Aerospace manufacturer

Market

Largest aerospace companies

Company	2022	2019	2018	2017	2016	2015	2014	Country
Lockheed Martin	8.35	8.55	7.33	5.90	5.55	4.71	5.59	United States Geography In September 2018, PwC ranked aerospace manufacturing attractiveness: the most attractive country was the United States, with $240 billion in sales in 2017, due to the size of its industry, an educated workforce, low geopolitical risk, strong transportation infrastructure, a healthy economy, but high costs and average tax policy. Following were Canada, Singapore, Switzerland and the United Kingdom. Within the US, the most attractive was Washington state, due to the best Industry, leading Infrastructure and Economy, good labor, average tax policy but is costly. Washington is tied to Boeing Commercial Airplanes, earning $10.3 billion, is home to 1,400 aerospace-related businesses, and has the highest aerospace jobs concentration. Following are Texas, Georgia, Arizona and Colorado. In the US, the Department of Defense and NASA are the two biggest consumers of aerospace technology and products. The Bureau of Labor Statistics of the United States reported that the aerospace industry employed 444,000 wage and salary jobs in 2004, many of which were in Washington and California, this marked a steep decline from the peak years during the Reagan Administration when total employment exceeded 1,000,000 aerospace industry workers. During that period of recovery a special program to restore U.S. competitiveness across all U.S. industries, Project Socrates, contributed to employment growth as the U.S. aerospace industry captured 72 percent of world aerospace market. By 1999 U.S. share of the world market fell to 52 percent. In the European Union, aerospace companies such as Airbus, Safran, BAE Systems, Thales, Dassault, Saab AB, Terma A/S, Patria Plc and Leonardo are participants in the global aerospace industry and research effort. In Russia, large aerospace companies like Oboronprom and the United Aircraft Corporation are among the major global players in this industry. Cities Important locations of the civil aerospace industry worldwide include Seattle, Wichita, Kansas, Dayton, Ohio and St. Louis in the United States, Montreal and Toronto in Canada, Toulouse and Bordeaux in France, Seville in Spain and Hamburg in Germany, the North-West of England and Bristol in Britain, Komsomolsk-on-Amur and Irkutsk in Russia, Kyiv and Kharkiv in Ukraine, Nagoya in Japan, as well as São José dos Campos in Brazil where Embraer is based. Consolidation Several consolidations took place in the aerospace and defense industries over the last few decades. Airbus prominently illustrated the European airliner manufacturing consolidation in the late 1960s. Between 1988 and 2010, more than 5,452 mergers and acquisitions with a total known-value of US$579 billion were announced worldwide. In 1993, then United States Secretary of Defense Les Aspin and his deputy William J. Perry held the "Last Supper" at the Pentagon with contractors executives who were told that there were twice as many military suppliers as he wanted to see: $55 billion in military–industry mergers took place from 1992 to 1997, leaving mainly Boeing, Lockheed Martin, Northrop Grumman and Raytheon. Boeing bought McDonnell Douglas for US$13.3 billion in 1996. Raytheon acquired Hughes Aircraft Company for $9.5 billion in 1997. BAE Systems is the successor company to numerous British aircraft manufacturers which merged throughout the second half of the 20th century. Many of these mergers followed the 1957 Defence White Paper. Marconi Electronic Systems, a subsidiary of the General Electric Company, was acquired by British Aerospace for US$12.3 billion in 1999 merger, to form BAE Systems. In 2002, when Fairchild Dornier was bankrupt, Airbus, Boeing or Bombardier declined to take the 728JET/928JET large regional jet program as mainline and regional aircraft manufacturers were split and Airbus was digesting its ill-fated Fokker acquisition a decade earlier. On September 4, 2017, United Technologies acquired Rockwell Collins in cash and stock for $23 billion, $30 billion including Rockwell Collins' net debt, for $500+ million of synergies expected by year four. Target Buyer Closed U.S. Bn Precision Castparts Berkshire Hathaway January 2016 37.2 Rockwell Collins United Technologies November 2018 30.0 Goodrich United Technologies July 2012 18.3 Orbital ATK Northrop Grumman June 2018 9.2 Sikorsky Lockheed Martin November 2015 9.0 B/E Aerospace Rockwell Collins April 2017 8.6 Alliant Techsystems' A&D Group Orbital ATK February 2015 5.0 Exelis Inc. Harris Corporation May 2015 4.75 Avio S.p.A. Aviation Business General Electric August 2013 4.3 Titanium Metals Corp Precision Castparts December 2012 3.0 Firth Rixson Alcoa July 2015 2.85 The Oct. 16, 2017 announcement of the CSeries partnership between Airbus and Bombardier Aerospace could trigger a daisy chain of reactions towards a new order. Airbus gets a new, efficient model at the lower end of the narrowbody market which provides the bulk of airliner profits and can abandon the slow selling A319 while Bombardier benefits from the growth in this expanded market even if it holds a smaller residual stake. Boeing could forge a similar alliance with either Embraer with its E-jet E2 or Mitsubishi Heavy Industries and its MRJ. On 21 December, Boeing and Embraer confirmed they were discussing a potential merger, with any transaction subject to approval from Brazilian government regulators as well as the companies' boards and shareholders. The weight of Airbus and Boeing could help E2 and CSeries sales but the 100-150 seats market seems slow. As the CSeries, renamed A220, and E-jet E2 are more capable than their predecessors, they moved closer to the lower end of the narrowbodies. In 2018, the four Western airframers combined into two within nine months as Boeing acquired 80% of Embraer's airliners for $3.8 billion on July 5. On April 3, 2020, Raytheon and United Technologies Corporation merged to form Raytheon Technologies Corporation, with combined sales of $79 billion in 2019. The most prominent unions between 1995 and 2020 include those of Boeing and McDonnell Douglas; the French, German and Spanish parts of EADS; and United Technologies with Rockwell Collins then Raytheon, but many mergers projects did not went through: Textron-Bombardier, EADS-BAE Systems, Hawker Beechcraft-Superior Aviation, GE-Honeywell, BAE Systems-Boeing, Dassault-Aerospatiale, Safran-Thales, BAE Systems-Rolls-Royce or Lockheed Martin–Northrop Grumman. Suppliers The largest aerospace suppliers are United Technologies with $28.2 billion of revenue, followed by GE Aerospace with $24.7 billion, Safran with $22.5 billion, Rolls-Royce Holdings with $16.9 billion, Honeywell Aerospace with $15.2 billion and Rockwell Collins including B/E Aerospace with $8.1 billion. Electric aircraft development could generate large changes for the aerospace suppliers. On 26 November 2018, United Technologies announced the completion of its Rockwell Collins acquisition, renaming systems supplier UTC Aerospace Systems as Collins Aerospace, for $23 billion of sales in 2017 and 70,000 employees, and $39.0 billion of sales in 2017 combined with engine manufacturer Pratt & Whitney.