Higher production requires technology investment

Financial services company Deloitte (www.deloitte.com) has released its 2018 global aerospace and defense (A&D) industry outlook, analyzing the sector’s performance and identifying key trends ahead.

In their executive summary, authors Robin Lineberger, head of Deloitte’s A&D industry practice, and research leader Aijaz Hussain forecast global A&D 2018 revenues to increase by 4.1%, nearly doubling last year’s 2.1% growth.

The researchers expect commercial aircraft sector revenues to grow 4.8% as production level forecasts remain high to work off the record-high backlog. The 14,215 aircraft on order at the end of 2017 equates to 9.5 years of current annual production.

This is good news, reinforcing the comments made in our 2018 forecast issue, but it also highlights the pressures being put on the supply chain and program management to meet production ramp-up.

Putting figures to the ramp, Deloitte’s aerospace experts estimate 1,585 commercial aircraft will be produced in 2018, a 7.0% increase from 2017 and 24.4% increase compared to five years ago. In the next five years, the experts expect 1,788 airliners will be produced, a 20.8% increase from 2017.

But the pressure doesn’t stop there. With original equipment manufacturers (OEMs) anticipating the need for 36,780 aircraft to be built throughout the next 20 years, Deloitte’s aerospace experts expect annual production to increase by 25% during the next decade.

Lineberger writes, “With higher production requirements for both aircraft and defense equipment in the future, it is critical for A&D companies to invest in new and advanced technologies. This will help the industry to be at the forefront of manufacturing, enhancing productivity and efficiency.”

What a perfect segue for IMTS – The International Manufacturing Technology Show, Sept. 10-15, 2018 at McCormick Place, Chicago, Illinois – where attendees can be immersed in new and advanced manufacturing technologies (https://www.imts.com/show/info.html).

Exhibit halls at the show become pavilions, each with a focus: abrasive machining/sawing/finishing, additive manufacturing, controls and CAD-CAM, EDM, fabricating and lasers, gear generation, environmental/cleaning equipment, metal cutting, tooling and workholding, and quality assurance.

To learn more about the technologies, The IMTS Conference – jointly produced by AMT – The Association For Manufacturing Technology and GIE Media – offers more than 70 technical sessions. The presentations, Sept. 10-13, 2018, cover topics in manufacturing process innovations, alternative/additive manufacturing, plant operations, quality/inspection/metrology, and systems integration/Industry 4.0/IIoT.

Hannover Messe USA is co-locating four events at IMTS complementary to metal working, including Integrated Automation, Motion & Drives (IAMD) USA. At IAMD USA, manufacturers can explore innovations for boosting the efficiency and reliability of modern production processes (www.hannovermesseusa.com/trade-shows/iamd-usa).

GIE Media is hosting the Integrated Industries Conference, Sept. 11, 2018, bringing industry experts to address manufacturing concerns, new trends, and best practices that relate to technology in motion, drive, and automation; integrated industries; and Industry 4.0/Internet of Things (www.hannovermesseusa.com/education/iic).

If your company is seeking a competitive edge or greater productivity, IMTS offers the best opportunity for technology shopping in North America. – Eric

June 2018
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