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This is marketing research on the Aircraft Engine and Parts industry and can include information on the background, market structure, definitions, competitors, trends and developments of aircraft engine and parts and is related to other topics such as planes, repairs, maintenance and accessories.
Table of Contents
Table of Contents
1 Background
2 Market Structure
3 Market Metrics
4 Industry Players
5 Trends and Developments
6 Sources
Background
The “Aircraft Engines and Engine Parts” industry includes companies engaged in manufacturing aircraft engines and engine parts. The aircraft and parts industry (SIC 372) covers aircraft (SIC
3721), aircraft engines and engine parts (SIC 3724), and aircraft
equipment and parts not elsewhere classified (SIC
3728).
Market Structure
The top manufacturers include major U.S. aircraft engine manufacturers which are generally divisions of larger companies such as Pratt & Whitney as part of United Technologies or GE Aircraft Engines as a part of General Electric Company, as well as Rolls Royce Group based in Britain. There also exist many smaller, niche players worldwide.
Market Metrics
Aircraft Engines and Engine Parts
Prospects for future sales of U.S.-manufactured aircraft engine
“hushkits” and replacement engines suffered a setback with the
adoption by the European Union (EU) in April 1999 of legislation
aimed at restricting the operation of aircraft modified with
that equipment. The regulation is scheduled to take effect in
May 2000. It freezes at current levels the number of hushkitted
and certain reengined aircraft that may be registered and operated
in the EU even though those aircraft are compliant with the
most recent and stringent aircraft noise standards established by
the International Civil Aviation Organization (ICAO).
No aircraft manufactured in Europe are affected by the regulation.
The restrictions fall on U.S. manufacturers and other
U.S. companies that produce and install hushkits and replacement
engines. The EU legislation also affects U.S. air carriers,
whose fleets contain many more hushkitted and reengined aircraft
than do European carriers. The restrictions imposed by the
regulation reduce the market for noise-modified aircraft and
thus the resale value of such aircraft. As of November 1999, the
United States was continuing to seek the EU’s withdrawal of its
regulation.
One program designed to revitalize the U.S. general aviation
industry, the GAP Program, has implications for manufacturers
of small aircraft engines. Managed out of NASA’s Glenn
Research Center, this program is coordinated by the FAA and
performed jointly by NASA and Contractor-Led Project Teams
formed by industry. The goal of GAP is to develop affordable
propulsion systems for general aviation light aircraft and consists
of two elements. The goal of the Intermittent Combustion
(IC) Engine Element is to reduce engine prices in half while
substantially improving reliability, maintainability, ease of use,
and passenger comfort. The primary goal of the Turbine Engine
Element is to reduce the price of small turbine engines by a factor
of 10.
On the military side there is the Integrated High Performance
Turbine Engine Technology (IHPTET) Initiative, a joint
DOD–NASA–industry effort to provide significant performance
and operational improvements for current and future
military engines. IHPTET is considered a model program
because the technology it is developing is dual-use technology.
Growth and Trade Projections for Aircraft Engines and Parts
The value of shipments in the aircraft engine and parts industry
was expected to increase about 10 percent in 1999. Shipments
are expected to remain level through 2004 as the market
for regional jets replaces that for twin-aisle commercial aircraft.
Exports increased about 23 percent in 1998 compared
with 1997 and were expected to increase 0.7 percent in 1999
as regional jets are being manufactured outside
the United States. Foreign production of regional jets is
expected to absorb some of the parts previously consumed by
domestic producers.
Aircraft Parts and Equipment
The aircraft parts and equipment subsector (SIC 3728) covers
parts and equipment other than engines and their parts. It
excludes avionics—navigation and communications equipment
for aircraft. Some of the products included are fuselage
assemblies, wing assemblies and parts, rudders, landing gear,
wheels, brakes, fuel tanks, propellers and rotors, and their
parts. Other equipment covered includes dusting and spraying
equipment, ejector seat devices, and aircraft arresting
device systems. Small individual parts are included in SICs
other than 372 and 376 but are not covered elsewhere in this
publication.
Electronic commerce has come to U.S. aerospace industry
manufacturers and distributors of aircraft parts, including some
engine parts. Suppliers to major aerospace contractors increasingly
may contact their customers and suppliers on the Internet.
Aircraft owners and mechanics may order parts at an increasing
number of Web sites.
A central concern of U.S. manufacturers of aircraft parts and
equipment is the apparent trend among U.S. airframe producers,
both civil and military, to source more components offshore.
