Aerospace Opportunities in Europe and the U.S - Term Paper Example

Aerospace Opportunities in Europe and U.S. Introduction Aerospace are companies that are involved in makingand developing equipment such as space, vehicles, missiles, rockets,and other related equipment. Europe and U.S. have the largest aerospace industries in the world. According to the operations carried out in these countries, which depend on aerospace industry such as air transport, the aerospace industry is expected to operate for a long term perspective. However, the policies that are established to govern the operations of aerospace industries in Europe and U.S. are the ones to determine the performance and perspectives of the industries in the coming decades. This study aims at providing an overview of aerospace opportunities in Europe and U.S., its importance, and competitive stand in the international aerospace market. Aerospace opportunities in Europe and U.S. The success of aerospace industries in both Europe and United States is all about hiring competent and skilled personnel. When Winston Churchill asserted that the future empires will be kingdoms of mind, he was not wrong. In the modern world, there are struggles for talent in almost all manufacturing sectors that depend on creative thinking and innovation. The aerospace industry is one of such industries since it requires high competent and skilled personnel1. Shortage of talents in this industry is putting new programmes and the entire industry at risk. For such companies to remain competitive, they must acquire appropriate recruitment strategies as well as being creative for them to retain and attract top talent. One of the characteristics of the aerospace sector is strong volume growth. The production of the sector is estimated to reach 20,000 aircraft for the next twenty years. Therefore, for the sector to achieve this objective, it must attract and retain highly competent engineers and both skilled indirect and direct labour. For instance, before the end of the next decade, Europe will be expected to employ more than 12,000 top qualified engineers each year. However, the European aerospace industry is facing various challenges to attract and retain top talents. Consider the following figures. Every year, European technical universities produce more than 120,000 engineers, but only 10,000 engineers show interest of working within the aerospace industry. In the United States, around 73,000 engineers graduate each year, but the students who complete the engineering degrees are less competent to match the required skills2. So far, both European and United States aerospace industries are absorbing most of its engineers from other countries such as Russia and India. In general India and China produce the most talented engineers in the world. There are several trends that are underway and may challenge European and United States aerospace companies to recruit quality engineers in the next centuries. These trends are; competition, demographics, and demand. There is a very challenging competition of acquiring resources within the aerospace industry. Aerospace payments are lower than those of other sectors, for example, automotive, and also there is a lack of compensation and modern work models. There is also lack of marketing strategies that entice job seekers. Demographic developments like the ageing population, further constricts the talent supply as firms lose many experiences employees. Researches indicate that there are less skilled people than the amount of employees required3. For instance, in the United States, half of the top engineers will reach their retirement age in the next 5 years. This indicates that the aerospace industry of the United States will have many job opportunities. Lastly, there are expectations that demand of competent workers will dramatically increase. This shortage will not only apply for engineers, but also other skilled labourers. For instance, in United States, the demand of skilled personnel has grown three times higher in the recent years. Aerospace opportunities in Europe A European aerospace company offers opportunities for individuals with the drive and the opportunity to help it deliver their exciting growth strategy. The company offers rewarding and challenging responsibilities in many disciplines and opportunities for developing leadership and technical career pathways. European aerospace has a structured methodology to both personal and career development and gives support to all workers in order to develop their abilities and recognize their ambitions. In order to ensure that all workers have equal progress opportunity, the company has developed centres in all three main transition levels. The process of personal development is part of it and also includes career planning. In addition, the organization provides training at all stages in order to make sure that employees are helped and promoted to higher roles being properly prepared so that they can succeed with their careers. A European aerospace employs a diverse personnel with more than 15,000 employees worldwide. The present employment opportunities range from information technology and aeronautical engineering to operations and communication. The company attracts, develops, and retains the quality workers by providing them with chances of enhancing their professional skills to become better aircrafts. Labour skills and forces matter a lot in this high-technology and skilled aerospace industry. Therefore, for the European aerospace industry to remain successful in the current competitive market, it should resort a wider reservoir of qualified and skilled personnel. In general, the