Demand is strong, but delivery depends on the supply base
The aerospace market is not short on demand. Airlines are still modernizing fleets, passenger numbers continue to rise, and aircraft OEMs are carrying significant backlogs. Boeing’s 2025 Commercial Market Outlook states that about 80% of in-service airplanes are expected to be replaced by more than 21,000 deliveries with the goal of improving fleet efficiency and capability. IATA also forecasts passenger numbers to reach 5.2 billion in 2026, an increase of 4.4% from 2025, with annual load factors expected to reach a record 83.8%.
However, strong demand does not automatically translate into delivered aircraft. The major airplane OEMs continue to work through large backlogs, production recovery, and planned rate increases, while the wider aerospace supply base remains under pressure from capacity constraints, extended lead times, quality and compliance requirements, documentation burden, and skilled-labor shortages. For OEMs, Tier 1s, and Tier 2s, the challenge is no longer just demand generation. It is whether the supplier ecosystem can keep pace without adding delivery or quality risk.
Supplier resilience is becoming a strategic priority
Given these pressures, supplier resilience is no longer just a procurement consideration. It is becoming a strategic production priority. As aircraft manufacturers work through the previously mentioned challenges, the strength of the supply base directly affects quality, schedule confidence, and operational risk.
This is why supplier capability now needs to be viewed through a wider lens. Aerospace buyers are not only looking for available capacity; they need manufacturing partners that can deliver repeatable quality, maintain documentation discipline, respond to changing production needs, and support continuity when programs are under pressure. In this environment, resilience is built through controlled processes, qualified production capacity, reliable inspection, and suppliers that understand the cost of disruption.
Defense and space add another layer of demand
Commercial aircraft production is only one part of the pressure on the aerospace supply base. Defense and space programs are also increasing demand for qualified suppliers, especially where precision, traceability, documentation, and reliable delivery matter. With the FY2027 U.S. Air Force, Space Force, and Navy budget requests including major aircraft, defense, and space priorities, suppliers that can support controlled, repeatable manufacturing are becoming increasingly important.
What aerospace buyers should look for in a precision manufacturing partner
Given these market pressures, aerospace buyers need manufacturing partners that can support more than available machine time. The priority is reliable, repeatable production capacity that helps reduce risk across quality, delivery, and documentation. Capabilities such as 3/4/5-axis CNC machining, extrusion milling for lightweight and long-profile components, Lean manufacturing principles, and a clear roadmap for future expansion can all play an important role in supporting a more resilient aerospace supply base.
Strengthening supplier bases
As aerospace buyers continue to evaluate how to strengthen their supplier base, qualified manufacturing capacity will remain a critical part of the conversation. We’ll be sharing a relevant update on July 20th that reflects this focus and the role we see us playing in the industry as precision manufacturing becomes an increasingly critical part of U.S. aerospace production.
