PDF Publication Title:
Text from PDF Page: 020
Recent Orders for Commercial Engines at Pratt & Whitney 3.4 billion in recent orders is committed, up front, to foreign supplier firms. Date February ‘03 December ‘02 November ‘02 October ‘02 April ‘02 April ‘02 April ‘02 April ‘02 Customer UPS TWA International Lease Finance Corp. U.S. Airways United Airlines LanChile, Tam, TACA, etc. FedEx TWA TOTAL Order ($ million) 1,500 400 250 800 550 2300 112 200 6,112 Engine Model PW4184 PW6000 PW6000 PW4168 PW4000 V2500 PW4000 JT8D-200 RRSP-Adjusted Pratt & Whitney Share ($ million) 945 400 250 504 346 759 71 152 3,427 14 UMass Donahue Institute Both production activities as well as design activi- ties are being outsourced by GE and Pratt & Whitney. This has taken place within a number of cooperative production arrangements with suppli- er firms referred to as “risk- and revenue-sharing partnerships” (RRSPs). RRSPs typically involve the commitment by a supplier firm to fund some share of the product’s development costs in exchange for a defined work share for the length of the product’s production run (which usually extends over two to three decades).30 Originally used on the military side of the business as a way of securing market access, RRSPs have become increasingly popular over time on the commercial side of the business as a means of tapping into inexpensive capital for product development purposes.31 For the systems integrator, the logic behind offer- ing an offset or RRSP participation to a potential supplier is clear. If a foreign airline (which may be government owned or subsidized) knows that a portion of the work for building engine A is being done locally, it may be swayed to purchase engine A over another engine. Both GE and Pratt & Whitney, each looking to get an edge on the com- petition, end up doing exactly the same thing, and neither is better off at the end of the day. Of course, U.S. workers who see increasing shares of work going overseas see themselves as unequiv- ocally worse off. For this reason, labor unions representing workers in the industry in the Unit- ed States have voiced vigorous opposition to RRSPs and to offsets. They note that early RRSPs and offsets agreements essentially amounted to long-term, “build-to-spec” subcontract arrange- ments, but have evolved to the point that supplier firms are taking on more and more design activi- ties over time as well.32 How significant are these RRSPs in dollar terms? No exact figures exist, but one way to gauge their impact is to adjust the dollar value of orders for the stake of the program that the systems integra- tor actually retains. For example, in a sample of recent Pratt & Whitney orders totaling $6.1 bil- lion, $3.4 billion is committed up front to foreign supplier firms, because of RRSPs. Of course, these foreign supplier-partners may in turn subcontract work to U.S. suppliers and, by symmetry, a fair share of the work “retained” by Pratt & Whitney will go out to other suppliers, both foreign and domestic. Therefore, assessing the impact of RRSPs is far from straightforward, but the in- creasing reliance on international sources of sup- ply is difficult to refute. So who is the competition? The top five produc- ers of turbine engine parts—France, the United Kingdom, Germany, Canada, and Japan— account for close to 80 percent of U.S. imports ofPDF Image | JET ENGINE MANUFACTURING IN NEW ENGLAND
PDF Search Title:
JET ENGINE MANUFACTURING IN NEW ENGLANDOriginal File Name Searched:
jetengine01.pdfDIY PDF Search: Google It | Yahoo | Bing
NFT (Non Fungible Token): Buy our tech, design, development or system NFT and become part of our tech NFT network... More Info
IT XR Project Redstone NFT Available for Sale: NFT for high tech turbine design with one part 3D printed counter-rotating energy turbine. Be part of the future with this NFT. Can be bought and sold but only one design NFT exists. Royalties go to the developer (Infinity) to keep enhancing design and applications... More Info
Infinity Turbine IT XR Project Redstone Design: NFT for sale... NFT for high tech turbine design with one part 3D printed counter-rotating energy turbine. Includes all rights to this turbine design, including license for Fluid Handling Block I and II for the turbine assembly and housing. The NFT includes the blueprints (cad/cam), revenue streams, and all future development of the IT XR Project Redstone... More Info
Infinity Turbine ROT Radial Outflow Turbine 24 Design and Worldwide Rights: NFT for sale... NFT for the ROT 24 energy turbine. Be part of the future with this NFT. This design can be bought and sold but only one design NFT exists. You may manufacture the unit, or get the revenues from its sale from Infinity Turbine. Royalties go to the developer (Infinity) to keep enhancing design and applications... More Info
Infinity Supercritical CO2 10 Liter Extractor Design and Worldwide Rights: The Infinity Supercritical 10L CO2 extractor is for botanical oil extraction, which is rich in terpenes and can produce shelf ready full spectrum oil. With over 5 years of development, this industry leader mature extractor machine has been sold since 2015 and is part of many profitable businesses. The process can also be used for electrowinning, e-waste recycling, and lithium battery recycling, gold mining electronic wastes, precious metals. CO2 can also be used in a reverse fuel cell with nafion to make a gas-to-liquids fuel, such as methanol, ethanol and butanol or ethylene. Supercritical CO2 has also been used for treating nafion to make it more effective catalyst. This NFT is for the purchase of worldwide rights which includes the design. More Info
NFT (Non Fungible Token): Buy our tech, design, development or system NFT and become part of our tech NFT network... More Info
Infinity Turbine Products: Special for this month, any plans are $10,000 for complete Cad/Cam blueprints. License is for one build. Try before you buy a production license. May pay by Bitcoin or other Crypto. Products Page... More Info
CONTACT TEL: 608-238-6001 Email: greg@infinityturbine.com (Standard Web Page)