Aerospace Resource Guide A Reference for U.S. Exporters 2014–15 Edition Revised Aerospace Resource Guide A Reference for U.S. Exporters 2014–15 Edition (Revised) This book made possible with support from The use of logos within this publication does not connote endorsement by the U.S. Department of Commerce of the organizations’ views, products, or services. iv U.S. Commercial Service Aerospace Resource Guide | 2014–15 Table of Contents Introduction ............................................... 3 Korea, Republic of ..................................96 Aerospace Exports Overview ............... 5 The Netherlands .....................................99 Industry Briefs ........................................... 7 New Zealand ......................................... 103 Australia ....................................................18 Norway ................................................... 105 Austria ........................................................21 The Philippines..................................... 108 Belgium .....................................................24 Poland ..................................................... 111 Brazil ...........................................................28 Romania ................................................. 115 Bulgaria .....................................................32 Singapore............................................... 121 Canada .......................................................36 Slovak Republic .................................... 125 China ..........................................................40 South Africa........................................... 130 Colombia ...................................................50 Spain ........................................................ 132 Czech Republic........................................53 Sweden ................................................... 137 Denmark....................................................56 Switzerland ............................................ 140 Finland .......................................................59 Tajikistan, Republic of ........................ 143 France.........................................................61 Thailand .................................................. 146 Germany ....................................................65 Turkey ..................................................... 148 Hungary.....................................................73 United Arab Emirates ......................... 151 India ............................................................75 United Kingdom .................................. 154 Ireland ........................................................79 Subsector Reference Chart............... 161 Italy .............................................................82 Resources ............................................... 163 Japan ..........................................................89 Contacts ................................................. 165 Kazakhstan ...............................................92 U.S. Commercial Service Aerospace Resource Guide | 2014–15 1 2 U.S. Commercial Service Aerospace Resource Guide | 2014–15 Introduction What Can the U.S. Commercial Service Do for You? The U.S. Commercial Service (CS) is the export promotion arm of the U.S. Department of Commerce’s International Trade Administration. Our global network of more than 1400 trade professionals is located throughout the United States and in U.S. Embassies and Consulates in more than 70 countries. Whether you are looking to make your first international sale or expand to additional markets, we offer the expertise you need to connect with lucrative opportunities to increase your bottom line. Our Services The Aerospace Team works directly with industry to provide you with information you need to grow your business and ensure that the aerospace industry remains a cornerstone of the U.S. economy. We create these guides to provide valuable market intelligence relevant to your company’s export goals. Learn more about how we can help you at export.gov/industry/aerospace. To begin your relationship with CS, first contact your local U.S.-based trade specialist. Their names can be found on the following pages, as well as at export.gov/usoffices. On behalf of the Aerospace Team, we hope you find this guide a useful tool for developing and executing your international business strategy. Please contact us directly if we can be of further assistance. Your feedback on the guide is always appreciated. Melissa Grosso Paul Matino Global Aerospace Team Leader (2012–14) Global Aerospace Team Leader (2014–16) [email protected] [email protected] Market Intelligence Trade Counseling • Analyze market potential and foreign competitors • Develop effective market entry and sales strategies • Obtain useful information on best prospects, financing, • Understand export documentation requirements and laws, and cultural issues import regulations of foreign markets • Conduct background checks on potential buyers • Navigate U.S. government export controls, compliance, and distributors and trade financing options Business Matchmaking Commercial Diplomacy • Connect with pre-screened potential partners • Overcome trade obstacles to successfully enter • Promote your product or service to prospective buyers at international markets trade events worldwide • Benefit from coordinated U.S. government • Meet with international industry and government engagement with foreign governments to protect decision makers in your target market(s) U.S. business interests • Access U.S. government trade advocacy for your foreign government procurement bids U.S. Commercial Service Aerospace Resource Guide | 2014–15 3 4 U.S. Commercial Service Aerospace Resource Guide | 2014–15 Aerospace Exports Overview The U.S. Aerospace sector covers a wide range of manufactured goods including aircraft parts, general aviation aircraft, rotorcraft, business jets, large civil aircraft and products relating to the commercial space sector, including launch vehicles and satellites. While U.S. manufacturers are highly competitive in each of these sub-sectors, each group has its own top markets globally, its own best prospects and its own market access challenges. Many U.S. aerospace companies split their business between civil use products and defense products. Generally speaking, as the U.S. defense budget has declined, U.S. aerospace manufacturers have seen an increasing need and utility in finding foreign markets to maintain their sales volume and production rates. Their product portfolio has also trended towards the civil side and away from defense products (though defense remains a critical element of the business model). For example, in 2009 U.S. aerospace production was fairly evenly split with defense related goods accounting for 41 percent of production and civil goods accounting for the other 59 percent. By 2013, defense goods accounted for only 29 percent of U.S. aerospace production with civil goods capturing the other 71 percent. Overall U.S. aerospace exports reached USD 128.74 billion dollars in 2013, up 8.6 percent from the previous year’s total of USD 118.52 billion. U.S. aerospace exports have been experiencing a steady increase over the past several years, up almost 37 percent since 2009. The top U.S. export markets in 2013 were China, the United Kingdom, France, Japan and Canada. Top destinations by sub-sector will vary from the list above. For example, aerospace parts will naturally flow more to markets with mature manufacturing sectors (e.g. the EU markets and Brazil), while large civil aircraft exports are spread more robustly to any markets with airlines. General aviation products also enjoy wider distribution, though factors such as overall GDP, adequate infrastructure and access to MRO facilities are important. Exports of air traffic management equipment, particularly advanced, next generation equipment are expected to increase as more countries come into line with regulations agreed upon by the United Nations International Civil Aviation Organization. While satellite exports tend to go more heavily to higher income markets many smaller countries see the utility in owning satellites covering region to provide satellites communication, broader television and internet coverage and military capabilities. U.S. Commercial Service Aerospace Resource Guide | 2014–15 5 6 U.S. Commercial Service Aerospace Resource Guide | 2014–15 Industry Briefs Civil Aircraft Parts Prepared by Fred Elliott, International Economist • [email protected] • (202)-482-1233 Summary Manufacturers of civil aircraft parts provide products to manufacturers of complete civil aircraft; airlines and other aircraft operators; and aircraft maintenance, repair, overhaul (MRO) shops. The aircraft parts industry is tiered, with some parts passing through many hands, and national borders, before reaching an airframe manufacturer in a major subassembly. While other types of airframe producers, such as the regional jet manufacturers Bombardier (Canada) and Embraer (Brazil), cannot be discounted, manufacturers of large civil aircraft (LCA) are especially significant drivers for the demand of civil aircraft parts. The U.S. Department of Commerce defines LCA as jet transport aircraft of 100 seats or more or equivalent cargo capacity. The primary manufacturers are Boeing, Airbus and Bombardier (the latter of which is producing a 110–130 jet airliner yet to be delivered). While both Boeing and Airbus