The aerospace industry has headed into 2025 with record demand. Air travel is bouncing back stronger than ever, and manufacturers are racing to keep up. Global passenger traffic is expected to hit 10 billion travelers this year, driving airline industry revenues past the $1 trillion mark for the first time. But while demand soars, manufacturers are still struggling with supply chain disruptions, labor shortages, and production delays.
For aerospace manufacturers, the challenge isn’t just producing more aircraft. It’s about building them on time, efficiently, and with fewer resources. Companies that embrace new technologies and smarter production strategies will be in the best position to thrive.
Why Aircraft Backlogs Are Still Growing
In theory, record demand should be good news for aerospace manufacturers. However, major aircraft makers like Airbus and Boeing are already booked out for years. Their production backlogs stretch well into the 2030s and even 2040s.
A few key issues are keeping manufacturers from closing the gap:
Supply Chain Bottlenecks
Essential materials like titanium, aluminum, and specialized electronic components are still facing delays. Many suppliers haven’t fully recovered from the pandemic, making it difficult to keep up with orders.
Labor Shortages
Aerospace manufacturing requires highly skilled workers, and there simply aren’t enough of them. Finding and training employees takes time, and many experienced workers are reaching retirement age.
Production Constraints
Even with the right materials and workers, aerospace manufacturing involves complex processes. Scaling up production too quickly can lead to quality control issues and safety risks.
While these challenges may not disappear overnight, manufacturers are finding ways to work smarter to improve efficiency and meet demand.
Strategies for Overcoming Supply Chain and Production Challenges
Godlan’s been around for over 40 years. We’ve seen all the ups and downs. Here are some of our time-tested tips to keep production and supply running smoothly.
Strengthen Supplier Relationships
Instead of relying on a single supplier for required parts, we recommend diversifying your supply chains. This means working with multiple suppliers across different regions to reduce the risk of shortages.
Some aerospace companies are also bringing production closer to home by reshoring or nearshoring key components. This improves reliability while reducing transportation costs and delays.
Adopt Smart Manufacturing and Automation
To keep up with demand, many manufacturers are finally waking up to smart factory technology. This includes:
- Automated production lines to speed up assembly
- AI-driven quality control to catch defects early
- IoT (Internet of Things) sensors to monitor equipment and prevent downtime
You can use automation to quickly optimize production schedules, predict equipment failures, and make faster decisions.
Rethink Workforce Training and Retention
With labor shortages continuing, companies need to invest in workforce development. One strategy involved partnering with technical schools and universities to train the next generation of aerospace workers. If that doesn’t work for your needs, consider upskilling current employees with digital tools and automation training. And we all know that hiring is more expensive that keep current employees trained and engaged. Try creating better career pathways to attract and retain talent in the industry.
Finally, using digital work instructions and augmented reality (AR) tools can help new workers learn complex tasks more efficiently.
Improve Production Planning with ERP Systems
For decades, Enterprise Resource Planning (ERP) software has been helping aerospace manufacturers streamline operations, and their importance grows as rapidly as aerospace technology improves.
That’s because an ERP system connects supply chain data, production schedules, and workforce management into one system, allowing manufacturers to:
- Track inventory and materials in real time
- Optimize scheduling to reduce bottlenecks
- Improve collaboration between suppliers, engineers, and production teams
The Future of Aerospace Manufacturing
Despite ongoing challenges, the aerospace industry is poised for major growth in the coming years. Companies that invest in digital transformation, automation, and smarter supply chain strategies will have the advantage.
Emerging trends to watch include:
- 3D printing of aircraft components to reduce lead times and material waste
- AI-powered production planning to further optimize efficiency and reduce costs
The aerospace sector has always been one of innovation and resilience. While demand is high and challenges remain, manufacturers that embrace new technologies and smarter strategies will be well-positioned to deliver on time and stay ahead of the competition.
We Specialize in ERP for Aerospace Manufacturers
At Godlan, we specialize in ERP consulting and smart manufacturing solutions for aerospace companies. With over 40 years of experience, we help manufacturers optimize their supply chains, streamline production, and leverage IoT technology for real-time visibility.
If your company is looking for ways to improve efficiency, reduce downtime, and meet production goals, our team is ready to help. Contact us today to learn how we can support your manufacturing transformation.
