The Middle East, Africa, and Indian subcontinent regions harbor some of the world’s fastest-growing economies with increased per capita spending capacity. This is the driver for growth of passenger and freight traffic, leading to an overall growth of the Aviation Industry in the region.
With over 40 years of experience in developing customized global logistics solutions, Expeditors’ Aviation & Aerospace expertise has a long-standing history of serving the markets in the Middle East, Indian subcontinent, and Africa with a strong focus on customized solutions, technology, and compliance.
So, what are the likely outcomes of these large aircraft orders and where will the opportunities likely arise from?
Countries with financial clout and large order books will look to maximize the sourcing from their domestic manufacturing. These tradeoffs are visible in the region, with local companies providing key components and aerostructures for major OEMs. One of these OEMs has set up an FAL (Final Assembly Line) for building a military transport and a civil helicopter in India. Setting up a local FAL also allows OEMs to nearshore their fulfillment and insulate them from global events like conflict or trade route disruptions.
With more components being manufactured in the region, domestic sourcing of parts will increase, leading to growth in the number of qualified domestic tier suppliers and quality certification of domestic raw materials, especially specialty metals and alloys. This is a net benefit to the region as it generates employment and boosts manufacturing expertise.
Aviation manufacturing continues to grow and remains one of the fastest-growing industries globally. Expeditors is here to watch every step of the way. As we continue our blog series, learn more about how our experts are engaging with a rapidly growing market in the Middle East, Africa, and India.
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Want to continue your read? Learn more in the second part of our blog here.