NAICS 336412 Quarterly Industry Report
Aircraft Engine and Engine Parts Manufacturing
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 336412Sector: 33Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 336412 draws on verified data from the U.S. Census Bureau[5], Bureau of Labor Statistics[6], and the Small Business Administration[7]. Our research team compiles establishment counts, employment data, and SBA eligibility criteria specific to aircraft engine and engine parts manufacturing. Reports are updated quarterly to reflect new Census releases and regulatory changes.
Industry Snapshot
Key metrics for the aircraft engine and engine parts manufacturing industry.
Industry Definition & Overview
Aircraft Engine and Engine Parts Manufacturing (NAICS 336412) encompasses establishments primarily engaged in manufacturing aircraft engines and engine parts, including overhaul and conversion services for these products. Products span turbofan engines for commercial transport aircraft, turboshaft engines for helicopters, turboprop engines for regional and utility aircraft, auxiliary power units (APUs), and a broad range of engine components including fan blades, compressor disks, combustion chambers, turbine blades, and gearbox assemblies. The U.S. Census Bureau[5] classifies this industry under aerospace product and parts manufacturing.
Roughly 1,150 active businesses employ an estimated 102,000 workers in this industry. Three major engine OEMs dominate new production: GE Aerospace, Pratt & Whitney (RTX), and Rolls-Royce serve the large commercial engine market while multiple producers compete in military, business aviation, and helicopter segments. Maintenance, repair, and overhaul (MRO) of installed engines generates recurring revenue that often exceeds original equipment sales over the engine's service life through long-term service agreements.
Manufacturing involves some of the most demanding metalworking in any industry. Turbine blades require single-crystal nickel superalloy investment casting followed by precision grinding and thermal barrier coating application. Compressor disks are forged from titanium or powder metallurgy nickel alloys and machined on five-axis CNC equipment. Fan blade production increasingly uses carbon fiber composite layup with titanium leading edge bonding. FAA Parts Manufacturer Approval (PMA) and Production Approval requirements govern all production, with each engine component traceable through documented quality systems meeting AS9100 aerospace quality management standards. Engine testing occurs on instrumented test cells measuring thrust, specific fuel consumption, and vibration before delivery.
What's Included in This Industry
- Turbofan engine manufacturing for commercial aircraft
- Turboshaft engine production for helicopters
- Turboprop engine manufacturing
- Auxiliary power unit production
- Turbine blade and vane manufacturing
- Compressor disk and rotor production
- Combustion chamber manufacturing
- Engine gearbox assembly and production
- Aircraft engine overhaul and rebuild services
- Engine nacelle and thrust reverser manufacturing
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Transportation Equipment Manufacturing | 336 |
| Industry Group | Aerospace Product and Parts Manufacturing | 3364 |
| NAICS Industry | Aerospace Product and Parts Manufacturing | 33641 |
| National Industry | Aircraft Engine and Engine Parts Manufacturing | 336412 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 336411 | Aircraft Manufacturing | Manufactures complete aircraft airframes and structures rather than the propulsion engines and engine components produced for installation in those airframes by this industry |
| 336413 | Other Aircraft Parts and Auxiliary Equipment Manufacturing | Produces other aircraft parts and auxiliary equipment classified separately from the engines and engine-specific components manufactured in this dedicated propulsion classification |
| 336414 | Guided Missile and Space Vehicle Manufacturing | Manufactures guided missiles and space vehicles requiring propulsion systems distinct from the air-breathing turbine engines produced for conventional aircraft here |
| 336415 | Guided Missile and Space Vehicle Propulsion Unit and Propulsion Unit Parts Manufacturing | Produces guided missile and space vehicle propulsion units using rocket technology rather than the air-breathing turbofan and turboshaft engines manufactured in this classification |
| 333611 | Turbine and Turbine Generator Set Units Manufacturing | Manufactures industrial turbines and turbine generator sets for power generation rather than the aircraft-specific turbine engines produced under strict aviation certification requirements |
| 336310 | Motor Vehicle Gasoline Engine and Engine Parts Manufacturing | Produces motor vehicle gasoline engines for automotive applications rather than the aviation turbine engines manufactured to FAA certification standards in this industry |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Ohio | 12.8% | 53 |
| 2 | California | 11.3% | 47 |
| 3 | Florida | 9.9% | 41 |
| 4 | Connecticut | 8.2% | 34 |
| 5 | Texas | 6.0% | 25 |
| 6 | Arizona | 5.5% | 23 |
| 7 | Michigan | 5.1% | 21 |
| 8 | Massachusetts | 3.6% | 15 |
| 9 | Indiana | 3.4% | 14 |
| 10 | New York | 3.4% | 14 |
% Of Establishments
0%
13%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
96
Total SBA Loans
$87.5M
Total Loan Volume
$911K
Average Loan Size
9 yrs
Average Loan Term
9.38%
Average Interest Rate
3,152
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: The SBA[7] sets the size standard for NAICS 336412 at 1,500 employees. Firms below this threshold qualify for small business set-aside contracts and SBA-backed lending programs. Federal procurement includes military turbofan and turboshaft engines, engine spare parts for Air Force and Navy fleets, and MRO services for government aircraft engines. The SBA's contracting programs[8] support manufacturers pursuing Air Force Life Cycle Management Center and Defense Logistics Agency engine component contracts. Eligible businesses can access SBA 7(a) loans[9] for working capital, equipment, and acquisition financing, while 504 loans[10] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Regions Bank | 16 | $40.0M | $2.5M |
| 2 | Byline Bank | 16 | $21.6M | $1.4M |
| 3 | U.S. Century Bank | 8 | $6.4M | $800K |
| 4 | Bank of Utah | 8 | $6.3M | $784K |
| 5 | Capital One, National Association | 8 | $6.2M | $770K |
Frequently Asked Questions
Common questions about this industry.
