Review of any: Production and Procurement in the Aviation/Aerospace Industry - Article Example

This report specifically gives insight to different stakeholders into the global commercial air craft market over the next ten years and it also analyses the potential opportunities that are available for entrants into this industry. The aviation industry is characterised by various factors hence the players intending to enter this field as well as those already existing in the market should be well versed about these issues. The main scope of the report is to highlight major trends taking place in the aviation industry.

For instance, in procuring aircraft, factors such as total cost, digital technology as well as fuel consumption patterns of the aircraft ought to be taken into consideration by the players involved in the aviation industry. The other issue that should be considered by the players in the commercial aircraft industry is related to procurement of technologically advanced aircraft in terms of saving fuel in order to lower their operating costs. The other important aspect that should be taken into consideration is related to the aspect of production of the aircraft.

The production costs are often high for commercial aircraft and the manufacturers can record losses if they exceed the anticipated production costs. Therefore, they will not be able to realise the much needed profits in the short run since there may be few commercial actors in the industry that may be able to afford these expensively built airplanes. The producers also ought to take into account the aspect related to fuel consumption levels of the aircraft when they manufacture them. This will also help the players in the aviation industry to operate viably if they are in a position to acquire efficient planes that do not consume excessive fuel.

This will help to lower the operational costs for different players in this field. Analysis of the report There are many factors that determine the issues related to production and procurement in the Aviation/Aerospace industry. One interesting thing about the aviation industry is that the commercial aircraft market is growing parallel to the civil aviation markets across all major countries. The aircraft industry in the major emerging markets such as the Asia Pacific region is also expanding.

All these factors entail that the players in this particular industry ought to procure new fleet of airplanes in order to be in a position to meet the growing demand for air travel by various travellers across the globe. However, there are many factors to consider when procuring aircraft. The major issue that should be considered when procuring commercial aircraft is related to their cost. The expenses involved in developing g a new commercial aircraft are very high. This entails that the manufacturers will encounter problems related to generating costs since there are few airline operators who can afford to buy highly priced aeroplanes.

On the other hand, the companies that can purchase expensive planes can operate at a loss since they may not be able to generate enough revenue in the short time to offset the expenses incurred when they procured the airlines. When the situation is like this, they tend to pass on the costs to the players in the commercial aircraft industry. The other element that should be considered by both civil and commercial aircraft operators is related to the fuel consumption levels of the aircraft they buy.

Many players in the aviation industry spend a handsome amount of money on fuel. This problem is exacerbated by the global fluctuations of fuel prices which can negatively impact on the viability of the organization. However, efforts are being made by the aircraft manufacturers to manufacture airlines that are fuel savers. As such, players in