Industry Analysis & Industry Trends
The first Chinese-manufactured passenger aircraft was a mid-range ARJ-21, completed in 2007. In June 2009, Airbus delivered the first A320 aircraft manufactured in its Tianjin factory; it was the first to be completed by an Airbus factory outside Europe.
Over the five years through 2012, industry revenue has been increasing at an annualized rate of 13.6%. In 2012, the Aircraft Manufacturing industry is expected to maintain steady growth due to increasing demand from downstream airlines for aircrafts and repair services and the government for military and national defense aircraft. There has also been increased government support for Chinese aircraft manufacturers to research, develop and build large aircraft. Total revenue is set to increase 8.6% from 2011, to an estimated $27.4... purchase to read more
Industry Report - Industry Investment Chapter
Using depreciation as an indicator for capital, and wages (including management and research and development costs) as an indicator for labor, the capital-to-labor ratio is expected to be about 1:1.3 in 2012.
The manufacturing equipment of aircraft and its spare parts requires a large amount of capital, especially when some of the significant parts are heavily reliant on imports, which contributes to the capital-intensive nature of this industry. Additionally, advancements in mechanization and new technologies require a large amount of capital.
As aircraft are very high technology-intensive products, maintenance and repairing costs of aircraft are also high.
Research and development also contributes to the capital-intensive nature of this industry... purchase to read more