This Manufacturing Insights report provides analysis of trends in the automotive, aerospace, and general discrete (AAG) manufacturing industry segment and identifies the key business initiatives needed to be successful. The document outlines key business objectives and the resulting initiatives and outlines key IT spending priorities to align with those initiatives. The report also includes survey-based spending data that can be used for benchmarking.

"2005 was a very active year for the AAG industry, seeing strong sales in all three sectors," said Joe Barkai, program director of Product Life-Cycle Strategies, Manufacturing Insights. "However, while the outlook for the aerospace industry is very positive, the automotive industry will continue to suffer from overcapacity and shrinking margins. Companies in all sectors will initiate investments to accelerate innovation, further lean operations, improve efficiencies, and use products as services platform to provide additional recurring revenues."

• Table of Contents
• Manufacturing Insights Opinion
• In This Report
  • Methodology
    • Manufacturing Insights' Industry Tracking Database
    • IDC's Vertical Market Model
    • Survey Methodology
• Situation Overview
  • Industry Segmentation
    • Automotive
    • Aerospace and Defense
    • General Discrete
  • Industry Trends
  • Figure: Automotive and A&D Industry Revenue Trends, 2002-2005
  • Figure: Automotive and A&D Industry Net Profit Margins, 2002-2005
  • Figure: Automotive and A&D Industry Research and Development Trends, 2002-2004
  • Figure: Automotive and A&D Industry Plant, Property, and Equipment Trends, 2002-2004
  • Figure: Automotive and A&D Industry Productivity Trends, 2002-2004
  • Figure: Automotive and A&D Industry Inventory Trends, 2002-2005
• Future Outlook
• Table: Summary of AAG Priorities
  • Business Initiatives
    • Innovation
      • Give External Parties a Larger Role in Design
      • Coordinate the Simultaneous Development of Mechanical, Electronic, and Software Designs
      • Introduce Products with a Better Understanding of Full Life-Cycle Costs and the Impact of Quality on Customer Loyalty
    • Growth
      • Establish/Expand Presence in New Geographic Markets
      • Identify the Most Profitable Customer Niches
      • Increase Market Share in the Aftermarket Activity Around the Products
    • Productivity
      • Create More Flexible Factories
      • Coordinate Fragmented Supply Chains
      • Manage Rising Base Material Costs
  • IT Budget Benchmarks
  • Figure: External IT Spending Share in the Automotive Industry Manufacturing Segment and the Overall Manufacturing Industry by IT Segment, 2005
  • Figure: External IT Spending Share in the A&D Industry Manufacturing Segment and the Overall Manufacturing Industry by IT Segment, 2005
• Essential Guidance
• Learn More
  • Related Research
  • Synopsis