The only thing that is constant is change. With the current rate of changes in the world, scientific studies are showing that every few years, we can actually expect that there’ll be some major catastrophic event. This could include everything from a financial crisis, a pandemic or some major weather phenomenon. The key to understanding these changes is knowing that they will actually occur. Once you’re aware of a phenomenon, it makes the ability to thrive in the environment that much easier.
With the aerospace industry, there are changes and uncertainties that actually presented themselves in 2020. In the commercial aerospace era, the current pandemic has had a significant impact on global air travel. With airports closed for months at a time in 2020, eventual re-opening of airports actually resulted in a low flow operational mode where only approximately one quarter of the seats on the flights were occupied at any point after the re-opening of the airways.
The aerospace industry must therefore be prepared for the changes that currently exist. With new transformations underday, it will be possible for the recovery phases of the aerospace industry to be accounted for, as we currently exist in a world where some aspects of the industry were brought to a standstill. To achieve the desired success, it will be important to understand the market from various perspectives that will enable the right decisions to be made. What are some of the actions that companies operating in this regime can do in 2020 to ensure that they are thriving? Below is a list of possible options for making the aerospace industry great again.
-
Consider Pivoting
When it comes to business decisions, the best thing to do is to actually take the time to make decisions based on what the business parameters are telling you, and not on emotions. Profitability is the key to all business performance, and in an era where the current customer base is expected to be uncertain, it is not a bad idea to actually exit the market. With the current state of manufacturing, if an organization is able to successfully exit the commercial aerospace market, they can then take the time to pivot to other aspects of the industry. If they were carrying passengers, one option would be to pivot to the manufacturing of products for the existing profitable customers in the chain. Would they need your computer systems, would they need your maintenance team? Would they need innovative help in the development of future engines? All of these considerations are valid.
If you don’t feel like exiting, a great idea would be to actually take the time to be more agile in your offerings, and create packages that will make your team standout from the competition. If you can attract new clients, or operate during identified peak seasons, you’ll actually be able to keep the organization afloat. In the industrial realm, one of the key modes of operation is via a Just In Time system. As an organization, if you can operate your airline in a mode that is Just In Time, and operate fewer but full flights per week, you should be able to still meet the requirements of your business costs.
-
Change your business location
In some instances, some organizations have changed their operations from the current location to one that is in a higher traffic region. This can include operations in regions such as the East where the aerospace sector is actually thriving, and the air traffic demand is on a higher level.
-
Optimize your supply chain
The global pandemic resulted in a change in the supply chain. With China as a primary supplier to the majority of industries in the world, some organizations including those in the aerospace realm were unable to actually meet their demands because of the shortages in the supply chains. Alternative sources of resources are now rising to meet that demand. That includes locations such as India, who is currently working on increasing their capacity to supply markets such as those in the space, ship building and aerospace environments. Japan is also another nation that is gearing up to support the aerospace market.
-
Embrace disruptive technology
In the process of becoming more agile, it will be a good idea for the organization to embrace disruptive technologies. This involves the integration of your technologies with organizations such as start ups. Where possible, acquire these start ups and integrate them into your own operations. You can actually phase out the existing operations if you see a dwindling in the business, and allow the resources to be poured into a new and thriving industry. With your energy focused on new things, it will be a refreshing way to keep yourself growing and changing as an organization in aerospace. The space industry is showing promise, so if commercial flight isn’t doing well, perhaps it might help the organization to work on transitioning to the development of rocket technology, or enter a sphere such as renewable energy.
There is always room for growth and change. The largest organizations also have learned the value of innovating and changing with the times. The pace only gets more rapid with time, so be prepared.