In a few short months, the global aerospace and aviation industry has gone from record-high sales and an unprecedented backlog of commercial aircraft orders, strong demand in emerging and global markets and previously unseen investment and growth – to the current state of the aviation sector in crisis initiated by the 737 Max disruption, the on-going and unpredictable challenges of COVID-19 and the impacts of the global pandemic. The global pandemic will impact every aspect of the aerospace, aviation and defense business for many years to come. Companies that respond decisively, take on the toughest challenges directly, invest in digital technologies and innovation will emerge as global leaders. In recent years, the global aviation sector had managed significant disruption and turbulent times. But nothing compared to the devastating impacts we now confront, including the abrupt halt to aircraft orders, production and manufacturing, long term sustainment and systemic disruption. With little notice, the demand shock and impact of an international travel abruptly falling more than 80% was juxtaposed against an industry just prior scrambling to invest in manufacturing, scarce skills, resources, capacity and throughput initiatives focused on satisfying soaring demand to halting operations, preserving cash, protecting the balance sheet, maintaining the skilled labor force and seeking ways respond – all while challenged to remain solvent. There will not be quick fixes to this type of unprecedented market disruption. Clear vision, leadership and strategic short and long term plans flawlessly executed will rapidly sort out the winners and losers.

Alvarez & Marsal has the skills and experience to support business leaders in this sector managing through the most difficult financial and operating environments. Aaerospace, aviation and defense market leaders rely heavily on a skilled labor force. Its leaders will manage through this crises by protecting their employees and focusing on their customers. A&M brings not only financial and operating expertise, but also the ability to assist in program and company negotiations with governments, industry partner companies and suppliers to create win-win outcomes, minimize business disruption and deliver on the mission. The events of 2020 started as a global health crisis and has rapidly transitioned to a long term global financial crisis. Global aerospace, aviation and defense can play a key role in global economic recovery.

Change for the good.

Entrepreneurial to the core, our independent thinkers and doers provide you with the perfect combination of the innovative and the tried and true. We can support you to address today’s challenges with sense of urgency and purpose.  Leadership, vision and executable strategy to deliver results.

In this unprecedented time, market leaders will outpace the competition by focusing on short term survival, transformation and growth.  A&M’s aviation and aerospace professionals will support our clients through this disruption, to build better, sustainable global businesses.

Rely on us for:

• Performance improvement
  • Business review of current state and performance assessment. Target areas of greatest business impact that address short term demand shock and global supply chain disruption. Protect business and solvency.
  • Reduce layers, create a modified agile workforce, process re-engineering and investment in digital technologies and transformation
  • Business model reassessment, operational right-sizing, cash management, working capital and cost optimization – building agile cash focused businesses
  • Provide company data availability and transparency to focus on highest priority challenges and measure success – OEM and supplier collaboration strategies and execution
  • People development, process engineering, organizational flexibility, continuous improvement culture, change management, make-buy analysis and execution
  • Performance attainment management systems, KPIs and operating metrics 
  • Short-term annual operating plan execution connected to long-term strategic plans – business models re-assessment 
  • Revenue enhancement, market segmentation, innovation, product development, commercialization, marketing and sales force effectiveness
  • Global supply chain resiliency, geopolitical strategies, IT systems, operations (including shop floor / lean production) and procurement effectiveness (including direct price negotiation), supply base assessment and re-negotiations, performance improvement, collaborative industry platform strategy and implementation
  • Big data and advanced data analytics – digital platforms and system agility
  • Intelligent Industry –  manufacturing 4.0, IoT, artificial intelligence, machine learning 
  • Back-office efficiency and outsourcing
  • IT system program assurance and program rescue
  • Technology and innovation application, digital roadmaps and implementation
• Transaction advisory services 
  • Target screening and industry deal-flow insight 
  • Carve-outs and growth to adjacent markets 
  • Operational due diligence
  • Financial and tax due diligence
  • M&A support and post-merger integration
  • Business divestiture and exit
• Turnaround and restructuring
  • Strategy and business model innovation – restructure the business while protecting market position and answering to several ownership structures and stakeholders
  • Aviation restart and recovery
  • Work with executive leadership and CFOs to consider all funding and financial options available – debt, equity, M&A, cash, working capital
  • Navigate short term liquidity challenges, demand uncertainty, supply chain disruption, industry re-organization 
  • Strategic planning and alternative growth strategies. Re-prioritize business strategy and portfolio aligned with current and anticipated market realities.
  • Critical assistance during times of underperformance and crisis
  • Analysis and prioritization of investment requirements and cash preservation – balance sheet and liquidity advisory
  • Interim management
• Operations and Risk management
  • Supply chain optimization, digital supply chain transformation and resiliency, negotiation, performance management, financial risk mitigation
  • Capacity planning and optimization
  • Executive level, enterprise-wide Sales and Operations Planning (S&OP)