SLIDE 2 The Aerospace & Defense Forum South Bay Chapter May 13, 2015 2
Supplier Networks Pillar SWOTT
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Key Strengths
- Large, diverse supplier network cluster
- Extensive A&D productions experience
- Broad manufacturing training capabilities
- Supply chain management capabilities training
- R&D Institutions
- Cross-over industry technologies
- Access to Prime and T
- p-Tier A&D Organizations
- Resources to support A&D suppliers
Key Opportunities
- Supplier expansion to new A&D products such as
UAVs and commercial space flight
- Supplier diversification by producing parts and
components for new growth clusters such as medical devices
- Increase growth capabilities (e.g. new products,
export, etc.)
- New aircraft programs
- DoD small business preference
- Leveraging innovation and technology
- Reshoring/T
- tal Cost of Ownership
Key Weaknesses
- OEMs have less resources to support improvements
- Smaller firms do not have resources to grow and
increase supplier value
- Environmental regulations inhibit expansion
- Aging ownership & workforce
- Knowledge and capabilities to capture opportunities
- State policies that drive higher cost of doing business
- Lack of regional resource coordination
Key Threats
- Sequestration and reduction in defense spending
- Enticements from other states
- Supply chain consolidation
- Capacity of SMMs is strained by pace of change from
products requiring new materials, technologies, processes and equipment
- Mexico’s major growth in Aerospace
- Forced offshore production offsets
Key Trends
Companies implementing: Lean; Additive Mfg and Social Media; Reduction in workforce; Growing Asian market; Increase in capital investment; Industry consolidation; and Need for fuel-efficient technology
2015-05-13 A&D Supplier Forum
Supplier Networks Gaps
Supplier/OEM collaboration Reduction in regular face-to-face improvement interactions Planning and analytical capabilities Suppliers are not visible at all levels to OEM Suppliers not able to articulate their capabilities Supplier/OEM alignment and sourcing Design knowledge needed for SMMs to increase supplier value Supplier may not be in alignment with customer needs Use of T
echnology for Rapid testing
OEM/SMM capabilities to quickly test innovative ideas and technologies need
to be expanded
State Impact on Supplier competitiveness Drives higher cost and uncertainty Inadequate industry-state communications
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