Woodward, Inc. will close its Santa Clarita, California, manufacturing facility by December 2027, relocating production of military fixed-wing and rotorcraft flight control actuation systems to a new 300,000-square-foot campus in Spartanburg, South Carolina.

The transition, announced in a company press release on September 21, 2026, follows a September 15 board approval and represents a major consolidation of Woodward’s aerospace manufacturing footprint. The move shifts critical military aircraft component production to the East Coast to streamline operations and meet increasing demand for next-generation aircraft controls.

Santa Clarita closure and workforce impact

Operations at the Santa Clarita site will cease no later than December 2027. The closure affects approximately 400 roles at the facility, which Woodward has operated for 17 years since acquiring the operations.

“We don’t make decisions like this without recognizing what they mean for the people affected. Our team in Santa Clarita has contributed to Woodward for 17 years, and we are committed to supporting them through the transition with respect,” stated Shawn McLevige, President of Woodward’s Aerospace segment.

Alongside the relocation of military actuation systems, Woodward plans to sell the Santa Clarita campus. The sale will include a smaller portfolio of legacy commercial rotorcraft, land systems, and business jet products, with the transaction expected to close during Fiscal Year 2027.

Expansion in South Carolina

The new Spartanburg manufacturing operation, located in Greer, South Carolina, represents an approximate $200 million investment by Woodward. The facility broke ground on November 3, 2025, and is scheduled to begin operations in the summer of 2027. The site is expected to create approximately 275 new jobs.

Airbus A350 and military integration

The Spartanburg campus was originally commissioned to produce spoiler actuation systems for the Airbus A350. Woodward was selected to supply 12 of the 14 spoiler actuation systems for the widebody aircraft, marking the company’s first primary flight control system on a commercial airframe. The addition of military fixed-wing and rotorcraft flight control actuation expands the scope of the South Carolina site.

McLevige noted in the press release that moving production to Spartanburg will refine the company’s manufacturing footprint to better support customers and improve the supply chain for both commercial and military aircraft controls.

AirPro News analysis

We view the Santa Clarita closure as a continuation of Woodward’s broader portfolio optimization strategy. By divesting legacy product lines and consolidating advanced flight control actuation in a single modern facility, the company is positioning itself to better manage supply chain complexities. This move aligns with Woodward’s recent strategic shifts, including the divestiture of its Industrial combustion product line and the acquisition of Safran’s North American Electromechanical Actuation business. Consolidating military and commercial primary flight control production in South Carolina likely offers operational synergies that the split California and South Carolina footprint could not support.

Sources: Woodward, Inc. Press Release

A structural shortage of engine stands for the CFM56-5A/B has pushed utilization rates to record highs, creating logistical bottlenecks for maintenance, repair, and overhaul (MRO) providers servicing the Airbus A320ceo family.

In a press release issued on September 22, 2026, EngineStands detailed the escalating scarcity of ground support equipment for the mature engine type. The shortage, which became a focal point of discussion at the AeroEngines Europe conference in Lisbon, Portugal, is being driven by delayed new-generation aircraft deliveries and a sudden influx of legacy airframes entering the aftermarket.

Utilization rates reach capacity

Data from EngineStands.com illustrates a sharp upward trajectory in demand for CFM56-5A/B support equipment. Throughout 2025, engine stand utilization for the type averaged 77 percent, accompanied by a 60 percent year-over-year increase in overall usage and a 21 percent extension in typical rental durations.

That pressure intensified during the first eight months of 2026. Average utilization climbed to 93 percent, with half of the company’s CFM56-5A/B stand fleet operating at 100 percent capacity from January through August. The equipment provider noted in its May 2026 utilization report that while total stand usage softened slightly compared to heavier maintenance periods, clear pressure points remained across specific engine families.

Market drivers and the Spirit Airlines effect

The CFM International CFM56-5A and CFM56-5B engines power a significant portion of the Airbus A320ceo family, which includes the A318, A319, A320, and A321. With Airbus having delivered approximately 8,100 A320ceo-family aircraft, the scale of the CFM56-5 ecosystem requires massive ground support infrastructure.

Supply chain constraints and delayed deliveries of new-generation narrowbodies, such as the Airbus A320neo and Boeing 737 MAX families, are forcing operators to keep legacy aircraft in service longer. This dynamic keeps mature engines in active, high-frequency shop-visit cycles. Record-breaking summer flight activity in 2026 further accelerated engine maintenance schedules, stressing existing stand capacity ahead of the traditional heavy maintenance season.

