Military/Aerospace: Standing Tall in 2009
By Lynda Nolen, Bishop & Associates Inc.

The bright spot in 2009 was the military/aerospace sector. Worldwide, economists estimate that military spending in 2009, rather than declining along with the rest of the markets that year, actually increased a whopping 5.9 percent. Even though most manufacturers of interconnect products say they did not see increases of this magnitude, most will agree that the military/aerospace interconnect sector did not feel the brunt of the decline. The global military/aerospace sector, which accounts for approximately eight percent of all interconnect sales, declined a mere 4.9 percent, compared with the interconnect industry decline of 22 percent.

Interconnects used in the military/aerospace sector come in all shapes and sizes. In 2009, circular connectors represented 34 percent of all military/aerospace interconnect sales, followed by PCB connectors, which represented 17.4 percent, and I/O rectangular, which represented 15 percent. Used in a wide array of applications, including communication and navigation equipment, radar, airborne, marine and space guidance control, and electronic warfare, connectors used in the military/aerospace sector provide the important power and signal link between machine and machine, man and machine, and man and man. Not only does the failure of a connector affect those personally involved, but it can also cause a peripheral affect, wrecking havoc on tens, hundreds, or millions of bystanders.

There were many reasons why the military/aerospace sector was able to “stand tall” during the economic downturn of 2009. What technological advances contributed to better connector design? How will this industry sector sustain itself into the next decade? ConnectorSupplier.com discussed these questions with Jeff Clark, director of sales and marketing for Array Connector Corporation, a major interconnect supplier to the military/aerospace sector.

ConnectorSupplier.com: For many connector companies, 2009 was a bitter disappointment, with sales revenues plummeting as budgets were cut, personnel were laid off, and consumers’ discretionary income levels dropped. Although 2009 was a negative year for the military/aerospace segment, the decline wasn’t as great as other industries. Can Array offer any insight as to why this industry did not get hit as hard as other industries?

Jeff Clarke, Array Connector Corp.: I think the move to modernize the battlefield has helped keep the military industry from declining as much as other markets. The military continues to deploy more high-tech and secure communication devices. The aerospace market has seen the most years of consecutive growth ever, due to the airlines replacing their aging fleets with more modern and fuel-efficient aircraft. We should continue to see this type of growth for many years to come.

CS.com: In the past, it was concluded that the most technologically advanced products came from the military/aerospace sector, and eventually, this technology would be applied to applications in the industrial, medical, and consumer sectors. Today, it appears the military/aerospace sector is taking technologies that have been developed primarily for other sectors and ruggedizing them for military/aerospace applications. Do you think this has hurt or helped the military/aerospace manufacturer of connector products? Do you think this trend will continue?

Clarke: I think it will ultimately help the mil/aero connector manufacturer if they are willing to adapt to this trend and change the way they view their product line. Connector manufacturers must start thinking beyond the traditional mil-spec products, and be willing to look at ways to environmentally seal and ruggedize “standard off-the-shelf” connectors. These products tend to be used in higher-volume-type applications, so the manufacturers that adapt to this change will enjoy the increased volumes. I think this trend will continue well into the future.

CS.com: Presently, North America and Europe account for over 75 percent of all military/aerospace connector sales worldwide. Over the next five years, do you think this percentage will decline or increase? If there is a change, where will this occur? How will the connector manufacturer of military/aerospace connectors position themselves for change?

Clarke: This percentage has already begun to decline. The change is due to the emerging markets in Iraq and the rest of the Middle East. I don’t think much will need to change to support these markets, as most of the major military/aerospace manufacturers and subcontractors will continue to support the customers in these markets with their current products.

CS.com: In most military/aerospace applications, involvement in the initial design is crucial. With programs constantly pushed out, and redesigns often occurring even before quantities specified in the initial design have been procured, how does the connector manufacturer for this sector stay on top of the most recent design requirements? How do they track the status of programs when many contractors are involved in the same phase of one project (the prime contractor uses numerous subcontractors, who may also subcontract portions of a contract)?

