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Economic Analysis: Theory and Practice
 

Applying the US experience in consolidation of aerospace engine building at the current stage of the national industry reform

Vol. 14, Iss. 19, MAY 2015

PDF  Article PDF Version

Available online: 31 May 2015

Subject Heading: ANALYSIS OF COMPETITIVE ABILITY

JEL Classification: 

Pages: 28-37

Chumakov D.M. Institute of World Economy and International Relations of RAS, Moscow, Russian Federation
chumakov.work@mail.ru

Importance The article describes the processes of consolidation and integration of engine manufacturing enterprises in the US aerospace industry at the end of the 20th - beginning of the 21th centuries. It also shows the options for institutional changes in the Russian industry.
     Methods The research conducted in the field of engine manufacturing is of generalized nature, thus the study attempts to analyze the specifics of management of the engine manufacturing industry, to identify the patterns of leading firms development, and to explain the role of the State in the formation of large aerospace corporations.
     Results The analysis of the management structure of the US engine manufacturing industry shows progressive changes in this sector of the global space market. Correct organizational focus helped not only avoid recession in the development of the US engine manufacturing sector, but also strengthen its role in manufacturing the final rocket-and-space technology. At the present stage of the Russian space industry reform, effective integrated structures involving engine-building enterprises that are able to maintain high level of product competitiveness and provide innovation development and stable financial and economic activities are not available yet. Therefore, it is advisable to identify possible areas of consolidation of the domestic engine makers. There is a need to systemize information collected from various foreign sources, and develop approaches to analyze the segment with further practical implementation of the accumulated experience.
     Conclusions and Relevance Every year the significance of the problems related to the domestic rocket engine industry restructuring is growing. Therefore, it is reasonable to study and use positive experience in order to improve the current management structure, high-quality diversification of production, and to enhance cooperation of enterprises operating in the rocket and space industry and the military-industrial complex.

Keywords: rocket-and-space, aerospace, industry, technology, rocket engine manufacturing, global space market, reform, restructuring, consolidation, production capacity, integration, cooperation, competitiveness

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