A sudden market shock has compounded the structural shortage. According to the EngineStands.com July 2026 utilization report, the bankruptcy of Spirit Airlines flooded the market with older A320ceo engines and airframes returning to lessors. This influx generated immediate demand for engine transitions, storage, and aftermarket support, overwhelming the available supply of specialized stands. Due to the scarcity, operators and MROs are increasingly looking to purchase rather than lease engine stands, with inquiries heavily concentrated on the CFM56-5A/B model.

AirPro News analysis

We view the CFM56-5A/B stand shortage as a leading indicator of broader capacity constraints within the mature narrowbody aftermarket. When operators and MROs cannot secure basic ground support equipment, engine transitions and shop visits face inevitable delays. The shift in customer behavior noted by EngineStands.com, where operators are attempting to purchase rather than lease stands, suggests the industry anticipates this shortage will persist well beyond the 2026 maintenance cycle. As long as new-aircraft delivery delays force airlines to lean on legacy fleets, the infrastructure supporting those older engines will remain under severe strain.

Sources: EngineStands

FTAI Aviation Ltd. and PT Garuda Maintenance Facility Aero Asia Tbk (GMF) formalized a five-year strategic agreement on September 23, 2026, securing guaranteed engine and auxiliary power unit maintenance capacity for FTAI at GMF’s Jakarta facility. The partnership, signed during the MRO Asia-Pacific 2026 event in Singapore, marks a targeted expansion of FTAI’s maintenance network into the Asia-Pacific region.

According to a joint press release, the collaboration focuses on CFM International CFM56-5B and CFM56-7B engines, CFM LEAP engines, and Honeywell GTCP131-9 series auxiliary power units (APUs). The agreement provides GMF with committed engine volumes while granting the Indonesian maintenance, repair, and overhaul (MRO) provider access to FTAI’s technical expertise and training resources.

Expanding Asia-Pacific maintenance capacity

The formalized agreement addresses a growing industry need for localized maintenance options amid global supply chain constraints. By securing dedicated slots in Jakarta, FTAI aims to reduce turnaround times for operators based in the Asia-Pacific region.

FTAI Aviation President David Moreno stated in the press release that bringing committed engine volumes to GMF places maintenance capacity closer to regional customers, directly enabling faster turnaround times.

GMF Chief Executive Officer Andi Fahrurrozi noted that the partnership responds to increasing engine maintenance demand from FTAI and the broader regional aviation market.

“This collaboration is designed to address customer needs for maintenance slot availability, improved turnaround times, consistent quality, and flexibility,” Fahrurrozi said. “We aim to deliver more competitive MRO solutions for customers across the region. Together with FTAI, we also look forward to exploring broader strategic collaboration opportunities beyond our existing business.”

FTAI Aviation’s global network strategy

The GMF partnership is a core component of FTAI’s broader strategy to transition toward an asset-light model while rapidly scaling its module restoration capacity. During its second-quarter 2026 earnings presentation in July, FTAI management outlined that the Jakarta partnership integrates a 250,000-square-foot facility and 200 dedicated technicians into its global network.

This capacity is required to support FTAI’s stated production targets. The company plans to increase its annual engine module production to 1,700 by 2027, a significant scale-up from the 757 modules produced in 2025.

The Jakarta agreement parallels a similar partnership FTAI recently established with EgyptAir in Cairo. Together, these agreements represent FTAI’s first major maintenance facility investments east of Rome, establishing a decentralized MRO network capable of serving airlines outside of the traditional North American and European maintenance hubs.

Financial positioning and shareholder returns

The formalization of the GMF agreement follows a period of aggressive expansion in FTAI’s Aerospace Products sector. With its primary regional MRO partnerships now secured, the company has begun signaling a shift toward shareholder returns.

On September 15, 2026, FTAI Aviation announced a $500 million share repurchase program. The authorization suggests the company has reached a stabilization point in its capital expenditure requirements for facility expansion, allowing it to allocate capital back to investors while executing on its newly secured maintenance capacity.

AirPro News analysis

We view FTAI’s strategy of locking in guaranteed capacity at regional facilities as a highly effective bypass of the ongoing global engine maintenance bottleneck. Traditional original equipment manufacturer (OEMs) and major independent MRO facilities remain heavily backlogged, particularly for CFM56 and LEAP engine platforms. By partnering with established regional players like GMF and EgyptAir, FTAI secures dedicated slots without the capital burden of building greenfield facilities.

This asset-light approach allows FTAI to scale its module production rapidly to meet its 1,700-unit target for 2027. For GMF, the guarantee of baseline volume from a major lessor and asset manager provides revenue stability and justifies workforce retention and technical training investments. If FTAI can maintain quality control and consistent turnaround times across these decentralized nodes, this model could force other major lessors to rethink their reliance on centralized, heavily congested MRO hubs.

Sources: FTAI Aviation Ltd. Press Release