China Sourcing and A&D

I’ve heard a saying in the manufacturing world that if it's good enough for an A&D provider, it's good enough for us. Given this, the fact that Airbus plans to increase China sourcing "eightfold by 2010" is remarkable. The tolerances, performance characteristics, and on-time supply requirements required in the A&D market are huge, relative to other industries. Given this, it would appear that China is longer just considered a source of low cost supply (which alone would not fly in A&D); it's increasingly being looked at as a strategic supply region that can meet rigorous production and manufacturing requirements. And what's even more remarkable is that China sourcing in A&D is increasing at a time when OEMs are increasingly relying on suppliers to collaboratively design and supply larger components and systems.

Jason Busch

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