Retos de la Industria de la Aviación

www.renewables-made-in-germany.com

Actual challenges for international suppliers

in the (civil) aviation industry

Carola Muschke

(Manager EU Projects)

Hamburg Aviation

(Cluster association)

Actual challenges for international suppliers in the aviation industry

Framework: The world we are living in: Growth

Despite economic crises the

aviation sector is expected to

grow about 5% worldwide

during the next years! (IATA)


Consequence: worldwide emission reduction

ACARE: Vision 2020 A reduction in perceived noise to one half of current average levels.

A 50% cut in CO2 emissions pppkm (50% cut in fuel consumption: new aircraft of 2020)

80% cut in nitrogen oxide emissions (Nox)

European Commission: Flightpath 2050 75% reduction in CO2 emissions & a 90% reduction in NOx emissions.

The perceived noise emission of flying aircraft is reduced by 65% (relative to a typical new aircraft in 2000 )

IATA: Carbon-neutral growth Improvement in fuel efficiency of 1.5% per year from 2009 to 2020

A cap on net aviation CO2 emissions from 2020 (carbon-neutral growth)

A reduction in net aviation CO2 emissions of 50% by 2050, relative to 2005 levels

ICAO: Assembly Resolution A37-19 Global aspirational goals for the international aviation sector of improving 2% annual fuel efficiency and

stabilizing its global CO2 emissions at 2020 levels, and further work to explore the feasibility of a long-term global aspirational goal


Airbus’ eco-friendly endeavors

Airbus R&D investments are over €2

Billion of which more than 90 % have

environmental benefits.

Airbus is committed to the Flightpath

2050: 75 % CO2 emissions reduction/pppkm

90 % NOx emissions reduction

65 % Noise reduction

These targets were set by the ACARE

against the 2000 baseline.

“Looking ahead to the next five years, we remain committed to zero-carbon growth by continuing our environmental conservation efforts while ramping up production. Our goal is to achieve zero absolute growth in carbon emissions, water intake and solid waste sent to landfills, and zero revenue-adjusted growth in hazardous waste generation, by 2017.”

Boeing´s environmental policy:

Goals are shifted to suppliers


Consequences:

New energy efficient production, materials, technologies, green tracing & tracking gain importance

New business opportunities appear

Green innovations will be difficult to protect, as main suppliers work for all OEMs

Free innovation development vs. price orientated supply for market needs

Global sourcing also of limitted of raw materials

Long process from innovation to market entry

return of investment in 30 years, pre-financing and long term perspectives

(Image: Airbus)

Projects like CARE


1.Challenges: Suppliers need to…

…be smart & flexible enough in order to adapt to new & quickly changing developments/oportunities worldwide

be innovative & invest in R&D in greener aviation (light weight materials, fuel cell)

…network & take a look into the future, develop products for future needs

…deal with less raw materials, high fuel prices, ecological awareness of population, emission trading

…participate in national/regional R&D projects to acquire necessary funds

LuFo, H2020, bilateral projects with Mexico, etc. Support of SME via clusters

…cooperate with international players as labs, universities, OEMs or research centres and other suppliers for a common & integrated approach


Framework 2: Globalization & Appearance of new OEM

Situation today: OEM Duopoly:

Boeing

Airbus

Aprox. 50-50% market share

Situation tomorrow: Competition:

• Embraer

• Bombardier

• Comac

• UAC Russia

• Japan, …

„sporty game“ new competition and high pressure


OEM´s supplier consolidation

OEMs are influencing their large suppliers indirectly to

buy smaller ones because of fears that weaknesses in the

supply chain could undermine the aircraft makers’

ambitious plans to increase production.

Boeing and Airbus each have about 1,500 suppliers

ranging from so-called tier 1 companies providing aero

structures or equipment for jets to smaller tier 2 and

three groups making components.

OEM – 1.Tier – 2.Tier – 3.Tier – n.Tier


Consequences:

The current consolidation process is strongly connected to an increasing internationalization.

Pressure on the prices within the value chain, tough contracts, less profit, high administrative effort

Greater dependence on Tier 1 and increased risk sharing/pre-financing by suppliers.

New OEM, depend on established suppliers and their know-how, less competition

Innovations process is slowing down, investment only for market demand, less competition in R&D activities

Globalised supply chain, no national contract placing, also politically driven contracts in markets of strategic interest

SME do not want/can not go international, more and more mergers

More bigger companies threaten the existence of middle class businesses

Production in third countries, spreading of know-how

International market entries are a big challenge, lessons must be learned

New opportunities in growing markets


2. challenges: Suppliers need to…

…make sure no information is lost in the supply chain

(3Tier not knowing what OEM want/are planning)

…identify and contact the relevant Tier level above /right client worldwide/SME: cooperate!

…find their own role in a global market (consolidate, adapt to market needs)

… take advantage of the new possibilities the new OEMs offer! New clients, less dependence

…have a stable financial situation/access to credits/equity

…find new business cases

Find the right international partner

Successful suppliers are internationally acting companies

www.renewables-made-in-germany.com

Thank you for your attention!

[email protected]

Retos de la Industria de la Aviación

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