supply chain excellence in the german aerospace industry
TRANSCRIPT
An initiative by
Supply Chain Excellence
in the German aerospace industry
Status quo and outlook for the German aerospace industry On behalf of the German Federal Ministry for Economic Affairs and Energy
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Supported by regional as well as state
associations, BDLI and SPACE Germany Political patronage
Supply Chain Excellence: Collaboration of aerospace industry
stakeholders throughout Germany
North Rhine-
Westphalia
Lower Saxony
Bremen
Hamburg
Schleswig-
Holstein Mecklenburg-
Pomerania
Brandenburg
Berlin
Saxony
Saxony-
Anhalt
Thuringia Hesse
Rhineland-
Palatinate
Baden-
Wuerttemberg Bavaria
Saarland
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Project: Supplier Survey
Positioning of the German Aerospace Industry
Assignment
by BMWi
Supplier Survey
Supplier Survey
• Respondents: 453
(rate=19.5%)*
• Classification in an ideal
supply chain
• Identification of structural
gaps
• Identification of target
markets and key challenges
• Identification of major
potential and need for action
* Survey excludes space, air traffic operations and infrastructure
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For the first time there is a survey of the total aerospace
industry‘s supply chain locations throughout Germany
more than 2.300 companies / locations
more than 100.000 employees
more than €30 bn turnover
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OEMs reduce vertical integration to focus on key technologies
Increasing shift of responsibilities from the OEMs and Tier-1
supplier into the downstream supply chain
• OEM focus on system
integration and key
technologies
• Few direct suppliers
acting as design & build
risk-sharing-partner
• Global Sourcing
• OEMs are vertically
integrated
• Many direct suppliers
with build-to-print work
packages (extended
workbench)
• Regional sourcing
Raw materials
Value added parts & assemblies
Large Scale Integration
Systems & Equipment
Build-to-print parts and assemblies
Aircraft OEM
To Date Future
OEM
Tier-1RSPs
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Number of company locations divided by number of employees
The vast majority of the German Aerospace suppliers is working
in small entities
0
50
100
150
200
250
< 25 25-50 51-100 101-250 > 250
Aerospace only
All sectors
N=350/369
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Self assessment of German supplier industry regarding tier level is not entirely in line with OEM‘s
requirements
German aerospace companies cover all commodities and all
supply chain levels
N=289
12 9
25 26 17
4 5
7 14
7 13 23
32
36
16 12
26
32
34
15
29
29
32
19
28 11
17
16 5
17 10
10
12 19
18
0
20
40
60
80
100
120
140
160
180
OEM System Supplier (Tier-1) Component Suppliers (Tier-2) Part Suppliers (Tier-3) Multi-Tier
Aerostructures Engines Cabin / Interior Systems Engineering / Testing / Qualification / Documentation / Research MRO Plant Construction /Jigs & Tools
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Significant increase of the number of Tier-2 suppliers with
equivalent reduction of the number of Tier-3
Self assessment of tier level today and in five years
Self-assessment of respondents, n=289-302
0%
5%
10%
15%
20%
25%
30%
OEM Tier-1 Tier-2 Tier-3 Multi-Tier
2016 2021
+13%
+5%
-13%
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Suppliers show strong connections to Airbus
Number of companies active in industry branches
N=247
147
166
47
31
73
124
42
62
49
60
10
7
4
8
4
6
34
9
31
13
2
11
3
36
7
21
21
26
7
11
3
2
11
1
9
4
38
5
25
44
22
10
15
0 50 100 150 200 250 300 350 400
Narrow Body
Wide Body
Regional
GA/BusinessAviation
Rotorcraft
Milit. Transport
Milit. Other
Milit. Fighter
Airbus Boeing Embraer Bombardier COMAC MRI Other
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German OEM and 1st tier suppliers are mentioned as most
important customers
Top 3 customers based on share of sales
N=264
0
20
40
60
80
100
120
140
160
Airbus DiehlGruppe
PremiumAerotec
LiebherrAerospace
LufthansaTechnik
Boeing RollsRoyce
Embraer MTU AeroEngines
Zodiac OHBSystems
BaainBw PFWAerospace
Bombardier COMAC
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German suppliers see the need for action in the acceleration of
the structural transformation
Most important challenges for the next five years
N=362
129
144
87
82
119
74
46
New Business Models
Internationalisation
Industrial Performance
Sales & Operations Planning
Cooperations
Financing & Contracting
Other
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Internationalisation has been identified as the biggest challenge
of the industry
The German aerospace industry is already present in most parts of the world
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Germany is still the most important target market
Alternative: Target markets for sales, manufacturing and procurement
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Sales
Manufacturing
Procurement
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Innovative power of the German aerospace industry
Self assessment regarding…
Self-assessment of respondents, N=207
94
29
-36
-127
-150 -100 -50 0 50 100 150
Innovative power (technology, finanzing)
Ability for risk sharing
Hoch GeringHigh Low
Innovative power (technology, financing)
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Know how transfer through high industry diversification e.g. in
automotive and mechanical engineering
Business activities in industry branches other than aerospace
N=399
169
184
62
71
101
71
15
48
81
0
20
40
60
80
100
120
140
160
180
200
Automotive Machine Building OpticalTechnologies
IndustrialElectronics
MedicalTechnology
Energy Non-AerospaceParts
IT/Communications Control Technology
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SCE Initiative supports companies within the industry
transformation
Six workstreams develop targeted projects and measures to support local companies
SCE Initiative Cooperations
Internationali-
sation
Sales
& Operations
Planning
New Business
Models
Financing &
Contracting
Industrial
Performance
An initiative by
Thank you!