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Lim Hng Kiang urges suppliers to hone their =
competitive edge=20
in current downturn=20
By NISHA RAMCHANDANI
SINGAPORE'S aerospace industry chalked up record output of more =
than $7=20
billion last year - a rise from $6.89 billion in 2007 - according =
to=20
preliminary figures from the Economic Development Board. 'Despite the current slowdown, confidence in the aerospace =
sector=20
remains strong,' Trade and Industry Minister Lim Hng Kiang said at =
the=20
opening of the inaugural Aerospace Supplier Exchange (ASX), a =
regional=20
conference and exhibition that kicked off yesterday morning. Maintenance, repair and overhaul (MRO) work now accounts for =
about 90=20
per cent of local aerospace output. Manufacturing makes up the =
other 10=20
per cent. Mr Lim said that as competition intensifies, aerospace original =
equipment manufacturers (OEMs) will move to growing customer bases =
such as=20
the Asia-Pacific, which will boost the critical mass of aerospace=20
manufacturing activity here. Analysts predict that from 2008 to 2030, the compound annual =
growth=20
rate (CAGR) of Asia-Pacific commercial aerospace manufacturing, at =
7.7 per=20
cent, will outpace the global CAGR of 4.01 per cent. Singapore would therefore do well to grow its revenue =
contribution from=20
aerospace manufacturing. According to data compiled by the Association of Aerospace =
Industries=20
Singapore (AAIS) AeroCounsult Group, Singapore had only a 1.5 per =
cent=20
share of Asia-Pacific aerospace manufacturing revenue last year, =
while=20
China and Japan together had 68.8 per cent. AAIS AeroCounsult Group says Singapore can grow its aerospace=20
manufacturing business by focusing on technology-driven areas and=20
highlighting that the cost of risk in other regional countries may =
outweigh the cost savings. Mr Lim said: 'Singapore suppliers should make use of the =
current=20
downturn to strengthen their competitive capabilities.' Fifty companies - largely tier 3 and 4 suppliers catering to =
MRO and=20
OEM players - are participating in ASX 2009 over the three days. =
The=20
event, which is expected to draw about 2,000 visitors, is =
organised by=20
AAIS. In addition, 12 overseas buyers from the US, UK, France and =
India are=20
in town to meet local suppliers as part of the Global Asia Trade =
Exchange=20
(GATE) 09 Aerospace programme, which is managed by IE Singapore =
and=20
AAIS. Buyers include Thales Aerospace, Rolls Royce MRO and Kingfisher =
Airlines. Cyril Georges, industrial supplier performance manager for =
Thales,=20
said: 'Singapore is an excellent place to do business, with strong =
IP=20
protection, good manufacturing facilities and strong track record =
of=20
logistical proficiency.'
Copyright =C2=A9 2007 Singapore Press Holdings Ltd. All =
rights=20
reserved. |
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