Factors Impacting Aerospace Logistics Today

Factors Impacting Aerospace Logistics Today

The aerospace industry is always trying to make planes faster, and more efficiently, all while increasing profitability. Those actions have led to some wholesale changes in their supply chain. The demand for airplanes dived in early 2020, but that won’t last forever. Soon enough, the demand for reliable, high-quality aircraft will be back and the aerospace industry will respond. Within the industry, there are trends and factors impacting aerospace logistics today that they are working to overcome so they will be ready when demand increases.

Aerospace Firms Are Consolidating

Attempting to manage the complexities of the market and make gains, more aerospace companies are merging or partnering up. In the last few years, some major firms have come together rather than competing against each other. Some major mergers include Airbus and Bombardier coming together to design and produce the C Series, which was later renamed the Airbus A220. Not to be outdone, the other major American aerospace company, Boeing, partnered with Embraer Commercial and Defense.

Worldwide Ridership Is Up

In 2017, worldwide passenger traffic surpassed the projections. More people can afford to purchase plane tickets now than ever before, and they are taking advantage of it. The rise kept on with airline travel becoming safer and crash rates falling every year. The mobility of people is leading to an increase in demand by airlines looking to update their fleets.

Firms Are Using 3PL for Supply Chain Needs

Automobile manufacturers have been using third-party logistics to meet their supply chain needs for years. The aerospace industry has more stringent regulations and has been slower to make the change. Changes are coming though as more aerospace firms are turning to trusted aircraft shipping companies that can manage the supply chain as well. Logistics partners that have invested in aerospace expertise relating to transportation have made it easier for aerospace firms to make the switch.

Manufacturers Are Meeting Demand

An increase in passengers has led to an increased demand for airplanes. Airlines don’t want to miss out on revenue, especially in volatile times. They have to make hay when they can before the next disaster hits. The major firms have ramped up production, leading to a race for raw materials. Those that can get what they need faster can build faster and beat the competition in the marketplace. Meeting demand and not interrupting the supply chain might be the biggest factor impacting aerospace logistics today.

What Can DTS Do For You?

Whether you're a company looking to improve one facet of your supply chain, your entire supply chain, or simply looking for a transportation and logistics consultation, we can help.

Get In Touch
Copyright © 2022 – 2024 , Diversified Transportation Services. All Rights Reserved