Charles R. Goulding and Andressa Bonafe explore how Embraer’s innovative manufacturing strategies, including additive manufacturing, position the Brazilian aerospace giant as a formidable competitor amid Boeing and Airbus’ struggles.
Embraer, a global aerospace company based in Brazil, operates across Commercial and Executive Aviation, Defense & Security, and Agricultural Aviation. It specializes in the design, development, manufacturing, and marketing of aircraft and systems, while also providing comprehensive after-sales services and support.
Since its founding in 1969, Embraer has become one of the largest aircraft companies in the world, delivering over 8,000 units. On average, an Embraer-manufactured aircraft takes off somewhere in the world every 10 seconds, carrying more than 145 million passengers annually.
According to the latest data available, the Brazilian aerospace manufacturer reported revenues of US$5.27 billion in 2023, reflecting a 16% increase from the previous year. As of December 31, 2023, Embraer employed over 19 thousand individuals in factories, offices, and distribution centers across the globe.
The Embraer Advantage
Boeing and Airbus, the two giants of the aerospace industry, are currently grappling with significant challenges. In 2024, Boeing reported a US$11.8 billion net loss, its largest since 2020, driven by production issues, supply chain disruptions, and a crippling strike by U.S. West Coast factory workers. Safety concerns escalated after a 737 Max 9 suffered an in-flight decompression due to missing bolts, prompting the FAA to ground 170 aircraft. Supply chain issues and quality control failures also caused disruption, with Boeing managing to deliver only 348 aircraft in 2024, down from 528 in 2023. To counter these struggles, the company announced 17,000 job cuts, postponed its 777X launch to 2026, and is considering raising capital to stabilize operations. These setbacks highlight Boeing’s deep financial, operational, and reputational challenges as it works to restore industry confidence.
Airbus is similarly facing several challenges across its operations. In its Defense and Space division, the company has announced plans to cut up to 2,500 positions by mid-2026 to streamline operations and enhance competitiveness, a move driven by supply chain disruptions and shifting market dynamics. Additionally, Airbus has postponed its goal of introducing a hydrogen-powered aircraft by 2035 due to difficulties in developing the necessary hydrogen ecosystem, including infrastructure and regulatory frameworks. Supply chain constraints, particularly in obtaining engines and other critical components, have also forced the company to lower its delivery targets, reducing its 2024 goal from 800 to 770 aircraft. These challenges highlight the increasingly complex environment in which Airbus operates as it works to maintain its leadership in the aerospace industry.
In contrast, Embraer has demonstrated resilience and growth. The company delivered 206 aircraft in 2024, a 14% increase from the previous year, and has plans to nearly double its revenue to US$10 billion by the end of the decade through increased sales of its regional and business jets. As the world’s third-largest civil aircraft manufacturer, Embraer presents a promising alternative for airlines seeking reliable and efficient aircraft amidst the challenges faced by its larger competitors.
Experts underline that the Brazilian manufacturer is uniquely positioned to gain traction in the aviation market, given its established connections and strong reputation. With a diverse portfolio, which includes military aircraft and private jets, as well as its strategic designs, export approach, and cost-efficient outsourcing, Embraer could considerably expand its global success. Its versatility allows the company to serve a broad customer base while maintaining competitive costs in the aviation market.
Among its future plans, Embraer is prioritizing the Energia project, which aims to develop a 30-seat hybrid-electric aircraft by 2030, cutting carbon emissions by 30%—or up to 90% with sustainable aviation fuel (SAF). A hydrogen fuel cell version is set for 2035, with a 50-seat model expected by 2040.
3D Printing at Embraer
Embraer has been leveraging additive manufacturing to enhance its aircraft production processes. In the development of the E-Jets E2 family, the company utilized 3D printing to produce 37 interior components, including air conditioning grills, harness protection units, suction toilet flanges, and air ducts. This approach resulted in parts that are up to 40% lighter, with production times reduced by 50% and waste decreased by 65%. Additionally, Embraer has explored the use of AM for metal parts, aiming to achieve similar benefits in weight reduction and manufacturing efficiency.
Another example of Embraer’s innovation through additive manufacturing is the creation of a rotational vacuum suction system attached to a robotic machining head. This system, created using a 3D printer and carbon fiber nylon filament, effectively cleans and removes debris during the machining of composite materials, showcasing the company’s commitment to integrating advanced technologies into its production lines.
As illustrated by Embraer, the aerospace industry has increasingly adopted 3D printing technology, acknowledging its ability to transform manufacturing by lowering costs, accelerating production, and enabling greater customization. US-based companies engaged in additive manufacturing should take advantage of the R&D tax credit opportunity described below.
The Research & Development Tax Credit
The now permanent Research and Development (R&D) Tax Credit is available for companies developing new or improved products, processes and/or software.
3D printing can help boost a company’s R&D Tax Credits. Wages for technical employees creating, testing and revising 3D printed prototypes can be included as a percentage of eligible time spent for the R&D Tax Credit. Similarly, when used as a method of improving a process, time spent integrating 3D printing hardware and software counts as an eligible activity. Lastly, when used for modeling and preproduction, the costs of filaments consumed during the development process may also be recovered.
Whether it is used for creating and testing prototypes or for final production, 3D printing is a great indicator that R&D Credit eligible activities are taking place. Companies implementing this technology at any point should consider taking advantage of R&D Tax Credits.
Conclusion
As Boeing and Airbus face mounting challenges, from financial struggles to supply chain disruptions and production delays, Embraer continues to strengthen its position as a reliable and innovative alternative in the aerospace industry. With a diverse portfolio, the Brazilian manufacturer has built a reputation for efficiency and adaptability. Its ability to deliver high-quality aircraft while maintaining steady growth highlights its resilience despite industry uncertainties. Embraer’s investment in advanced manufacturing techniques, including additive manufacturing, enhances production efficiency, reduces costs, and supports the development of next-generation aircraft. As the aviation sector evolves, Embraer’s commitment to technological advancements and operational excellence positions it as a key player in an increasingly competitive market.
