Redirecting R&D in the Commercial Aircraft Supply Chain
Abstract
For more than 50 years, the United States has held a position of leadership in aircraft and aircraft component manufacturing. This economic sector has been a major contributor to the U.S. economy in terms of revenue and balance of trade, and has been a cornerstone of national security. The success of this sector can be attributed to strong local demand for air transportation during this period and to the continuous stream of innovations generated by the U.S. aeronautics R&D system. Today this leadership is being challenged by intense international competition in aircraft manufacturing. Also, a shift in the structure of the marketplace toward standardized products that are differentiated by cost has eroded the U.S. competitive advantage. To remain competitive and be cost-effective, aircraft manufacturers have taken advantage of economies of scale and the risk/cost sharing benefits of outsourcing. A majority of the components in modern aircraft are designed and manufactured by vendors in the supply chain. For example, 60 percent of the value of Boeing airplanes are currently outsourced to supply chain vendors.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jan 01, 2002
- Accession Number
- ADA401445
Entities
People
- Lance Sherry
- Liam Sarsfield
Organizations
- RAND Corporation