Estimated reading time: 10 minutes
Aerospace has always pushed engineering to the edge of what is possible.
But operationally, many companies in the sector are still working through a very different reality: disconnected systems, paper-heavy workflows, and digital initiatives that never quite scale.
That tension matters.
McKinsey, in research with the Aerospace Industries Association, argues that aerospace and defense still has “a long way to go” to leave behind paper-based processes, fragmented data systems, and manual operations. At the same time, McKinsey estimates that improving digital maturity across the value stream could unlock $20 billion in annual EBITDA across the global sector.
So yes, the digital gap is real. But it is important to define it correctly.
Aerospace is not behind in engineering sophistication. It is behind in operational integration. Many organizations have strong design tools, deep technical talent, and world-class quality standards, yet still struggle to connect engineering, manufacturing, quality, procurement, and aftermarket data into one usable flow. McKinsey notes that companies report the most progress in R&D and back-office functions, while broader value-chain digitization remains earlier-stage. Deloitte adds that Aerospatial & Defense (A&D) manufacturing is especially difficult to modernize because of stringent safety requirements, reliance on legacy systems, and the high cost of failure.
For SMEs, that challenge is even sharper.
Unlike large OEMs, smaller aerospace manufacturers and suppliers rarely have the budget or appetite for a full platform replacement. They need to improve traceability, scheduling, quality, and responsiveness without breaking what already works. In Quebec, that matters at scale: Aéro Montréal describes the province’s aerospace sector as generating about $15 billion annually, representing nearly 15% of Quebec exports, and built on a dense network of specialized SMEs.
That is why custom software matters. Not because it is fashionable, but because it helps companies modernize in practical steps.
Where aerospace tends to lag
The most common gap is not a lack of tools. It is a lack of continuity between tools.
Engineering data often lives in PLM or CAD environments. Production planning lives in ERP or spreadsheets. Quality records may sit in separate databases or even paper forms. Supplier communication happens by email. Maintenance history is stored somewhere else again. The result is slow decisions, duplicated effort, and weak traceability across the product lifecycle. McKinsey explicitly points to fragmented data systems and manual operations as persistent barriers, while Deloitte highlights the difficulty of scaling promising AI and inspection pilots into industrialized production.
That pattern shows up in supplier expectations, too. Héroux-Devtek’s supplier assessment asks vendors about ERP/MRP software, capacity analysis, secured portals, Catia inspection capability, and even compliance with digital product definition and model-based definition requirements. In other words, the market increasingly expects suppliers to operate in a digitally connected way, even if many are still building that capability.
Three cost-reduction opportunities where custom software pays off
Reducing downtime and maintenance waste
Predictive maintenance is often discussed in aviation, but its value is just as relevant on the manufacturing side: CNC machines, tooling, inspection equipment, and test benches all create bottlenecks when they fail unexpectedly.
IBM summarizes the value clearly: predictive approaches can reduce downtime by roughly 35% to 50%, lower maintenance costs, and extend asset lifespan by 20% to 40%. Deloitte also points to measurable gains from predictive maintenance, including lower downtime and better labor productivity.
For an aerospace SME, the real win is not just “AI.” It is linking machine data, maintenance logs, and production priorities into one workflow. A custom layer can trigger alerts, route approvals, and connect maintenance decisions to the production schedule, instead of leaving each function to work in isolation.
Shortening engineering-to-production cycles
Aerospace companies usually do not struggle because they lack engineering talent. They struggle because design intent gets diluted as it moves into tooling, inspection, supplier communication, and production change control.
This is where digital-twin-style workflows become useful. Microsoft notes that digital twins can reduce production costs and downtime by simulating performance and maintenance decisions before they create disruption in the real world. In manufacturing environments, digital twins also support production monitoring, process optimization, simulation, and maintenance.
For SMEs, that does not have to mean a massive enterprise digital twin program. It can start with something narrower and more useful: a custom application that connects CAD, inspection data, nonconformance reports, and process parameters for one product family or one production cell.
That kind of focused implementation is often more realistic than buying a large off-the-shelf platform and trying to force every team to work around it.
Improving quality and supplier responsiveness
In aerospace, quality problems are expensive not only because of scrap and rework, but because every issue creates documentation, investigation, delay, and customer risk.
