The American aerospace and defense industry generated more than $995 billion worth of business activity in 2024.
As noted by research firm Deloitte, however, the aerospace manufacturing industry now stands at a crossroads as throughput demands surge and regulatory expectations evolve. Coupled with labor shortages and supply chain disruptions, aerospace manufacturers need production line processes that help improve uptime, enhance quality and support long-term scalability.
In this piece, we’ll break down the top trends aerospace sector manufacturers can expect to see this year.
The push toward automation and smart factories
More demand + fewer skilled staff = the need for aerospace market changes.
According to 2024 survey data, 47% of aerospace engineers say their primary focus is recruiting skilled personnel. Smart factories underpinned by automation can help manufacturers make the most of the staff they have while they upskill current teams and expand their recruiting efforts.
Key components of smart manufacturing factories include:
- Connected sensors
- Data analytics solutions
- Collaborative robots (cobots)
Automation offers several benefits for aerospace operations. The first is overcoming manufacturing skills gaps by allowing staff to focus on high-value tasks. In addition, automated processes reduce the risk of human error. Automation also helps ensure compliance with regulations such as those laid out by the Federal Aviation Administration (FAA) and AS9100 quality management standards. Companies must also consider Air Force expectations of quality for military aircraft and space technology. Meeting the exacting standards of this and other government agencies requires advanced aerospace engineering supported by intelligent, automated manufacturing processes.
Growth of additive manufacturing for lightweight parts
Additive manufacturing, also known as 3D printing, is changing how companies design and produce aerospace parts. This is because additive techniques enable the production of lightweight and complex geometries that are not possible with traditional machining. When applied to aircraft and spacecraft, these components help reduce fuel usage and improve overall performance.
Benefits of additive manufacturing include custom tooling and rapid prototyping for metal brackets, housings and cabinet interior components. Key considerations, meanwhile, cover repeatability and material validation for regulatory compliance, along with precise calibration and ongoing maintenance to ensure uptime.
For aerospace manufacturers, this isn’t an early adopter scenario. Instead, it’s a necessity to stay competitive—more than 69% of aerospace companies say they already use additive manufacturing as part of their production process.
Advanced materials and composites adoption
There’s also a push for aerospace manufacturing to integrate advanced materials and composites into production processes. For example, carbon reinforced polymers (CFRP) and thermoplastics are material hybrids that offer both lighter weights and improved strength. Manufacturers are also investing in new materials that support electric aircraft production.
These new materials, however, also come with operational requirements such as:
- Precise environmental controls
- Automated placement systems
- Specialized technician skill sets
Predictive maintenance and reliability-centered operations
As noted above, equipment reliability is now a top priority for aerospace manufacturers. This is because unplanned downtime can halt entire production sequences and delay aircraft delivery schedules. At best, this leaves manufacturers scrambling to make up time, meaning other projects are put on hold. At worst, clients may select another manufacturer to fulfill their production needs.
Predictive maintenance processes help detect early signs of equipment failure, giving companies time to act before downtime occurs and emergency repairs are needed. Capturing and using this data requires a combination of predictive maintenance sensors (such as those for temperature, pressure and vibration), connected software solutions to collect this data and artificial intelligence (AI) tools to analyze this information and suggest proactive solutions.
Predictive aerospace industrial maintenance advantages include:
- Improved overall equipment effectiveness (OEE)
- Reduced product reworks and materials scrap
- Better task scheduling
Digital twins and simulation-driven manufacturing
Digital twins are real-time virtual replicas of parts, equipment or entire factories. This digital tool offers a way for companies to see how processes or products perform under specific conditions and then use collected data to improve their physical counterparts.
Consider a critical piece of production line equipment that assembles jet engine chassis. If this equipment fails, the resulting downtime is costly and time-consuming to address.
While it’s possible to take the equipment offline for scheduled testing and then run multiple scenarios to identify potential weak points, this also results in lost time and output.
Digital twins offer a practical way to evaluate performance. By creating a digital model of the engine equipment, teams can simulate potential failure scenarios to understand when issues occur and under what conditions. They can also test different process optimizations to identify which improvements deliver the greatest operational benefits.
