ISTOCK/CYBRAIN


Supply Chain Woes and Creative Solutions


WITH PENT-UP DEMAND CAUSING an increase in orders, almost every vertical aviation OEM acknowledges that one key issue—the supply chain—is affecting delivery. Experiences differ, but the outcome is the same, as these HAI HELI-EXPO exhibitors explain. “What’s holding us back is the availability of critical parts due to suppliers having difficulty purchasing raw materials,” says Leon Silva, vice president of global commercial and military systems at Sikorsky, a Lockheed Martin company. “Ukraine and Russia are both large suppliers of titanium, for example. So we’re seeing extended lead times for parts.” Nicolas Chabée, vice president of helicopter engines marketing and sales at Pratt & Whitney Canada, adds that the foundries used to cast parts have limited availability. “We are above our targets in all platforms …, but we are competing with all manufacturing for casting,” Chabée says.


Chabée also notes that, in the past, demand in the helicopter industry sales cycle typically alternated between the commercial sector and the military/paramilitary sector. Increased tensions in Europe and a recovering commercial market mean demand is strong in both sectors, further increasing the need for engines. Leonardo reports an excellent year with increased commercial sales and boosted military sales in part due to replacing grounded Russian Mi-8 helicopters. What’s more, Bell’s US Army future long-range assault aircraft (FLRAA) win in December for the V-280 tiltrotor provides validation for Leonardo’s investment in the civilian AW609. But for Leonardo, getting parts and materials remains challenging and runs deeper than the supply-chain issue. “We have to be very careful with inflation, the supply chain, and the financial crisis, both with the war and international trade crisis,” says Roberto Garavaglia, senior vice president of strategy and innovation. “We aerospace and defense industries need to critically review our supply-chain sources and find new sources. We also need to attract new, young talent to STEM careers, as that is another shortage.” OEMs are attacking supply-chain difficulties in a variety of


ways.


Rolls-Royce is in a slightly better position than other companies, ironically because of a difficult situation before the pandemic, when it was experiencing massive turbine-wheel


36 ROTOR JUNE 2023


backlog and materials shortages. During the pandemic and the resulting economic downturn, the engine manufacturer entered into favorable long-term purchase agreements for materials. As a result, it is now receiving its raw materials at significantly lower, locked-in rates. “Our engines are built from … 40% [parts] made in-house,” explains Scott Cunningham, Rolls-Royce program director for helicopters. “We are in a strong position on the make side with raw materials.”


Robinson Helicopter Company is similarly limited by vendors’ abilities to deliver. Sales are back to prepandemic levels but could be even higher. “Our biggest problem is we have too big of a backlog,” says President Kurt Robinson. The company is running two shifts with more than 1,030 employees and plans to hire another 70. The holdup now is outsourced parts and supply. To free up space and labor at the


factory, Robinson is outsourcing overhauls, work it traditionally performed in-house, to Robinson service centers wherever possible.


Bell is experiencing its own pressures. In addition to work


related to its new FLRAA contract, the production line for all aircraft is almost sold out for 2023. What’s more, many of Bell’s suppliers support military contracts, which always take priority over commercial customers. “When we have delays in getting parts, we have to be


creative,” says Bell Director of Commercial Programs Michael Nault, although he notes that the workaround can create inefficiencies. “We skip the part installation and keep the aircraft moving down the line, coming back to add parts later as they come in.”


Airbus Helicopters has seen a 15% increase in helicopter sales over last year, but supply-chain concerns will cap how quickly the company can deliver, Airbus Helicopters President Romain Trapp told ROTOR. With Airbus having both helicopter and commercial airplane divisions, “the demands on materials and parts manufacturing from the commercial airline industry are quite visible to Airbus Helicopters,” Trapp says. To tackle the supply-chain issue, Airbus invested $150 million in parts inventory worldwide to anticipate customer need. The company also strengthened its ability to provide customer support by increasing that staff by 34%.


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