Four Challenges That Are Affecting the Aerospace Industry

There are challenges in every industry sector, but with the aerospace industry having a larger international footprint than any other sector, it is understandable that it is facing a multifaceted and complex future.

From some points of view, the skies may seem encouraging. We have seen high demand for air travel, a backlog of new aircraft orders, innovative technology and a resurgence in the business aircraft sector and much more. As technology and other factors change, develop and grow the following 4 challenges are expected to play a significant role in shaping the future of the Aerospace Industry.

Supply Chain and Digitalisation

The aerospace supply chain often spans the entire globe, and which incorporate closer collaboration than ever, tight deadlines and an extreme high level of digitalization. A recently published study has revealed another side to this in fact. It clearly indicates that the ongoing changes of digitalisation across all levels of the supply chain is one of the factors most important in meeting future challenges.

1 in 3 companies are still working offline, with email, fax and telephone being the most widely used means of collaboration. Another 41% of businesses have at the least digitalised their collaboration with customers, however, those who ignore this will often stumble into many obstacles. The vast majority of suppliers want a stronger relationship with customers.

Is digitisation the answer to better relationships and a more streamlined supply chain?

close-up of bicycle crank set with chain isolated on white background

Cyber Security

Within any industry, cybersecurity is one of the biggest challenges, especially with the continuing development of technology. Almost every industry works with some sort of technology.

The aerospace industry, being strongly linked to the defence industry has always had a focus on promoting strengthening policies. The cyber threat to the aerospace industry is real and it is current. While it is generally consumer-facing breaches who make the headlines, other organisations in the industry are continuously under attack by sophisticated parties who use tools such as cloud computing and viruses. The need to amp up investments in cyber tools will always be a big challenge to the industry which is why their connection with the defence industries is important.

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Politics are a constant problem for any industry, but especially for the aerospace industry. Articles have been erupting everywhere with headlines telling tales of loss of jobs in the sector, and a fear of losing the industry edge after Brexit, however, this is a real concern and a challenge facing the industry.

Many businesses are concerned about the impact of Brexit and are always concerned for the political impact these decisions have on certain sectors. Uncertainty over the terms and conditions of Brexit has raised questions about the next steps. This article raises further questions.

Almost 90% of Aerospace Industry demand is from overseas, meaning the sector is one of the biggest UK goods exporters. This involves exposure to many political entities internationally, and we can’t help but wonder about the effects this may cause.

The China Risk

The Chinese have recently developed a new wide-bodied, long-range plane to rival Boeing and Airbus, the CR929.

This joint venture with Russia and subsidised by the Chinese government is set to capture the massive Asian market and could well destabilise the commercial aerospace industry as we currently know it.

Christopher Dean, the Managing Director, spoke about this issue:

“While at a NWAA (North Western Aerospace Alliance) meeting, it was announced that China is in the advanced stages of building their own wide-bodied aeroplane, the CR929, to satisfy the Asian market and beyond. This is going to be heavily subsidised and supported by the Chinese government. The impact of this announcement on the audience was immediate and the realisation that the market had moved was palpable”



Data Requirements

On a larger scale, the computer power required for supply chains is enormous, and the ability to scale is critical to success. The amount of data stored on these systems is of impressive magnitude and with the explosion of demand and supply across all chains, maintaining its capability is a constant challenge. To overcome this challenge, companies must make sure to use the best technologies to support scalability and performance. After all, the aerospace industry is data-intensive.

Business person analyzing financial statistics displayed on the tablet screen

Here at Dean Group, one of our strongest customer bases and relationships is within the aerospace industry, and while we relate to the challenges they face, we like to assist in delivering only the highest quality of products and manufacturing processes.


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