140 aerospace suppliers from France and Germany participated to the survey.
This study has been realized to follow the previous one made in 2012/2013. It gives us details about competitiveness of aerospace suppliers and their maturity regarding the global market. This study focuses on French and German companies.
This study uses same method has the previous one. One new dimension has been added : digitalization.
French (n=74) and German (n=66) test samples are almost equal for company size, supply chain level, core activity segment as technical one. Test samples are representative from French and German markets.
A new dimension has been added : digizalisation ; a total of 29 criteria have been defined.
In the previous study from 2012/2013, 22 criteria were defined and organized in 3 main dimensions. This year, the study focuses on 29 competitiveness criteria. Old 22 criteria are used in the study and put into 3 same dime.nsion. New dimension about digital includes 7 competitiveness criteria
Suppliers’ rating across these criteria allow us to assess suppliers’ ability to be part of future aerospace programs.
In 2018, Suppliers proposition match about 65% with key players expectation (OEMs and Tier-1)
Strengths and weakness from suppliers changed a little during past 5 years. Globally, maturity level increased. However, for two-thirds of criteria, maturity level from suppliers is under the one expected by key players. Key players expectation increased from 4% since 2013 which is faster than maturity from suppliers.
Consequences, a gap is growing between suppliers’ maturity and key players’ expectations.
Maturity level of French and German suppliers are almost equal.
French and German supplier profile are similar; only 2% of maturity separates them (French suppliers can face 64% of key players expectations when German ones can face 66% of clients requirement). About evolution during these 5 years, German suppliers maturity globally rose when French one stayed the same.
« Client and market link » dimension maturity from German supplier is faintly better than French one. French subcontractor usually have a more diversified portfolio than German one thanks to the numerous OEMs and Tier-1 headquartered in France. German suppliers doesn’t have a strong domestic market so they invested a lot in international market. For this purpose, they focused time and investment over « competition & economic intelligence », « sales process experience » and also the « Regulation knowledge for importation and exportation ». For dimension « Product and service offer » French suppliers are more mature then German one as they are for « Supply chain management » and « Quality management ». Finally, for « support, process & capabilities » there is an important gap between the two countries especially because German companies have fewer difficulties to find qualified employees.
Digital transformation began
Supplier are now aware of digitalization need for industry. On average, more than 10% of annual investment is now for digital. They understood the need for digital integration with clients and suppliers and are implementing it. Next step is to extend this digital implementation at all levels of the supply chain. Suppliers are focusing on a small number of functional domains. Companies are pragmatic and put priorities for operational performances. To increase this digital aspect, suppliers will have to collaborate with start-up and schools to sustain digital advancement of their facilities and their environment. To conclude data management will become a major issue even if today it is not a priority.
We defined 3 possible areas for suppliers to win contract for following years. In actual market environment qualification and gain for command is more complicated: only 50% of suppliers will be able to stay partners of OEMs and Tier-1.
In 2013, 60% of suppliers were able to be future partner of OEMs and Tier-1 when in 2018 this percentage fall to 50%
Study realised by:
Kea & Partners team : Sébastien Maire, François Maisonneuve, Oriane Dintrans
H&Z team : Michael Santos, Jochen Schmid, Steffen Wenzel, Florian Offergeld