By John Schmidt and Jeff Wheless, Accenture
The commercial aerospace industry is at a crossroads—there’s uncertainty, but there’s also plenty of opportunity. On one hand, global revenue is expected to climb by at least 3% each year, putting us back on track to pre-pandemic levels. This growth is powered by a boom in aftermarket services. But it’s not all clear skies ahead. On the other hand, North America and Europe are pausing their growth trajectories, and the recent machinists’ strike at Boeing, while resolved, will have lingering effects. Add supply chain hiccups and quality issues to the mix, and we’ve got some hurdles to clear.
Despite all this, the industry is gearing up for a big year, as long as companies play their cards right. Companies need to balance short-term tactics with long-term investments in digital transformation and operational toughness. Here are four recommendations for the commercial aerospace industry in 2025:
1) Strengthen the Supply Chain
A robust supply chain is essential for maintaining production schedules and meeting customer demands. Enhancing supply chain visibility helps companies predict and mitigate risks associated with parts shortages and delivery delays. Advanced analytics and sensor technology can monitor the health of the supply chain in real-time, providing insights that lead to better decision-making. For example, digital twins allow companies to model supply chain dynamics and test the impact of changes before implementing them in the real world. This can be particularly useful in managing complex global supply chains that are susceptible to a variety of risks, from tariffs to trade disputes.
2) Focus on Operational Resilience
In today’s volatile world, operational resilience is more than just a buzzword—it’s a survival strategy. Aerospace companies must develop flexible business models to respond to crises and disruptions swiftly.
This involves not only having robust contingency plans but also training teams to execute these plans effectively. For example, scenario planning and simulation exercises can prepare organizations for different types of disruptions, from natural disasters to sudden economic downturns. This also includes diversifying supply chains to avoid over-reliance on any single supplier or region, which can be a critical vulnerability during global disruptions.
2) Prepare for Next-Gen Manufacturing
The aerospace sector relies heavily on skilled professionals who are not only technically proficient but also capable of innovation and leadership. Addressing the looming skills gap requires a twofold approach: enhancing current employee skills and attracting new talent.
Building a culture of continuous learning and innovation will help companies attract and retain talent, ensuring long-term digital transformation and operational resilience. Initiatives like continuous learning programs, partnerships with universities, and apprenticeships can enrich the workforce. By proactively equipping employees with role-specific training and hands-on experience, they will safely and effectively meet future manufacturing demands. Moreover, the importance of a motivated workforce cannot be overstated. Companies need to ensure fair labor practices, competitive wages, and safe working conditions to maintain employee satisfaction and productivity. Engaged employees are more likely to contribute to their fullest potential, driving the company’s growth and innovation.
4) Invest in Digital Transformation
The digital revolution is sweeping through every industry, and aerospace is no exception. Embracing digital technologies isn’t just about keeping up; it’s about staying ahead. Digital tools can streamline operations, enhance product development, and revolutionize customer interactions. For instance, using AI and machine learning can help predict maintenance issues before they occur, reducing downtime and increasing aircraft availability. Blockchain technology can secure supply chain transactions, ensuring that every component is traceable and authentic. Companies that integrate these technologies effectively will not only see operational efficiencies but will also build trust with customers and regulatory bodies.
Success stories like Embraer and Rolls-Royce show that digital transformation goes beyond technology; it’s about changing the corporate culture to embrace innovation at every level. These companies have not only invested in technology but have also cultivated environments where new ideas are encouraged, and innovation is the norm.
Looking Ahead
2025 is shaping up to be a transformational year for the commercial aerospace industry. Despite the challenges, companies that embrace digital, strengthen their supply chains and look after their workforce will emerge stronger and more competitive. The journey ahead is challenging, but with the right strategies, the commercial aerospace industry can soar to new heights, achieving unprecedented levels of efficiency and innovation.
Read more from John Schmidt:
New Aerospace And Defense Entrants Spark Change
Research Report: Navigating New Altitudes in Commercial Aerospace
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