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Firms producing transport aircraft make up the largest segment of the civil (nonmilitary) aircraft portion of the industry. Civil transport aircraft are produced for air transportation businesses such as airlines and cargo transportation companies. These aircraft range from small turboprops to wide-body jets and are used to move people and goods all over the world. Another segment of civil aircraft is general aviation aircraft. Aircraft in this segment range from the small two-seaters designed for leisure use to corporate jets used for business transport. Civil helicopters, which make up one of the smallest segments of civil aircraft, are commonly used by police and large city traffic departments, emergency medical services, and businesses such as oil and mining companies that need to transport people to remote worksites.

 
 
 

 

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Aircraft engine manufacturers produce the engines used in civil and military aircraft. These manufacturers design and build engines according to the aircraft design and performance specifications of the aircraft manufacturers. Aircraft manufacturers may use engines designed by different companies on the same type of aircraft.

Aerospace Manufacturing

Military aircraft and helicopters are purchased by governments to meet national defense needs, such as delivering weapons to military targets and transporting troops and equipment around the globe. Some of these aircraft are specifically designed to deliver or guide a powerful array of ordnance to military targets with tremendous maneuverability and low detectability. Other aircraft, such as unmanned aerial vehicles, are produced to gather defense intelligence such as radio signals or to monitor movement on the ground.

Firms producing guided missiles and missile propulsion units sell primarily to military and government organizations. Although missiles are viewed predominantly as offensive weapons, improved guidance systems have led to their use as defensive systems. This part of the industry also produces space vehicles and the rockets for launching them into space. Consumers of spacecraft include the National Aeronautics and Space Administration (NASA), the U.S. Department of Defense (DOD), telecommunications companies, television networks, and news organizations. Firms producing space satellites are discussed with the computer and electronic product manufacturing industry in this publication because satellites are primarily electronic products.

The Federal Government traditionally has been the aerospace industry’s biggest customer. The vast majority of Government contracts to purchase aerospace equipment are awarded by DOD. NASA also is a major purchaser of the industry’s products and services, mainly for space vehicles and launch services.

The aerospace industry is dominated by a few large firms that contract to produce aircraft with Government and private businesses, usually airline and cargo transportation companies. These large firms, in turn, subcontract with smaller firms to produce specific systems and parts for their vehicles. Government purchases are largely related to defense. Typically, DOD announces its need for military aircraft or missile systems, specifying a multitude of requirements. Large firms specializing in defense products subsequently submit bids, detailing proposed technical solutions and designs, along with cost estimates, hoping to win the contract. Firms also may research and develop materials, electronics, and components relating to their bid, often at their own expense, to improve their chances of winning the contract. Following a negotiation phase, a manufacturer is selected and a prototype is developed and built, then tested and evaluated. If approved by DOD, the craft or system enters production. This process usually takes many years. [ Excerpted from Bureau of Labor Statistics, U.S. Department of Labor, Career Guide to Industries, 2008-09 Edition, Aerospace Product and Parts Manufacturing ]