NADCAP Accredited Metal Finisher TMF Sees Commercial Production Bolstering Aerospace Manufacturing and Taking the Sting Out of Government Cuts in Aerospace

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On September 1st, 2011 the International Association of Machinists and Aerospace Workers representing aerospace machinists and metal finishers contacted President Obama in order to help preserve the Aerospace and Defense Industry and its workforce from substantial downsizing that defense budget cuts will bring. Leading aerospace metal finisher, Technical Metal Finishing, says it may have been too little too late as a combination of issues such as the culmination of the Iraq war, Afghanistan winding down and an unprecedented national deficit were enough for the congress to cut military spending by $350 billion over the next 10 years.

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International Association of Machinists and Aerospace Workers

$1 billion worth of orders that Boeing expects to receive from India by 2017 exemplifies the American aerospace industry’s resilient ability to find opportunities for growth.

Burbank, CA based metal finisher Technical Metal Finishing (TMF) predicts that the fiscal 2012 defense appropriated bill that has already been passed by the U.S. House of Representatives is a testimony to what’s coming with $119 billion already trimmed from defense spending, representing a steep 24.6% decline from 2011. This has led to a contraction in defense industry orders for aerospace manufacturers and their suppliers. The aerospace manufacturing sector is feeling the pinch as a significant percentage of their revenues stem from government contracts. Yet, commercial sector orders are set to rapidly expand with new commercial orders and the increasing demand within emerging markets.

A news-worthy bright spot within this sector has been Delta Airline’s order for 100 Boeing narrow-body jets in a deal estimated to be worth more than $8.5 billion. At first glance, the Delta deal would seem to be an uptick for commercial aircraft manufacturers and aerospace suppliers who provide services such as aerospace painting, non-destructive testing and anodizing. Upon closer observation, the deal appears to be no more than a stabilizing counter in light of more recent news that American Airlines opened up their purchasing options to foreign aircraft manufacturers and awarded EADS the “largest aircraft order in history” for 260 Airbus A320s. But everyday new silver linings arise within America’s commercial aerospace sector as new global markets open up.

One juggernaut of a market that has recently begun to open up its aerospace industry to private participation is India. Boeing has already established a strong presence in Indian aerospace manufacturing by partnering with Hindustan Aeronautics Limited (HAL). The HAL partnership coupled with $1 billion worth of orders that Boeing expects to receive from India by 2017 exemplifies the American aerospace industry’s resilient ability to find opportunities for growth that will offset dwindling government defense contracts.

For more industry news on aerospace metal finishing, please visit http://www.technicalmetalfinishing.com. Technical Metal Finishing (TMF) is a Nadcap certified metal finisher recognized for its unique anodize masking processes and non-destructive testing services. The company's fifty-five year reputation for reliability, precision and speed combined with lean certified project management ensures that parts are delivered right on time, every time for a smooth, stress-free experience from start to finish.

References:

1. Aerospace Industries Association, IAM&AIA Oppose Cuts to Aerospace and Defense, http://www.sacbee.com/2011/09/02/3880828/iamaw-aia-oppose-cuts-to-aerospace.html (Sept. 2, 2011)
2. Associated Press, “Golden Decade is Ending for Defense Industry and Stock”, USA Today (August 19, 2011)
3. Mark Memmott, “American Airlines Places Largest Aircraft Order In Aviation History”, NPR (July 20, 2011)

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