How Aerospace and Defense Enterprises can Navigate Disruption
The commercial and defense aviation sector is no stranger to turbulence. Events of the recent past mirror the checkered history of aviation. 2019 was a record year for both industry segments -- commercial aviation peaked in terms of the number of flights, the launch of mega airports, and advances in Electric propulsion aircrafts (MEA -- More Electric Aircraft and AEA -- All Electric Aircraft), Supersonic flights and experimental ultra-long-haul flights. Defense aviation saw a spike in demand for advanced military aircraft such as fifth-generation and stealth fighter jets to replace a fleet of legacy aircraft and mitigate territorial and maritime security risks.
But then came the unthinkable in March 2020, as the COVID-19 pandemic began its long trail of disruption. FlightRadar24 reported more than 225,000 flights on July 24, 2019, making it one of the busiest days in aviation history. Unfortunately, a year later, the scene is very different as lockdowns and quarantines take center stage. Nonetheless, being resilient is the stuff that aerospace and defense enterprises are made of. Armed with the stronghold of digital and emerging technologies, the industry is now navigating a new normal to ensure sustainable growth. Let us examine how:
Smart factory ecosystem. Aircraft manufacturing needs to accelerate the journey to a smart factory environment, which can help improve productivity by about 12%, without calling for expensive capital investments . Industry 4.0 amplifies the cumulative effect of the Industrial Internet of Things (IIoT), data analytics, and artificial intelligence (AI), enabling manufacturers to accelerate time-to-market, maximize automation at the factory floor and enhance maintenance, repair, and operations (MRO). A smart factory ecosystem makes manufacturers more agile and enables them to pivot to product lines such as unmanned aerial vehicles, drones, and air taxis.
Business transformation. The industry has a robust R&D track record for developing cutting edge technologies to enable safer and more efficient travel. However, aircraft manufacturing continues to use archaic systems and complex processes. The sophistication of the end product needs to be bolstered by clockwork precision and efficiency in the back-office. Enterprises should leverage advanced technologies such as robotic process automation and machine learning to minimize human intervention and drive operational excellence.
Co-location of manufacturing. The latent demand for travel in Asia and geopolitics in the Middle East have created a sizeable market for commercial and defense aircraft. The industry has established several captive centers and MRO facilities to serve local clients in civil aviation and defense. China and India are encouraging global enterprises to manufacture locally with offset and transfer of technology policies. The next phase of this journey will be an aircraft manufacturing ecosystem with global fuselage, engine, and avionics companies setting up a local presence.
Product innovation. Aircraft manufacturers need to explore opportunities to innovate across the value chain. Enterprises should focus on innovative product chemistry such as carbon- or glass-fiber-reinforced polymers to enhance wing design for optimal aerodynamic efficiency. Similarly, engine manufacturers can evaluate alternatives to aviation turbine fuel with low-carbon biofuel and electric propulsion.
As we move into the fourth month of the global crisis, it will be interesting to see how physical distancing norms for airlines make it imperative to revisit commercial aircraft design. For example, Molon Labe Seating, a startup from Colorado, has redesigned the economy class three-seat configuration with a staggered layout, which places the middle seat a little behind the aisle and window seats, and at a lower height.
Digital technology is one of the catalysts for the sustainability of aircraft manufacturing. An enterprise-wide technology road map will be sure to not only drive the transformation of the industry but also in ensuring the resiliency of it.
Hmmmm, yet the largest companies in this sector seem a lot more like dinosaurs who try to protect their turf than anything else. Yes, they talk the talk of 'Digital Enterprise' and such, but they have a LONG row to hoe. One might be more tempted to look at a SpaceX and see a model for the future. Clean slate re-imagining of the entire enterprise around true agile 21st Century mindset and process. If one small company can relatively quickly dominate a significant sector, space launch, then what about other sectors, such as commercial aircraft? The two large incumbent commercial manufacturers are anything but agile, and they now have large holes in their books, and expensive operations, which they must try to sustain while things look bad. What would a brand new competitor to one of these companies, funded with the same money they are now borrowing to stay afloat, look like in 5-7 years? At the pace of SpaceX, it would look like a mortal threat! And right now these incumbents have no money to spend on game-changing innovation. They should be very very nervous right now, because there are going to be savvy people out there with money and ambition eyeing their business and figuring out how to take their lunch.
Excellent points Rakesh! Yes this is an opportunity for the industry to go digital and automate.