{"id":98890,"date":"2025-02-20T06:34:31","date_gmt":"2025-02-20T06:34:31","guid":{"rendered":"https:\/\/peraltafinancing.com\/airbus\/tier-1-suppliers-are-a-failed-market\/"},"modified":"2025-02-20T06:34:31","modified_gmt":"2025-02-20T06:34:31","slug":"tier-1-suppliers-are-a-failed-market","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=98890","title":{"rendered":"Tier 1 suppliers are a “failed market”"},"content":{"rendered":"


\n<\/p>\n

\n

Subscription Required<\/strong><\/p>\n

By Scott Hamilton<\/strong><\/p>\n

Feb. 20, 2025, \u00a9 Leeham News<\/strong>: The Tier 1 supply chain is all but dead.<\/p>\n

\"\"<\/a><\/p>\n

Kevin Michaels.<\/strong><\/p>\n<\/div>\n

This rather startling conclusion belongs to Kevin Michaels, the managing director of the consulting firm Aerodynamic Advisory. When he explains his thinking, it supports a major shift in the aerospace industry.<\/p>\n

He made his remarks at the Pacific Northwest Aerospace Alliance conference this month in the Seattle area.<\/p>\n

Tier 1 supplies are the last step in the supply chain, delivering products directly to the Original Equipment Manufacturers (OEMs), such as Airbus, Boeing, Embraer, and the engine makers.<\/p>\n

Michaels said the supply chain is \u201cfragile\u201d and \u201cred hot.\u201d \u201cOverall, the supply chain is in better shape than it was last year at this time. It’s in better shape now than it was two years ago. But it’s still incredibly fragile.\u201d OEMs purchase about 75% of the value of the aircraft from the supply chain. Aerostructures are the first tier. And this is where Michaels\u2019 rubber hits the road.<\/p>\n<\/p><\/div>\n\n","protected":false},"excerpt":{"rendered":"

Subscription Required By Scott Hamilton Feb. 20, 2025, \u00a9 Leeham News: The Tier 1 supply chain is all but dead. Kevin Michaels. This rather startling conclusion belongs to Kevin Michaels, the managing director of the consulting firm Aerodynamic Advisory. When he explains his thinking, it supports a major shift in the aerospace industry. He made […]<\/p>\n","protected":false},"author":1,"featured_media":98891,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12027],"tags":[21623,11209,9409,1989],"dealstore":[],"offerexpiration":[],"class_list":["post-98890","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-airbus","tag-failed","tag-market","tag-suppliers","tag-tier"],"yoast_head":"\nTier 1 suppliers are a "failed market" - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=98890\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tier 1 suppliers are a "failed market" - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"Subscription Required By Scott Hamilton Feb. 20, 2025, \u00a9 Leeham News: The Tier 1 supply chain is all but dead. Kevin Michaels. This rather startling conclusion belongs to Kevin Michaels, the managing director of the consulting firm Aerodynamic Advisory. When he explains his thinking, it supports a major shift in the aerospace industry. 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