In Jeremy Chan’s article, he discusses the aerospace market’s current situation and analyzes two main companies which monopoly the whole market. Both two producers try to increase their dependancy due to the increasing outsources in order to get more profit. However, it dramatically increases the  pressure of supply chain producer to these companies. Under this situation, more and  more companies consider consolidate their supply chain which means merged small companies whose finance is independent.

Similar to what Jeremy Chan mentioned in his article, The key to maintain steady economic growth is operation. Wise operation can really help the plane makers to run company in a benign condition. As many factories are suffered from the stress of the supply chain, consolidation of them can be a efficient way to better meet the demand, which can make the supply chain more robust. Also, with more and more complicated planes continue being designed, plane makers are looking for some firms that provide components far more closely including sending inspectors to their factories. The attempt they seek to find the long relationship with more believable firms is to keep pace with the incredible demand from consumers and keep gain profit from the trade-off as well. And I also notice that if two largest plane makers compete under such a monopoly market, the best way for them to do business is setting a long term operation plan to figure the supply issue which can create a steady chain for company itself.

Sources:

Jeremy Chan’s blog: https://blogs.ubc.ca/jdchan/2014/10/04/the-sky-is-the-limit/

External sources: http://www.economist.com/news/business/21621851-fixing-one-supply-chain-problem-planemakers-may-be-creating-another-good-parts

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