FINANCING STRATEGIES USED BY SMALL AND MID-SIZED FIRMS USING LASER MANUFACTURING TECHNOLOGY TO SUPPLY THE AEROSPACE INDUSTRY

摘要

The aerospace industry is comprised of a few large manufacturers and a large number of smaller supplier firms that manufacture components used in the production of aircraft. A key challenge for these smaller firms is the need to remain both economically viable and globally competitive. One of the ways in which they have sought to achieve those objectives is through the adoption of laser manufacturing technology that typically requires substantial investment in equipment, training, and safety. This paper will focus on the financial strategies used by small to mid-sized firms using lasers in their manufacturing processes. It will identify and discuss the merits of major sources of capital, both public and private, as well as gaps in funding. It will also discuss why firms in this industry tend to use certain types of funding while avoiding others. These decisions have implications for the capital structures of these firms as well as for their potential for growth.