Aircraft, Engine & Parts Manufacturing in Canada Industry Market Research Report from IBISWorld Has Been Updated
Los Angeles, CA (PRWEB) December 05, 2013 -- The Aircraft, Engine and Parts Manufacturing industry has experienced turbulence in the five years to 2013. The global recession caused demand for air travel to decrease, as fewer people could afford to fly and businesses spent less, which resulted in demand for aircraft, engines and parts declining. In turn, the revenue of this export driven industry plummeted. However, the global economic recovery, led by emerging market growth, restored the level of worldwide air travel and, subsequently, demand for industry products began to increase, partially offsetting earlier losses. In the five years to 2013, IBISWorld expects that industry revenue will decline, with a significant jump in 2013 alongside strong foreign demand.
According to IBISWorld Industry Analyst Maksim Soshkin, “The recession caused global economic activity to halt, with the value of world trade, a barometer of interactions between nations, people and businesses, declining in 2009.” When combined with declining consumer incomes and spending, this caused global tourist arrivals, a measure of international air travel, to drop within the same year. Consequently, airlines and businesses held off or cancelled aircraft orders, which in turn caused industry revenue to plunge. However, due to strong growth in emerging economies, demand for air travel rebounded, with global tourist arrivals rising in the five years to 2013. As a result, demand for aircraft and parts began to grow, with revenue rising each year since 2011 and exports nearly recovering. Nonetheless, slow economic growth in Canada and other developed countries tempered industry recovery.
The Aircraft, Engine and Part Manufacturing industry exhibits a moderate level of market concentration. “In 2013, the top four players are estimated to account for more than 50.0% of industry revenue,” says Soshkin (see IBISWorld report 33641aCA for major player market shares). In the past five years concentration only slightly increased because the recession caused revenue declines at major companies, including Bombardier. However, concentration is forecast to increase as sales recover. In the five years to 2018, IBISWorld forecasts that industry revenue will increase. Continued economic growth in emerging economies will push demand for aircraft as airlines increase their fleets to meet growing demand and businesses need jets to conduct business abroad. Additionally, as the world price of crude oil (fuel is a major expense for airlines) rises and environmental regulations get more stringent, demand for the industry's newest, cleanest and more fuel-efficient aircraft and engines will grow. Furthermore, these trends, as well as an aging aircraft fleet in the developed world, will drive demand for replacement aircraft.
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IBISWorld industry Report Key Topics
This industry's firms provide one or more of the following: the manufacture of complete aircraft; the manufacture of aircraft engines, propulsion units and other related equipment or parts; develop and make prototypes of aircraft; aircraft conversions (i.e. major modification to systems); and complete aircraft overhaul and rebuilding (i.e. periodic restoration of aircraft to original design specifications).
Industry Performance
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Globalization & Trade
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Major Companies
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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 and Canadian 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.
Gavin Smith, IBISWorld Inc., http://www.ibisworld.com, +1 (310) 866-5042, [email protected]
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