Numerous industries. There are many different things. One point of attention.
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Non-ferrous metals are widely used for commercial, industrial, and residential purposes. Proper material selection is vital to achieve the desired mechanical properties, including ease of shaping and resistance to alteration during processing.
Non-ferrous materials can exhibit properties similar to ferrous metals. For example, aluminium or titanium alloys can replace steel in some cases, and cobalt, nickel, or rare earth elements can mimic iron's magnetic properties when alloyed.
However, non-ferrous metals are more expensive than ferrous metals, so they are typically used for their unique attributes rather than as mere steel substitutes. These attributes include lighter weight, conductivity, corrosion resistance, and non-magnetic properties. Non-ferrous metals are also softer and more malleable than ferrous metals, making them ideal for aesthetic applications such as gold and silver.
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AEROSPACE
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With our comprehensive suite of financial products and services, including debt and equity financing, asset-based lending, and strategic advisory services, we are committed to providing our clients with the support they need to thrive in today's rapidly evolving business landscape.
We specialize in offering our expertise to companies that are involved in the production, sale, or service of aircraft or spacecraft to the federal government. Our team of experienced professionals can provide guidance and support in areas such as regulatory compliance, quality control, and safety protocols.
Five aerospace and defense industry trends to watch
One.
Supply chain
Improved supply chain visibility and resilience will mitigate a broad set of risks.
The aerospace and defense industry faces complex supply chain challenges due to the COVID-19 pandemic, workforce shortages, and recent geopolitical events. To overcome these challenges, companies are expected to shift toward regional sourcing and improve supply control and coordination.
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DEFENCE
Major defense primes have recently identified supply chain challenges as the primary cause of missing revenue targets and reducing growth forecasts. These challenges are compounded by the fact that most defense suppliers also supply to aerospace equipment manufacturers, creating complexity for the entire industry.
To address these challenges, the US Department of Defense (DoD) has issued seven foundational recommendations. These include building critical domestic production capabilities for national defense, building supply chain resilience, and analyzing data to increase supply chain visibility and security for defense suppliers.
In addition to these recommendations, the DoD has also implemented several initiatives to address the challenges faced by the defense industry. One of these initiatives is the establishment of a supply chain risk management task force, which is responsible for identifying and mitigating risks in the defense supply chain. Another initiative is the creation of a public-private partnership program to encourage collaboration between the government and the defense industry in addressing supply chain challenges.
Furthermore, the DoD has also recognized the importance of investing in emerging technologies to improve supply chain resilience and efficiency. In particular, the DoD is exploring the use of blockchain technology to enhance supply chain visibility and security, and is also investing in advanced analytics and machine learning capabilities to improve supply chain forecasting and risk management.
Overall, it is clear that the defense industry is facing significant supply chain challenges, but the DoD's recommendations and initiatives provide a roadmap for addressing these challenges and ensuring the resilience and security of the defense supply chain.
Two.
Improved efficiencies through digital transformation.
Digital technologies will increasingly be a source of competitive advantage for aerospace and defense companies, as they leverage digital thread and smart factories to streamline product development and improve efficiencies.
Three.
Attracting, retaining, and developing top talent remains a challenge.
Despite the addition of jobs lost in 2020, workforce turnover rates remain high and an aging workforce contributes to workforce shortages. Automation and digital technologies require a workforce with more advanced skills than before. To meet future demands, companies should encourage innovation and build digital skills.
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SMART FACTORIES
By 2023, many A&D companies may adopt "smart factory" initiatives in order to shorten lead times, improve cycle times, and increase factory efficiency. This approach enables manufacturers to quickly adapt to demand fluctuations, supply chain adjustments, and changes in other parts of the value chain. "Smart factory" connects the various processes within and beyond production sites, from engineering to manufacturing and aftermarket, and provides critical visibility into material and component supply (inventory visibility) to ensure efficient production and faster design-to-delivery times.
Four.
Lowering emissions and implementing sustainable manufacturing remain business priorities.
The aerospace and defense industry is adopting new and advanced manufacturing technologies to address sustainability challenges. The industry will move toward using sustainable aviation fuels (SAFs) and new propulsion technologies such as electric, hydrogen, and hybrid. Partnerships will be established with technology investors, energy companies, airlines, and government agencies.
Five.
Innovation accelerates growth in emerging areas.
Emerging markets such as space, supersonics/hypersonics, and AAM are poised to change the industry landscape and capabilities in the coming years. Organizations are most likely to invest in space-related technologies and AAM in 2023.
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DEFENCE PERFORMANCE
Defense Performance
The aerospace and defense industry has been facing complex challenges due to the COVID-19 pandemic, workforce shortages, and geopolitical events. In 2022, despite higher demand, revenue was down by 3% among the top six U.S. defense companies. However, BAE Systems and Thales both reported higher revenues in local currency, with increases of 9%.
The rise of 12% in the U.S. dollar has resulted in reduced international results. The operating margins for the industry slipped due to program performance issues, supply chain disruptions, and labor constraints.
To overcome these challenges, companies are expected to shift towards regional sourcing and improve supply control and coordination, which will improve supply chain visibility and resilience. In addition, digital technologies will increasingly be a source of competitive advantage for aerospace and defense companies, as they leverage digital thread and smart factories to streamline product development and improve efficiencies.
The aerospace and defense industry is adopting new and advanced manufacturing technologies to address sustainability challenges. Lowering emissions and implementing sustainable manufacturing remain business priorities. The industry will move towards using sustainable aviation fuels (SAFs) and new propulsion technologies such as electric, hydrogen, and hybrid. Partnerships will be established with technology investors, energy companies, airlines, and government agencies.