MONTREAL, 2 Dec. 2013. Globalization, consolidation, and complexity are key trends in aerospace market today, reveals Guy Hachey, president and chief operating officer (COO) at Bombardier Aerospace in Montreal during the Aerospace Innovation Forum.
Hachey addressed an audience of roughly 1,000 aerospace industry professionals at the Forum in Montreal. Hachey is seeing greater globalization of demand and supply in the aerospace industry. This trend prompted Bombardier Aerospace not only to open facilities in Mexico and Morocco, but also to design and build products to meet the needs of a variety of locales and missions.
Another key trend in aerospace, Hachey mentions, is the tiering and consolidation of the supply base. Airframe manufacturers seek to work with a smaller number of Tier 1 suppliers, which is driving Tier 1 suppliers to acquire complementary businesses in an effort to become a true one-stop shop, he describes. In turn, Tier 1 suppliers are opting to work with a smaller set of Tier 2 suppliers. This trend causes concern over complacency among Tier 1 suppliers, resulting in slower and/or fewer product innovations; however, he adds, new market entrants, such as Garmin, are helping to ensure a consistent pace of innovation.
Lastly, Hachey is seeing a trend toward increased complexity—not only in aircraft and aircraft systems, including avionics, but also the regulatory environment. Aerospace materials, engines, software, and interfaces are growing in complexity, he explains.