The Arkansas Aerospace and Defense Alliance (AADA) released the results Wednesday (Oct. 7) of its two-week survey to determine the coronavirus impact on the aerospace and defense industry among companies in the state.
Approximately 15% of AADA members responded to the survey, which included manufacturers, defense contractors, maintenance repair and overhaul companies (MROs), fixed-based operators (FBOs) and regional airports.
AADA members were asked a variety of questions regarding sales, employment, operations, and future predictions. Takeaways from the survey included:
- 96% have been impacted negatively by the coronavirus (lost sales, contracts, supply chain disruption);
- 35% have seen contracts canceled or delayed;
- 31% have experienced layoffs or furloughs;
- 58% have experienced lost sales; and
- 58% expect future losses.
Supply chain disruptions was a major factor among AADA manufacturers during the COVID-19 pandemic. The survey found that many aerospace and defense companies expect to have continued problems throughout the supply chain related to the pandemic. These problems include: materials availability, delayed services and supply chain disruption.
Some AADA companies did benefit from the pandemic. The survey showed that several companies in the industry have seen sales increase during 2020 and have been able to expand business.
“Based on the overall information collected from our members, the aerospace and defense industry remains resilient and will bounce back over time,” said Chad Causey, AADA executive director.
The Arkansas Aerospace and Defense Alliance is a group of public and private aerospace companies, government agencies and educational institutions dedicated to growing the aerospace, aviation and defense infrastructure in Arkansas and training a qualified workforce.