Rajesh Kumar Singh Singh, Allison Lampert

LAS VEGAS/CHICAGO, (Reuters) – Global shipping disruptions and global supply chain disruptions make it more difficult for suppliers and corporate planemakers to keep up with resurgent parts demand according to analysts and industry executives.

Commercial aviation also is being affected by disruptive events that can lead to higher costs. They could slow down the recovery process from the COVID-19 pandemic.

Some private aircraft traffic is now at an all-time high, so some business planemakers and suppliers were able to see warning signs regarding supply chain problems and potential labor shortages.

    Their comments added to recent concerns expressed by Airbus Chief Executive Guillaume Faury about mounting pressure on commercial aerospace’s supply chain.

Aerospace so far has not been affected by the same supply issues as auto makers and machine manufacturers. Aircraft producers Boeing (NYSE:) Co. and Airbus now produce fewer planes than they did before the pandemic.

According to Eric Bernardini of AlixPartners’ global co-head of aviation, defense and aerospace, the supply chain is becoming increasingly complicated for narrow-body jets. He said that there has been a pickup in demand because of short-haul flights.

The combination of travel restrictions relaxed and the attraction of private jets has led to an unexpected increase in business aviation traffic. This is filling private operator seats, expanding planemaker order backlogs, and straining supplies of parts and pilots.

Cessna is a Cessna business jet manufacturer. Textron Inc (NYSE:) In 2019, there were 20% more flights than usual, putting increased pressure on suppliers to meet the demand for replacement parts.

Ron Draper is chief executive at Textron Aviation. He stated that while we’re now in a better position than it was, there are still some problems.

Draper stated that Textron was managing the problems, but still sees some suppliers with capacity limitations.

Stirling Macfarlane (Segment Manager in Aerospace, PPG Industries) stated at the show that PPG Industries has experienced delays in receiving the necessary components.

Bernardini explained that Aerospace companies have been experiencing shortages in plastics and semiconductor chip, as well as paying higher prices for metals like aluminum and steel.

Input costs are rising at a moment when pricing power is limited in the commercial aerospace industry due to overall weak demand. This makes it difficult for equipment manufacturers and suppliers to pass on the higher costs to their customers.

According to AlixPartners data, the average aviation industry paid between 27% and 44% more to purchase raw materials during this first half of 2015 compared with last year.

Bernardini declared that industry’s number one concern is protecting profits margins.

Additionally, companies are having difficulty finding skilled workers in order to increase production. This is also causing delays with shipping.

Robert Martin, chief executive at lessor BOC Aviation, stated that adequate staffing is required to support anticipated production growth in 2022-2023. This was said Wednesday at an event hosted by the CAPA Centre for Aviation.

Embraer SA (NYSE: ) has more parts than it needs, in spite of higher shipping costs. Marsha Woolber, Head of Customer Relations for Brazilian aircraftmaker, stated that the company keeps its inventory full.

“We have increased inventory storage at our local warehouses all over the globe because there are disruptions when international cargo flights or shipping container arrive,” she stated.

Some states in the United States are making efforts to ease bottlenecks.

Oklahoma has, for instance, launched a portal that connects local suppliers to manufacturers. It is aimed at helping those in the aerospace industry who are trying to diversify and fill the gaps in their supply chain.

Draper stated that the problem would become more difficult if commercial airline production returns to 2019 levels, which may be one or two years away.

We could be faced with capacity limitations if Boeing and Airbus go back to their arms race and absorb a lot more capacity.