Disruptions, which have also cost in commercial aviation are starting to drive up costs and risk slowing down the aerospace industry's recovery from the COVID - 19 pandemic.
With corporate aviation traffic exceeding 2019 levels this year, some private planemakers and suppliers flagged warning signs about stock-control and supply chain hiccups at a flagship business jet show in Las Vegas this week.
Their comments added to recent concerns expressed by Airbus Chief Executive Guillaume Faury about mounting pressure on Commercial Aerospace's supply chain.
Aerospace has, so far, avoided the scale of supply woes faced by automakers and machinery companies as planemakers Boeing Co and Airbus are producing fewer jets than before the pandemic.
But supply chain strains are increasingly visible for the production of short-body jets, which have seen a rise in demand due to a recovery in aircraft trips, said AlixPartners, global co-head of aerospace, defense and aviation at consultants Eric Bernardini.
Easing travel restrictions and the lure of private flights have led to an unexpected surge in business jet traffic, filling seats for private operators and increasing order backlogs for planemakers, but straining supply of jets, parts and pilots.
Flugzeuge manufactured by Cessna business jet producer Textron Inc are flying around 20% more than in 2019, putting pressure on suppliers to keep up with the need for replacement parts.
We are in a healthier position compared to what it could be, but we are starting to see some issues, said Ron Draper, chief executive of Textron Aviation.
Draper said Textron is managing the hiccups, but is still seeing some suppliers pop up with capacity constraints. Stirling Macfarlane, a segment manager in aerospace with PPG Industries, said at the show that the maker of aircraft coatings and transparencies has faced some delays in receiving needed components.
Aerospace companies are experiencing shortages of semiconductor chip and plastics, and paying far more for raw materials like steel and aluminum, Bernardini said.
The input costs are going up at a time when pricing power is constrained because of overall weak demand, making it harder for equipment manufacturers and their suppliers to pass on the increase prices to customers.
The aviation industry on average paid 27% to 44% more for raw materials in the first half of this year compared to last year, according to AlixPartners Angaben.
Bernardini said that protecting of margins is the number one concern for the industry.
Companies are also struggling to find enough skilled workers to ramp up production and are battling shipping delays.
Adequate staffing levels are needed to meet anticipated production increases in 2022 and 2023, said Robert Martin, chief executive of lessor BOC Aviation at a CAPA Centre for Aviation event on Wednesday.
Embraer SA is keeping more parts available in its warehouses for customers, despite higher costs, said Marsha Woelber, head of customer relations and aftermarket sales for the Brazilian airliner.
We have greater inventory at international warehouses around the world because we know there is disruption when you look at local cargo flights or shipping containers, says she.
Some states are taking steps to help ease the bottlenecks.
Oklahoma, for example, started a portal earlier this year to help connect local suppliers with manufacturing, such as those in aerospace looking to diversify their supply chain to help fill in the gaps.
Draper said the challenge would be greater if production by commercial airlines returns to the levels of 2019, which could be a year or two away from 2020.
If Boeing and Airbus get back to the arms race they were in and absorb a lot of capacity, we would face capacity constraints.