The commercial aerospace sector has spent the past decade scrambling to satisfy the demands of sky-high production rates. Now, with significantly lowered air travel and stalled aircraft demand, the entire ecosystem must start to ramp production down. The resulting cultural shock will be huge as very few people in the industry have experienced such a demand drop before. To do this successfully, the industry must put immediate focus on cash containment measures and a thorough resizing of the business while preserving the skills and capabilities of its people. There are six major areas to address: 1) Begin with your leaders; 2) Be realistic about the topline impact; 3) Focus on a detailed cash forecast; 4) Adjust the cost base; 5) Protect and reshape the supply chain; and 6) Negotiate with the government.
Acting quickly and decisively will be critical when leading teams through this dramatic change in the industry. At the same time, adapting and revising plans continually in the face of new information will be the new norm.
This article was originally published by Aviation Week