Smooth Landing: Successful Postmerger Integration
For successful integration, A&D companies must employ six critical building blocks.Read more
Squeezed by budget constraints and rising price pressures, aerospace and defense (A&D) companies are seeing their traditional tools for driving margin, improving working capital, and reducing operational costs lose effectiveness. In response, many have emphasized digital technologies and analytics to bring new capabilities to customers.
BCG’s A&D experts are authorities in the digital and supply chain spaces. They collaborate with many players in the A&D industry to develop a proven approach for minimizing risk and addressing scale in these efforts.
While the entire A&D industry has endured periods of change, the relative profitability of airplane OEMs, suppliers, and engine makers has remained steady for more than a decade. During that time, a strong aftermarket business has enabled airplane systems and component suppliers to achieve profit margins that far exceed those of airplane manufacturers.
But the industry is in the midst of a major transformation, marked by rapidly climbing production rates. The explosive growth of digital approaches and the growing importance of supply chain capabilities are challenging many players to keep pace.
One of the key questions facing the A&D sector now is: Will the present relationship among airplane OEMs, suppliers, and engine makers remain the same?
The current landscape points to two potential futures: status quo or a shift over the long-term.
In either scenario, BCG’s global team of dedicated A&D experts can help your organization seize new opportunities and take advantage of the dynamics of the industry.
BCG partners with A&D companies to help navigate the challenging landscape of the industry. We have acquired extensive experience working with leading players in A&D, including OEMs and suppliers of commercial and military aircraft, helicopters, space systems, electronics, engines, cabin interiors, and components.
A&D companies must fully harness the power of digital to remain competitive
Prime contractors must take action to systematically wring out costs from the supply chain.
A&D companies in the UK and elsewhere must prepare for the long-term effects of Brexit.
As US defense budgets shrink, contractors increasingly face a winner-take-all environment.Read more
A comprehensive Pentagon program promises significant changes for public- and private-sector hiring.Read more
Airplane manufacturers have an opportunity to capture a greater share of the industry’s profits by driving down supplier pricing.Read more