INDUSTRY GROWTH AGENDA OVER A
TEN (10) YEAR PERIOD (2015-2022)
THE PHILIPPINE
AEROSPACE INDUSTRIES
ROADMAP
PRESENTED BY: JOHN T. LEE
THE AEROSPACE INDUSTRIES ASSOCIATION OF THE
PHILIPPINES (AIAP)
For the Philippines to be a major hub for
manufacturing of OEM parts and allied
services (MRO) for the global commercial
aircraft industry.
VISION
2
STATE OF THE INDUSTRY
3
GLOBAL AEROSPACE
INDUSTRIES OVERVIEW
THE GLOBAL AEROSPACE INDUSTRIES OVERVIEW
Year 1995
Year 2012
Source: World tourist Organization
FROM THE FAA AEROSPACE
FORECAST FISCAL YEARS 2014-
2023 REPORTCommercial Aviation Forecast in US
Demand to Aircraft
Assemblers
THE BOEING FAMILY
737 747 767
777 787
The world's largest aerospace company and leading
manufacturer of commercial jetliners and defense, space
and security systems. Its commercial jetliners roughly covers
48% of the world-fleet.
AIRCRAFT DELIVERY FORECAST
THE AIRBUS FAMILY
Airbus is one of the world’s leading aircraft
manufacturer of passenger airliners
AIRBUS(ORDERS, DELIVERIES , OPERATORS – WORLDWIDE )MAY 2015
Single
Aisle
A300/
A310A330 A340 A350 A380 TOTAL
Total Orders 11704 816 1502 377 780 317 15,496
Total
Deliveries6581 816 1189 377 3 162 9,128
Aircraft in
Operation6315 359 1171 330 3 162 8,340
Number of
Operators312 51 102 50 1 13 395
Number of
Customers284 86 102 48 40 18 380
AIRBUS(SUPPLY AND DEMAND ) AS OF JANUARY 2015
THE GULFSTREAM FAMILY
THE BOMBARDIER FAMILY
THE COMAC FAMILY
THE GROWING GLOBAL MARKET
20Source: BOEING – Current Market Outlook – 2014-2033 – (Internet data)
AIRCRAFT OEM VALUE %
21
AEROSPACE:
A DIAMOND INDUSTRY
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1.0 Capability Building - The need to put in
place infrastructures, technologies, training,
education, certifications and other sustaining
resources to complete the local presence of
technologies and capabilities required to
support aerospace manufacturing ,
maintenance, repair and overhaul (MRO),
testing and qualification in accordance with
aerospace standards .
TO BE A DIAMOND WE NEED 4C’S
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TRAINING/ EDUCATION
ADVANCE CNC MACHINING
METROLOGY
SURFACE TREATMENT
HEAT TREATMENT
QUALITY MANAGEMENT SYSTEM AS9100C
NADCAP
AVIATION SCHOOLS
AVIATION MECHANICS
AERONAUTICAL ENGINEERS
RISK MANAGEMENT
CAPABILITY BUILDING
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PRODUCTION AND PROCESS CAPABILITY WITH CERTIFICATION
AEROSPACE VACUUM HEAT TREATMENT FOR STEEL AND ALUMINUM
SOLDERING
VACUUM BRAZING
VACUUM LASER E BEAM WELDING
GEAR MANUFACTURING
PRECISION MEASUREMENT
ADVANCE METROLOGY
CHEMICAL LABORATORY
NON DESTRUCTIVE TESTING
AEROSPACE SURFACE TREATMENT
CAPABILITY BUILDING
25
2.0 Collaboration - The need to collaborate
with other local associations, government,
training institutions, flying schools, airline
companies, trade organizers and also to our
ASEAN neighbors in establishing areas of
business complementation.
