WASHINGTON STATE AEROSPACE
BEYOND LIMITS : ENVISIONING TOMORROW ’ S AEROSPACE SUPPLY CHAIN
ROBIN TOTH Governor ’ s Sector Lead Director of Aerospace at Washington State Department of Commerce
There is a lot of uncertainty heading into the year 2024 with internal and external factors affecting the health and resiliency of the aerospace supply chain . Even with strong increases in new aircraft orders signaling growth in the upcoming years , optimism around the growth is held in check by caution from ongoing risks .
Supply chain disruptions , talent shortages , and inflation are likely to be the biggest challenges for the aviation industry in the future . Cost pressure and inflation may remain high and could further reduce the operational efficiency and margins of aerospace companies . And , the supply chain may expect elevated uncertainty from various potential global disrupters .
These companies must proactively prioritize strategies for flexibility in the workforce and take calculated steps toward modernizing manufacturing capabilities if they want to survive in this increasingly challenging environment . The challenges of the supply chain have added a new layer of intricacy to an already complex system . Ongoing disruptions continue to affect the industry ’ s manufacturing plans and , as a result , companies should focus on increased resilience and visibility by :
» Diversifying the supplier base for critical supplies . This allows companies to avoid concentration risk and creates an agile supply chain that can weather economic pressure and disruptions .
» Investing in workforce development opportunities to ensure that they have the right workforce for the future .
» Building relationships with suppliers from other countries by considering export activities which could enhance their global reach .
Washington State has one of the most diverse , complex and integrated aerospace supply chains in the world . With more than 1500 companies invested in aerospace , space , uncrewed systems , advanced air mobility and new sustainable aviation technologies , Washington remains the clear leader and is poised to continue to innovate in the future .
This complex system is composed of multiple subsectors of companies that work together from early conceptual design of materials and parts , through high-volume manufacturing to final assembly , and finally first commercial flight . This system includes the following tiered supply chain :
» Tier 1 – provision of engines , control systems , braking and landing gear , and interiors » Tier 2 – integrated and manufactured subassemblies » Tier 3 – manufactured parts and components
While we are very fortunate to have a large number of suppliers in Washington , the supply chain also relies on companies across the globe . This creates enormous complexity in coordination and delivery , and can affect productivity . What are those challenges that we need to address to help guide our supply chain in the future ?
1 . Long lead times for raw material deliveries , disruptions in manufacturing and assembly , and delays in transporting finished products . 2 . Inventory requirements due to post pandemic demand .
3 . Declining workforce due to aging workers , turnover rates and competition for new talent that understands new and emerging equipment and technologies .
4 . Financial challenges due to initial investments in new equipment and technologies .
5 . Collaboration across complex supply chains that are separated geographically and culturally .
72 NORTHWEST AEROSPACE NEWS
PNAA ADVANCE / 2024