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2014 Industry Forecast: Maunufacturing

The SCVBJ asked local experts to share business forecasts for the coming year

Posted: December 21, 2013 2:00 a.m.
Updated: December 21, 2013 2:00 a.m.
 

Dennis Junker, President

Aero Engineering & Manufacturing

Diversified in many phases of parts manufacturing for the aircraft and aerospace industries, from simple components to complex assemblies.

 

1. What kind of growth do you foresee in 2014 for your industry?

I’d say there will be about 10 percent growth next year. The manufacturing industry is strong here. Companies in our area are all expanding. Aviation is very strong with Boeing and Airbus building a lot of airplanes that need parts. There are still some good programs on the military side, but it’s not growing at same rate as it had. A lot of commercial airplanes are selling.

2. What opportunities are ahead?

Demand seems to be growing on the commercial side so there are good opportunities for sustained growth in manufacturing.

3. What challenges is your industry facing?

Finding trained, educated personnel. Hiring skilled employees is more of a challenge than securing capital or facilities.

Regulatory issues are definitely an issue. It’s not easy to do business in California when you’re manufacturing.

4. What kind of support does your industry need?

It would help if California has less regulation. The state’s rules are stricter than the federal regulations.

There is also too much overlap in California – too many agencies who collect fees and issue licenses for the same thing. We had a painting operation in the San Fernando Valley once and seven different agencies oversaw it – like the county, city, state, federal, AQMD, and more.

5. What plans does your company have for 2014?

We have plans to continue growing and think we’ll be within a 10 percent growth area. We had really good growth in 2013. In fact, we’ve been hiring every year for years – even during 2008 when the economy was bad. We have a lot of business overseas – New Zealand, Japan, Canada, all over Europe. Half of our business is from countries that fly U.S. built aircraft. A lot of work is for ongoing aircraft production ; and a lot of the business will be “sustainment work” – manufacturing parts specifically for older aircraft that is still flying but needs parts to be replaced.

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