Aircraft Production, Defense Spending Driving Aerospace Sourcing [Industry Index]

 

This Thomas Index Report is sponsored by Wodin, Incorporated, a custom manufacturer of metal bolts including aircraft bolts and aerospace bolts since 1967.

Hello. In this week’s special industry-focused edition of the Thomas Index Report, we’re going to take a look at what buyers in the aerospace industry are sourcing on the Thomasnet.com platform.

This is the first of a series of industry indexes we’ll be presenting in the coming months, each of which will focus on sourcing activity for products and services by buyers within a specific industry vertical.

Through user registration information and IP technology, Thomas is able to identify buyers at their company level when they evaluate suppliers on Thomasnet.com, and subsequently identify the industry they focus on. This gives us unique insight into sourcing trends across the full spectrum of industry verticals.

Over the past 12 weeks, aggregate sourcing activity by ALL buyers representing thousands of aerospace-related businesses has seen a 31% increase on our platform. This follows a strong 2018 in which the industry saw growth driven by increasing passenger travel demand and rising global military expenditures.

Analysts expect this growth to continue through 2019, led by growing commercial aircraft production and continued strong defense spending.

Here’s a look at the top 10 products and services aerospace buyers were looking for on our platform over the past 12 weeks:

  1. Square or Rectangular Aluminum Tubing
  2. Ball, Aircraft & Aerospace Screws
  3. Precision Machining
  4. Beryllium Copper Machining
  5. Rapid Prototyping Services
  6. Silicone Hose
  7. Stainless 17-4 Alloys
  8. Mil-Spec Hinges
  9. Brazing Alloys
  10. Aluminum, T-Slotted Extrusions

Today’s jets, helicopters, spacecraft, and defense aircraft require a significant amount of aluminum alloys, so it’s no surprise to see Square and Rectangular Aluminum Tubing in the number one spot, with Aluminum T-Slotted Extrusions rounding out the top 10.

Due to its extreme reliability in applications where failure is not an option, Beryllium Copper is widely used for aerospace electrical and electronic connectors and other critical aircraft components.

To provide additional insight on activity that likely holds the most financial impact, we took a look at the sourcing trends for aerospace companies from the S&P 500 and the Dow Jones U.S. Select Aerospace and Defense Index.

We found that over the past 12 weeks, these companies have increased their sourcing activity on our platform by an aggregate 53%. Here’s a look at the top 15 products and services they were looking for:

  1. Aircraft Landing Gear
  2. Silicon Bronze Nuts
  3. Silicone Seals
  4. Kits
  5. Ball, Aircraft & Aerospace Screws
  6. Powder Magnesium
  7. Shell & Tube Condensers
  8. Tube Fabrication & Bending Services
  9. Flash Welding Services
  10. Metal-to-Metal Bonding Services
  11. Sems Screws
  12. Warehouse & Distribution Services
  13. Electron Beam (EB) Welders
  14. Electronic Intelligence (ELINT) Systems
  15. Aircraft Brackets

From a variety of small fasteners and fabrication services to large systems and assemblies, the high level of sourcing activity for products and services on this list seems to support analysts’ predictions of continued growth in the industry throughout this year.

To get this weekly Thomas Index Report – including future Industry-focused Indexes – sign up for our Thomas Industry Update newsletter here.

Thanks for watching, and I’ll see you next week.

Image Credit: Thomas

Lasers Pass Ground Tests, Await Flight TimeNext Story »

Related