quality of training and education in Europe is very high. However, there lacks guarantee that the country will be able to enhance its technological position. Since the demand of technicians and professional engineers is increasing drastically, the aerospace industry will face challenges of recruiting qualified personnel. The importance of qualified personnel suggests that issues related to labour force and skills should be treated as separate entities. According to the STAR 21 research, Europe has a central task of safeguarding and developing stronger skills which are the key factor of maintaining international competitiveness as well as retaining investment in the country4. The entire training and education performance in the country should be advanced and also establish a balance between continuity and initial vocational training. The group spotted an increasing challenge in recruiting highly qualified employees. The group recommended for recognition of both certificates and diplomas in the country. In general, there is need of Europe to advance the general quality of its vocational training. Compared U.S. aerospace industry, its main competitor, almost all European aircraft manufacturing centres is established in countries where there are high labour standards legislation in force. The experts of United States emphasize that this disadvantageous since it concerns all aerospace industry’s tiers and complicates the contraction or expansion of production5. However, this is yet to be proved. Contrary to this criticism, the aeronautic companies of the United States use European production centres too. In response to national labour policies the regard employment termination in industries, European aerospace industry manage employment stages through implementation of advanced employment schemes. For instance, manufacturers of Italian aerospace hire employees on contracts that last between three to five years. This enables them to provide employment flexibility. In addition, in Germany, workers an aerospace firm can borrow workers from another firm. In the U.K., firms employ a substantial number of employees who can be released during slack demand periods. Further, some of the aerospace producers in Europe have automated most of their operations to enable reduction of impacts of labour imbalances as well as improving productivity. Europe will be able to develop its aerospace industry if it improves its military and education sectors. The country should create awareness to youths about the opportunities that are available in the industry. This strategy will enable the country to expand and develop its workforce. The aerospace direction depends on the investments that a country makes in its workforce6. A country should make investments to its people and ensure that they understand the available opportunities. In addition, a country should make sure that there are available opportunities of getting education in math, science, engineering, and technology. With the aerospace industry in Europe is among the leading sectors in the world, there is need of the country to interact and create associations with other experienced nations like the United States. The country wants to put the emphasis on Emiratisation and therefore, there is need of working closely with its education ministry in order to ensure that citizens have training on aerospace and cyber security. Most people have diverted their careers to quick money making opportunities because engineering, math, science, and technology are difficult and take their time and effort to study. It is therefore hard to acquire graduates with the required qualifications because many students are just focusing on simply attaining a degree. However, it will take such kinds of individuals to build their future in aerospace therefore, developing a quality workforce means investment by the whole community. Creating alliances with other nations, the education ministry and military sector need to make investments to ensure that the workforce supports aerospace’s future. According to recent studies, more than 60 percent of youth Emirates gained motivation through helping their nation. Therefore, it is important to understand the youths and know what motivates them most7. Although there are expectations of the aerospace industry in Europe to develop, failure to make youths understand the importance of joining this field will lead to its degradation. Aerospace agencies should also understand that Europe is following the right track by focusing on developing its aerospace industry. Aerospace opportunities in U.S. United States aerospace industry is the largest worldwide and the key competitor to the European aerospace. The U.S. aerospace has both hospitable and skilled workforce, thus attract many foreign firms. The industry also has diverse offerings, extensive distribution system, and strong support at both locally and national levels for promotion and policy. The exports made from aerospace industry provides both direct and indirect support for job creation opportunities in the country. The decision by President Barack Obama to restore the country’s ties with Cuba will yield many opportunities for aerospace sector of the United States. The U.S. aerospace industry builds parts and offers maintenance of all commercial aircraft. The president of the United States aerospace associations supported the decision of President Obama and added that implementing such strategy will result in new commerce in the American companies. Several American airlines that have already started to operate charter trips to Cuba asserted that they will form alliances with the U.S. government in