Airbus and Boeing aiming to expand parts and repairs businesses
The two firms have previously foc...
The aircraft manufacturers, Boeing and Airbus, are reportedly exploring expanding their parts and repairs businesses.
The two firms have previously focused on manufacturing commercial and military airliners.
However, France-based Airbus and US-based Boeing has been increasing investments in the post-sale market.
The companies have been targeting maintenance, repairs, overhauls, training, and parts supplies.
“The services market is more lucrative than actual aircraft sales because it has more potential and it covers many different spectrums,” remarked Shukor Yusof, Analyst at Endau Analytics.
“Boeing and Airbus — they have to be part of it. When you sell an aircraft, it’s in your interest to have a full package of after-market services.”
The American company has predicted that within the next 20 years the value of 41,000 aircrafts will reach US$6trn.
Boeing also suggested that the value of the services supporting the aircrafts in expected to hot $8.5trn in the review period.
Airbus has announced plans to expand its 11,000sqm spare parts facility in Singapore by an additional 8,000sqm by 2019.
The firm, whose revenue derived from services reach $3.2bn last year, believes that the knowledge acquired from producing aircrafts will work as an advantage in the new industry.
“We know best our aircraft because we have designed it,” stated Laurent Martinez, Head of Services at Airbus.
“We have all the capabilities to support the airlines’ operations and to have the competitive edge in terms of spare parts.”
Gartner: Leaders Lack Skilled Smart Manufacturing Workers
With organisations rapidly adopting industry 4.0 capabilities to increase productivity, efficiency, transparency, and quality as well as reduce cost, manufacturers “are under pressure to bring their workforce into the 21st century,” says Gartner.
While more connected factory workers are leveraging digital tools and data management techniques to improve decision accuracy, increase knowledge and lessen variability, 57% of manufacturing leaders feel that their organisations lack the skilled workers needed to support their smart manufacturing digitalisation plans.
“Our survey revealed that manufacturers are currently going through a difficult phase in their digitisation journey toward smart manufacturing,” said Simon Jacobson, Vice President analyst, Gartner Supply Chain practice.
“They accept that changing from a break-fix mentality and culture to a data-driven workforce is a must. However, intuition, efficiency and engagement cannot be sacrificed. New workers might be tech-savvy but lack access to best practices and know-how — and tenured workers might have the knowledge, but not the digital skills. A truly connected factory worker in a smart manufacturing environment needs both.”
Surveying 439 respondents from North America, Western Europe and APAC, Gartner found that “organisational complexity, integration and process reengineering are the most prevalent challenges for executing smart manufacturing initiatives.” Combined they represent “the largest change management obstacle [for manufacturers],” adds Gartner.
“It’s interesting to see that leadership commitment is frequently cited as not being a challenge. Across all respondents, 83% agree that their leadership understands and accepts the need to invest in smart manufacturing. However, it does not reflect whether or not the majority of leaders understand the magnitude of change in front of them – regarding technology, as well as talent,” added Jacobson.
Technology and People
While the value and opportunities smart manufacturing can provide an organisation is being recognised, introducing technology alone isn’t enough. Gartner emphasises the importance of evolving factory workers alongside the technology, ensuring that they are on board in order for the change to be successful.
“The most immediate action is for organisations to realize that this is more than digitisation. It requires synchronising activities for capability building, capability enablement and empowering people. Taking a ‘how to improve a day in the life’ approach will increase engagement, continuous learning and ultimately foster a pull-based approach that will attract tenured workers. They are the best points of contact to identify the best starting points for automation and the required data and digital tools for better decision-making,” said Jacobson.
Long term, “it is important to establish a data-driven culture in manufacturing operations that is rooted in governance and training - without stifling employee creativity and ingenuity,” concluded Gartner.