|Last Quarterly Update:||11/25/2013|
|SIC Codes:||3724, 3728|
|NAICS Codes:||336412, 336413|
|Industry Overview||Trends & Challenges||Industry Forecast|
|Quarterly Industry Update||Call Prep Questions||Website & Media Links|
|Business Challenges||Financial Information||Glossary & Acronyms|
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).
Engines and other component parts make up about 40 percent of the global aircraft and parts market, according to Global Industry Analysts. Canada, France, Japan, the UK and the US are all major sources of aircraft parts.
The US aircraft engine and parts manufacturing industry includes about 1,000 companies with combined annual revenue of about $65 billion. Aircraft sales are a major growth driver.
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: the 50 largest US makers of engines and engine parts account for about 95 percent of segment revenue; the 50 largest US makers of other aircraft parts and equipment account for about 85 percent of revenue for that segment.
Exports are an important source of revenue and include replacement parts for US-made airplanes that are being used ...
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