Quebec offers a useful local angle here. Creaform, a Quebec-based company, describes how automated 3D scanning and at-line inspection can help aerospace manufacturers inspect complex parts more quickly, improve productivity, and build repeatable workflows. Its automation tools include a digital-twin environment to simplify programming and deployment. In one aerospace casting example, the client highlighted both the speed and the relative ease of implementation.
That matters because many SMEs do not need abstract “digital transformation.” They need a better way to inspect parts, catch deviations earlier, and share accurate information with customers and suppliers. Custom software can sit between inspection tools, ERP, and quality records so that measurements become actions, not just files.
Why custom software is often a better fit than off-the-shelf tools
Off-the-shelf software is useful when the process is standard. Aerospace processes often are not.
Certification, customer-specific requirements, legacy equipment, model-based definition, secured data exchange, and long product lifecycles all create exceptions. Deloitte’s view that A&D manufacturing is harder to digitize because of legacy systems and safety requirements is exactly why generic software often stalls after the pilot stage.
Custom software changes the equation because it does not require a company to replace everything at once. It can connect what already exists.
In practice, that might mean: a production dashboard connected to ERP and machine data, a digital quality workflow replacing paper signoffs, a supplier portal tied to revision control, or a maintenance application that links asset health to production priorities.
That “connect rather than replace” approach is especially relevant for Quebec SMEs. Aéro Montréal’s MACH FAB 4.0 program is built around that reality: helping SMEs increase productivity through digital technologies and advanced manufacturing, and raising their digital maturity over time rather than through one massive transformation.
The opportunity in Quebec
Quebec is one of the strongest aerospace clusters in the world, but that strength also raises the bar. OEMs and Tier 1s expect their suppliers to be fast, traceable, digitally responsive, and increasingly model-based. Aéro Montréal describes Quebec’s ecosystem as highly integrated, with major OEMs, Tier 1s, specialized SMEs, research centers, and innovation hubs such as Espace Aéro.
That creates pressure, but also opportunity.
For a local SME, digital transformation does not need to begin with a grand strategy deck. It can begin with one painful bottleneck: too much manual quality paperwork, poor visibility into production status, slow engineering change communication, or maintenance decisions based on guesswork.
Solve that well, and you do more than cut cost. You create the foundation for a stronger digital thread across the business.
Final thought
The aerospace industry is behind in digital transformation in a very specific sense: not in technical ambition, but in the ability to make data move cleanly across the business. That is why the highest-value opportunities are often not flashy. They are practical: better traceability, fewer manual handoffs, faster inspections, smarter maintenance, and cleaner supplier collaboration.
For aerospace SMEs, that is good news.
Because meaningful transformation does not have to start with a moonshot. It can start with one well-crafted software solution that removes friction where the business feels it most.
FAQs
Yes, but the gap is specific. Aerospace is not behind in engineering capability; it is often behind in operational integration. Many companies still work with fragmented systems, manual handoffs, paper-based quality processes, and legacy infrastructure that makes data hard to share across engineering, production, quality, and supply chain teams.
Aerospace operates under strict certification, traceability, and safety requirements. Product lifecycles are long, legacy systems are common, and supplier networks are complex. That means digital change has to be implemented carefully, with minimal risk to compliance and operations.
Because aerospace processes are rarely generic. Many SMEs have to manage customer-specific requirements, legacy equipment, quality procedures, secure data exchange, or model-based definition standards. Off-the-shelf tools can help, but they often leave gaps between systems. Custom software becomes valuable when it connects existing tools and workflows instead of forcing a full replacement.
What does digital transformation actually look like for a smaller aerospace supplier? It usually starts with one operational pain point, not a massive enterprise program. That could mean replacing paper-based inspection records, connecting ERP data to production status, improving revision control with suppliers, or building a maintenance dashboard for critical equipment. For SMEs, transformation is most effective when it is practical, focused, and tied to measurable results
Sources
- McKinsey & Company, « Digital: The Next Horizon for Global Aerospace and Defense ».
- Deloitte, « 2026 Aerospace and Defense Industry Outlook ».
- Aéro Montréal, « Industry ».
- Aéro Montréal, « MACH FAB 4.0 Tool ».
- BCG, « Flipping the Odds of Digital Transformation Success ».
- IBM, « What Is Predictive Maintenance? » et « Predictive vs. Preventive Maintenance ». Microsoft, ressources sur les jumeaux numériques pour la fabrication.
- Documents d’évaluation des fournisseurs de Héroux-Devtek.
- Documentation de Creaform sur l’automatisation et le contrôle qualité dans l’aérospatiale.