order to aerospace services as they are required, according to the upcoming laws and policies. Resumption of the direct profitable air traffics to operate from United States to Cuba will create many new opportunities for firms that carry out the duty of servicing and maintaining aircrafts. In addition, this move will only be successful if United States forms appropriate agreements with Cuba8. Due to this new opportunities, many U.S. companies have started to operate to and from Cuba such as Delta Air Lines. In addition, American airlines are currently operating more than 20 charter flights to Cuba on a weekly basis and the management emphasizes that it will continue to operate under the policies and laws of the government of America, although it stopped for a short while saying that the company planned to add new flights. Aerospace industry in the United States is expanding women’s opportunities in the sector. WIA (Women in Aerospace is an association dedicated to expanding women’s opportunities in order to increase their presence and leadership in the sector’s community. The members of women and men in the U.S. aerospace sector share their interest in a wide spectrum of issues concerning aerospace. This includes remote sensing, human space flight, robotic space exploration, satellite communications, and all policy issues that surround the fields. Both women and men are given equal opportunities in the United States Aerospace. In addition, the aerospace industry in the United States is the primary resource of export and therefore, it should be the first contact point for anyone who is willing to sell internationally. Both international and domestic teams of trade specialists, found in both overseas and local export centres are well prepared to assist customers increase their export sales. The aerospace industry of the United States has been among the key elements to the success of the country’s economy for many years. The industry has also being providing well-paying jobs to many graduates9. The position of the U.S. aerospace industry is now facing challenges from global competition, conditions of both national and international economies, changing technologies, and international policies that affect commercial, defence, and civilian aviation. In order to keep this important industry of the American economy, the commercial service of the United States is striving to offer assistance to improve the competitiveness of the industry. Specifically, all the technology teams work with other firms to help it maximize the efforts of trade shows, gain access to global sale opportunities, identify global agents and representatives, vet potential global agents, and understand relevant market opportunities internationally. One of the factors that make US aerospace more competitive is its size of firms. The competitive advantage of US aerospace, especially in military aircraft, is due to its firm size. Large firms enable US to attain economies of scope and scale and current there are considerable activities creating bigger aerospace firms in United States. Aerospace firms in United States dominate the top ten aerospace firms in the world. US government fully understands aerospace industries both locally and internationally. This is because government is the main buyer of aerospace equipment to be used in the armed forces. Government can use its buying power purposely to influence structure, size, performance, and conduct of their country’s industries. In addition, government influences its civil aircraft market by allocating over-flying and landing rights, providing financial support to aircraft exports and development support, and support and ownership of national airlines. In other countries like UK, airlines and the aerospace industry are privately owned. Lastly, the aerospace industry of United States aims at recruiting highly qualified personnel in order to ensure quality services to its customers. Unlike in Europe, where aerospace industry faces challenges in employing high skilled engineers due to lack of qualified graduates, the United States has a variety of qualified engineers. The education ministry ensures that the youth understand the importance of the opportunities available in the aerospace industry10. However, US also employs engineers from outside countries such as India and China as they are leading in terms of competent engineers.The country creates awareness to youths about the opportunities that are available in the industry. This strategy enables the country to expand and develop its workforce. The aerospace direction depends on the investments that a country makes in its workforce. A country should make investments to its people and ensure that they understand the available opportunities. Conclusion In conclusion, Europe and U.S. have the largest aerospace industries in the world with the largest opportunities both locally and internationally. However, there are several trends that are underway and may challenge European and United States aerospace companies to recruit quality engineers in the next centuries. Therefore, there is need of implementing sound strategies to enable the countries handle these challenges. Hiring qualified and highly skilled employees will be one of the strategies that will keep the industries growing. Bibliography AECMA. 2002. The European Aerospace Industry: Facts and Figures,AECMA, Brussels. Bailey, M.N. and Solow, R.M. 2001. International productivity comparisons built from the firm level, Journal of Economic Perspectives, 15, 3, summer, pp151-172. DTI. 2004. The Value Added Scoreboard, 2004, DTI, London. DoS. 2000. 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