Clarke: The key is staying in close contact and knowing your customers, because change is happening faster than ever. Array uses project managers to track the programs from initial design all the way through to the manufacturing stage. Prime contractors are usually the only individuals that can make changes to design, and their subcontractors have become much more advanced and professional, so working with the subcontractors has really become just an extension of the prime. So, the relationship has evolved and has made the entire manufacturing network much easier to navigate and work with.

CS.com: The U.S. military is one of the largest end-use customers of connectors in the military/aerospace sector. Does Array feel the $8.1 billion decrease from the proposed 2011 DoD budget will have a negative affect on connector sales this year? Two years from now? Five years from now?

Clarke: No, I don’t think the budget decrease will affect connector sales this year, in two years, or five years. In fact, I don’t think the budget decrease will affect the connector market at all. Most of the cuts are in areas, and with personnel, who are not in the field. The military must continue to update their technology.

CS.com: Weight has becomes a crucial factor in the design of all equipment destined for use in the military/aerospace sector. Can you explain how connector manufacturers, like Array, have addressed this challenge?

Clarke: Array continues to design and market smaller connectors that still function as well or better than the traditional mil-spec connectors. We are also constantly looking at new materials, alloys, and composites.

CS.com: A major challenge for design engineers of military/aerospace equipment is the ability to provide EMI/RFI shielding. Why is this so challenging, and what are some of the best methods to ensure proper EMI/RFI shielding levels?

Clarke: Protecting your system from EMI/RFI has always been a challenge because there are so many outside factors that can cause interference. Design engineers must identify the source, and potential sources, and then filter out the frequency without degrading their own system’s performance. Another challenge is trying to keep their product as small as possible and still provide the appropriate amount of shielding.

CS.com: In addition to weight and EMI/RFI shielding, what are other areas of connector design that are important in the military/aerospace sector? What connector designs have become a priority recently, and will be of additional concern five years from now?

Clarke: The priority now and five years from now will be to reduce the size of the connector and still provide a connector with mil-spec performance. Just as in the commercial world, military devices continue to become smaller and smaller, so connector manufacturers will have to continue to reduce the size of their product.

CS.com: In the military/aerospace sector, how important is it that something be field repairable? Is it more difficult to maintain component integrity when products can be terminated, repaired, or replaced in the field or in the air?

Clarke: It is very important for devices to be field repairable, especially in the military sector, for obvious reasons. The smaller connectors become, though, the more difficult it will be to provide a field-repairable product.

CS.com: To this day, the circular connector remains one of the most popular connectors in military/aerospace applications when it’s used for connections outside the box. Why is this, and do you see this changing in the future? The circular connector has been able to adapt to a variety of contact styles and to utilize both fiber and copper. How important are these features in its future widespread use?

Clarke: The circular connector will remain popular due to ease of use, environmental sealing properties, and intermateability among connector brands. The commercial aerospace market is already making the change to small rectangular modular connectors. I believe the military sector will follow this trend in the future.

Bishop Comments:
With a compound annual growth rate (CAGR) of 3.5 percent for the 2009 to 2014 period, the military/aerospace sector is anticipated to show modest, but steady growth over the next five years. China will continue to lead all other regions, with a five-year CAGR of 15.4 percent, while more developed regions, including North America, Europe, and Japan, will have much lower CAGRs. Although circular connectors will continue to dominate this sector, rectangular modular connectors will continue to gain market share, as will fiber optic connectors. Overall, while this market sector will not experience the double-digit growth in 2010 that most of the other sectors saw, this sector also did not experience double-digit declines in 2009. For connector manufacturers who participate in this sector, this means that although their market sector may not be as thrilling as other sectors, it is the sector that will always remain faithful to its suppliers.

Lynda Nolen Product Specialist, Bishop & Associates Inc. Lynda Nolen has been in the interconnect industry for over 30 years. She has worked in sales, sales management, marketing, and product management for such companies as TRW Electronics Components Group, Sunbelt Components, Cinch Connectors, Arrow Electronics, PEI Genesis, and Delphi Interconnect. Nolen has extensive experience in competitive cross-referencing, drawing, web and catalog review, new product introduction programs, harness and connector assembly programs, account management, and customer service programs. Lynda received her Bachelor of Arts degree from Roger Williams University in Rhode Island in 1979, and has completed various electrical engineering courses.