What types of businesses are classified under NAICS 336412?
Manufacturers of aircraft engines and engine components classify here. Products include turbofan, turboshaft, and turboprop engines, APUs, turbine blades, compressor disks, combustion chambers, and engine overhaul services per the Census Bureau[5] classification.
How is the aircraft engine manufacturing industry structured?
Roughly 1,150 businesses employ an estimated 102,000 workers per Census data[11]. Three major OEMs (GE Aerospace, Pratt & Whitney, Rolls-Royce) dominate commercial engine production while hundreds of smaller firms manufacture components, provide MRO services, and produce PMA replacement parts.
What is the SBA size standard for NAICS 336412?
The SBA[7] sets the threshold at 1,500 employees. Businesses with fewer than 1,500 average employees qualify as small for federal contracting preferences and SBA-backed financing programs including 7(a) and 504 loans.
What NAICS codes are related to aircraft engine manufacturing?
Related codes include 336411 (Aircraft), 336413 (Other Aircraft Parts), 336414 (Guided Missiles), 336415 (Rocket Propulsion), 333611 (Industrial Turbines), and 336310 (Vehicle Engines). Each covers either airframe production, space propulsion, industrial turbines, or automotive engines distinct from aviation turbine manufacturing.
What industries interact with aircraft engine manufacturers?
Aircraft manufacturers, commercial airlines, MRO facilities, specialty foundries, and other aircraft parts producers interact most directly. Long-term service agreements with airlines generate recurring MRO revenue that often exceeds original engine sale value over each engine's 20 to 30 year operational life.
What activities are included in NAICS 336412?
Activities include casting and machining turbine blades from nickel superalloys, forging titanium compressor disks, manufacturing combustion chambers and fuel nozzles, assembling complete turbofan and turboshaft engines, testing engines on instrumented thrust stands, performing engine overhaul and hot section repair, and producing PMA replacement parts under FAA approval.
Can aircraft engine manufacturers qualify for SBA loans?
Yes, firms below 1,500 employees qualify for SBA lending programs[8] including 7(a) and 504 loans. Five-axis CNC machining centers, investment casting furnaces, engine test cells, and nondestructive testing equipment represent capital investments suited to SBA 504 equipment financing.
Where are aircraft engine manufacturers concentrated?
Production concentrates in Connecticut, Ohio, Indiana, and Massachusetts near the major engine OEM headquarters and legacy manufacturing facilities. GE Aerospace operates extensively in Ohio and Indiana while Pratt & Whitney maintains plants in Connecticut and Georgia. Engine component suppliers and MRO facilities cluster near these OEM centers and also near major airline hub airports in Texas, Florida, and Oklahoma.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]Bureau of Labor Statistics bls.gov
- [7]Small Business Administration sba.gov
- [8]SBA's contracting programs sba.gov
- [9]SBA 7(a) loans sba.gov
- [10]504 loans sba.gov
- [11]Census data naicslist.com
Disclaimer
This publication has been prepared by Fair Market Value (“Fair Market Value”) for informational purposes only. It is provided on an “as-is” and “as available” basis. Fair Market Value makes no representations or warranties, express or implied, regarding the merchantability, fitness for a particular purpose, completeness, or accuracy of the data or information contained herein. This publication is not intended to be, and should not be construed as, professional financial, legal, tax, or investment advice. Users should consult with qualified professionals before making any financial or business decisions based on the information presented.
To the extent permitted by law, Fair Market Value disclaims all liability for loss or damage, direct and indirect, suffered or incurred by any person resulting from the use of, or reliance upon, the data in this publication.
Copyright © 2026 Fair Market Value. All rights reserved. All data, information, articles, graphs, and content contained in this publication are copyrighted works and Fair Market Value hereby reserves all rights. No part of this publication may be copied, reproduced, republished, uploaded to a third party, or distributed without the prior written permission of Fair Market Value.