Rethinking aerospace and defence manufacturing

Image courtesy Julius & Clark

The shift in the nature of warfare is creating profound implications for the aerospace and defence industry. It is changing not only the products that must be designed and manufactured but also the way those products are conceived, developed, and delivered. At the heart of this transformation lies a concept often referred to as the factory of the future.

However, the factory itself is only one part of a much larger story. To understand the factory of the future, it is essential to look beyond the walls of a factory and physical production and examine the entire value chain that underpins defence capability.

From my time working at BAE Systems, the value chain journey from idea to operational capability typically follows a long and complex path. It begins with understanding the customer’s needs and from there, programmes move through a tender process before concept development, prototyping, testing, engineering design and eventually production.

Once a system enters service, the next links in the chain continue with maintenance, upgrades, in-service support, and ultimately retirement or replacement.

This entire sequence from early requirements through end-of-life is the value chain. Manufacturing sits at its centre but it cannot succeed in isolation.

Too often, discussions about the factory of the future focus primarily on automation, robotics, additive manufacturing, or digital technologies. These innovations are important, but they address only a portion of the challenge. If earlier stages in the value chain such as requirements capture, engineering design, or procurement are suboptimal, then even the most advanced factory will struggle.

In today’s defence environment, speed matters. Governments facing rapidly evolving threats cannot wait years for new systems to move from concept to operational deployment. As a result, reducing order-to-delivery lead times whilst maintaining quality and meeting budgets is a large competitive lever and a central goal of the factory of the future.

A truly modern defence manufacturing ecosystem requires tight coordination across the entire value chain from initial sales discussions to in-service support and product retirement.

The first step in this process begins surprisingly early, with the sales conversation. When defence contractors engage with government customers, military organisations, or other defence contractors, the initial discussions must capture requirements (and needs of internal teams) clearly and accurately. What capability is needed? What operational environment will the system operate in? What technical constraints exist regarding weight, power, cost, or deployment?

Recently an aerospace firm was looking to increase production output by 30% for minimal capital expenditure. Their focus was to fix production but it turned out upstream elements of the value chain were suboptimal from the sales information captured all the way through to production. This resulted in production operators having to continually fettle, solve problems and rework components to make them fit, wasting effort and money rather than fitting components right first time.

A key factor shaping the factory of the future is the unique nature of defence manufacturing.

Each unit often contains advanced electronics, specialised materials, precision components and strict quality requirements. This reality places unique demands on the factory.

Rather than focusing solely on mass production efficiency, aerospace and defence manufacturers must prioritise flexibility. Production lines must be capable of handling multiple product variants, evolving designs (particularly component obsolescence for longer programmes) and complex assembly processes.

Modern facilities must be able to adapt quickly, shifting between product types, integrating new technologies, and responding to changing operational needs.

Digital technologies are playing an increasingly important role in enabling this flexibility. Tools such as digital twins, advanced simulation and model-based engineering allow designers to test systems virtually before physical prototypes are built, reducing development time and identifying potential issues earlier.

Additive manufacturing is a well-known and powerful capability in aerospace and defence. By producing complex components directly from digital designs, additive processes can eliminate tooling requirements and shorten development cycles. However, additive manufacturing is not a magic solution. If the underlying design is flawed or engineering specifications are unclear, the technology simply produces flawed parts quicker.

This reinforces a key principle: technology amplifies process quality rather than replacing it. When integrated into a well-structured value chain, advanced manufacturing technologies can significantly accelerate development and production. Yet without robust upstream processes with clear interactions between different business functions, their impact is limited.

The factory of the future also depends heavily on supply chain performance. Defence systems often involve thousands of components sourced from a global network of suppliers. Electronics, composite materials, propulsion systems, sensors and software modules may all originate from different organisations and geographies, which need to be integrated and tested.

Managing this ecosystem requires strong coordination and transparency. Digital supply chain platforms are increasingly enabling real-time visibility into supplier performance, inventory levels and production schedules, allowing manufacturers to anticipate disruptions, adjust plans and maintain steady production flow.

In an era where geopolitical tensions and supply chain disruptions are common, resilience has become a critical capability. Factories of the future must therefore be integrated with supply chains that are agile, secure and capable of adapting swiftly to changing demands.

Inside the factory itself, automation and smart manufacturing technologies are transforming how products are built. Robotic systems now assist with tasks ranging from composite material layup to precision drilling and inspection. Automated guided vehicles move components between workstations. Sensor networks monitor equipment performance and predict maintenance needs before failures occur.

Artificial intelligence, machine learning and hardware such as vision systems are beginning to analyse production data to identify inefficiencies and optimise workflows and product designs.

These technologies improve productivity, enhance quality control and reduce human exposure to hazardous environments. Yet the most successful implementations occur when automation is integrated into a broader digital ecosystem that connects engineering, procurement, production and logistics.

One of the most persistent challenges in manufacturing is rework and scrap. In complex aerospace systems, both can be extremely costly from a financial and lead time perspective. Delays ripple through production schedules, affecting delivery timelines and customer satisfaction. In worst case scenarios a supplier organisation may hold up the whole development of a defence platform, with the potential for fines and reputational damage.

Reducing rework and scrap to get things right first time is therefore a major priority for factories of the future. Achieving this depends on accurate data and strong process discipline. When engineering designs are clearly defined and linked to confirmed customer requirements, when suppliers deliver components that meet specifications on time and in full and when production instructions are unambiguous, errors become far less frequent.

Digital manufacturing systems help enforce these standards by ensuring that operators always work from the latest design information and process instructions. Quality inspection technologies including automated scanning and machine vision can detect defects early, preventing flawed components from progressing further through production.

Despite the rapid rise of automation, people remain central to the defence factory of the future. Skilled engineers, technicians and operators are essential for designing systems, managing production processes and it is often production staff who are the most experienced and relied upon to solve unexpected problems when upstream value chain steps are not robust.

As manufacturing technology becomes more sophisticated, the demand for highly skilled workers is increasing – and finding that workforce is difficult and expensive. Factories of the future will require employees who understand advanced digital tools, data analysis, robotics and systems engineering. Continuous training and workforce development are therefore crucial components of modern manufacturing strategy. Organisations must invest not only in machines and software but also in the people who operate and support them.

Ultimately, the factory of the future for aerospace and defence is not defined by any single technology. It is defined by integration. Successful manufacturers connect every stage of the value chain from the first customer conversation to the final delivery of operational systems. Information flows seamlessly between sales teams, engineers, procurement specialists, and production planners.

Digital technologies enable faster design cycles, more flexible manufacturing processes and greater visibility across supply networks. Automation improves efficiency and quality, while skilled human workers provide expertise and adaptability.

When these elements come together, organisations can significantly reduce order-to-delivery lead times while maintaining the rigorous quality standards required for defence systems.

As the character of warfare continues to evolve, large aerospace and defence manufacturers must evolve with it to keep pace with new entrants including start-ups, especially in the market of small disposable drones. Airborne and autonomous systems and electronic warfare will likely play an increasingly central role in future conflicts. Precision strike capabilities, electronic hardening, drone swarms and advanced missile technologies are already reshaping military strategies around the world.

Meeting these demands requires not only innovative product design but also agile and responsive manufacturing capabilities. 

The factory of the future, supported by integrated value chains, digital technologies and skilled workforces, will be a critical enabler of this transformation.