Industry Analysis & Industry Trends
The Global Civil Aerospace Products Manufacturing industry experienced turbulent conditions in the past five years, but escaped the crisis with minimal losses. IBISWorld estimates that industry revenue will increase by 3.0%per annum over the five years through 2011. Revenue is expected to grow 8.1% during 2011, reaching $141.6 billion. Strong revenue growth in 2006 and 2007 was primarily attributed to buoyant demand from developing countries in terms of demand for air travel and replacements in aircraft fleet. This created a strong backlog of orders for major producers, which gave them a beneficial position during the economic downturn.
The industry was slowed by the delayed delivery of the Boeing 787 Dreamliner. The first 787 delivery occurred in the third quarter of 2011. A.. read more
Industry Investment
A typical firm in the industry spends invest approximately $1.00 into plant and equipment, for every $3.30 is spent on labor. Start-up capital and on-going research and development expenses make this industry capital intensive and therefore contribute to its relatively high barrier to entry.
Investment in plant and equipment for aircraft and engine production was robust over the past five years with the launch of Airbus A380 and the current manufacturing of Boeing's new 787. New products launched by major players have a downstream effect on support manufacturers. In most cases, there are collaborations to ensure that component manufacturers can deliver products that fit aircraft specifications... read more