Manufacturers with diverse portfolios can face crises by making the right adjustments
After steady growth in commercial air travel and increasing demand in the military aircraft market, the COVID-19 pandemic reshuffled the global markets and brought air travel to a standstill. The reduction in air travel forced airlines to halt or reduce flights, cut down their operating fleets, and revise acquisition plans. Diminished demand for new commercial aircraft interrupted future acquisition plans and led to cancellations of existing orders.
Global Challenges
Challenges like these tend to have an overwhelmingly negative effect on the global market. However, it’s important to note that they affected different segments of the aerostructure industry to varying degrees. Wide-body commercial aircraft tend to be the most affected market segment, while the development and production of military aircraft are often the least affected. This includes the production of the F-35 and the development and production of new helicopters supporting new vertical lift programs. Business aircraft operations and sales continue, as they tend to be less affected by crises. At the same time, air cargo has seen dramatic growth as airlines and cargo operators increase production to meet increasing demand.
These situations affect the supply chain and have the most profound effect on first and second-tier suppliers. However, manufacturers with more diversified portfolios can find opportunities amid the crises. IAI is one such company with proven capabilities in both military and commercial aerostructure design and production.
IAI has always been prepared as a certified Tier 1 partner for supplying wings, conformal fuel tanks, fuselage, and empennage parts for the F-35, F-16, F-15s, and T-38 aircraft. Recent new orders are expected to continue production, addressing the new demand. “In the face of challenges, we made immediate adjustments to comply with government and health regulations,” said Jacob Rozmann, IAI VP and General Manager of the Aero-Structures Division. “We worked extra shifts to reduce the number of workers in the plant and avoid a plant shut-down. We were able to fulfill our commitments and continue on-time delivery of the highest quality hardware to customers. Throughout such periods, we continually communicated with our customers and suppliers and kept them current.
New Opportunities for Suppliers
Changes in the market and a drive to reduce costs may open new opportunities for suppliers to join such programs. IAI invests in introducing new technologies and processes that meet the market demand for continual improvements and cost reduction. IAI has consistently presented strong financial results.
“New vertical lift and helicopter programs offer aerospace suppliers more growth opportunities,” said Batia Kahana, Director of Marketing and Business Development LAHAV Aero-Structures Division. “IAI is part of the Bell Textron V-280 Valor team and an elite supplier of Sikorsky for the UH-60 program. IAI is looking forward to participating in future new vertical lift and helicopter programs,” she added. In December 2022, the US Army selected Bell’s design for the future vertical lift aircraft to replace thousands of UH60s helicopters in the US Army service.
As a versatile aerospace manufacturer, IAI has developed manufacturing capabilities and produces aerostructures and components for leading military aircraft manufacturers and rotorcraft, commercial, and business aircraft. Investing in innovative, cutting-edge manufacturing technologies and automation through risk-sharing, IAI solidified its position as a trusted, dependable long-term partner in leading aerospace programs worldwide.
