The aerospace supply chain needs a facelift
As the demand for commercial aircraft rises, the need for improved supply chain processes, especially between manufacturers and top tier suppliers, is becoming more evident. With increasing demand comes increased pressure on suppliers to meet the needs of aircraft manufacturers. Low-cost travel has opened the door to new market entrants looking to build aircraft next to the traditional giants Boeing and Airbus. New competition in the single-aisle jet space from Bombardier, Irkut, and Comac have increased the pressure on the top two manufacturers to meet consumer demand in a timely manner. Both Boeing and Airbus have experienced their fair share of delays in the manufacturing process. Most recently, a stockpile of Airbus A320neo can be observed at the perimeter of Toulouse-Blagnac airport as they wait for their delayed engines to be delivered so they can be distributed to the various airlines. The major problem is that the new market entrants jockeying for position will be tapping into the same supplier base that is already having issues delivering on time to the industry giants.
Patrick Daher from Gifas, a French aerospace industry association, noted the need for the aerospace industry to become a manufacturing industry with a special focus being placed on automation, robotics and standardization. A program which is designed to improve the relationship between main suppliers and manufacturers has already been put into place and, according to Mr. Daher, improvements can already be observed.
Read more about the aerospace industry supply chain issues here.
Positive outlook for Third Party Logistics (3PL) providers
According to recent research conducted by Allied Market Research, the 3PL industry can expect a 5.16% yearly growth rate over the next 6 years, which will result in a market value of $1.1 trillion. Current driving factors behind the growth of the market include the e-commerce industry and reverse logistics operations. Researchers believe that the “I want it now” culture will continue to add pressure to the 3PL industry over the next several years and that technological advancements such as autonomous vehicles and the “Uberization” of logistics processes will be leading change agents in the 3PL space. Further insights from the research point to trucking and rail as the leading modes of transportation over the course of the next six years. All in all, the report suggests that the 3PL industry is still very fragmented which leaves plenty of room for growth.
Read more on the 3PL industry research results here.
Sustainability = King of the sea
The Marine Stewardship Council (MSC) recently carried out independent global research regarding consumer perceptions of the seafood industry. More than 16,000 seafood consumers from across 21 countries participated in the research. Results of the research showed that 72% of consumers agreed that sustainable sources should be favored in order to save the world’s oceans. The aspect of sustainability ranked higher in importance compared to both brand and price. This sentiment goes against some other fast moving consumer goods industries in which brand and price are consistently ranked higher than sustainability. It seems as though concern for ocean sustainability is significantly influencing the buying decisions of people across the globe. 54% of respondents even indicated that they are willing to pay more for sustainably sourced seafood.
Read more on consumer perceptions of sustainability in the seafood industry here.
Have a great weekend!