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Bombardier acquires a supplier as OEMs struggle with supply chains

Aviation OEMs like Honda Aircraft, Boeing, Airbus and Textron have all reported supply chain issues this year, which have negatively affected production rates and delivery schedules. Bombardier's latest acquisition moves more of its supply chain under its direct control, placing a hedge against production risk.Bombardier buys MHICA's aerostructures businessBombardier announced on Sept. 1 that it has agreed to acquire the assets of MHI Canada Aerospace (MHICA) in Mississauga, Ontario. This acquisition will add MHICA's aerostructures manufacturing capability to the company, along with approximately 750 employees. The transaction is expected to close later this year. Bombardier claims it will improve its critical capability, operational resilience and flexibility. MHI will maintain control of its other business activities for commercial and defense aviation.Bombardier isn't simply adding production space, it is a vertical integration move designed to reduce outsourcing in its manufacturing process. While specialized suppliers may be able to produce components more efficiently, any problem they face disrupts production and becomes a problem for their customers. Bombardier's acquisition highlights the growing importance manufacturers place on supply chain stability and production predictability.Demand remains strong enough to justify the investmentBombardier is making this move while demand for large-cabin aircraft is strong and production backlogs are growing across the industry. Controlling more of the supply chain can help reduce any production risks that may delay aircraft deliveries. The move suggests Bombardier sees strategic value in controlling a larger portion of the production process.Why it mattersThe acquisition highlights a broader change underway in aircraft manufacturing. In a market where demand remains strong but supply chains are vulnerable, production certainty is becoming a competitive advantage. By bringing more manufacturing capability in-house, Bombardier is betting that controlling more of the process is just as valuable as adding capacity, especially when customers are waiting years for aircraft deliveries.Browse current Bombardier listings on GlobalAir.com
Created 15 hours ago
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