1. The major challenges of the French aerospace industry

1.1 Faster production rates and industrial pressure

The French aerospace industry faces an unprecedented surge in demand. In 2023, Airbus recorded historic net orders of 2,094 aircraft, while hiring forecasts for 2025 stand at 25,000 positions. This Airbus production ramp-up translates into an increase in production rates of 10 to 15% per year, with ambitious targets on the A320 and A350 programs.

This acceleration puts the entire aerospace supply chain under pressure. Tier 2 and Tier 3 subcontractors, often SMEs and mid-caps, must increase their production capacity while maintaining extremely high quality standards.

1.2 Global supply chain synchronization: a collective challenge

One of the structural challenges of the French aerospace industry lies in its ability to effectively synchronize the entire supply chain, from the major prime contractors down to the Tier 2 and Tier 3 subcontractors. In such an interdependent ecosystem, the production pace is often dictated by the slowest station, turning each link into a lever or a brake for the entire flow.

As Guillaume Faury, CEO of Airbus, put it:

“I'm not delivering an almost-finished aircraft; every part matters… We're all standing together in this crisis. The big players and the small ones have pulled together.”

This operational solidarity requires fine-grained, bidirectional, and continuous visibility between players: the rapid escalation of alerts (delays, shortage risks, real capacity) as well as the smooth dissemination of forecasts and priorities. To reach this level of collaborative maturity, digital tools such as AirSupply or AirConnect play a key role in the shared management of flows and the improvement of collective performance.

1.3 Industrial sovereignty and sector consolidation

The French aerospace industry is of strategic importance to national sovereignty, in both the civil and military domains. The dual sector (civil and defense) is a major asset, with defense revenue of €20.3 billion in 2024, up 13% year on year. However, the 33% drop in French public orders, which fell to €2.17 billion in 2024, raises concerns about the sustainability of this balance.

To strengthen the industry's resilience, a new investment fund, Tikehau Ace Aéro Partenaires 2, backed by Bpifrance, Airbus, Safran, Thales, and Dassault Aviation, aims to raise up to €800 million. This vehicle takes over from Ace Aéro Partenaires 1, which had already helped support indispensable companies such as Aubert & Duval, Figeac Aéro, and Mecachrome.

1.4 Digital transformation and operational performance

Aerospace industry digitalization is becoming an essential lever of competitiveness. The “Industry of the Future” program led by GIFAS, with a budget of €23 million, aimed to support 300 companies in their digital transformation. This initiative covered the full range of new 4.0 technologies: industrial information systems (MES, ERP), advanced scheduling tools (APS), artificial intelligence, and inter-company connectivity.

BoostAeroSpace, the digital platform created in 2011 by Airbus, Safran, Thales, and Dassault Aviation, plays a central role in this transformation. Its AirSupply, AirConnect, and AirCyber solutions now connect more than 10,000 suppliers and 33 European prime contractors, making it possible to automate the exchange of orders, forecasts, shipping notices, and invoices.

Finally, the AeroExcellence program, officially launched by GIFAS in January 2024, offers a universal operational-excellence framework covering three structuring themes: operational excellence, environmental performance, and cybersecurity. This framework, recognized by all the prime contractors, already includes more than 60 companies established across more than 80 sites covering every French region.

1.5 Quality, compliance, and traceability

The French aerospace industry is subject to some of the strictest regulatory requirements in the world. The PART21, PART145 (EMAR), and EN9100 certifications are essential prerequisites to operate in the sector. Total traceability of parts, materials, and manufacturing processes is mandatory, requiring extremely rigorous document management systems.

1.6 Cybersecurity and IT/OT resilience

In a context of growing digitalization and constantly evolving cyber threats, securing information and production systems becomes critical. The European NIS2 directive imposes new obligations on companies in the industry, particularly regarding the protection of sensitive data and business continuity.

