
Behind the glamour of the aerospace manufacturing industry lies a less visible reality: the path to diverse procurement is far more complex than many assume. While companies have increasingly embraced diversity initiatives, minority-owned businesses (MBEs) and other diverse suppliers continue to face significant barriers when competing for contracts. What exactly stands in the way of effective supplier diversity, and how can these obstacles be overcome to achieve genuine progress in aerospace supply chains?
Defining Supplier Diversity
Before examining the challenges, it's essential to clarify what "supplier diversity" entails. Definitions vary across companies—some conflate "small businesses" with "diverse suppliers," but the concept extends much further. Amber Hanlon, Senior Manager of Social Responsibility Compliance Programs at Collins Aerospace, explains that while small businesses (particularly those meeting the U.S. Small Business Administration's criteria) are a key component, true supplier diversity also includes enterprises owned by minorities, veterans, LGBTQ+ individuals, and women, where these groups hold at least 51% ownership.
Statistics show that manufacturing generated the highest revenue for minority-owned businesses in 2022 (measured in tens of billions). Yet, many aerospace MBEs report persistent difficulties securing contracts, suggesting industry-wide prosperity doesn't automatically translate to equitable opportunities.
Barriers to Diverse Procurement in Aerospace
- High Entry Barriers: Aerospace manufacturing demands unparalleled standards for quality, safety, and reliability. Rhonda Dibachi, co-founder and CEO of HeyScottie (an AI-driven metal finishing platform), notes that aerospace thresholds exceed those of other sectors. "You don’t want rockets exploding," she says. "The stakes dwarf a faulty car window motor." These rigorous requirements often exclude smaller or newer diverse suppliers.
- Information Gaps: Even certified MBEs listed on aerospace supplier platforms struggle to secure work. Keith Lambert of Oxidizers Inc. observes that while MBE status increases dialogue with manufacturers, it rarely boosts revenue. "Landing aerospace clients can take years, regardless of diversity status," he says. Lambert adds that even when he presents his pollution-control expertise to diversity teams, they often lack channels to connect him with facility managers.
- Limited Internal Recognition: Many clients remain unaware that suppliers like Oxidizers are MBEs—or how to leverage that status internally. Dibachi mentions she only highlights her MBE identity when technical certifications are required, viewing her woman-owned status as "a bonus, not a prerequisite."
- Underresourced Diversity Teams: Collins Aerospace, with 70,000 employees and thousands in supply chain roles, dedicates just four staff to supplier diversity. Hanlon advises diverse suppliers to target specific products and provide lead details to streamline support.
- Cultural Biases: Despite corporate diversity programs, ingrained preferences for established suppliers and unconscious biases about MBE capabilities persist among procurement teams.
Strategies for Progress
- Set Clear Metrics: Companies must establish measurable diversity goals—tracking supplier counts, contract values, and participation levels—integrated into broader strategy.
- Empower Diversity Teams: Invest in dedicated staff with expertise to identify, evaluate, and mentor diverse suppliers while collaborating cross-functionally.
- Streamline Onboarding: Simplify paperwork, clarify requirements, and create fast-track pathways for qualified MBEs.
- Offer Training: Provide technical, quality management, and financial guidance to help MBEs meet aerospace standards.
- Level the Bidding Field: Ensure transparent processes, objective criteria, and equal access to opportunities.
- Drive Cultural Shifts: Combat biases through training and leadership advocacy, fostering inclusive procurement mindsets.
- Leverage Partnerships: Collaborate with groups like the National Minority Supplier Development Council (NMSDC) or Defense Department mentorship programs.
- Prioritize Competence: "Nobody buys parts because they’re made by women," Dibachi stresses. "They buy well-made parts. If that supports diversity, great."
- Cultivate Internal Champions: Identify advocates who can amplify MBE opportunities across business units.
- Embrace Innovation: "Diversity’s real value is fresh perspectives," Dibachi notes. "Creativity thrives at the edges, not in repetition."
Conclusion
Achieving meaningful supplier diversity in aerospace demands concerted efforts from corporations, governments, and communities. Only by dismantling systemic barriers, ensuring equitable access, and nurturing MBE capabilities can the industry unlock the full potential of diverse supply chains—fueling innovation and resilience for the future.