Major structural changes are reshaping the operational landscape of transportation companies.
Key takeaways
Rapid investment in the supply chain has restructured the aerospace ecosystem.
Auto producers need to develop strategies to attract, engage and develop the workforce.
Manufacturing trend #1: Navigating the road ahead: Automotive industry trends for 2025
Navigating the road ahead
Automotive trends for 2025 are shaped by softer sales, growing inventories, moderating prices and continuing labor challenges.
The automotive sector is in a transformative period, adjusting to slower sales growth and ongoing margin pressures while also navigating the transition to electric vehicles. The acceleration of software-defined technology developments, tight global competition and evolving industrial policies add to the shifting market dynamics. Facing all these changes, automakers and suppliers need to adapt their operations and investment strategies, identify new growth drivers, and rightsize production levels and product mixes. All of this will enable companies to continue innovating, stay competitive and drive profits.
Manufacturing trend #2: Advanced air mobility is reshaping the aerospace supply chain
Transformation is underway in the world of air transportation, driven by advanced air mobility (AAM). This emerging, revolutionary approach—which uses cutting-edge technologies such as electric propulsion systems, autonomous flight capabilities, novel business models such as air taxis, and electric vertical takeoff and landing—also has major implications for the broader aerospace supply chain.
The AAM sector is landing substantial global investments. In 2023, this market was valued at $9.3 billion, with projected growth to $51.6 billion by 2033—a compound annual growth rate of 18.69%, according to Spherical Insights. By comparison, the traditional aircraft production market was nearly $200 billion in 2019, fell to $114 billion in 2020, and is not expected to recover to 2019 levels until 2028, according to AeroDynamic Advisory, an aerospace consulting firm.
Advanced air mobility is reshaping the aerospace supply chain
Advanced air mobility trends are reshaping the aerospace supply chain. Here’s what companies need to know.
Manufacturing trend #3: Transportation companies must adapt to higher capital costs
Transportation companies must adapt to higher capital costs
Transportation companies must adapt to higher capital costs.
Amid elevated interest rates and a prolonged slump characterized by declining freight rates and overcapacity, the transportation industry is showing signs of a gradual recovery. However, significant structural changes are reshaping the operational landscape and the financial strategies of transportation companies.
Through excess capacity leaving the market, coupled with expected easing in financial conditions, the sector is likely to experience a more favorable environment over the next 12 to 18 months as supply and demand come into a better balance. However, companies will also navigate a challenge they haven’t seen in two decades: higher capital costs.
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