disruptions since 2020.

“At ANT Industries, we’re witnessing first-hand the unprecedented growth in the global aerospace supply chain. Our brimming order book reflects the confidence our clients have in our ability to deliver quality products amidst this booming industry landscape.” comments MD, Shaun Rowley.

“The current boom in the global aerospace supply chain presents both challenges and opportunities, and at ANT Industries, we’re seizing the moment. Our commitment to excellence and capacity expansion has positioned us as a trusted partner in the aerospace sector.”

Supply chain constraints have hindered OEMs’ ability to procure critical components essential for aircraft manufacturing, ranging from raw materials to electronics. Consequently, production lines have experienced slowdowns or halts, leading to an aging fleet and deviations in repair and overhaul schedules. Compounding the issue is the fact that many suppliers cater to both original equipment and aftermarket needs, necessitating trade-offs in production allocation.

To address these challenges effectively, ANT Industries advocates for a comprehensive approach focused on three key areas: leveraging data and analytics, fostering collaboration and capability building, and re-evaluating supply chain risk paradigms. By harnessing data analytics, companies can gain deeper insights into supply chain issues, enhance transparency across sub-tiers, and establish early-warning systems to pre-empt disruptions. Additionally, investing in cross-functional collaboration and talent development, particularly in root cause analysis and clear communication channels, can bolster organisational resilience and response capabilities.

Furthermore, ANT Industries emphasises the importance of reassessing supply chain risk management strategies, advocating for a proactive approach that treats quality control as a delivery imperative and engages in strategic table-top exercises to simulate responses to potential geopolitical shocks. By embracing these strategies, commercial-aerospace companies can navigate the turbulence of the supply chain more effectively, ensuring smoother operations and clearer skies ahead.