2024 Aerospace manufacturing attractiveness rankings

As the aerospace and defense (A&D) sector experiences record demand across civil aviation, defense and space, understanding the most attractive locations for manufacturing and investment is more crucial than ever. PwC’s 10th edition of the Aerospace Manufacturing Attractiveness Rankings evaluates and ranks countries and US states based on critical factors such as infrastructure, workforce capabilities, tax policy and geopolitical stability, offering data-driven guidance for A&D leaders.

While demand is surging, challenges in the A&D value chain persist. Long development cycles, supply-chain disruptions and over-reliance on sole-source suppliers continue to impact production. Additionally, geopolitical tensions and regulatory changes — such as shifts in global titanium supply due to the war in Ukraine — further complicate investment decisions.

PwC’s Attractiveness Index provides critical insights into these complexities, helping businesses make informed location-based investment choices.

Leading global locations for aerospace investment

PwC’s 2024 rankings highlight leading global hubs for aerospace manufacturing, with the United States reclaiming the No. 1 spot. This reflects its strong infrastructure, industry depth and increasing foreign direct investment (FDI). Other top-ranked nations include:

• Singapore: A consistent leader, benefiting from tax advantages and expanding MRO capabilities.
• South Korea: Excels in defense manufacturing, with rapid export growth and increasing self-reliance in A&D production.
• Canada: Strong R&D incentives and aerospace supply chain integration with the US make it a competitive player.
• Japan: Climbs to the top five due to defense policy reforms and new export opportunities.

Leading US locations for aerospace investment

The 2024 state rankings reaffirm the resilience and stability of US aerospace hubs, with Texas retaining the top position due to its robust economy, industry presence and workforce investments. Notable state movements include:

• Florida (#2, up from #8): Gains traction with tax incentives, MRO expansion and its Space Force Training and Readiness Command.
• Arizona (#3, up from #6): A leader in aerospace innovation, with investments in defense technology and workforce development.
• Indiana (#4, up from #5): Strong engineering talent pipeline and federal tech-hub designations boost its ranking.
• Georgia (#5, down from #2): Despite ranking dips in cost and labor, Georgia remains a key aerospace exporter and innovation hub.

The A&D manufacturing investment landscape is evolving rapidly, shaped by economic shifts, geopolitical factors and emerging technologies. Companies looking to expand operations or establish new facilities should consider three factors.

• Strategic workforce planning: Addressing talent shortages in engineering, MRO, and defense manufacturing.
• Supply chain resilience: Investing in domestic production capabilities and alternative sourcing strategies.
• Sustainability and R&D: Positioning for future aviation and space advancements, including green manufacturing and next-gen materials.

How PwC can help

We invite you to explore this year’s aerospace attractiveness rankings and consider how they may support your strategic planning. PwC’s Aerospace and Defense practice provides insights and solutions to help organizations navigate industry shifts and seize emerging opportunities.

If you’d like to discuss the findings and their potential impacts on your business, we’d welcome a conversation.