Aerospace Products & Parts Manufacturing Industry Profile

Companies in this industry develop and manufacture aircraft, aircraft components, and missiles and space vehicles. Major companies include US-based Boeing, General Dynamics, Lockheed Martin, Northrop Grumman, Raytheon Technologies, and SpaceX, as well as Airbus (the Netherlands), BAE Systems (the UK), Bombardier (Canada), and Leonardo (Italy). Many companies work primarily as subcontractors to the largest manufacturers.

The top countries with the highest aerospace exports in 2022 were the US, France, Germany, the UK, and Canada, according to Statista. The US contributed more than $100 billion in aerospace exports that year, making it the leading country in terms of sales value. The US, China, India, Russia, India, and Saudi Arabia accounting for about 60% of expenditure, according to the Stockholm International Peace Research Institute (SIPRI).

The US aerospace products and parts manufacturing industry includes about 1,800 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $250 billion.

COMPETITIVE LANDSCAPE

Demand is driven by military budgets 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 ...