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Balancing Demand, Capacity, and Uncertainty: The Commercial Aerospace Supply Chain Challenge

Two years into the COVID-19 crisis, the entire commercial aerospace supply chain remains heavily impacted by the pandemic, relying on state subsidies to cope with associated drops in demand.

With the rise of the Omicron variant pumping the brakes of any enduring period of recovery and support programs expected to taper away soon, suppliers must find solutions for their workforce to bridge the demand gap until the eagerly anticipated ramp-up kicks in.

Different market scenarios - ranging from a highly positive quicker return to greater demand to a sustained downside - all require careful consideration of a number of measures to ensure that aerospace suppliers are able to strike an effective balance between the short-term demand reality and the likely ramp-up in the medium-term ramp-up that will require the availability of skilled resources.

A tailored program combining a variety of measures must come to the fore to manage the upcoming challenges and to maintain cost competitiveness. Supported by robust financial and operational KPIs such a program can range from a set of individual measures such as qualification programs to large organizational adjustments, like early retirement programs, qualification and transfer organizations, or reduction of working hours to maintain a capable workforce on board for the upcoming uptick in demand.

In our recent article for the 11th Aviation Forum Hamburg 2021, we shared our insights on how suppliers can apply a ‘ramp-up readiness health check’ and conduct top-down scenario-based planning to prepare their organizations for different crisis recovery paths, given the continued high levels of uncertainty that the ongoing pandemic is applying to the commercial aerospace industry.

Read our full report here.

With the rise of the Omicron variant pumping the brakes of any enduring period of recovery and support programs expected to taper away soon, suppliers must find solutions for their workforce to bridge the demand gap until the eagerly anticipated ramp-up kicks in.

Tags

germany, aerospace, supply chain

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