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May 19, 2020

Aerospace Manufacturing Maintains Positive Outlook for 2020, 2021, and Beyond

Small and medium-sized enterprises (SMEs) worldwide are feeling the sting of COVID-19. These firms, which are the bread and butter of the aviation industry, are seeing demand for their products diminish by the day.

Many SMEs are finding it increasingly difficult to remain optimistic while wondering if they can stay above the water for the remainder of 2020.

Even with the help of governments and the easing up of lockdowns and work-at-home orders, reopening a business can be costly. For SMEs, the lifting of restrictions can drain dwindling reserves even more.

Sanitized work stations, marking tape on factory floors and social distancing can get things up and running on the supply side. On the demand side, many SMEs are wondering whether they will still have customers once production resumes.

According to the German trade association BDLI, Airbus needs a production level of at least 50 percent of what was originally projected for 2020. If that’s not accomplished, “an entire domestic manufacturing infrastructure that has flourished alongside the European airframer over more than 40 years could collapse.”

The situation is not much different in other countries where Airbus is part of a “complex global supply chain for both big aircraft manufacturers.”

SMEs have been pressured to borrow money to purchase scarce raw materials and to finance cutting-edge automation technologies to comply with accelerated ramp-up schedules. Now, they are watching their end markets disappear because of extended stay-at-home guidelines and travel restrictions.

These companies are justifiably concerned about whether demand for their products will resume within the foreseeable future, if at all.

There is also worry about the total combined Airbus and Boeing output in 2020 and 2021. Will it be sufficient to achieve the 50 percent of 2019’s output which BDLI says is needed by member companies to remain up and running?

First-tier suppliers like AeroSystems and GE Aviation have slashed their workforces. Lost jobs threaten both production and supply. Many SMEs work with a single manufacturer for whom they customize their work and on whom they rely for the lion’s share of their income.

Outstanding customer payments for deliveries made before the current crisis combined with government assistance can help SMEs to hang on, at least for the short term. Meanwhile, the fate of these companies is being determined by a virus that will decide when and where people can fly.

Challenges notwithstanding, AMI has a positive outlook for 2020, 2021 and beyond.

As an essential business and an SME, Aerospace Manufacturing is maintaining production output with contingencies in place to prevent the introduction of or the spread of the virus on our production floor.

We are continuing to partner with other aerospace and aviation companies. Our manufacturing capabilities range from our Phillips-Licensed head and recess configuration product line to standard and custom manufacturing with built-to-print specials.

Aerospace Manufacturing also owns and operates a warehouse where we maintain a large stock of inventory for AOG with rapid turnaround and delivery times.

 

Procure Aerospace Fasteners from AMI

AMI is an AS9100 and ISO:9001 accredited, vertically integrated manufacturer of high strength, close tolerance aerospace pins, bolts, threaded rods, studs, screws and built-to-print specials.

Our clientele includes industry leading OEMs like Boeing, Bombardier, DLA, General Electric, Lockheed Martin, and Sikorsky.

We are a Philips Screw licensee that specializes in both large and small runs. Whether you need a prototype or large runs for your assembly line, you can rely on AMI for rapid delivery and short lead-times.

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