COLLABORATION
26
Encourage participation of other industries to
support the growing Aerospace Industry
Encourage development of local businesses
conforming to aerospace standards
e.g. Raw Material Distributor, Chemical Supplies, Tool Supplies,
Encourage Regional Asean Participation
Addressing the gaps by ensuring collaboration with our Asean
neighbors
COLLABORATION
27
3.0 Challenge - The need to strengthen
our competitiveness in terms of all
relevant market considerations ie:
productivity, innovation, technologies,
education, sustainability, ease of doing
business, governance, transport,
integrated supply chain, cost structures
and pricing, etc.
CHALLENGE
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The need for the industry to complete the supply
chain gaps in order to capture the market that
requires certified processes.
CHALLENGE
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4.0 Cultivate - nurture good business
practices, continuous improvement,
human resource development,
modernized education and training
systems, risk management, critical
business linkages, image and
relationships.
CULTIVATE
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Information drive on existing government programs and
incentives, e.g. PEZA, BOI/DTI/DOST/MIRDC/TESDA for them
to have support and be competitive.
Continuous review and improvement of policies and incentives
supportive of the aerospace industries.
Inclusion in government promotions and programs i.e.
advertisements, trade fairs, exhibitions / conferences,
counter-trade
Investment missions / promotions for other OEM suppliers
CULTIVATE
31
Extension of government incentives for high capital
investments intended for aerospace manufacturing.
- e.g. long-term leases, lease subsidies, tax holidays, zero interest,
credit facility provision, loan guarantees
Encourage government to spearhead provisions for training
and development of critical processes to bridge gaps in the
supply chain.
- e.g. NDI / surface treatment / metallurgical test facility/ gear
manufacturing / heat treatment/ precision machining and
metrology/ special testing per AS standards
CULTIVATE
32
Support Industry Accreditation to Aerospace Standard (AS
9100, NADCAP, etc)
Encourage Investments and Trainings on NDI, surface
finishing, gear manufacturing, composites manufacturing and
other special processes to fil l the supply chain gaps.
Provide the same trainings and investments thru DOST/MIRDC
funded programs to fast track development of services not
available in the supply chain.
CULTIVATE
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To be the leading organization, enabling partnerships and
serving as collective voice of the stakeholders, in promoting
growth and development of the Philippine aerospace industry.
Promote and establish business collaboration and integration
to support competitiveness in product cost, quality and
delivery
Promote a culture of excellence in manufacturing through
technical competence in manpower, advanced manufacturing
technologies, and advanced quality systems
Serve as liaison of the memberships in influencing
government policies and development programs: partnering
with government and established institutions to revitalize and
elevate the state of Philippine aerospace industry
MISSION
34
REVENUE GROWTH
POTENTIALS
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REVENUE GROWTH POTENTIALS
In US$M
36
REVENUE PROJECTIONS AND POTENTIALS
(Dreamline)
36
SEA COUNTRY EXPORTS & PROJECTIONS (1995 -2022)
Source: World Trade Services
US$ Million
37
REVENUE GROWTH POTENTIALS
RECOMMENDATIONS
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First Steps:
By having a single person from government in charge of the Aerospace Roadmap implementation. Who is this person?
By having the aerospace council be more active in ensuring the aerospace industry roadmap is implemented and key issues are addressed.
By having the government representative present in aerospace events. Ie: summits, conference, etc.
Being in sync in all activities being done for the industry
RECOMMENDATION
39
CONCLUSION
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A successful and sustainable aerospace
manufacturing industry must fully engage the
cooperation and support of the government.
The aerospace industry is in a rare opportunity for
the country to take advantage of, with the
confluence of events in the growth of the Asian
aerospace industry.
This development is a most opportune time for the
Philippines to regain its image as a major technology
contributor.
CONCLUSION
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“This is an important project because
it marks a new kind of
manufacturing. We are moving up
the value chain, and today marks the
foothold we have secured in the
aerospace supply sector.”
QUOTE FROM THE PRESIDENT
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October 3, 2012 – Excerpts from President Benigno Aquino’s speech during
the Inaguration of B/E Aerospace facility in Tanauan, Batangas
THANK YOU…
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