Parts suppliers and labor unions charge that the increased
foreign content of “U.S.” aircraft deprives them of contracts and
jobs. Manufacturers of airframes and major components (such
as engines) justify offshore sourcing as a necessary element in
maintaining access to foreign markets for complete aircraft.
U.S. airframe manufacturers also cite the substantial number of
components U.S. parts producers provide to foreign airframe
manufacturers.
Although the number of firms in the industry expanded 5.6% in the five year period between 1997 and 2002 as measured by the U.S. Department of Commerce, the number of employees actually decreased by 14.3% (see chart below). That number likely expanded in the years after 2002 as the leading manufacturers such as Boeing and Airbus had significant plane orders and sales of parts and engines probably increased apace with plane orders through mid-decade.
At the same time, revenues rose 6% overall, with the value of shipments for U.S. aircraft engines and parts growing to over US $24 billion by 2002 (see chart below).
Top Ten Exporters (in USD thousands) includes aerospace and associated equipment and parts:
Country 2001 2002 2003 2004 2005
U.S. 44,688,612 43,876,404 39,598,602 42,095,103 49,793,290
France 17,209,629 17,169,665 19,219,687 21,945,554 24,460,067
Germany 17,174,529 16,313,247 16,419,450 17,978,212 19,273,154
Canada 8,554,233 7,416,979 7,908,625 7,257,128 7,980,447
Italy 2,751,140 3,869,782 2,701,757 3,380,324 3,404,577
Brazil 3,553,510 2,798,690 2,049,892 3,371,301 3,302,832
Spain 1,342,552 1,846,354 1,739,200 2,704,673 2,809,857
Singapore 850,356 936,658 1,191,481 1,245,870 1,505,207
Japan 1,729,388 1,294,581 1,497,873 1,170,224 1,411,390
Netherlands 599,057 586,510 789,097 983,464 1,085,295
Top Ten Importers (in USD thousands) - includes aerospace and associated equipment and parts:
Country 2001 2002 2003 2004 2005
Germany 13,979,227 11,862,803 13,082,675 16,689,337 19,441,485
USA 21,180,142 18,063,413 17,057,916 16,558,525 16,568,718
France 6,172,356 6,711,546 8,151,716 9,939,777 11,113,185
China 4,542,722 4,051,120 4,460,636 4,989,641 6,561,195
Canada 5,046,346 4,522,881 3,437,852 3,619,663 5,336,813
India 260,727 969,185 1,154,706 1,569,892 4,998,920
Japan 1,970,300 3,723,920 4,409,678 4,143,318 4,822,429
Singapore 3,805,102 3,136,258 3,879,668 3,990,189 3,751,226
Spain 1,805,533 1,782,085 1,608,830 2,583,371 3,211,721
Italy 3,404,350 3,987,422 2,874,144 2,829,489 3,006,917
Industry Players
The General Electric Company was the world's largest manufacturer of aircraft jet engines during the initial years of the 2000s. GE Aircraft Engines is part of GE Aviation, which had US $16.8 billion in revenues in 2007.
Rolls-Royce Group PLC in Britain UK has over 100 militaries as its customers. The company reported sales of over 4 billion UK pounds in sales in its aerospaces segment in 2007.
Pratt & Whitney is a division of United Technologies Company and also owns Sikorsky aircraft, a manufacturer of military and commercial helicopters. In 2008, the company reported revenues of US $13 billion, profits of over $2 billion and employed over 38,000 workers.
Other key players from past and present in the market includes the following:
- BMW (Germany)
- Bristol Engine Company (UK)
- Bristol Siddeley (UK)
- CFM International (USA and France)
- Continental Motors (USA)
- Curtiss-Wright (USA)
- Daimler-Benz (Germany)
- de Havilland (UK)
- Ford Motor Company (UK)
- Hispano-Suiza (France)
- Honda (Japan)
- Kuznetsov (Russia)
- Avco Lycoming (USA)
- Napier & Son (UK)
- Pratt & Whitney Canada (Canada)
- Rotax (Austria)
- Snecma Moteurs (France)
- Turboméca (France)
- Volvo Aero (Sweden)
- Westinghouse (USA)
The majority of key players are from the the U.S. and Western Europe.
Trends and Developments
Growth and Trade Projections for Aircraft Parts and Equipment
As with engine and parts manufacturers, U.S. deliveries of aircraft
parts and equipment were expected to rise in 1999 compared
with 1998 but remain stable for the
period 2000–2004. During the latter period, exports should rise
about 2 percent per year as foreign regional jet aircraft manufacturers’
requirements increase, partially offsetting decreased
demand by U.S. aircraft manufacturers.
Sources
- U.S. Department of Commerce
- Corporate Websites
- US Census Bureau
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