AirCyber, the solution developed by BoostAeroSpace, offers a service that certifies the cybersecurity level of supply chain partners, with the ambition of becoming a cybersecurity standard in aerospace. The goal is to assess 1,200 companies within four years, allowing compliant companies to no longer be audited with each new collaboration.

1.7 Decarbonization and environmental transition

The decarbonization of aviation is one of the major challenges of the decade. The French aerospace industry has committed to developing sustainable aviation fuels (SAF), low-carbon aircraft, and new propulsion technologies (hydrogen, electric). The aerospace component of France 2030 mobilizes hundreds of millions of euros to support this transition, including €200 million allocated to developing a SAF production sector.

The CORAC program (Council for Civil Aviation Research), led by the French Civil Aviation Authority (DGAC) jointly with GIFAS, coordinates the industry's decarbonization roadmap and allocates France 2030 funds to the most promising innovation projects.

1.8 Attractiveness and skills

With 29,000 hires made in 2024 and 25,000 planned for 2025, recruitment is a major challenge for the French aerospace industry. The “L'Aéro Recrute” campaign, launched by GIFAS in April 2022, aims to attract new talent in a context of qualified-labor shortage. The needs remain particularly acute for production and maintenance trades: fitters, aerospace painters, equipment fitters, CNC operators, wirers, boilermaker-welders, mechanics, and quality inspectors.

2. The main pain points of the French aerospace industry

2.1 Chronic under-capacity of subcontractors

The supply chain remains marked by the aftermath of the health crisis: lost know-how, tensions on raw materials (titanium, special steels, electronic components), and high operating costs in France (labor, energy, taxation). Many Tier 2 and Tier 3 SMEs and mid-caps struggle to keep up with the production ramp-ups, creating bottlenecks in the supply chain.

2.2 Unstable forecasts and weak visibility

Planners and schedulers face instability in demand forecasts and a granularity that is often insufficient (week or month rather than day). This situation complicates forecast resource management, the optimization of production runs, and the planning of critical-component supplies.

2.3 Difficulties in planning and scheduling

Aerospace scheduling is characterized by its complexity: multi-level bills of materials, multiple capacity constraints, management of production contingencies, and traceability requirements. Many companies still use manual tools (Excel, PowerPoint) to build their schedules, generating error risks, considerable time loss, and difficulty in simulating alternative scenarios.

2.4 Insufficient digitalization in SMEs/mid-caps

While the major prime contractors have invested massively in digitalization, many SMEs and mid-caps lag significantly behind. The absence of high-performing industrial information systems limits their ability to automate exchanges with their customers, track production progress in real time, and optimize their processes.

2.5 Excessive dependence on a few prime contractors

The concentration of activity around a few major prime contractors (Airbus, Safran, Dassault Aviation, Thales) creates a strategic dependence for subcontractors. Rate variations, program postponements, or price renegotiations can jeopardize the survival of the most fragile SMEs and mid-caps.

2.6 HR strain and loss of industrial skills

The health crisis led to a loss of critical skills in certain highly qualified manual trades. The transmission of know-how, the training of newcomers, and the upskilling of teams are major challenges, amplified by the retirement of the most experienced generations.

2.7 Pressure on costs, materials, and energy

French aerospace players face growing pressure on their production costs. With cumulative inflation of nearly 18% over five years, subcontractors' margins are under strain. The rising cost of energy, raw materials, and labor reduces their competitiveness against international competition.

2.8 Documentary complexity and demanding quality

Document management represents a considerable administrative burden: manufacturing files, tracking sheets, material certificates, inspection reports, traceability documents. This complexity mobilizes significant resources and is a brake on operational agility, while being absolutely essential to maintain certifications and regulatory compliance.

