As aerospace continues to feel turbulence, there is an opportunity for private equity to deploy the capital needed to support the increased demand. A feature of the sector is the long-term contracts that are set up between suppliers and Original Equipment Manufacturers (OEMs). While these offer steady cash flows, they do not necessarily guarantee rapid profit.
An ongoing shortage of labor continues to loom, but did you know that the largest skillset deficits for supply chain roles are in supplier and performance management? Riveron's aerospace team partners with OEMs and their suppliers to assess financial performance, identify opportunities for improvement, and implement strategic initiatives to improve financial performance and access to capital.
Key focus areas where private equity can bring value include leveraging their expertise in scaling operations, understanding cost drivers, and managing cash flow for profitability. As private equity continues to drive deal activity in the aerospace sector, companies must look for partners who can help them navigate the complexities of operational excellence and sustainable growth.