Like nearly every other industry during the past few decades, the aerospace sector has faced tough market conditions and tremendous cost pressures as customers emphasize affordability over sophisticated features. As expected, these challenges were only exacerbated by COVID-19. In fact, independent reports suggest that two major aerospace companies have already declared more than $2B in losses between them, and one is potentially moving ahead with workforce cuts of up to 10% in an effort to reduce production costs and remain competitive.

The struggles aerospace majors are facing affect the entire value chain, which —at times —runs hand-to-mouth with a large reliance on cash flow and accompanying liquidity challenges. As a result, major changes are needed for the sector to operate profitably, encompassing supply chain, manufacturing, engineering, time to market and fleet and staff operations.

This paper analyzes these challenges in greater detail, examines the necessary changes aerospace companies need to make and explores potential solutions for take-off.

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