OPPORTUNITY
The Aerospace Industries Association (AIA) reported that year-end totals for Aerospace Sales in 2007 were $231.88 billion and for 2008 were $241.66 billion -- a 4.2% increase. Additionally, during 2008, Aerospace employment also experienced an annual gain and sales growth is still expected to continue into 2009 and beyond. Further, AIA also reports that "despite an uncertain economy, the outlook for the U.S. aerospace industry remains strong" and "the industry's key advantages position aerospace as one of the few U.S. manufacturing industries with visible long-term demand growth." This growth represents significant opportunity for auto-focused Michigan manufacturers to supply the aerospace industry.
Michigan has 155 direct aerospace manufacturers and suppliers of products and parts. These firms employ 6,826 people and have annual sales of $810 million, as compiled by Oakland County Planning and Economic Development.
The Aerospace industry offers a natural fit for Michigan manufacturers, especially those that have worked in the automotive industry. New market demand conditions and Michigan's current forays into the arena offer an opportunity for increased market share.
NEXT STEPS
Before embarking on any diversification strategy, it is important to learn more about the industry to determine if your company's capabilities match the demand. Mapping your capabilities and competencies to the needs of the market, identifying the supply partners and business model options and the investment required are crucial to a successful strategy (for instance, most manufacturers will expend $12,000-$16,000 and six to nine months in order to attain AS certification, which is required to supply the aerospace industry).
To learn more about the aerospace industry, consult the following resources. If you would like to pursue this opportunity, please email your contact information and any additional questions or information that may be helpful in providing assistance to diversification@michigan.org.
ADDITIONAL RESOURCES
The Michigan Economic Development CorporationSM (MEDC)
The MEDC offers one-stop business assistance to best match businesses' needs with Michigan's opportunities. MEDC's Defense Contract Coordination Center (DC3) is dedicated to helping companies successfully bid for defense and homeland security-related hardware and R&D contracts.
MichiganAdvantage.org/dc3
Michigan Aerospace Manufacturers Association (MAMA)
MAMA is a consortium of Michigan AS9120, AS9100 and NADCAP certified manufacturers, specifically created to address the problem of the aerospace industry's lack of available capacity by devoting Michigan's manufacturing available capacity, advanced technology and expertise to create the industry's premier supply base. Capabilities of MAMA companies include CNC machining, heat treating, welding, stamping, hydroforming, plastic injection molding, laser and waterjet cutting, cold, warm and hot forming and NDT inspection.
michman.org
Aerospace Industries Association (AIA)
AIA represents the major aerospace and defense manufacturers and suppliers of civil, military and business aircraft, helicopters, unmanned aerial vehicles, space systems, aircraft engines, missiles, material and related components, equipment, services and information technology.
aia-aerospace.org
Michigan Manufacturing Technology Center (MMTC)
MMTC provides Michigan's small- and medium-sized manufacturers with operational assessment, process improvement training, mentoring services, Web site technical assistance and market diversification tactics. MMTC's Market Diversification Program assists companies in aligning their core competencies and strengths with new markets and customers, leading to increased sales and sustainable growth.
mmtc.org
UPCOMING EVENTS AND OPPORTUNITIES
Paris Air Show
October 2009
Orlando, Florida
The NBAA Annual Meeting and Convention is the premier event for business aviation. Business aviation business gets executed and business aviation news gets announced.
Details at nbaa.org/events/amc/2009