Aircraft, Engine and Parts Manufacturing in the US Industry Market Research Report from IBISWorld has Been Updated
Revenue will rise steadily in the next five years as consumers resume air travel and airlines renew their fleets again. For these reasons, industry research firm IBISWorld has updated a report on the Aircraft, Engine and Parts Manufacturing industry in its growing industry report collection.
Los Angeles, CA (PRWEB) January 21, 2013
Despite record-high fuel prices, airlines across the globe have a ravenous need to renew or expand fleets. The Aircraft, Engine and Parts Manufacturing industry feeds this hunger through introducing products like fuel-efficient planes, including the Boeing 787 Dreamliner, released in September 2011. Passenger aircraft tell only half the story, though: Strong sales to allied forces have taken military aircraft all over the world. “The war against terrorism, the introduction of the Joint Strike Fighter jet and the rising popularity of unmanned aerial vehicles have supported the industry’s military segment,” says IBISWorld industry analyst Josh McBee. In 2012 alone, revenue is expected to increase 2.2% and total an estimated $163.6 billion.
Even with full order books, delays in producing the 787 Dreamliner and a drop in demand for support parts in optional repairs and overhauls have hurt the Aircraft, Engine and Parts Manufacturing industry since 2007. “A significant downturn in the air transportation industry during 2008 reduced demand for commercial aircraft, causing the cancelation of some existing orders,” adds McBee. “Those woes persisted for the industry through 2010, with subsequent losses contributing to an overall decline in the industry’s five-year performance.” IBISWorld expects the opposing forces of strong military demand contrasted against weak civil demand to offset each other and result in overall marginal losses of 0.8% per year on average during the five years to 2012.
The industry has a medium level of market share concentration. In the commercial aircraft segment, Boeing dominates the industry; excluding the production of aircraft, all parts and components are outsourced by the aircraft manufacturer. The costs associated with manufacturing aircraft and components are very high, and contracts are usually awarded to existing players in similar fields or in countries that have negotiated large aircraft orders. Likewise, a few large firms dominate the production of military aircraft products and parts for the US government. Large companies specializing in defense products submit bids that detail proposed technical solutions and designs and cost estimates to win government contracts. Once approved, these large firms may subcontract with smaller firms to produce specific systems and parts for their vehicles. Consequently, the main contractors earn the majority of revenue. Market share concentration is forecast to increase as the largest companies, including major players United Technologies Corporation, Lockheed Martin and Northrop Grumman, continue growth through mergers and acquisitions.
Aircraft manufacturers in the United States are set to enjoy a strong future. A high backlog of orders will pay dividends for industry players and help revenue grow through 2017. Technological improvements will drive growth in manufacturing aircraft, engines and parts through the next five years, with enhancing fuel efficiency as the industry’s primary goal. While federal funding for defense will slow in the future based on a projected reduction in military involvement overseas, passengers returning to commercial flying will lead to consistent growth in demand from domestic and foreign airlines. For more information, visit IBISWorld´s Aircraft, Engine and Parts Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
Businesses in this industry manufacture and overhaul complete aircraft, develop prototypes and convert aircraft. The industry also includes aircraft engine and propulsion system manufacture, conversion and overhaul. Additionally, the industry makes related parts and auxiliary equipment. For information on guided missiles, space vehicles and related equipment, see IBISWorld report 33641b Space Vehicle and Missile Manufacturing.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation´s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2013/1/prweb10339456.htm