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GE Aerospace plans to invest $1 billion in its US manufacturing operations as the company moves to expand engine production and strengthen its defense capabilities amid surging global demand for aviation and military technology.

The investment will support manufacturing upgrades across 30 communities in 17 states and is part of a broader effort to increase production capacity for both commercial aircraft engines and defense systems. The company said the funding will accelerate engine deliveries while supporting long term growth across its aviation and military programs.

Strong airline travel demand and increased defense spending are driving the expansion. GE Aerospace CEO Larry Culp said the company is experiencing record levels of demand across both commercial aviation and military sectors, with total orders and commitments approaching $200 billion.

Airlines around the world are expanding fleets and modernizing aircraft to meet rising passenger demand, while governments are increasing defense spending in response to geopolitical tensions and modernization programs.

GE Aerospace is one of the largest manufacturers of aircraft engines globally and powers a significant portion of the world’s commercial aviation fleet.

The company’s engines support a large share of global flights each day, reflecting decades of investment in engine design, manufacturing and long term maintenance services. As airline travel continues to recover and expand, demand for new aircraft engines and replacement parts has grown rapidly.

Airlines are also investing in more efficient aircraft to reduce fuel consumption and operating costs. Newer engines are designed to improve fuel efficiency and lower emissions while increasing reliability.

To support these trends, GE Aerospace is expanding production capacity at several manufacturing facilities across the United States. The investment will fund new equipment, facility upgrades and advanced manufacturing technologies aimed at increasing engine output and improving supply chain efficiency.

Industry analysts say aircraft engine manufacturers are under pressure to increase production after supply chain disruptions slowed deliveries in recent years. As global air travel rebounds, engine makers are working to accelerate manufacturing while maintaining strict safety and quality standards.

Alongside commercial aviation, defense production represents a significant portion of GE Aerospace’s business.

Roughly one third of the company’s operations are tied to military programs, including engines used in fighter jets, helicopters and training aircraft. GE Aerospace systems power a large share of US military aircraft as well as platforms operated by allied nations.

Part of the $1 billion investment will be directed toward expanding defense manufacturing capacity and improving production timelines for military programs.

The company said $275 million of the investment will focus specifically on strengthening its defense production footprint. The funding is expected to support facility upgrades, manufacturing technologies and additional engineering capabilities.

Executives say these efforts are designed to ensure the company can meet rising demand from defense customers while maintaining reliable delivery schedules.

Governments across the world are increasing military spending as security concerns rise in several regions. Defense modernization programs often require advanced propulsion systems capable of supporting new aircraft platforms and mission requirements.

The manufacturing expansion will also support significant hiring across the company’s operations.

GE Aerospace plans to recruit around 5,000 new employees in 2026, matching the number of workers added during the previous year. The hiring program will focus on manufacturing specialists, engineers and technical professionals required to support growing production capacity.

Executives say workforce expansion is essential for sustaining long term growth as the aviation industry enters a new investment cycle.

Aircraft engine manufacturing involves highly specialized engineering and production processes that require skilled labor and advanced technical expertise. Expanding the workforce helps ensure that production levels can increase while maintaining strict quality and safety standards.

Industry forecasts suggest the global aviation sector will continue expanding through the next decade as passenger demand rises and airlines invest in newer aircraft fleets.

At the same time, defense programs are expected to remain a key driver of growth for aerospace manufacturers.

Sources

Fox Business