First Research US Industry Profile

Already a subscriber?  Login >>

View Sample
Aircraft Engine & Parts Manufacturing
SIC Codes: 3724, 3728
NAICS Codes: 336412, 336413
Last Quarterly Update: 8/22/2022
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 (both based in the US); as well as Kawasaki Heavy Industries (Japan), Rolls-Royce (UK), Safran (France), and Thales (France).
Top exporting countries include Canada, Japan, Mexico, and the UK. The industry is dominated by large players that typically maintain manufacturing operations around the world. Demand for aircraft parts is driven by new orders for commercial, military, and general aviation aircraft, as well as maintenance, repair, and overhaul (MRO) services.
The US aircraft engine and parts manufacturing industry includes about 1,350 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $74 billion.
Competitive Landscape
Rapid changes in technology and geographic shifts in demand are affecting how and where aircraft engine and parts manufacturers compete. Amid passenger and cargo demand growth in emerging markets, companies are forging global partnerships to share risks, costs, and sales, and to increase their manufacturing and support services footprints. Technologies including additive manufacturing, the internet of things (IoT), and big data are increasingly important competitive differentiators. Engine and parts companies aim to leverage these and other technologies to reduce aircraft operating costs and improve their own cost structures.
Exports are an important source of revenue and include replacement parts for US-made airplanes that are being used and serviced abroad, as well as aircraft engines and parts. Top exporting countries include Canada, Japan, Mexico, and the UK. For imports, Francs, Canada, Japan, and Singapore dominate the market. The US industry is highly concentrated: the 50 largest US makers of engines and engine parts account for about 95% of segment revenue; the 50 largest US makers of other aircraft parts and equipment account for about 85% of revenue for that segment.
Competitive Advantages:
Risk Sharing - Aircraft engine and parts companies can better compete by forging collaborative relationships with customers and suppliers. Aircraft manufacturers want suppliers to share in the costs and risks inherent in developing new products.
Additive Manufacturing - Aerospace companies are making significant investments in additive manufacturing to reduce development and production costs and to improve product design and quality.
Global Reach - Aircraft engine manufacturers are investing in global networks of maintenance, repair, and overhaul (MRO) facilities to service their engines and enhance product life cycle revenue. Asia, particularly China and India, is a key focus of MRO operation expansion.
Data Analytics - Aircraft engines and parts manufacturers are improving efficiency and adding value by leveraging machine learning and advanced analytics. Sensors built into components collect data that can be used to anticipate repairs earlier in the maintenance cycle, which decreases airline customer downtime and provides additional product lifecycle revenues for manufacturers.
Companies to Watch:
CFM International, a joint venture between General Electric and France's Snecma (part of Safran), manufactures a line of six aircraft engine models. GE manufactures CFM International's engine cores and assembles roughly half of its engines; Snecma makes the fans and rotors and assembles the rest of the engines.
GE Aviation is one of the world's largest providers of jet engines and services for commercial and military aircraft. It also offers replacement parts and maintenance, repair, and overhaul (MRO) services.
Pratt & Whitney, a division of United Technologies (UTC) manufactures and maintains commercial, military, and business jet engines. Commercial air giants Airbus and Boeing are the company's largest commercial engine customers. Military offerings include engines for the F-35 Lightning II and the C-17 Globemaster III military transport.
Rolls-Royce Holdings makes commercial and military engines for a broad customer base, including airlines, corporate and utility aircraft and helicopter operators, and armed forces.
Safran manufactures aircraft/rocket/space engines and propulsion systems for fixed-wing aircraft and rotorcraft. The company serves both the civilian and military sectors, working alone or in partnership with other major companies.
Products, Operations & Technology
Makers of engines and engine parts typically get the bulk of their revenue from parts and accessories for civilian aircrafts, accounting for about 35% ... plus:
Sales & Marketing
,
Finance & Regulation
,
Regional & International Issues
,
Human Resources
Also includes the following chapters:
Quarterly Industry Update
,
Industry Indicators
,
Business Challenges
,
Trends and Opportunities
,
Call Preparation Questions
,
Financial Information
,
Industry Forecast
,
Industry Websites
,
Glossary of Acronyms

Historical Profiles (PDF format)

05/30/2022
02/28/2022
11/15/2021
08/23/2021
05/24/2021
02/22/2021
12/21/2020
11/16/2020
10/12/2020
07/06/2020
10/14/2019
04/15/2019
01/21/2019
10/15/2018
07/02/2018
03/19/2018
12/11/2017
09/11/2017
06/12/2017
03/06/2017
11/14/2016
08/15/2016
05/16/2016
02/08/2016
11/02/2015
08/03/2015
05/04/2015
02/02/2015
11/10/2014
08/18/2014
05/26/2014
03/03/2014
11/25/2013
09/02/2013
06/10/2013
03/18/2013
12/10/2012
09/17/2012
07/02/2012
04/09/2012
12/19/2011
09/26/2011
06/13/2011
03/14/2011
11/22/2010
08/30/2010
05/24/2010
02/22/2010