Mike Baumbach
Business Unit Leader
In an era of unprecedented growth and innovation in the Aviation and Aerospace industry, BE&K Building Group (BE&K) stands at the forefront, offering specialized Design-Build and Construction Management services. With over 40 years of experience, we have witnessed and contributed to the transformation of this dynamic industry. During this time, we have completed dozens of projects for sophisticated global clients with project values ranging from $5 million to more than $1 billion in value.
Industry Growth and Projections
Similar to the speed of travel associated with this industry, its growth is not slowing. According to PwC’s 2024 annual industry performance and outlook report for global aerospace and defense, current industry notables include (provided as excerpts from PwC’s recent report):
- “2023 set a record for industry revenue of $829 billion, 11% above 2022 and 4% above the previous record set in 2019….
- Civil aviation companies led the way…with double-digit revenue increases.
- 2023 was a year of continuing surge in demand for passenger aviation despite constrained capacity and higher ticket prices. Revenue passenger kilometers and available seat kilometers both improved to 94% of pre-pandemic levels, with domestic travel exceeding pre-pandemic levels by 4% and international travel recovering to 89%.
- Civil aviation companies led the way with many companies expanding operating margins. Despite the strong profit improvement, performance continues to be hampered by production constraints, the lingering effects of supply chain and work force disruptions, and higher inflation, although all these issues seem to be abating.
- Even as the supply chain performance improves, it’s chasing accelerated demand. Airlines continued to post a flood of new aircraft orders — at 3,670, that is nearly three times 2023 deliveries — pushing backlog above 14,000 units as the industry struggles to ramp up production. This dynamic is likely to persist for years to come.
- Industry backlog of $972 billion and greater than 14,000 units — exceeding the previous record of 12,888 set at the end of 2019 — is more than 11 years’ worth of production at current production levels.
- In the long term, the outlook for global commercial aviation remains bullish.
- The forecast demand over the next two decades supports an estimated 43,000 new aircraft deliveries and a services market value greater than $9 trillion.
- Over the next several decades, the industry will be focused on innovation and developing new products that contribute to net zero carbon emissions goals.
- Meanwhile, the defense sector is experiencing significant increases in demand amid increased global tensions and partly due to the wars in Ukraine and the Middle East. Global defense spending set a record as many countries moved to increase their deterrence capabilities, and the defense industry is struggling to meet the increased production requirements….
- The space sector is also experiencing surging demand. Small satellite networks are proliferating as the world moves to a space-based economy. A decade or so ago, there were a handful of launches per year. Now, we are seeing multiple launches weekly, and the pace is only accelerating. Projections for the space industry forecast an approximate tripling in value over the next decade to $1.5 trillion in annual value.”
Source: PwC’s – Global Aerospace and Defense, Annual Industry Performance and Outlook, 2024 Edition
Key Considerations for Aviation and Aerospace Facilities
Facilities that support the manufacture and production of tomorrow’s aircraft, the associated parts supply chain, and aircraft maintenance are unique, with highly specialized design and construction requirements. Identifying the right design-build or construction management partner to support your company’s next major capital investment is the first critical step toward ensuring project success. Beyond this initial selection, there’s much to consider when expanding/renovating a current facility or building a new one. A representative short list of considerations include:
- FAA permitting, specifications, and associated regulations
- Foreign Object Debris (FOD) control for associated active FAA-controlled properties
- Unique aviation and aerospace process design coordination
- Soil condition evaluations to support foundation requirements
- Seismic sensitivity and vibration-isolated foundations
- Underground and overhead utility distribution requirements for tooling and equipment
- Low tolerance machinery with deep foundation requirements
- Critical flight component manufacturing criteria
- Large-scale controlled and clean environments
- Large bays and associated hangar doors
- Overhead cranes for major aircraft parts movement
- Large paint booths with high-volume air circulation requirements
- Foam fire protection and explosion-proof areas
- Fuel, oil, and hydraulic piping support systems
- Facility commissioning services
- Net Zero Carbon emissions optimization
The above are just a few of the considerations that Aviation and Aerospace clients must consider when expanding their building program.
BE&K’s Expertise: Boom Supersonic’s Overture Superfactory
An example of BE&K’s relevant experience is the recent completion of Boom Supersonic’s Overture Superfactory in Greensboro, North Carolina – the first supersonic airliner factory in the United States. The facility is pending LEED certification and is expected to be at least 40% more energy efficient compared to similar traditional manufacturing facilities. The factory will produce airliners that can travel at twice the speed of traditional aircraft when flying over water and will exclusively use Sustainable Aviation Fuel (SAF) engineered for Net Zero Carbon emissions. Each representative consideration listed above played a role in the design and construction of this next-generation facility.
Why Choose BE&K for Your Next Project?
BE&K specializes in designing and building complex technical facilities. Our experience building Aviation and Aerospace facilities over the past 40 years has yielded many lessons learned that have benefited our clients in recent years. We have experts on hand and are here to help guide you through the building process. BE&K is also uniquely positioned to assist by offering industry-specific consulting services to help you determine your best next steps. Ready to take your aviation and aerospace facilities to the next level? Contact Mike Baumbach at mike.baumbach@bekbg.com or Courtney Hall at courtney.hall@bekbg.com to learn how BE&K can support your next project.
Click here to learn more about our experience with Aviation and Aerospace facilities.