This year’s Paris Air Show revealed a cautiously optimistic supply chain, tempered by persistent supply constraints and the ongoing shadow of trade uncertainty.
- Tariffs remain a wildcard. Many suppliers are in wait-and-see mode, though some have begun shifting production and logistics to avoid tariffs. The ability to pass on costs varies and exposure levels are uneven across the supply base.
- Supply chain recovery is uneven. While suppliers seemed generally upbeat, major constraints persist, especially in engine forgings, castings, and aircraft seating. Full harmonization of supplier schedules remains elusive.
- OEM momentum continues. Boeing’s MAX program appears to be regaining footing and Airbus is steadily increasing build rates (with the A350 as a notable exception).
- Fasteners remain a concern. Expect continued tightness through Q4. Lead times are still extended and some supply is reliant on overseas sources, making it vulnerable to tariff policy.
- Material markets are mixed.
- Aluminum remains soft, with demand expected to stay weak into 2026
- Steel shows strength in billet, but bar demand lags
- Titanium is stable but we heard of some pockets of softness
- Nickel remains in high demand with no slowdown in sight
Bottom line: While the mood at PAS2025 was positive, the undercurrents of supply chain disorder and global trade friction still linger—and could shape the back half of the year.