3. How is the French aerospace industry structured?

3.1 A supply chain pyramid structured by tiers

The aerospace supply chain is organized according to a clear pyramidal architecture, with several levels of subcontracting:

Tier 0: the prime contractors

At the top of the pyramid, the major integrators design, assemble, and market the finished products. Airbus dominates the civil segment with its A320, A350, and A330 families. Dassault Aviation excels in business aviation (Falcon) and defense (Rafale). Safran is the world leader in aerospace propulsion and aerospace equipment. Thales positions itself on embedded systems, avionics, and defense electronics.

Tier 1: the systems suppliers and major subcontractors

Tier 1 suppliers develop and supply complex integrated systems: aircraft structures, landing gear, hydraulic systems, doors, and nacelles. This category includes players such as Daher, Stelia Aerospace (Airbus group), Latécoère, Lisi Aerospace, Liebherr Aerospace, and Collins Aerospace.

Tier 2 and 3: the specialized SMEs/mid-caps

Tiers 2 and 3 bring together several thousand SMEs and mid-caps specialized in cutting-edge technical trades: machining of mechanical parts, surface treatment, heat treatment, assembly of subsystems, manufacturing of composite parts, electronic wiring, metal fabrication, and sheet metal work. These companies form the backbone of the industry and represent the bulk of the regional industrial fabric.

3.2 The central role of GIFAS

Founded in 1908, GIFAS (the French Aerospace Industries Association) is a trade body that brings together 517 companies, from the major prime contractors and systems suppliers to SMEs and startups. With 82% of consolidated revenue generated from exports, GIFAS plays an essential role in representing and coordinating the industry.

Its main missions include:

• Standardizing tools and processes (the AeroExcellence framework, the AirSupply platform)

• Improving supply chain competitiveness by supporting SMEs and mid-caps

• Steering innovation via CORAC (the Council for Civil Aviation Research)

• Coordinating structuring programs (Ambition PME-ETI, Performances Industrielles, Industry of the Future)

• Securing the industry through active mediation and financial support for fragile companies

GIFAS's Digital Commission works specifically on digital standardization and cybersecurity, drawing on the solutions developed by BoostAeroSpace.

3.3 The regional clusters

The French aerospace industry relies on several regional clusters that provide local coordination, upskilling, and digital acceleration for companies.

Aerospace Valley – Occitanie and Nouvelle-Aquitaine

Aerospace Valley is the leading European competitiveness cluster in the aerospace industry. Created in 2005, it brings together more than 850 members (companies, research laboratories, training institutions, local authorities) across the Occitanie and Nouvelle-Aquitaine regions. Ranked among the top three competitiveness clusters worldwide for the performance of its cooperative R&D projects, Aerospace Valley has certified 980 projects since its creation, for €2.23 billion invested with €958 million in public funding.

The cluster concentrates 130,000 industrial jobs, 1,600 establishments, and 8,500 researchers, representing the largest European employment hub in aeronautics, space, and embedded systems.

ASTech – Île-de-France

The ASTech Île-de-France cluster, renamed Aéro IDF, brings together the Paris-region ecosystem of aeronautics and space. The Île-de-France region concentrates many head offices, R&D centers, and strategic production sites, as well as the sector's leading higher-education institutions.

AERIADES – Grand Est

The AERIADES cluster coordinates the aerospace industry in the Grand Est, a region with numerous equipment manufacturers and subcontractors specialized in metal structures, precision mechanics, and composites.

Bretagne Aerospace

The Bretagne Aerospace cluster brings together Brittany's companies in the industry, with a specialization in embedded electronics, communication systems, and composite materials.

SAFE Cluster – Southern PACA

The SAFE Cluster (Aeronautics, Rail, Electronics, and Security Systems) supports companies in Southern PACA in their innovation projects and international development.

3.4 BoostAeroSpace: the industry's digital building block

BoostAeroSpace is a company created in 2011 by Airbus, Dassault Aviation, Safran, and Thales to modernize and digitalize the European aerospace supply chain. Its main mission is to enable collaboration and the security of digital exchanges between OEMs and suppliers.

