Airbus Seeks to Double Spending With US Companies
Airbus currently spends $12 billion annually with US manufacturers. California and Ohio are slated among others.
Airbus AmericasChairman Allan McArtor announced on October 19, 2012 an effort by the companyto forge new partnerships with Southern California manufacturers. The goal -create new contracts and new job opportunities for businesses in the region.
The announcement was made to an audience of more than 100 local manufacturers attending an educational summit at the LosAngeles Area Chamber of Commerce, according to an Airbus Press Release dated the same day. The effort is backed by a global backlog of more than 4,400 aircraft and growing future demand.
Every year, Airbus spends more than 40 percent of its procurement dollars with U.S.-based suppliers. In 2011 alone, Airbus spent more than $12 billion on parts, components, tooling and services from more than 400 suppliers in more than 40 states. According to the U.S. Commerce Department formula, that spending equates to the support of some 210,000 American jobs.
At the summit, Airbus presented suppliers with an overview of its plans for growth, including sales projections,manufacturing needs, procurement strategy and details about what it takes to join the Airbus supply chain, according to the press release. Current suppliers also shared their experiences on working with Airbus, focusing on the areas of risk management.
Airbus is a leading manufacturer of commercial aircraft in the 100+ seat market. Airbus Americas helps engineer the entire product line, and supports and sells to customers in the Americas. In addition, Airbus is building an A320 Final Assembly line in Mobile, Alabama,with the first delivery to come in 2016. Airbus has spent more than $127 billion in the U.S. since 1990, according to the company.
In other reporting, Agence France-Presse (10/19) reported “The announcement marked a new step in the U.S. market, after Airbus announced in July plans to build its first aircraft assembly plant in the country in Mobile, Alabama, in home-turf competition with U.S. rival Boeing.” According to AFP, in July, Airbus announced a new $600 million assembly plant, to be built in the southern port city of Mobile, Alabama on the Gulf of Mexico. It will build A320 passenger planes.
Reuters (10/19, Grover) also covered the story, noting “Southern California is likely to be a big winner from the procurement, with a doubling of the $1 billion the aircraft maker, part of EADS, spends in the region.”There were some cautions in the Reuters story, including, “To get the added work, however, the Airbus executive [Airbus Americas Chairman Allan McArtor] said southern California will need to become more competitive with other states andc ountries by improving its educational institutions to turn out skilled workers, engineers and others the aerospace industry will demand.” In the piece, by 2031, McArtor is reported to have estimated that 32,550 airplanes will be in service, up from 15,550 today.
Ohio is also to get a piece of the procurement pie, according to The Columbus Dispatch (10/24, Torry) “Airbus will sign an agreement today in Columbus with state officials that eventually could clear the way for Ohio companies to dramatically increase their sales of components to the European manufacturer of large commercial jets.” The main impetus for such future business is an agreement between the National Composite Center in Kettering, Ohio and Airbus, according to the article. “Airbus and the composite centerwill “investigate the creation’’ of what would be a centralized Ohio Materials Manufacturing Technology Hub. … Ohio currently is the largest supplier of components to Airbus.” Other reporting on the Ohio story includes the Dayton Business Journal (10/23, Cogliano).