The aerospace industry faces an array of challenges, but geopolitical instability, persistent strains on supply chains, and concerns over the commercial aviation industry’s capability to decarbonize won’t prevent Aerospace Industries Association CEO Eric Fanning from heading to the Paris Air Show with optimism. “There is tremendous excitement that American manufacturers are able to return to Paris, the world’s largest air show, after four years…after four rough years,” Fanning told AIN in an interview ahead of the event at LeBourget. In 2019, North American manufacturers accounted for 18 percent of the more than 2,450 companies exhibiting their products. On a per-country basis, the U.S. took the lead with some 340 high-technology manufacturers and suppliers from across every sector and tier of the civil and defense industry.

Fanning acknowledged that stressed supply chains will make for a major topic of discussion at this year’s show. “The good news is that air travel is picking back up,” he said. “Memorial Day weekend travel exceeded pre-pandemic levels. Demand on the civil side is looking good.” Demand on the defense side also remains high, owing mainly to Russia’s attacks on Ukraine. OEMs and their suppliers can’t keep pace with the resulting demand. The historical counter-cyclical environment of defense and non-defense is gone, Fanning remarked. The civil and defense industries largely share a supply chain, which, said Fanning, “is not built for a simultaneous resurgence of demand of the two sides of the aerospace industry."

Fanning sees three major concerns that could slow resolving the supply chain difficulties and hamper AIA members’ growth: inflation, access to skilled workers, and geopolitical tensions—including the changing relationship with China—affecting accessibility to trade, minerals, and materials. Attracting and retaining talent with critical or niche skillsets presents “the real long-term issue,” he asserted. “The issue is not limited to the aerospace industry but it is probably the number-one strategic concern of the industry. It is going to take some creative solutions [to solve it],” he explained.

The European aerospace industry and the broader air transport ecosystem are experiencing a similar shortage of skilled workers in part due to the perception of its nature as a polluter, which has led to a decline in its appeal and dissatisfaction with working conditions.

“We don’t see the same loss of attractiveness here [the U.S.] as in Europe,” he said. “The West, and certainly the U.S., has under-invested in developing a technical workforce. Part of globalizing high-tech manufacturing and complex products was influenced by factors such as cheaper labor but also labor availability.”

Last month, the AIA and PwC released a study highlighting the labor market dynamics facing aerospace and defense companies. The A&D industry will continue to experience “serious challenges to fill its workforce ranks over the next several years,” concluded Scott Thompson, PwC’s Global Aerospace & Defense Leader. “Given these challenges, it is especially important for the industry to change course in how it engages with top talent,” he wrote. “Perhaps the most urgent need is to redouble efforts to promote the industry as one that can offer exciting and meaningful careers developing and producing some of the most innovative technology that exists in any field.”

The AIA’s head, a former Pentagon official and the only person to have held senior appointments in all three U.S. military departments, categorically rejects the notion that the Boeing 737 Max debacle and the recent series of runway incursion events have weakened the historic leadership of the U.S. in civil aviation in terms of safety and image. “The world still looks very much to the U.S. in terms of certification. Flying has never been safer,” Fanning pointed out.  “Our greatest risk, for the moment, is the political environment.” Political wrangling between the Republican and Democratic parties could, among other things, affect the ongoing five-year FAA reauthorization, including its policies and funding.

Regarding the industry’s drive to become more sustainable, Fanning said he believes the U.S. is equally committed as its European counterparts despite the EU’s headline-grabbing programs and regulations such as the Green Deal, Fit for 55, and ReFuelEU. “Everyone is in on this,” declared Fanning. “It is the right thing to do. Moreover, delivering increased sustainability is a very clear market demand.”