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Industry and Company Analysis: Aircraft Manufacture - Essay Example

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COURSE: DATE: INDUSTRY AND COMPANY ANALYSIS Industry analysis AIRCRAFT MANUFACTURE The North American Industry Classification System (NAICS) code 336411 deals with companies in the manufacturing industry and specifically the manufacture of aircrafts, aircraft modification and restoration of aircrafts to their original designs…
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Industry and Company Analysis: Aircraft Manufacture
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Download file to see previous pages People all over the world have increased their travelling from one part of a country to another, from one end of a continent to the other end and from one corner of the world to another. The use of airplanes is considered by many to be faster and more efficient than other traditional modes of travelling. Hence, the increased need for aircrafts.this has opened up new business opportunities for aircraft manufacturers and increased the need for improved aircrafts built with the needs of consumers being considered paramount. Airlines are being born all over to cater for the growing number of passengers. This has brought about the need for aircrafts that are cost effective for airline companies to maintain mostly in terms of repairs and economic fuel costs. All these lead to the need for aircraft manufacturing to understand current market needs and to come up with better and improved products that are in high demand by consumers. Currently in the US, there are approximately 265 companies dealing in the manufacture and modification of aircrafts. most of these establishments are based in California (36), Texas (35), Florida (23), and Kansas (10) while the rest are spread out among the remaining states. The total shipments ($1000) in 2007 were around $90 million, an increase from $64 million ($1000) in 2002.Texas, Kansas, California and Florida accounting for large individual state shipments in 2007. Of all the aircraft related manufacturing activities, 49% are aircrafts manufactured for civilian and commercial use. 31% are aircrafts made for military use and those built to military specifications while aircraft modification accounts for 8% in the total aircrafts manufacturing industry, other services done on complete aircrafts and aircraft installations account for around 11% and 1% respectively. The top four largest establishments in the aircraft manufacturing industry have an output of around 83%. The top eight and top twenty companies have an output of 93% and 98% respectively. The top fifty largest companies in the industry account for 99.6% of all the output in the aircraft manufacture industry. Payroll per employee ($1000) increased by 16.6% in 2007 as compared to the payroll in 2002. The aircraft manufacturing industry contributes 9% to the US national income and generates more than 11 million jobs in the US. With the above statistics in mind, it looks like the future of aircraft manufacture and related activities is bound for great heights. However, it is expected to face challenges along the way in terms of economic hardships like recession which cause people to travel less hence airlines reduce their purchases due to reduced revenues. With technological advancement taking place in the US and putting more effort in research and development in manufacture of aircrafts, the industry will be able to compete on the same level as other international aircraft manufacturers. Company analysis BOEING Boeing is an American publicly traded company that is a world leader in the manufacture of aircrafts. William E. Boeing in Seattle, Washington founded it in 1916. However, it moved its headquarters to Chicago, Illinois to the present day. Boeing operates in over 90 countries worldwide and boosts of having a workforce of around 160,000 employees. This giant aircraft ...Download file to see next pagesRead More
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