Aviation: Smaller suppliers fight for manpower – 06/22/2023 – Market

Standing in a small booth among a row of other Japanese aerospace suppliers at the Paris Air Show, Yoko Konno is excited about the prospect of new orders for her company but worried about the long delays in getting titanium and the rising cost of Chemicals.

“It’s a challenge, but it’s also an opportunity to get more business,” said Konno, a section manager at Japan’s Asahi Kinzoku Kogyo that produces components and chrome plating.

Far from the fighter jet displays and high-profile aircraft orders that grabbed headlines at the world’s biggest air show this week, it’s the small and medium-sized vendors that dot the massive exhibition halls that are attracting major attention from senior aerospace officials.

While the heads of Airbus and Raytheon Technologies see improvements, labor shortages and delays are expected to remain a top concern for major suppliers and plane makers for more than a year.

The show is a test of supply chain resilience, with some small and medium-sized suppliers suffering from higher costs, while also seeing opportunities as the big players look for more sources to manufacture parts and components in order to to reduce risks.

“It’s chaos, but everyone is in the same boat,” said Liam Wiezak, Sigma Aero’s UK business development manager on the supply chain.

The scenario is raising concerns about whether planemakers Airbus and Boeing will be able to meet ambitious targets to increase production in order to meet delivery targets, especially after the event received orders for nearly 1,000 jets from just two airlines. indians.

“The headlines may be dominated by news of record new orders, but that’s irrelevant in the short to medium term,” said Louis Knight, analyst at research firm Third Bridge.

“Bottlenecks, lead times, supply challenges and labor shortages continue to plague the industry, so regardless of order intake, deliveries remain in full focus.”

Sigma Aero is seeing increased demand for the tubes, ducts and machinery it makes for engines and airframes, but the time needed to acquire certain raw materials has more than tripled, Wiezak said backstage at the event.

MATERIALS AND WORK

After the outbreak of war in Ukraine, plane makers are trying to find alternatives to Russia’s VSMPO-Avisma, a major producer of titanium for the aerospace industry, which is increasing demand and creating long waits to buy from other suppliers.

“Now all the people who used to buy from Russia are buying from our store,” said Nik Delic, president of New England Airfoil Products (NEAP), which buys US-made titanium.

VSMPO, for example, is the only supplier of a specific type of high-strength titanium for landing gear, despite increased production by US, Chinese and Japanese mills, Knight said.

“While their market share may be reduced, it is very difficult for companies like Airbus, Boeing and (engine maker) Safran to remove the dependency.”

Like parts and materials, labor shortages are a key problem for suppliers that cannot offer wages comparable to those of large aircraft manufacturers.

Patrice Arnoux, director of RecAero, said the parts and components maker has its own training program that takes just over a year to train workers for the company and others in France’s aerospace hub around Toulouse.

“The needs are huge,” he said, adding that RecAero is looking for 30 workers. “If we are looking for 30 people, imagine Airbus and Safran.”

Some small and medium-sized suppliers in India see opportunities in their local airlines’ jet buying spree.

Ankit Patel, founder and director of Ankit Fasteners, with about 450 employees, plans to double capacity over the next three to four years.

“There is a euphoria in India,” said Patel, whose company supplies fasteners like nuts and bolts to Airbus and Boeing.

“Now is the time to capitalize, to say yes, we have capacity on the ground, Airbus and Boeing, look at us, we can deliver.”