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Continued Record Production Facing Possible Model Change Delays
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Continued record commercial aircraft production will be slowed slightly by model changes. New, clean sheet of paper models will be unlikely, but major upgrades of existing models will be more prevalent than ever before. However, original equipment manufacturers (OEMs) will have missteps during this process. Second and third tier suppliers will be most affected by the model changes. They will be hard pressed to meet OEMs’ production schedules as they change. Because aircraft components are a just-in-time business, it may force suppliers into shelf stocking. The real opportunities are in the Asia-Pacific countries. New aircraft programs are under development there and, in the short term, may be good programs for existing suppliers. Eventually, those opportunities may evaporate as OEMs turn to local suppliers.
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