Getting Technical: The Future of Commercial Aerospace Transfer 2022

 

Because of the pandemic, the commercial aero market was profoundly impacted by the sudden disruptions in travel. Jason Riggs, director of strategy at Technetics, discussed this phenomenon and how the market has rebound with Host Tyler Kern.

Globally, air traffic is down by 30% from pre-pandemic levels, and airframers are making calls to increase production rates to 75 per month, which is double what it is today. What does this mean for the supply base? This will create more strain, especially in the skilled labor workforce.

Skilled laborers faced layoffs in 2020, and now the workforce is 10-20% smaller than it should be. Like many other industries, businesses are having difficulty recruiting employees back, and Riggs said a hypothesis for the cause is that the younger generation switching industries. An additional source of pressure in the industry is the semiconductor and chip shortages. The shortages have caused more customer interest in dual sourcing to mitigate against supply concerns and drive down costs.

Because of stressors like these, 2021 has seen a lot of defense-related merger and acquisition transactions. “Defense-related content typically stays strong during downturns, and that certainly was the case during the pandemic,” Riggs explained.

Businesses are trading multiples significantly higher than a few years ago, and commercial deal flows are predicted to continue increasing next year as businesses improve.

Despite these challenges in 2021, the fundamentals for aerospace and defense remain strong. Riggs knows the market will make a full recovery, hopefully by 2023 or 2024. “It’s just a question of how and when but we feel really good about the market; we are excited about where things are going,” he stated.

For more information on this topic, subscribe to the podcast on Apple iTunes or Spotify and visit the Technetics website.

Follow us on social media for the latest updates in B2B!

Image

Latest

What It Takes to Restore a Tornado-Damaged Clinic
What It Takes to Restore a Tornado-Damaged Clinic
August 21, 2025

When a tornado tore through Oklahoma City in April, BMS CAT was already on-site before many businesses even realized the extent of the tornado damage—including Valor Physical Therapy. Thanks to an existing relationship with Valor’s affiliated hospital, the BMS CAT team was positioned to respond quickly. “We were actually on scene before they knew…

Read More
Burl Stamp
Improving Employee Engagement Through CAREmunication — A Conversation with Burl Stamp
August 21, 2025

With the healthcare landscape seeing many evolving changes, employee engagement is no longer just a buzzword — it’s now a business imperative. Amid rising turnover and persistent staffing shortages, organizations are under pressure to build resilient, engaged teams. According to Gallup, 70% of the variance in team engagement is tied to one factor: the…

Read More
precision machining
Pharma Manufacturing: Meeting Annex I with Precision Machining for Safer Sterile Drug Production
August 21, 2025

Pharmaceutical manufacturers are under increasing pressure to deliver sterile, high-quality medicines in smaller batches and faster cycles. As pharma manufacturing evolves, regulatory demands have intensified, especially following the 2023 revision of EU GMP Annex I, which places new emphasis on contamination control strategies, improved traceability, and minimizing human intervention throughout production. According to American…

Read More
peer guidance
Leaders Who’ve Been There: Finding Clarity Through Peer Guidance at Purpose Factory
August 20, 2025

Running a business can feel isolating without peers who understand the weight of leadership. Madison Harris, founder of Cobalt Fund Services, found the peer guidance he needed through Purpose Factory. He gained strategic insight and real feedback from seasoned entrepreneurs at a time when his business needed clarity and structure. Harris realized Cobalt wasn’t…

Read More