BoostAeroSpace's three flagship solutions are:

AirSupply: A single supplier portal developed in partnership with SupplyOn, enabling collaborative supply chain management (orders, supply plans, deliveries, quality, invoicing). The platform today connects 33 major European prime contractors and 10,000 suppliers.

AirConnect: A web application that semi-automates the data exchange between AirSupply and the ERPs of industrial suppliers. This solution particularly targets SMEs and mid-caps, allowing them to digitalize their sales to prime contractors at minimal cost. The goal is to enable 400 companies to access the AirSupply platform automatically.

AirCyber: A service offering aimed at standardizing and harmonizing IT and industrial security within the European aerospace supply chain. AirCyber offers a certification of companies' cybersecurity level, thereby avoiding the multiplication of customer audits.

3.5 SpaceAero: performance and upskilling

SpaceAero is a supply chain support association that plays an essential role in the upskilling of companies in the industry. It operates the AeroExcellence framework, offers supply chain training tailored to the sector's specifics, and provides methodological frameworks to improve the industrial performance of Tiers 2 and 3.

3.6 National structuring programs

France 2030

The aerospace component of France 2030 mobilizes several hundred million euros to support the decarbonization of aviation and the development of new technologies. The selected projects cover sustainable fuels (SAF), the low-carbon aircraft, hydrogen, and electrification.

CORAC

The Council for Civil Aviation Research, led by the DGAC and GIFAS, coordinates the research and development strategy of the French aerospace industry. It identifies critical technology building blocks and allocates public funding to collaborative R&D projects.

Calls for projects and regional schemes

Regional and national Calls for Projects (AAP) provide financial support for innovation, digitalization, and upskilling projects. The Occitanie, Nouvelle-Aquitaine, Île-de-France, and Grand Est regions are particularly active in supporting the industry.

3.7 A dual industry: civil + defense

The French aerospace industry is characterized by its dual nature, with strong technical synergies and interdependencies between the civil and defense segments. This specificity strengthens the industry's resilience and makes it possible to maintain critical skills even during periods of fluctuation in one of the two markets.

4. The industry's major current initiatives

4.1 Collaboration and digital continuity

The deployment of the AirSupply and AirConnect platforms and of inter-company collaboration tools is a major priority for improving the fluidity of exchanges and reducing order-processing times. The goal is to achieve complete digital continuity from the OEM down to the Tier 3 supplier.

4.2 Cybersecurity and NIS2 compliance

Compliance with the NIS2 directive and the deployment of the AirCyber program aim to secure the entire value chain against cyber threats. More than 300 European companies have already joined the AirCyber community.

4.3 Industrial performance and digitalization

The AeroExcellence framework offers a progressive four-step process leading to three levels of recognition: Bronze, Silver, and Gold. This framework covers all operational activities, from industrialization through to repair and maintenance activities, and allows companies to measure their maturity level on three themes: operational excellence, environmental performance, and cybersecurity.

4.4 Quality and certification

Maintaining the EN9100, PART21, and PART145 certifications and complying with regulatory requirements demand constant rigor in document management and control processes. The prime contractors' regular audits verify suppliers' compliance with these standards.

4.5 Decarbonization and eco-design

The development of new materials, the optimization of manufacturing processes, digital simulation, and 3D design contribute to reducing the environmental footprint of aerospace production. Companies engaged in the AeroExcellence approach must demonstrate their ability to measure and reduce their carbon impact.

4.6 Attractiveness and training

“Augmented worker” initiatives, the development of e-learning platforms, and partnerships with training centers aim to facilitate the transmission of skills and accelerate the upskilling of newcomers. Several manufacturers have created their own training centers to meet the specific needs of their trades.

5. The industry's key players

5.1 The major manufacturers

Airbus, the world's leading civil aircraft maker, employs more than 50,000 people in France. Safran, the propulsion leader, conducts most of its business internationally. Dassault Aviation excels in business aviation and defense. Thales positions itself on high-technology systems for the aeronautics, space, defense, and security markets.