With digital twins, companies can:
- Improve scenario planning
- Enhance process optimization
- Reduce the need for physical testing
- Validate new designs
- Access predictive insights
The result? Reduced machine wear and improved throughput.
Increasing focus on sustainability and energy efficiency
Sustainability is now a priority for aerospace manufacturers. In part, this stems from evolving environmental regulations, but it’s also tied to the use of more energy-efficient materials and data-driven processes. To support additive manufacturing initiatives and AI-driven smart automation, companies need reliable, high-capacity power. Sustainable initiatives can help reduce energy spending without compromising quality.
But this is no easy task. Survey data shows that 55% of aerospace engineers consider sustainability one of their top three challenges in the next three years.
Initiatives underway to enhance sustainability include:
- Equipment upgrades
- Materials recycling
- Waste-reduction initiatives
- Electrification of support equipment
- Predictive maintenance programs
Workforce transformation and technician skill gaps
Aging workforces and emerging skillsets create a challenge for aerospace manufacturers.
Older staff often have knowledge of integrated legacy tools and workflows that often remain part of aerospace production processes. When these employees retire, however, their knowledge often goes with them, leaving newer staff struggling to pinpoint the root cause of process problems.
At the same time, manufacturers are deploying more advanced technologies to improve production performance, such as cobots, agentic AI tools and additive assembly frameworks. This has created a demand for advanced skills in robotics, programmable logic controllers (PLCs), composite materials management, CNCs and mechatronics.
Two approaches can help companies navigate these staffing challenges. First are upskilling programs that offer pathways for employees to expand their knowledge inside the organization and on the company’s dime.
Next are technical support partners that can provide the skilled staff necessary to meet production targets and maintain quality standards.
Building a resilient aerospace supply chain
Last but not least on our list of aerospace trends? Improving supply chain operations. As noted by PWC research, 45% of aerospace executives say they plan to reshore or nearshore most of their production processes by 2030.
Reshoring is the process of moving manufacturing processes back to home soil, while nearshoring shifts some aspects of production to nearby countries. In the case of a U.S. aerospace company, this could mean moving mission-critical tasks back to American factories, while support services and parts production are moved to Mexico.
Other solutions can also help boost supply chain resiliency, such as:
- Multi-sourcing critical parts and materials
- Deploying inventory visibility tools and digital procurement solutions
- Developing maintenance strategies that improve equipment availability and stabilize production planning
The sky’s the limit
Digital transformation in aerospace and defense is accelerating as companies leverage advanced materials and deploy new manufacturing technologies to meet global demand.
In theory, new technologies mean the sky’s the limit for process improvements and production performance. In practice, gaps in talent and technology create challenges for companies.
With a partner like ATS, manufacturers are better equipped to improve uptime, enhance quality and confidently scale into the next era of aviation operations.
Services offered by ATS include:
- Access to skilled manufacturing maintenance technicians with aerospace experience
- IIoT-enabled predictive maintenance programs to ensure asset reliability
- Support for automation, robotics and advanced equipment maintenance
- Reliability engineering and root cause analysis to reduce scrap and improve quality
- MRO optimization services that reduce inventory costs and improve parts availability
- Flexible models for supplemental staffing, full-service maintenance or targeted support
Success in the evolving aerospace industry depends on a combination of reliable equipment, skilled technical labor, efficient operations and targeted technology deployments.
See how ATS can help. Let’s talk.
References
Aerospace Industries Association. (2025, June 17). 2025 facts & figures: American aerospace & defense industry continues economic dominance. https://www.aia-aerospace.org/news/american-aerospace-defense-industry-continues-economic-dominance/
Bridgewater, S. (2025). Aerospace manufacturing in 2025: The key issues. Royal Aeronautical Society. https://www.aerosociety.com/news/aerospace-manufacturing-in-2025-the-key-issues/
Deloitte. (2025, November 13). 2026 aerospace and defense industry outlook. https://www.deloitte.com/us/en/insights/industry/aerospace-defense/aerospace-and-defense-industry-outlook/2025.html
PwC. (2025, November 20). Aerospace and defense industry trends: 10 moves to position for growth in 2026. https://www.pwc.com/us/en/industries/industrial-products/library/aerospace-and-defense-trends.html
