Expect Asia-Pacific To Emerge As Stronger Aerospace Production Force.jpg

Expect Asia-Pacific To Emerge As Stronger Aerospace Manufacturing Force

Vietnam, Malaysia, Thailand and Indonesia could be posed to leap in competitive manufacturing ranking in just a few years.

SINGAPORE--Did you ever doubt that aerospace is a global business? If so, consider that there’s “no aircraft in production that has content exclusively from an OEM’s region,” says Subhranshu Sekhar Das, Frost & Sullivan’s VP and practice head aerospace.

While North America produces the greatest number of aircraft of any region and Europe is number two, says Sekhar, speaking at Aviation Week Network’s Aerospace Manufacturing Asia-Pacific conference on Oct. 31, “Asia-Pacific will soon become a major production region with the emergence of Comac and Mitsubishi as regional OEMs.”

Latin America, ranked third, has its fortunes tied to Embraer, says Sekhar.

He points out that by manufacturing competitiveness, China is number one, followed by the U.S., Germany, Japan, South Korea, U.K., Taiwan, Mexico, Canada and Singapore, based on a 2016 global survey by Deloitte. By 2020, Frost & Sullivan the U.S. will be number one, followed by China then Germany--and projects Vietnam, Malaysia, Thailand and Indonesia will join the top 15 countries by manufacturing competitiveness.

China’s labor costs have grown at a 17% compound annual growth since 2010, says Sekhar.

While labor costs are lower in emerging economies—sometimes 3-5 times—Sekhar says aerospace OEM involvement in emerging markets has been limited by reasons such as the complexity of technologies, high regulatory and safety requirements, the importance of protecting intellectual property, and sometimes intimate relationships between military and civilian technology.

TAGS: Asia Pacific
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