Considerations for your business around the world
Passenger growth continues to increase as does global defense spending. The current backlog of aircraft orders will take about 6-8 years to clear even with companies hitting record production levels. The US A&D industry performed especially well in 2018, with exports totaling $151 billion, an increase of 5.8% from the previous year, accounting for 9% of US exports and yielding a $90 billion trade surplus. Although manufacturers have not been immediately hurt by tariffs, they may need to rethink their supply chains longer-term, especially those in the Asia-Pacific region. The trade situation continues to evolve rapidly, and companies should have a plan to deal with the potential ramifications of trade wars with various countries and areas around the world. Some companies may consider reshoring all or part of their supply chain as business conditions merit.
Considerations for your business in the United States
The domestic A&D industry is growing along with the overall economy and current unemployment rates are low. As a result, there is increased competition for talent, and A&D companies are under pressure to attract people to their industry. While companies have been creating more outreach programs to broaden the talent pool and include more diverse populations, there is still room for improvement. They industry should increase its appeal to young people to help establish a pipeline of future talent. One program that is helping companies identify promising talent early and guide their career choices is the FIRST Robotics Competition (FRC) for high school students. The aim of the international competition, entering its thirtieth year, is to inspire students to follow science and technology careers. FRC has become so successful that it has spawned similar type programs for elementary and middle school students. Companies can engage with the program in several ways, from funding teams to providing mentors and equipment. It is an opportunity for A&D companies to work closely with students and introduce them to the opportunities the industry has to offer.