Acting instead of reacting
After all, the only reason for life or a story is “What happened next?” With this thought, the American writer Jack Kerouac, who died in 1969, is currently omnipresent in the boardrooms and top echelons of industrial corporations around the globe.
The question as to just how and when the economic crisis – that is currently devouring sales and jobs – will escalate further is definitely chiseling many a worry line on the foreheads of aero industry managers. In response to market developments and the duress of its clients, Airbus, the manufacturer of passenger aircraft, has adjusted its delivery schedules for the A380 mega-jumbo for the years 2009 and 2010. Accordingly, only 14 aircraft will be delivered in the ongoing year. And US competitor Boeing has just sustained a first quarter slump in net results of 50% – down to USD 610 million. In view of the “marked deterioration” of the situation of the aerospace industry, the number of Boeing 777 aircraft built per month has been trimmed from 7 to 5 units, as the American company recently reported. Moreover, the plans for the slight production expansion of the Boeing 747-8 and 767 have been shelved for the time being.
And so the question is: What happens next? For Kerouac, the relative impossibility of answering this question was not legitimation for some passive “wait and see”, but mainly a point of departure for a critical definition of position, in order to take action. And in this context, strategies are currently emerging in which topics such as the optimization of cost structures, streamlined manufacturing sequences and improved logistics chains hold key tactical significance. A survey conducted by the aerospace magazine aerotec, TUHH (Hamburg University of Technology) and Lischke Consulting investigated the current situation and developments of suppliers to the aerospace industry (page 16). As the findings clearly indicate, procurement is capable of making a considerable contribution to reducing costs. The significance of outsourcing is reflected by the high level of purchasing expenditures gauged against the sales of the industry. And the volume of goods and services outsourced stands to rise by a considerable measure. According to the information provided by the survey participants, procurement costs are set to leap by almost 70% by the year 2015. Depending on company size, the outsourcing share measured against sales will increase up to 55%.
Most recently, Airbus inked a EUR 3 billion agreement with Russian partners for the long-term supply of titanium for aircraft construction.
In response to questions on future developments, VDE, the Association for Electrical, Electronic & Information Technologies, recently provided some surprising answers, including the fact that the engineering professions enjoy an excellent image in the meantime, taking third place among the most respected professions in Germany according to a representative VDE survey of 1,000 German citizens. In 2005, the engineering professionals had come in at fifth place in the ranking. These developments would warrant a substantial measure of optimism if these image gains were to be followed by an actual increase in junior engineers. After all, without creative and innovative engineers it will not be possible to master the future challenges of aircraft construction – reduced fuel consumption, lower noise and exhaust emissions, and alternative aero-engine concepts – with the commensurate competence and pioneering concepts urgently required to secure the future.
By the way: Physicians top the image listing, while politicians bring up the rear in the VDE survey. Information on the ranking of bankers and forecasters was not provided.
Weitere Beiträge
→ Shadows over Le Bourget 2009→ Who’s afraid of the “new Russians”?
→ What´s next?
→ Boeing opens Interiors Fabrication Facility in South Carolina
→ Boeing: Scott Carson retires at the end of 2009
