Commercial Production Takes Sting Out of Government Cuts in Aerospace

On September 1st, 2011 the International Association of Machinist and
Aerospace Workers contacted President Obama in order to help preserve
the Aerospace and Defense Industry and its workforce from substantial
downsizing that defense budget cuts will bring. But it may have been too
little too late as a combination of issues such as the culmination of
the Iraq war, Afghanistan winding down and an unprecedented national
deficit at hand were enough for the congress to agree last month on
approving cutting military spending by $350 billion over the next 10
years. The fiscal 2012 defense appropriated bill that has already been
passed by the U.S. House of Representatives is a testimony to what’s
coming with $119 billion already trimmed from defense spending,
representing a steep 24.6% decline from 2011 .

This and similar news stories have led to a
contraction in defense industry orders from aerospace manufacturers. The
aerospace manufacturing sector is feeling the pinch as a significant
percentage of their revenues stem from government contracts. Yet,
commercial sector orders are set to rapidly expand with new commercial
orders and the increasing demand within emerging markets. A news-worthy
bright spot within this sector has been Delta Airline’s order for 100
Boeing narrow-body jets in a deal estimated to be worth more than $8.5
billion. The ramping up of orders is helping to improve the economic
outlook for not only commercial aircraft manufacturers but also
aerospace suppliers who provide services to such as aerospace painting,
non-destructive testing and anodized coating.

At
first glance, the Delta deal would seem to be an uptick for the
American aerospace industry. Upon closer observation, the deal appears
to be no more than a stabilizing counter in light of more recent news
that American Airlines opened up their purchasing options to foreign
aircraft manufacturers and awarded EADS the “largest aircraft order in
history” for 260 Airbus A320s. But everyday new silver linings arise
within America’s commercial aerospace sector as new global markets open
up. One juggernaut of a market that has recently begun to open up its
aerospace industry to private participation is India. Boeing has already
established a strong presence in Indian aerospace manufacturing by
partnering with Hindustan Aeronautics Limited (HAL). The HAL partnership
coupled with $1 billion worth of orders that Boeing expects to receive
from India by 2017 exemplifies the American aerospace industry’s
resilient ability to find opportunities for growth that will offset
dwindling government defense contracts.

Honeywell Aerospace Launches RFID Rollout


Honeywell Aerospace, one of the largest parts suppliers to Airbus and
Boeing, announced that it has selected TegoView software to improve its
supply chain processes and expedite its new RFID parts tagging program.
In addition, it has selected well-known integrator ID Integration to
perform the installation. This all comes as welcome news for RFID
vendors who hope to see more and more industry giants adopting their
technologies.


Honeywell is rolling out its RFID tagging program across their
aerospace organization. By using TegoView’s workflow, Honeywell is
streamlining its parts tagging process and assuring data accuracy on
RFID tags being attached to components through efficient database
connectivity and defined templates that reduce user input errors.


Airframe manufacturers are requiring their suppliers of repairable,
high value parts and systems to attach high memory RFID tags to these
assets. This allows all participants in the supply chain to trace the
progress of assets and access information stored on them throughout
their lifecycle from manufacturing to maintenance.

Timothy
Butler, Tego, Inc. president/CEO told us, “This is definitely a big
deal. Honeywell Aerospace is going far beyond just meeting an industry
spec. It is making changes that will improve efficiency and security.
They are using tags with our chips in them, but the software is
compatible with any chip/tag that meets the standard. Our software is
very applicable to aerospace and other OEMs. It can also be used in 15
different readers, today. “Honeywell has been absolutely great to work
with…very proactive,” he continued.


“They actually worked with us by giving us suggestions on how to make
the software more useful. They had a lot of great ideas. They were
always saying: “Can it do this or can it do that?” That’s the kind of
relationship you want with your customer!”

“Aircraft components
need to be easily traceable with full transparency throughout a
product’s supply chain and lifecycle with the ability to verify their
pedigree at all times,” said Jim Evans, Honeywell ISC UID/RFID program
manager. “After evaluating and testing TegoView’s ability to write and
read RFID tags on parts, we are convinced we can meet the stringent
requirements of our customers.

“TegoView is being deployed
across many Honeywell locations where we are setting up workstations
that we can configure for desktop and mobile use,” Evans continued. “One
of our teams quickly learned the tagging process using defined
templates and then walked the next group through the process.
Pre-populated mobile and fixed readers with the same TegoView interface
make tagging parts an extremely efficient operation.”

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Developments in Aerospace Manufacturing Services

Keeping
in mind the present needs and demands the entire global expertise and
know-how that is involved in aerospace manufacturing services calls for
an industry expansion in the forthcoming years. Furthermore, the
economic develop also adds to its evolution. It has also been observed
that the civil aviation vertical is astounded by the extent to which
travel has evolved. In order to complement this situation, the military
and defense fields too are now focusing on its own requirements. In its
totality, the global aviation industry has exceeded $100 billion USD
because of stiff competition with an objective to be the best in the
industry.

The
aerospace product and parts manufacturing services have undergone
several layers of changes. Formerly, aviation engineers used pen, paper
and other effective geometric devices to come up with innovative
aircraft and parts designs. Today with the help of advanced computing
technology engineers have been able to substitute any and every time
consuming procedures with the quick and innovative ones. The modern day
software technology has allowed aerospace manufacturing services
companies to process and design aerospace designs efficiently.
Simultaneously, it also has testing processes to be conducted.

Keeping
in mind the requirements of durability and longevity aircrafts today
need to go through certain inspection procedures. These procedures
ensure that the aircrafts perform consistently in harsh weather beaten
conditions and that the body parts needs not wear out. A reason why most
aerospace manufacturing services companies make use of steel and
aluminum for aero parts and products.

Today leading aerospace
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parts, products and components need to comply with the quality
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Civil Aerospace to Drive The Global Aerospace Market

The global aerospace industry has witnessed an impressive growth
during the past few years, with civil aviation segment emerging as the
major contributor towards the growth of the industry. The US and
European countries have been the dominant markets of this industry and
are acting as catalyst for the overall industry growth. During tough
economical conditions also, the aerospace industry has shown an upward
trend in line with the strong market developments in the US, says our
new research report “Aerospace Industry Forecast to 2013”. Further, the
global aerospace and defense market is expected to reach US$ 889 Billion
by 2013, growing at a CAGR of over 5% during 2011-2013.

Our report identifies that, the US represents the
biggest aerospace market. The US is followed by the EU, Canada, and
Japan. However, developing nations, such as China, India, Mexico, and
Brazil are expected to emerge as potential marketplaces for aerospace
products in near future. In fact, with 36% of the backlog of large
commercial aircraft, the Asia Pacific region is rapidly becoming the
largest market for new orders.

However, for past few years, the
defense segment has been dominating the global aerospace industry on
account of increasing global security concerns due to the threat of
terrorist attacks, regional political issues, and huge expenditure by
the government towards the defense segment. However, now, the civil
aerospace has gained the kinetic energy and is posting higher growth
than military aerospace.

“Aerospace Industry Forecast to 2013”
also provides information of the key competitors in the market along
with their business information and areas of expertise. The report shows
a highly concentrated structure of the market, with the top players
dominating the market. It provides segment level analysis of the
industry along with emerging trends that may shape up with the
betterment of economic conditions. The research will help consultants,
industry analysts, and vendors to get an in-depth knowledge of the
current, past, and future performance of the industry. The report
provides an extensive research on the recent trends of the aerospace
industry trends to provide cutting edge market intelligence.

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