5.2 The systems suppliers and Tier 1

Tier 1 suppliers such as Daher, Latécoère, Liebherr Aerospace, Collins Aerospace, and Lisi Aerospace develop complex systems and maintain direct relationships with the prime contractors. They play a key role in coordinating the lower tiers.

5.3 Tiers 2 and 3

Several thousand SMEs and mid-caps make up the industrial fabric of the French aerospace industry. Spread across the entire country, they master cutting-edge technical know-how and ensure the flexibility of the supply chain.

5.4 The institutions and support structures

GIFAS, BoostAeroSpace, SpaceAero, the regional clusters (Aerospace Valley, ASTech, AERIADES, Bretagne Aerospace, SAFE Cluster), and the competitiveness clusters provide the coordination, leadership, and support of the industry.

5.5 The public bodies

The Ministry of the Armed Forces, the Ministry of Industry, the French Civil Aviation Authority (DGAC), the Regions, Bpifrance, and the France 2030 schemes provide essential financial and regulatory support for the industry's development.

6. What the industry's structure reveals: strengths and weaknesses

6.1 A high-performing but fragile industry

The French aerospace industry has demonstrated its ability to rebound after the health crisis, regaining and surpassing its 2019 level of activity. This resilience reflects the solidarity between players and the effectiveness of the coordination mechanisms put in place by GIFAS. However, the industry remains fragile, particularly at the Tier 2 and Tier 3 levels, where margins are low and investment capacity is limited.

6.2 Critical dependencies

Dependence on strategic raw materials (titanium, special steels, electronic components), on foreign suppliers for certain critical technologies, and on the decisions of the major prime contractors creates structural vulnerabilities. Geopolitical tensions and uncertainties over customs duties heighten these risks.

6.3 An indispensable accelerated transformation

Aerospace industry digitalization, the upskilling of teams, the improvement of aerospace scheduling, and the adoption of common frameworks such as AeroExcellence are essential levers for strengthening the industry's competitiveness. Companies that do not undertake these transformations risk losing market share to more agile and better-organized competitors.

For plant managers, supply chain managers, and planners, understanding these challenges and investing in modern management tools becomes imperative. The growing complexity of the aerospace supply chain and the requirements for responsiveness and traceability demand the use of specialized software solutions capable of optimizing aerospace scheduling, simulating alternative scenarios, and guaranteeing the reliability of customer commitments.

Conclusion

The French aerospace industry stands at a decisive turning point in its history. With revenue of €77.7 billion in 2024 and 222,000 jobs on national soil, it is a strategic pillar of the French economy and an industrial flagship of world-class excellence. The pyramidal structure of the supply chain, the organization into regional ecosystems led by Aerospace Valley and the other clusters, and the standardization initiatives driven by GIFAS and BoostAeroSpace reflect a mature governance and a remarkable capacity for coordination.

Yet the challenges to overcome in the coming years are considerable: production ramp-ups, supply chain tensions, skills shortages, decarbonization imperatives, and international competitive pressure. Aerospace industry digitalization and the adoption of excellence frameworks such as AeroExcellence are no longer options, but strategic necessities to maintain the competitiveness of French aerospace players.

In this context of accelerated transformation, planning and aerospace scheduling tools play a crucial role. Modern solutions make it possible to optimize resource allocation, improve visibility into equipment load, simulate production scenarios, and guarantee compliance with customer commitments. By automating time-consuming tasks and reducing error risks, these tools free up time for higher-value-added activities and strengthen responsiveness to contingencies.

For the plant managers, supply chain managers, and planners of the French aerospace industry, equipping themselves with a high-performing production-management solution is a strategic investment to support the production ramp-up, meet the requirements of the AeroExcellence framework, and strengthen their company's competitiveness in a rapidly changing market.