The following is an excerpt from a recently released Teal Group study analyzing regional aerospace industry competitiveness across the U.S. For the full report please click here.
AEROSPACE COMPETITIVE ECONOMICS STUDY
Based on the research conducted for this study, the states of Washington, Ohio, North Carolina, Kansas and Colorado offer the most competitive business environments for the manufacture of aerospace equipment. These states ranked high in a number of the evaluation categories and corresponding metrics.
Washington scored extremely well across all categories and was a top ten finisher in all but one. It ranked first in two categories: Economy and Industry, while finishing second in Labor & Education and Costs. It was ranked number five in Risk to Operations, Research & Innovation and Taxes & Incentives. Infrastructure was the only category where Washington fell outside the top ten.
Ohio had the second highest overall rank, with significant separation between it and the state of Washington. Demonstrating the substantial gap between first and second, Ohio finished in the top ten in only two categories, Labor & Education and Industry. It did finish in the second ten in a number of categories, thereby reinforcing its overall strong showing. These categories included: Economy, Risk to Operations, Infrastructure, Costs, and Taxes & Incentives.
The development of a new generation heavy ICBM to replace the old 15A18M (SS-18 Satan) began with a design study codenamed "NIR Argumentatsiya" at NPO Mashinostroyenie in 2007 that studied the possibility of designing a weapon on the basis of existing submarine-launched ballistic missile. The study proposed the use of the liquid fuel engines from the R-29RMU2 (SS-N-23 Skiff) and the warhead package of the failed R-39UTTKh Bark (SSNX-28).
Will Airbus and Boeing raise their single-aisle jetliner production rates to 70 per month? The industry has heard growing talk of these increases, which could come just a few years after the end of the decade. The current state of demand justifies these rates. But the current state of demand is based on an almost perfect confluence of market conditions. Here’s why that might not last.
In terms of units produced over the next 10 years, large turbofans account for 26.3% of the overall aero turbine market. Only turboshafts, at 23.5%, come among the other market segments. But when measured by retail value of engines delivered, the large fan segment is a whopping 67.7% of the total market, far ahead of the next nearest segment, Medium Turbofans, at just over 11%.
Please note that this article is from Teal Group’s 2017 World Military UAS Forecast. The 2018 UAS market forecasts will be released as follows: World Civil UAS Profile & Market Forecast -- mid-July 2018 World Military UAS Market Profile & Forecast -- mid-September 2018
In termsof worldwide military budgets, the unmanned aircraft systems (UAS) segment promises to be one of the most dynamic growth sectors, continuing the past decade’s rapid spending growth. The unclassified sector will continue to increase over the next decade, by about 36%, from current annual spending on RDT&E and procurement of about $9.6 billion in FY18 to about $13 billion in FY27. If operations and maintenance expenditures were to be added, these totals would be even greater.
Russia is still attempting to recover from the tumult of the 1991 dissolution of the Soviet Union. In contrast to the former Warsaw Pact countries such as Poland and the Czech Republic, Russia suffered from a far more serious and prolonged economic crisis, which in turn undermined attempts at military and industrial reform. This abated in recent years both due to an upturn in government revenues from oil exports as well as a rationalization of the tax system which has stabilized government revenues. Indeed, there has been enough of an increase in defense spending that the government announced some small but significant procurement efforts starting in the 2005 budget and continuing through the 2015 budget.
Strategy: Leonardo's management is continuing to work to change the corporate culture and improve the company's performance to reach levels achieved by European competitors. Its new industrial plan unveiled in February 2018 seeks to restart growth, improve financial performance and cut debt.
The business already has been restructured. Cost-cutting and divestitures of non-core businesses have improved profitability.To turn around the company, management has undergone repeated shakeups replacing many long-time managers.
Forecasting the size of the future UAV market is far more problematic, than in other areas of aerospace technology. There are several reasons for this. The most important is that UAVs are a revolutionary new technology. They are not an established technology (such as missiles, combat aircraft, etc.), where there are clearly defined requirements and established bureaucratic organizations that foster their procurement. While there has been a considerable amount of attention to UAVs in the press, and considerable experimentation with UAVs by many armies, there are still an enormous number of unanswered questions about the nature of UAVs and their operation that make any forecasting difficult.