The Defense and Aerospace industry specializes in international involvement and foreign exchanges. Although Boeing is one of the industry’s primary aircraft and jetliner companies, its foreign competitors are continuously rising. Right behind Boeing is the prestigious Airbus, which is located east of the United States in Europe (Blagnac, France). Airbus and Boeing are constantly in competition with each other, developing new innovations for airline companies all over the world. Two days ago on October 14th, China has recently ordered five of Airbus’s A380’s for its major cities Beijing, Shanghai, and Guangzhou. The fifth plane ordered was Airbus’s 58th A380 sold within the past four years. With 350,000 hours flown and over 15 million passengers transported, the A380’s unremitting usage from companies like China Southern Airlines is expanding. China’s increasing urbanization and affluence is demanding over 200 aircrafts from Airbus by 2030. As time progresses, countries will grow in population and the rate of passenger travel will increase. Airbus (Europe) is not far behind Boeing (U.S.), and with future advances in technology, their aircraft models will be of higher demand, which will eventually make Airbus of higher status as a European manufacturer.
The BAE Systems is a global defense and security company with approximately 100,000 employees worldwide. The company distributes wide variety and range of products and services for land, air, and naval forces. It also supplies electronics, security, support provision, and information technology solutions. The BAE Systems are very prominent especially in the United Kingdom. It is the largest defense and security company in the UK by having 39,000 employees and approximately 9,000 businesses in its supply chain. BAE Systems is also the UK’s largest manufacturing based employer and engineering company. It contributes about £3.3 billion to the United Kingdom’s GDP, exports about £4.9 billion on average every year, and expenditures of about £4 billion for every 9,000 workers. All the BAE Systems around the world work off of each other in order to bring in revenue. The United Kingdom strongly relies on this company, and similar to Airbus, further improvements will only increase these two companies globally.
http://www.airbus.com/newsevents/news-events-single/detail/china-southern-airlines-receives-its-first-pearl-of-the-sky-a380-jetliner/
http://www.baesystems.com/WorldwideLocations/UK/KeyFacts/index.htm
A possible reason why the United States houses many of the largest defense and aerospace companies in the world may be due to its sheer size. Being a large country, both population and size wise, the United States most likely has a comparative advantage over other countries in producing and manufacturing certain products.
ReplyDeleteEven though Boeing is a larger company than BAE Systems, BAE seems to still distribute a wide variety of products and is global (working with the U.K.). It's interesting to see that there are other non-U.S. companies that still provide a range of products, even though it's not as prominent as Boeing.
ReplyDeleteAlthough the US houses the largest defense and aerospace companies in the world, companies such as Airbus are continuing to expand with an increase in population and wealth and advances in technology. But no matter how much Airbus grows, I don't think they will ever reach the status of Boeing.
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