People often ask me why I’ve chosen to stay involved with CTL Aerospace, especially during a time when the company is facing significant challenges. The truth is, I could be doing a lot of other things—more lucrative work of a much higher profile, more socially visible roles, or ventures with less resistance.  As someone told me this past week, I’m too talented to waste my key income years on hopeless crusades.  But I don’t measure value in dollars alone. I measure it in independence, in impact, and in the preservation of something uniquely American: privately held ownership. CTL Aerospace in West Chester, Ohio is a Tier 2 supplier, and that position in the supply chain is not just operational—it’s strategic. It’s where innovation meets execution, and where long-term thinking still matters. In an industry increasingly dominated by public ownership and institutional investors, CTL represents a rare and vital piece of our national infrastructure that still answers to its owners, not to shareholders chasing quarterly returns.

My involvement is rooted in a belief that private ownership is essential to the health of American aerospace and defense. When companies go public or fall into the hands of investment firms, they often lose their soul. Decisions get made by boards, not builders. Products get rushed to market, not refined through years of R&D. And the personal accountability that comes from direct ownership disappears. In aerospace, where development cycles span decades and reliability is non-negotiable, this shift is dangerous. You can’t trade supply chain integrity like a stock. You can’t outsource stewardship. And you certainly can’t afford to lose the kind of long-term commitment that privately held companies bring to the table. That’s why I fight for Tier 2 suppliers—because it’s where the real work happens, and where the future of American capability is quietly being decided.

This isn’t just about CTL. It’s about a broader economic trend that’s squeezing out private owners across industries—from aerospace to agriculture. Just like family farms are taxed out of existence and sold off to developers, small and mid-sized manufacturers are being pressured to sell to conglomerates and investment firms. The result is a loss of continuity, a dilution of expertise, and a breakdown in the relationships that make supply chains resilient. When you call a privately owned company, you talk to someone who knows your name, your order, and your expectations. When you call a publicly traded one, you get an intern while the investors are off playing golf. That erosion of personal investment is a catastrophe for our market economy. So when people ask me why I associate myself with CTL Aerospace, I tell them it’s because this fight—this defense of Tier 2 suppliers—is one of the most important stories in America today. It’s about protecting the kind of ownership that built this country, and ensuring it still has a place in the industries that will define our future.

In the shadows of America’s aerospace resurgence lies a quiet but critical battle—one that could determine the future of our industrial independence, national security, and economic resilience. At the heart of this fight are the Tier 2 suppliers: the specialized, often family-owned or privately held companies that manufacture the complex, high-precision components essential to modern flight. These firms are now under siege—not by foreign competitors, but by a coordinated squeeze from financial institutions and private equity firms seeking to consolidate, control, and commoditize a sector that was never meant to be run like a hedge fund.

The Strategic Role of Tier 2s

Tier 2 suppliers like CTL Aerospace in West Chester, Ohio are the connective tissue of the aerospace supply chain. They produce composite nacelles, thrust reversers, engine components, and structural assemblies that Tier 1s and OEMs depend on to meet FAA certification standards and delivery schedules. These are not interchangeable parts. They require decades of engineering expertise, proprietary tooling, and a workforce trained in the art of precision manufacturing.

With the FAA mandating lighter, more fuel-efficient aircraft, the demand for advanced composites has surged. Programs like the GE9X and LEAP engines require vast quantities of carbon fiber sandwich structures—components that only a handful of Tier 2s can produce at scale. Yet, despite their strategic importance, these firms are vanishing.

A Shrinking Ecosystem

According to Deloitte and other industry outlooks, independent Tier 2 suppliers now make up less than 15–20% of the mid-tier aerospace pool—a dramatic decline from a decade ago. The rest have been acquired, merged, or shuttered under pressure from banks and consolidators. The pandemic accelerated this trend, exposing the fragility of just-in-time supply chains and the vulnerability of undercapitalized firms.

Private equity firms like Arcline, AE Industrial, and others—have seized on this moment. M&A activity in aerospace surged from $218 billion in 2024 to projections of $382 billion by 2030, with a disproportionate focus on Tier 2s. Their strategy is clear: acquire specialized suppliers, vertically integrate them into larger portfolios, and feed the Boeing and Airbus backlog without the regulatory headaches of organic growth.

The Financial Squeeze Play

The playbook is ruthless but effective. Financial institutions—Wells Fargo among them—tighten liquidity through covenant manipulation, triggering technical defaults or cash flow crises. This artificially depresses the company’s market value, making it ripe for acquisition. Once the target is weakened, PE firms swoop in with lowball offers, often backed by the very banks that created the distress.

Why This Matters to America

This is not just a business story. It’s a national security issue. The United States cannot afford to lose its independent manufacturing base—not when global tensions are rising, supply chains are under strain, and aerospace remains one of our last great industrial strongholds.

If Tier 2s are absorbed into opaque financial structures, we lose visibility, agility, and control. We risk turning our aerospace sector into a brittle, over-leveraged system where decisions are made in boardrooms, not shop floors. The ability to respond to military needs, commercial surges, or technological shifts will be compromised.

A Path Forward: Defense Through Independence

The solution is not to resist change, but to reassert control. Independent Tier 2s must:

• Form strategic alliances with OEMs or Tier 1s that respect their autonomy.
• Pursue minority investments from family offices, aerospace-focused VCs, or patriotic capital sources that don’t demand board control.
• Implement governance defenses like staggered boards or poison pills to deter hostile takeovers.
• Audit and challenge predatory lending practices, potentially invoking antitrust or shareholder protections.

The Optimistic Case

Despite the pressure, there is reason for hope. The scarcity of capable Tier 2s makes them more valuable than ever. OEMs are desperate for reliable partners who can scale without compromising quality. Investors are beginning to recognize that long-term value lies not in flipping assets, but in building enduring capabilities.

If we can hold the line—if we can resist the short-termism of Wall Street and the opportunism of consolidation—we can emerge stronger. We can preserve the independence, innovation, and integrity that made American aerospace the envy of the world.

A Call to Action

To policymakers, regulators, and industry leaders: this is your moment. Protect the Tier 2s. Investigate the lending practices that are hollowing out our industrial base. Support capital structures that reward stewardship, not speculation.

To investors: look beyond the spreadsheet. Understand the strategic value of independence in a world where resilience is the new ROI.

To our peers in the industry: stand together. Share intelligence, form coalitions, and defend the middle tier. The future of aerospace depends on it.

Rich Hoffman

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