The aerospace industry has faced the most acute shock in its history, as COVID-19 spread across the world, the industry lost over $118 billion in 2020 and saw dozens of airlines seek bankruptcy protection or stop flying entirely.
There is more work to do in order to get through to full recovery, as our current forecasts show, the recovery is indeed happening, and commercial aircraft activity is poised to return. Yet, it is now time to design a resilient next chapter for aerospace in a post-pandemic world.
In this episode of the Oliver Wyman Velocity Podcast, join Ken Aso, Jerome Bouchard, Dennis Santare and David Stewart as they examine the key aspects of a pre- and post-COVID market and which design elements will position aerospace companies to win in 2021 and beyond.
Key Implications on the Aerospace Market
Distressed investors and companies are seeking precedented level of funding1
Up to 20% of lower tier suppliers could exit A&D market
Suppliers are announcing risk mitigation moves almost daily
Primes have slowed production rates as they rethink production lines, plant organizations and workspaces
Disrupting to logistics is extending lead times
There is considerable stress on cash flows and Government aid is becoming insufficient for hard-hit suppliers2