Florida’s aerospace suppliers face some of the most complex FX challenges in international business. With over 2,300 aerospace and aviation companies in the state, aerospace suppliers in Florida span commercial spaceflight, military aviation, MRO operations, and advanced manufacturing — many with multi-currency supply chains that create significant FX exposure on every transaction.

The state is the 6th largest export state in the US with $72.2 billion in Florida-origin exports — figures tracked by SelectFlorida as part of its annual Trade & FDI reporting. International companies — particularly from the UK, France, Germany, and Israel — are increasingly establishing Florida as their US operations hub.

For aerospace suppliers operating in Florida, the financial architecture is complex. Long-cycle contracts, multi-currency supply chains, milestone-based payment schedules, and government procurement all create FX exposure that, in a sector where margins are hard-won, requires active management.

Where aerospace and defence suppliers lose money on FX

Supply chain payments across multiple currencies

Aerospace suppliers in Florida — particularly those with a European parent company and suppliers in the UK, Germany, and Japan — are managing at minimum three currency pairs on a recurring basis.. Each conversion at a bank’s retail rate, rather than the interbank rate, costs between 1% and 2.5% per transaction. On a $2 million monthly supply chain spend, that is $20,000–$50,000 a month in unnecessary cost.

Contract pricing mismatches

Aerospace contracts are typically priced in USD for US government and prime contractor work. For international suppliers whose costs are denominated in GBP or EUR, a contract priced in USD today may look very different in margin terms twelve months from now if the exchange rate moves. A forward contract that locks in the conversion rate at the time of signing protects the margin for the duration of the programme.

Milestone payment timing

Aerospace programs are payment-milestone driven. When a milestone payment arrives in USD but needs to be converted to fund EUR or GBP costs, the conversion happens at whatever the spot rate is that day. Companies that convert reactively — whenever cash arrives — typically achieve worse average rates than those that use forward planning and rate-alert tools.

Offset and industrial participation obligations

Defense contracts frequently include offset or industrial participation obligations that require payments to suppliers in specific countries and currencies. Managing these obligations through a standard bank account creates unnecessary FX cost and administrative complexity.

What good FX management looks like for aerospace suppliers

The most effective approach combines three elements: a clear picture of all currency exposures by program, a hedging strategy calibrated to contract length and margin sensitivity, and a payment platform that can execute efficiently across the currencies involved.

This does not require a treasury department. It requires the right tools and the right partner. A forward contract program matched to your program schedule can lock in your cost base for six to twenty-four months at a time, removing currency risk from your margin calculation entirely.

Nextpay Global in the aerospace and defense sector

We work with aerospace suppliers across Florida and across the US. Our platform — backed by Corpay’s global payment network — supports multi-currency payments across 40+ currencies, forward contracts for margin protection, and rate alert tools that let your finance team respond quickly when market conditions are favorable.

Our Central Florida team understands the payment rhythms of the aerospace and defence sector: milestone schedules, long programme cycles, and the compliance requirements of government contracting. We work alongside your finance team to build a payment structure that fits your programs, not a generic template.

Start with a Free FX Review — a demonstration of our platform combined with a benchmarking analysis of your current payment arrangements. No obligation, and typically 60 minutes.