To the skies: The industry will benefit from increased drone development and utilization

Declining federal defense funding has pushed revenue for the Aircraft, Engine and Parts Manufacturing industry downward over the five years to 2017. Despite significant taxes and environmental regulations, many industry operators develop and produce in California due to the state's large military presence, existing aerospace and defense firms, access to highly-skilled labor and weather, which allows for year-round outdoor testing. While federal defense spending will continue falling over the next five years, declines will be less steep. Moreover, defense cuts over the next five years will not impact California operators to the same extent as the overall US industry...read more.

Industry Statistics & Market Size
Revenue
$18bn
Annual Growth 12-17
-1.6%
Forecast Growth 17-22
Profit
Employment
46,493
Businesses
288

Industry Threats & Opportunities

  • As a leader in drone technology, California will be uniquely positioned to benefit from the defense department’s shift in strategy
  • California is an expensive state for manufacturing due to its environmental regulations
  • Companies will continue to bring in revenue generated from contracts secured during the previous five-year period
  • Industry Report - Industry Locations Chapter

    The bulk of industry operations are housed in Los Angeles County and Orange County, which represent 43.7% and 18.3% of industry establishments, respectively. Rounding out the remainder of the top four areas for industry activity are nearby Inland Empire (11.0%) and the greater San Diego Area (9.5%). The large concentration of military clients and year-round nice weather make these Southern California counties ideal places for companies to design, test and manufacture military aircraft, engines and parts...purchase to read more.

    Additional Insights for the Aircraft, Engine & Parts Manufacturing in California Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Aircraft, Engine & Parts Manufacturing in California Industry are

  • Ability to accommodate environmental requirements
  • Well-developed internal processes
  • Ability to take advantage of government subsidies and other grants
  • IBISWorld analysts also discuss how external factors such as Federal funding for defense and Corporate Profit in California in the Aircraft, Engine & Parts Manufacturing in California industry impact industry performance..

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    What's in this report

    What is the Aircraft, Engine & Parts Manufacturing in California Industry?

    Companies in this industry manufacture and overhaul complete aircraft (including unmanned aerial vehicles), develop prototypes and convert aircraft. The industry also includes the manufacture, conversion and overhaul of aircraft engines and propulsion systems. Additionally, the industry makes related parts and auxiliary equipment. This report excludes guided missiles, space vehicles and related equipment.

    Industry Products
  • Military aircraft
  • Civilian aircraft
  • Aircraft engines
  • Aircraft components
  • Industry Activities
  • Manufacturing and rebuilding aircraft
  • Manufacturing aircraft engines and engine parts
  • Manufacturing aircraft auxiliary parts
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Federal funding for defense
  • Corporate Profit in California
  • Per Capita Disposable Income in California
  • NATO defense spending

  • Current Performance
  • Focus on defense
  • Weakening commercial presence
  • A slowly growing industry
  • Chart: Revenue Growth

  • Industry Outlook
  • Despite declines, defense market remains stable
  • Slow growth on the horizon
  • Table: Aircraft, Engine & Parts Manufacturing in California Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Aircraft, Engine & Parts Manufacturing in California Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Aircraft, Engine & Parts Manufacturing
  • Space Vehicle & Missile Manufacturing
  • International Airlines
  • Domestic Airlines
  • Charter Flights

  • Key Selling Industries
  • Circuit Board & Electronic Component Manufacturing
  • Computer & Peripheral Manufacturing
  • Engine, Turbine & Power Transmission Equipment Manufacturing
  • Molybdenum & Metal Ore Mining
  • Semiconductor and Other Electronic Component Manufacturing

  • Products & Services
  • Aircraft components
  • Military aircraft
  • Other
  • Aircraft engines
  • Civilian aircraft
  • Chart: Aircraft, Engine & Parts Manufacturing in California Industry Products and Services Segmentation

  • Major Markets
  • Domestic defense market
  • Exports
  • Domestic civil market
  • Chart: Major Market Segmentation for the Aircraft, Engine & Parts Manufacturing in California Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Aircraft, Engine & Parts Manufacturing in California

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Aircraft, Engine & Parts Manufacturing in California Industry

  • The Boeing Company, General Electric Company, Lockheed Martin Corporation, Northrop Grumman Corporation, Aerojet Rocketdyne Holdings, AeroVironment Inc.,
  • Table: The Boeing Company - financial performance
  • Table: General Electric Company - financial performance
  • Table: Lockheed Martin Corporation - financial performance
  • Table: Northrop Grumman Corporation - financial performance
  • Table: Aerojet Rocketdyne Holdings - financial performance
  • Table: AeroVironment Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Aircraft, Engine & Parts Manufacturing in California Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Aircraft, Engine & Parts Manufacturing in California Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Federal Funding for Defense (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Large Commercial Aircraft
  • Large commercial aircraft are the largest category of commercial planes and can carry large amounts of passengers.
  • Original Equipment Manufacturer (Oem)
  • OEMs assemble complete aircraft, which they sell under their name. Examples include Boeing, Lockheed Martin and Northrup Grumman.
  • Unmanned Aerial Vehicles (Uav)
  • Aircraft that fly without a human crew on board.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Aircraft, Engine & Parts Manufacturing in California can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Aircraft, Engine & Parts Manufacturing in California:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Aircraft, Engine & Parts Manufacturing in California market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Aircraft, Engine & Parts Manufacturing in California, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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