Aerospace

Operation profile

The aerospace industry produces commercial and military aircraft and parts, military weapons, space rockets, and satellites. This analysis focuses on aircraft components and sub-assemblies, which may comprise a complex mix of elements, including precision metal components, electronic assemblies, and plastics components.

The representative operation modeled, a manufacturer of sub-assembly aircraft components, is based on a mix of mechanical and electrical production elements. As detailed in the following table, this operation is characterized by:

  • Moderate land and building requirements, and relatively low equipment requirements
  • A workforce consisting primarily of skilled technicians and operators
  • Moderate energy requirements.

The business is assumed to operate as a stand-alone profit center.
 

Summary of operating parameters

Industry: Aerospace

Operation: Aircraft parts manufacturing

Facilities requirements
   Leased industrial site - acres (20,234 m2)
5
   Size of factory - ft2 (7,107 m2)
76,500

Other initial investment requirements
   Machinery and equipment - US $'000
$7,000
   Office equipment - US $'000
$250
   R&D equipment - US $'000
$300
   Inventory - US $'000
$8,000
   Equity financing - % of project costs
50%

Workforce
   Management
4
   Sales and administration
10
   Production/non-dedicated product development
      - Professional, technical
38
      - Operators
27
      - Unskilled laborers
3
   Other
3
 
Total employees
85

Energy requirements
   Electricity: monthly consumption demand - kWh
177,000
   Gas: monthly consumption - CCF (20,538 m3)
7,250

Other annual operating characteristics
   Sales at full production - US $'000
$33,000
   Materials and other direct costs - % of sales
47%
   Other operating costs - % of sales
4%
   Investment in tax-eligible R&D - % of sales
1.7%

International results

International results are illustrated in the following chart. These results reflect the combined impact of 26 location-sensitive cost components applied to the modeled operation. Detailed results for these countries, by individual cost component, are available as a separate table.

City results

The following table profiles results for selected cities, by country, from among the 111 cities featured in this report. Results for all other cities included in the study can be found in the Results lookup section of this website.

Results for selected cities
Industry: Aerospace
Operation: Aircraft parts
North America – selected cluster cities
Country and CityIndex & Rank1
CAHalifax, NS89.99
 Montreal, QC90.210
 Sault Ste. Marie, ON90.916
 Toronto, ON89.98
 Vancouver, BC90.815
MXMexico City, DF84.82
 Monterrey, NL83.51
USAtlanta, GA96.346
 Hartford, CT99.599
 Indianapolis, IN97.158
 Mobile, AL96.241
 Oklahoma City, OK97.469
 Orlando, FL97.261
 Phoenix, AZ98.583
 Seattle, WA100.7105
 St. Louis, MO98.684
 Wichita, KS97.366
1  Rank among 111 featured cities.
 
 
 
International locations – all cities
Country and CityIndex & Rank1
AUAdelaide92.827
 Brisbane93.731
 Melbourne92.425
 Sydney93.329
FRMarseille92.626
 Paris93.228
GEBerlin93.530
 Frankfurt93.832
ITMilan91.923
 Rome92.324
JPOsaka94.133
 Tokyo94.334
NLAmsterdam90.714
 Rotterdam90.513
UKLondon96.651
 Manchester91.521
1  Rank among 111 featured cities.

 
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