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Aerospace Challenges in 2024

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    Last year, “Aerospace Challenges in 2023” was one of our most popular blogs. We figured it was only right to make an updated version as we soar into 2024. The aerospace industry finds itself at a crucial juncture, shaped by the trials and tribulations of the previous year. As 2023 unfolded, the sector faced a myriad of challenges, leaving an indelible mark on the industry’s landscape. In this blog, we delve into the specifics, shedding light on key statistics that underscore the gravity of these challenges.

    Persistent Supply Chain Disruptions

    Supply chain disruptions, a recurring theme in recent times, have left a lasting impact on the aerospace industry. According to the Aerospace Industries Association, in 2023, the sector experienced an average delay of 8.5 weeks in the delivery of critical components. This marked increase in lead times has forced aerospace companies to reassess their supply chain strategies actively.

    Deloitte’s 2023 Aerospace and Defense Industry Outlook also reveals that 67% of aerospace and defense companies increased their investment in supply chain diversification during the year. The emphasis on local sourcing and nearshoring, as predicted, became a strategic imperative to mitigate the risks associated with concentrated supply chains.

    Talent Troubles on the Rise:

    The talent shortage in the aerospace industry persisted in 2023, with tangible impacts on workforce dynamics. According to the Aerospace Industries Association’s Workforce Report, the industry experienced a 15% increase in job vacancies, reflecting the ongoing struggle to fill critical roles.

    Deloitte’s research further highlights that 80% of aerospace executives surveyed in 2023 identified the skills gap as a significant barrier to innovation. The need for skilled personnel remains a pressing concern, with aerospace companies grappling with the challenge of attracting and retaining top talent in a competitive environment.

    Obstacles on the Road to Net Zero:

    The commitment to achieving net-zero greenhouse gas emissions by 2050, as set by the International Air Transport Association (IATA), spurred advancements in sustainable aviation. However, the journey is fraught with challenges. The Global Aviation Industry Outlook for 2023 reported that only 12% of new aircraft deliveries were classified as “eco-friendly,” highlighting the industry’s struggle to transition to greener alternatives.

    Moreover, the Aerospace Technology Innovation Report disclosed that despite progress in electric and hydrogen-powered aircraft, the average range of these models remained limited to approximately 800 miles. The industry acknowledges the need for breakthroughs to overcome these range limitations and accelerate the path to sustainable aviation.

    Elevated and Volatile Fuel Prices:

    Fuel price volatility hit the aerospace sector hard in 2023. The International Air Transport Association (IATA) reported a 28% increase in the average price of jet fuel compared to the previous year. This surge, fueled by geopolitical tensions and supply chain disruptions, translated to an additional $37 billion in fuel costs for the global aviation industry.

    The financial strain is evident in airlines’ operational costs, with the Air Transport Action Group noting that fuel expenses accounted for 37% of total operating costs in 2023. These elevated costs continue to challenge the industry’s profitability and impede long-term growth initiatives.

    As the aerospace industry embarks on the challenges of 2024, the statistics from 2023 serve as a stark reminder of the hurdles that must be addressed. Strategic planning and collaborative efforts are imperative as the sector seeks innovative solutions to navigate the skies and usher in a new era of sustainable and resilient aerospace manufacturing.

    At SEAL Systems, we’ve also mitigated challenges for our aerospace customers. Read in our success story how Diehl Aviation digitizes hundreds of thousands of signature processes on EASA Form 1 certificates with SAP and the Qualified Electronic Signature (QeS) every year.

    Still have questions about enterprise output management? Contact SEAL Systems today and speak with one of our Enterprise Output Management specialists who will be able to discuss your individual requirements.