Weak prices and slow demand have hurt aircraft manufacturers.
Melbourne, Australia (PRWEB) February 17, 2013
The Aircraft Manufacturing industry hit turbulence over the past five years, largely due to circumstances outside of the industry's control. Disturbances included strikes in overseas manufacturing facilities and extended delays of new aircraft, for which Australian operators provide parts. Exports are primarily sent to the United States (Boeing) and France (Airbus). Australian parts are some of the key features of the Airbus A380 and the Boeing 787 Dreamliner. According to IBISWorld industry analyst Ryan Lin, “industry revenue is anticipated to increase mildly over 2012-13 as recovered domestic demand from the commercial sector coincides with falling demand from the Federal Government”.
Despite the tough economic conditions for much of the world following the economic crisis, the industry benefited somewhat from high order backlogs with the main aircraft manufacturers around the globe. “However, over the past five years the industry faced stagnant output prices, increasing input costs and weak domestic demand”, says Lin. On top of that, the Australian dollar continued to grow in strength, making imports cheaper and increasing the price of exports. Industry revenue is expected to have declined as a result.
The Aircraft Manufacturing industry is expected to strengthen in the next five years as global conditions improve and airlines upgrade their fleets. However, slow government defence spending is expected to contribute to subdued industry revenue growth. The industry became more concentrated over the past five years, but over the next five, lower competition and the mature domestic market are expected to keep rising concentration at bay. As such, the major players – Boeing Australia Holdings Pty Ltd, BAE Systems Australia Holdings Limited and Australian Aerospace Limited – are expected to continue to account for a moderate share of the industry.
For more information, visit IBISWorld’s Aircraft Manufacturing report in Australia industry page.
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IBISWorld industry Report Key Topics
The industry includes businesses that manufacture aircraft and aircraft engines and frames used for civilian and military purposes. Industry services also include guided missile manufacturing, aircraft maintenance, repair and overhaul (MRO).
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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